2024
Annual Report
Sayona Annual Report 2024
2
01
Overview
4
About Sayona
5
Our Performance
6
Chief Executive Officer’s Review
7
Contents
02
Operating and Financial Review
9
Sayona at a Glance
10
Our Strategy
12
Review of Financial Performance
14
Review of North American Operations and Projects
16
Review of Australian Operations and Projects
26
People and Culture
30
Sustainability
34
Environmental Governance
36
Social Responsibility
38
Risk Management
41
03
Governance
45
Board of Directors
46
Executive Leadership Team
48
Directors' Report
49
Remuneration Report
53
Auditor’s Independence Declaration
73
04
Financial Report
74
Consolidated Statement of Profit or Loss
75
Consolidated Statement of Comprehensive Income
75
Consolidated Statement of Financial Position
76
Consolidated Statement of Changes in Equity
77
Consolidated Statement of Cash Flows
78
Notes to the Financial Statements
79
Consolidated Entity Disclosure Statement
117
Directors' Declaration
118
Independent Auditor's Report
119
05
Additional Information
124
Mineral Resources and Ore Reserves
125
Tenement Schedule
128
Shareholder Information
131
Glossary
133
Corporate Directory
138
Sayona Annual Report 2024
3
01 Overview
Sayona Annual Report 2024
4
About Sayona
Sayona Mining Limited is an ASX 300 listed company with a vision to support global
decarbonisation 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.
About this Report
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 2024, and its
financial position as at 30 June 2024. 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 contains a summary of our
Environmental, Social and Governance activities and our Corporate
Governance Statement can be viewed at sayonamining.com.au.
Forward-Looking Statements
Forward-looking statements are based on current expectations
and beliefs and, by their nature, are subject to a number of known
and unknown risks and uncertainties that could cause the actual
results, performances and achievements to differ materially from any
expected future results, performances or achievements expressed
or implied by such forward-looking statements, including but not
limited to, the risk of further changes in government regulations,
policies or legislation; the risks associated with the current joint
venture with Piedmont Lithium; the risks that further funding may
be required, but unavailable, for the ongoing development of the
Company’s projects; fluctuations or decreases in commodity prices;
uncertainty in the estimation, economic viability, recoverability and
processing of mineral resources; risks associated with development
of the Company's projects; unexpected capital or operating cost
increases; uncertainty of meeting anticipated program milestones at
the Company’s projects; risks associated with investment in publicly
listed companies, such as the Company; and risks associated with
general economic conditions.
Subject to any continuing obligation under applicable law or relevant
listing rules of the ASX, the Company disclaims any obligation
or undertaking to disseminate any updates or revisions to any
forward-looking statements in this Release to reflect any change
in expectations in relation to any forward-looking statements or
any change in events, conditions or circumstances on which any
such statements are based. Nothing in this Release shall under
any circumstances (including by reason of this Release remaining
available and not being superseded or replaced by any other Release
or publication with respect to the subject matter of this Release),
create an implication that there has been no change in the affairs of
the Company since the date of this Release.
The distribution of this presentation in other jurisdictions outside
Australia may also be restricted by law and any restrictions should
be observed. To avoid doubt, this presentation is not for distribution
or dissemination within Canada. Any failure to comply with such
restrictions may constitute a violation of applicable securities laws.
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.
Sayona is an emerging leader
in the supply of lithium to
North America and are actively
contributing to the electrification
of transport and the fight against
climate change.
Sayona Annual Report 2024
5
Our Performance
Harnessing potential: achieving production milestones
and expanding resources
Operations
Production
155,822
dry metric tonnes
produced in FY24, with record monthly
production of 19,314 dmt achieved in
May 2024
157,937
dry metre tonnes
sold to offtake and international customers
Crushed Ore Dome complete
and contributing to higher mill utilisation,
improved recovery and increased production
Corporate
Lucas Dow joins Board
as Non-Executive Director and then appointed
Managing Director and Chief Executive Officer
(post year-end)
Philip Lucas joins Board
as Non-Executive Director
Committees established
Audit and Risk Committee, and Nomination
and Remuneration Committee
Dougal Elder appointed
as Chief Financial Officer
Exploration
Highly successful
drilling programs completed at NAL
and Moblan
Increased Mineral
Resources
at NAL and Moblan (post year-end)
Financial
Revenue
A$201 million
reflecting ramp-up of NAL operation
Capital Investment
A$128 million
into ramp-up and optimisation projects at
NAL and exploration drilling programs at
NAL and Moblan
Cash
A$91 million
as at 30 June 2024, underpinning solid
financial position
Sayona Annual Report 2024
6
Chief Executive Officer’s Review
Dear Shareholders,
I am pleased to present the 2024 Chief
Executive Officer's Review, celebrating a
year of strong operational performance
and remarkable achievements at Sayona,
particularly at our North American Lithium
(NAL) operation. The past year has
focussed on delivery and performance
driven by our commitment to operational
excellence, strategic foresight, and
innovative practices. Our NAL operation
has been the centrepiece of this focus,
achieving strong results across key
technical indicators.
Safety and Sustainability
While the year was free from fatalities, we still have significant room
for improvement in our safety performance. Safety and sustainability
are at the heart of our operations, and a relentless focus on health,
safety, and environmental management will be hallmarks of the year
ahead. Our safety programs and initiatives are moving us in the right
direction, and the well-being of our employees and stakeholders will
continue to be a priority as we grow. Our commitment to sustainable
practices ensures that we minimise our environmental impact while
maximising the benefits to the communities in which we operate.
A Year of Strong Performance
Our NAL operation has set new benchmarks in the lithium industry,
showcasing our capability to rapidly transform potential into
production. The successful restart of spodumene concentrate
production in March 2023 marked a significant milestone, reflecting
our ability to successfully execute complex projects. Throughout the
year, NAL demonstrated its operational capability. The September
2023 quarter saw production of 31,486 dmt, with subsequent
quarters incrementally improving upon this performance. By the
end of June 2024 quarter, we achieved a record 49,660 dmt of
concentrate production, driven by optimised plant operations and
strategic infrastructure projects. Since production recommenced
NAL has produced nearly 190,000 tonnes of concentrate.
It is not by chance that the NAL operation is delivering better results
than it has previously under different ownership, as the Sayona
team is doing things differently than in the past. In the mine, we are
focussed on selective mining to minimise dilution and improve the
quality of the ore presented to the process plant. This has the added
benefit of reducing the volume of waste material that has in the past
contributed to high iron levels in concentrate product. Consequently,
customers are readily accepting NAL concentrate without penalties
or issues regarding iron content or other impurities. Mill feed has
also been improved with the optimisation of ROM pad and stockpile
operations, which have delivered a more consistent and clean feed to
the process plant.
The operational team are continuing to look for further efficiencies
and cost reductions in areas such as waste rock haulage, mining
costs, optimised plant maintenance planning and overheads.
Seaborne freight is an area of focus in the upcoming year with the
pooling of shipments to take advantage of lower unit freight costs for
larger cargoes. Concurrently, we have negotiated improved offtake
and contract terms with new customers with options to reduce
quotational period adjustments that have previously had material
impacts on average realised selling prices.
The Crushed Ore Dome and Tailings Storage Facility 1 projects have
been crucial in stabilising plant operations and increasing plant
throughput. In particular, the Crushed Ore Dome has delivered much
improved reliability of feedstock to the plant, which has seen plant
utilisation lift from mid-70% to over 90% in recent months. Increased
run time in the process plant directly delivers higher throughput and
production but also has a multiplier effect with higher recovery due to
improved flotation circuit stability. Lithium recovery is now just under
70%, and the operational team continues to investigate options to
deliver further improvements.
Our exploration efforts at NAL will
be critical to our future success.
The 2023 drilling campaign
completed 172 drillholes and
wedges totalling 48,077 metres.
These efforts confirmed high-grade lithium mineralisation across
multiple extensions to the previously known orebody. We plan
to undertake a further 30,000 metres of drilling throughout 2024
to explore the full potential of the NAL mineralisation. Recently,
we announced a 51% increase in the MRE at NAL to 88Mt,
demonstrating the potential for an expansion of production in
the future. In conjunction with our joint venture partner, we will
further investigate this as a future growth option that would be
relatively low capital intensity, simpler permitting, and faster to
market than a comparable greenfield project.
Sayona Annual Report 2024
7
Chief Executive Officer’s Review continued
Moblan Lithium Project
The Moblan Lithium Project has emerged as a significant asset in our
portfolio, with substantial progress made through extensive drilling
campaigns. Drilling at Moblan has confirmed the high-grade and
extensive nature of the lithium deposit. The 2023 drilling program,
which included 386 new drillholes totalling 75,022 metres, aimed
at testing extensions to mineralisation and providing in-fill data
for upgrading resource categories. The drilling results suggest a
connection between the Main, South, New South, Inter, and Moleon
sectors, indicating a single, extensive lithium mineralised system.
This connection is supported by high-grade lithium mineralisation
outside the current Mineral Resource Estimate (MRE) pit shells,
particularly in the Inter Zone area. Subsequent to the year-end, we
completed an updated MRE, which has seen the resource grow
by 81% to 93Mt, confirming the high quality of this resource.
Based on our improved understanding of the deposit, we plan
to undertake a further 70,000 metres of drilling throughout 2024
with the aim of testing the extent of mineralisation and upgrading
resource categories.
Early in 2024, we completed
a Definitive Feasibility Study
for Moblan based on annual
production of 300,000 tonnes
per annum.
With high-grade mineralisation and favourable geology, the study
outlined a low strip ratio of 2.3:1, which supports operating costs
that will be among the most competitive in the world. Further work
will now be undertaken to outline a development concept with a
downstream strategic partner and focus on improving the economics
of the Moblan upstream project.
Western Australia
Work during the year has focussed on exploration at the Tabba
Tabba project, aiming to identify strike extensions immediately south
of recent discoveries by Wildcat Resources at the Leia and Luke
pegmatite systems. Our efforts have included geochemical sampling,
air-core drilling, gravity surveying, and RC drilling, which have further
refined the potential for discovering additional mineralisation.
Financial and Strategic Management
Robust financial management has been a cornerstone of our
operational success. Strategic funding in 2023 has been instrumental
in accelerating the development of our portfolio of lithium assets.
Our prudent financial strategies have ensured that we have the
necessary capital to support the initial development activities of
ongoing and future projects. This financial strength has enabled us
to make significant investments in infrastructure, technology, and
exploration, laying a solid foundation for long-term growth
and stability.
Governance
During the year, Sayona took several steps to improve the skills
and experience on the Board and advance the company’s corporate
governance practices. The Board was strengthened with
the addition of two independent directors, Philip Lucas and myself
in August 2023 and February 2024, respectively. In July 2024,
I was appointed to the role of Managing Director and Chief
Executive Officer.
The Board also established the Audit and Risk Committee and
the Nomination and Remuneration Committee to further strengthen
our corporate governance practices.
We intend to continue to bolster the leadership team and progress
the Board renewal process in the year ending June 2025.
Looking Ahead
As we look to the future, Sayona is poised for continued growth and
success. Our strategic focus on developing an integrated lithium
business in Québec, supported by our world-class assets at NAL and
the Moblan Lithium Project, positions us to capitalise on the growing
demand for lithium in the global market. The clean energy transition,
driven by critical minerals such as lithium, is gaining momentum
and Sayona is well-positioned to play a leading role in this revolution.
We are excited about the opportunities that lie ahead and remain
committed to delivering exceptional value for our shareholders. With
your continued support, we are confident that Sayona will continue to
thrive and contribute significantly to the global clean energy future.
In conclusion, the past year has been one of noteworthy achievement
and progress for Sayona. Our outstanding operational performance
at North American Lithium, driven by strategic initiatives, operational
excellence, and robust financial management, has positioned us as
a leader in the North American lithium industry. We are proud of our
accomplishments and look forward to building on this success in the
coming years.
Thank you for your unwavering support and confidence in our vision.
Sincerely,
Lucas Dow
Managing Director
and Chief Executive Officer
Sayona Annual Report 2024
8
02 Operating and
Financial Review
Sayona Annual Report 2024
9
Sayona at a Glance
Eeyou Istchee James Bay Hub
Lac Albert Lithium Project (100%)
Stage: Early stage
Product: Spodumene concentrate
Moblan Lithium Project (60%)
Stage: Studies
Product: Spodumene concentrate
Troilus Claims (100%)
Stage: Early Stage
Product: Spodumene concentrate
Abitibi-Témiscamingue Hub
North American Lithium (75%)
Stage: Production
Product: Spodumene concentrate
Authier Lithium Project (75%)
Stage: Studies
Product: Spodumene concentrate
Pontiac Claims (75%)
Stage: Early Stage
Product: Spodumene concentrate
Tansim Lithium Project (75%)
Stage: Early Stage
Product: Spodumene concentrate
Vallée Lithium Project (18.75%)
Stage: Early Stage
Product: Spodumene concentrate
Montréal
Office
Sayona Annual Report 2024
10
Pilbara Projects
Morella Lithium Joint Venture (49%)
Stage: Exploration
Product: Spodumene concentrate
WA Lithium (100%)
Stage: Exploration
Product: Spodumene concentrate
WA Gold (100%)
Stage: Exploration
Product: Gold
Corporate
Head Office
WA Graphite (100%)
Stage: Early Stage
Product: Graphite
Sayona Annual Report 2024
11
Our Strategy
Producing minerals critical to the electrification transition.
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 global
decarbonisation 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 focussed on five key pillars
which shape the decisions and activities
required to achieve our purpose:
Optimise operations
Maximise returns and cash flow by sustainably
optimising our operations.
Expand resource base
Expand known mineral resources, and continue
value accretive exploration.
Develop assets
Rapidly develop upstream assets and pursue
value accretive growth options.
Integrate downstream
Evaluate partnering and JV opportunities
for downstream integration.
Strategic partnerships
Develop strategic partnerships to lock-in demand,
provide access to end markets, and accelerate
development of our portfolio.
Sayona Annual Report 2024
12
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.
Act transparently
Act to ensure
the Company’s
sustainability
Act in harmony with
host communities
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
Our Guiding Principles
Our Values
Sayona Annual Report 2024
13
Review of Financial Performance
2024 was a milestone year for Sayona. The Company
progressed the ramp-up of production at North American
Lithium and generated maiden revenues from the sale of
spodumene concentrate from North American Lithium.
Sayona continued the strategic capital investment
program in its mineral resource base in Québec as well
as capital improvements to the operating infrastructure
at North American Lithium.
Sayona ended the financial year in a solid financial
position as NAL approached steady state operations.
Sayona Annual Report 2024
14
Key Data
Revenue
A$201 million
Revenue for the year ended
30 June 2024
Cash Flows from Operations
(A$65) million
Net cash flows from operating activities
for the year ended 30 June 2024
Cash
A$91 million
Cash and cash equivalents of the
Group as at 30 June 2024
Underlying EBITDA
(A$54) million
Underlying EBITDA for the year ended
30 June 2024
Capital Investment
A$128 million
Total capital investment for the
year ended 30 June 2024
Net Assets
A$796 million
Net assets of the Group as at 30 June 2024
FY24
FY23
FY22
FY21
FY20
Total revenue ($M)
201
–
–
–
–
Profit/(loss) after income tax ($M)
(119)
(10)
74
(4)
(5)
Net cash flows from operating activities ($M)
(65)
(66)
(14)
(11)
(4)
Cash and cash equivalents ($M)
91
211
185
36
1
Total assets ($M)
953
1,010
661
72
22
Total liabilities ($M)
157
136
101
4
1
Net assets ($M)
796
873
561
68
21
Basic earnings per share (cents)
(0.99)
(0.13)
0.76
(0.13)
(0.26)
Dividends paid (cents per share)
–
–
–
–
–
Closing share price at 30 June ($)
0.036
0.175
0.15
0.087
0.0068
Market capitalisation ($M)
371
1,757
1,238
468
17
Annual total shareholder return (%)
(79)
17
72
1,179
(15)
Key Financial Metrics
Sayona Annual Report 2024
15
Review of North American
Operations and Projects
Review of North American
Operations and Projects
Sayona boasts an impressive portfolio
of projects in Québec, spanning from
exploration and development to production,
solidifying its position as a key player in
the North American lithium industry.
Sayona Annual Report 2024
16
Lac Albert Lithium Project
Authier Lithium Project
Tansim Lithium Project
Québec
City
Montréal Office
North American Lithium
Vallée Lithium Project
Moblan Lithium Project
Troilus Claims
250km
Eeyou Istchee James Bay Hub
Abitibi-Témiscamingue Hub
Québec
NEWFOUNDLAND
NEW BRUNSWICK
USA
Lithium
Office
Port
Hudson Bay
Pontiac Claims
Overview
Sayona Annual Report 2024
17
Abitibi-Témiscamingue Hub
North American Lithium
Overview
North American Lithium (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.
FY24 in Review
Sayona has made significant strides at its North American Lithium
operations over the past year, as we move towards completion
of ramp-up. The successful restart of spodumene concentrate
production in March 2023 marked a pivotal milestone, demonstrating
the Company’s capability to execute complex projects. By
August 2023, Sayona achieved another milestone with the first
shipment of spodumene concentrate to the international lithium
market, accomplished in under two years since acquiring NAL.
Throughout the year, plant operations have continued to improve with
the successful completion and commissioning of key infrastructure
projects, including the Crushed Ore Dome and Tailings Storage
Facility 1 and other mill projects providing redundancy and improving
recovery. These projects have been instrumental in stabilising plant
utilisation and supporting higher production.
Safety and Sustainability
Throughout the restart and subsequent operations, Sayona maintained
a strong focus on health, safety, and environmental management.
During the year we implemented a comprehensive Health and Safety
Management System designed to identify, assess, and mitigate risks
associated with our mining operations. This system includes regular
safety audits, risk assessments, and the implementation of best
practices to ensure a safe working environment.
Additionally, continuous safety training programs are conducted
for all employees and contractors. These programs cover a wide
range of topics, including hazard identification, emergency response,
and safe operating procedures. By fostering a culture of safety
awareness, we aim to empower our workforce to prioritise safety
in all their activities.
Throughout the restart
and subsequent operations,
Sayona maintained a strong
focus on health, safety, and
environmental management.
We have established a robust incident reporting and investigation
process to ensure that all safety incidents, near-misses, and hazards
are promptly reported and thoroughly investigated. This process
helps us identify root causes and implement corrective actions
to prevent recurrence. Regular monitoring and reporting of safety
performance metrics are conducted to track our progress and
identify areas for improvement. Key performance indicators (KPIs)
such as incident rates, lost-time injuries, and safety audit findings are
reviewed regularly to ensure continuous improvement.
In addition to occupational safety, we place a strong emphasis on
environmental safety and community well-being. Environmental
monitoring programs are in place to minimise the impact of our
operations on the surrounding environment. We also engage with
local communities to address their safety concerns and ensure that
our activities do not adversely affect their health and safety.
Ore Mined
1,131,667 wmt
Spodumene Concentrate Produced
155,822 dmt
Revenue
A$201 million
JORC Mineral Resource (at 1.13% Li2O)
88Mt
Sayona Annual Report 2024
18
Operational and Financial Performance
Total production for the year reached 155,822 dry metric tonnes
(dmt) of spodumene concentrate. This resulted in sales of
157,937 dmt, generating total revenue of A$201 million and
reflecting strong market acceptance of concentrate from NAL.
The average realised selling price for spodumene concentrate
was A$1,272 per dmt, with a unit operating cost (FOB) of
A$1,417 per dmt. Initiatives have been implemented that are
expected to see improvements in both realised selling price and
unit operating cost with the aim of ensuring the long-term financial
viability of NAL.
Early procurement of critical long-lead items and strategic
partnerships with Québec-based companies for mining operations
and material handling have been instrumental in achieving the steady
production ramp-up that has delivered above nameplate monthly
production of 19,314 dmt in May 2024 and record daily production of
919 dmt in June 2024.
Significant infrastructure projects, such as the Crushed Ore
Dome and Tailings Storage Facility 1, and other projects providing
redundancy were crucial in stabilising plant operations, improving
recovery to 68% and mill utilisation to 83% in the June quarter
and delivering increased production capacity. New initiatives such
as the C-150 Jaw Crusher will provide even greater redundancy
in operations and further increase plant stability and production
volumes.
Exploration
A targeted drilling program aimed at resource conversion and
exploration contributed to an expanded resource base, providing
a solid foundation for sustained production growth. Highlights
include new high-grade intercepts and extended mineralisation in the
North-West and South-East extensions outside the Mineral Resource
estimate (MRE) pit shells as well as demonstrating continuity and
consistency in grade and thickness within the MRE shell.
The 2023 drilling campaign completed 172 drillholes and wedges
totalling 48,077 metres.
Subsequent to year end, a new MRE was completed which
incorporated new drilling information and resulted in a JORC Mineral
Resource of 87.9Mt at 1.13% Li2O at a cut-off grade of 0.6%.
FY25 Outlook
We are well into drilling a further 30,000 metres which will be
completed by the end of 2024 and will further test the full potential
of the NAL mineralisation. To end of June 2024, 29 new drillholes
have been completed for 9,282 metres. Results have continued to
demonstrate extensions of high-grade mineralisation of significant
intercept thickness.
0
10,000
20,000
30,000
40,000
50,000
60,000
3,510
Q3FY23
29,610
Q4FY23
31,486
Q1FY24
34,237
Q2FY24
40,439
Q3FY24
49,660
Q4FY24
Spodumene Concentrate Production
Concentrate production (dmt)
Sayona Annual Report 2024
19
Overview
The Authier Lithium Project in Québec 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.
With the outstanding success of drilling and the subsequent
expansion of the MRE at NAL, Sayona is undertaking a review
of the Authier Lithium Project in order to optimise potential
operations and profitability within the context of potentially
sourcing additional ore at NAL. Any potential development
will be based on a minimised environmental footprint, with
no requirement for a concentrator on-site.
Sayona is undertaking a review
of the Authier Lithium Project
in order to optimise potential
operations and profitability within
the context of potentially sourcing
additional ore at NAL.
Abitibi-Témiscamingue Hub
Authier Lithium Project
JORC Mineral Resource (at 1.01% Li2O)
17.1Mt
Number of claims
24
Hectares of claims
884ha
Sayona Annual Report 2024
20
Abitibi-Témiscamingue Hub
Tansim Lithium Project
Overview
The Tansim Lithium Project is situated 82 kilometres south-west of
the Authier Lithium Project. Tansim comprises 186 mineral claims
spanning 10,751 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.
No work was carried out at Tansim during the period as activities
focussed on NAL and Moblan.
This project supports the broader strategy of establishing a
significant lithium hub in the region and Sayona is focussed on
ensuring the project generates maximum benefits for all local
stakeholders, including First Nations people, together with
minimising any environmental impacts.
Number of claims
186
Hectares of claims
10,751ha
Sayona Annual Report 2024
21
Abitibi-Témiscamingue Hub
Vallée Lithium Project
Overview
The Vallée Lithium 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 the acquisition and earn‐in
between NAL and Consolidated Lithium Metals Inc. of 48 claims
spanning approximately 1,997 hectares, located adjacent to the NAL
operation. Key aspects of the transaction included the acquisition of
20 claims outright and the right by NAL 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.
NAL achieved the required spend of C$4.0 million on exploration
activities on the 28 earn-in claims prior to 14 November 2023 to
earn an initial 25% interest in the Vallée Joint Venture. However, the
drilling results did not support progression to the Second Option of
the earn-in agreement. As such, NAL retains its current 25% interest
in the Vallée Joint Venture and will evaluate other opportunities within
the joint venture tenements as they are identified.
The 2023 drilling program totalled 66 diamond drill holes measuring
a total depth of 15,604 metres.
Number of claims
28
Hectares of claims
1,247ha
The 2023 drilling program totalled
66 diamond drill holes measuring
a total depth of 15,604 metres.
Sayona Annual Report 2024
22
Eeyou Istchee James Bay Hub
Lac Albert Lithium Project
Overview
The Lac Albert Lithium Project, another potential asset in Sayona’s
Québec portfolio, is located 3.5 kilometres 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.
Initial exploration efforts have focussed on mapping and sampling
to identify target areas for drilling. This project is part of Sayona’s
strategy to diversify its resource base and support long-term growth.
No new activities were undertaken at the project during the period.
Initial exploration efforts have
focussed on mapping and
sampling to identify target areas
for drilling.
Number of claims
121
Hectares of claims
6,592ha
Sayona Annual Report 2024
23
Overview
The Moblan Lithium Project is located in the Eeyou Istchee James
Bay region of northern Québec about 130 kilometres north-west of
the town of Chibougamau and approximately 85 kilometres from the
Cree (First Nations) community of Mistissini. The project is located
within just 300 metres of the Route du Nord, a regional highway
which is accessible year-round, providing access to railway lines
that link with major ports in Eastern Canada. The project comprises
20 claims covering approximately 433 hectares and is host to high-
grade lithium mineralisation.
Sayona acquired the Moblan Lithium Project in October 2021 in joint
venture with Investissement Québec (IQ) (Sayona 60%; IQ 40%).
Project Development and exploration
An extensive drilling program was completed throughout 2023 with
the addition of 368 holes for 75,022 metres including geotechnical
and sterilisation drilling. Following the integration with prior drilling
and MRE modelling, Sayona announced a significant increase in
Moblan’s estimated resource in August 2024 with the Measured,
Indicated, and Inferred Resource estimated at 93.1 million tonnes at
1.21% (0.55% cut-off) Li2O, making it one of North America’s largest
lithium deposits.
Three-dimensional modelling of the resource demonstrates that
Moblan is a major single extensive lithium-caesium-tantalum (LCT)
mineralised system. The new drilling results and geological model
illustrate the spatial connection between the Main, South, New South,
Inter and Moleon pegmatite dykes. Links can now be established
between the various sectors of Moblan which has a global positive
impact on the geological continuities of the updated MRE. The
footprint of Moblan mineralised system now extends over ~2.3km
E-W, ~1.2km N-S and to depth of ~450m from surface and bounded
by a NE-trending shear zone in the west.
An extensive drilling program
was completed throughout 2023
with the addition of 368 holes for
75,022 metres.
JORC Mineral Resource (at 1.21% Li20)
93Mt
Number of claims
20
Hectares of claims
433ha
Definitive Feasibility Study
Earlier in the year Sayona announced the results of a Definitive
Feasibility Study that demonstrated a post-tax net present value of
C$2.2 billion. Production was estimated to be 300,000 dmt (SC6)
per year with an operating cost of C$555/t and all-in sustaining
cost of C$748/t. Capital expenditure was estimated at C$962
million. It is expected future work will aim to refine the capital and
operating expenditure in conjunction with identifying a pathway to
development of an integrated processing facility and downstream
partnering strategy.
FY25 outlook
Sayona plans to further test the size and grade of the resource
with drilling of up to 70,000 metres through the remainder of 2024.
Eeyou Istchee James Bay Hub
Moblan Lithium Project
Sayona Annual Report 2024
24
Overview
Acquired in November 2022, the Troilus Claims near the Moblan
Lithium Project cover 1,824 claims spanning 985 square kilometres.
These claims offer potential for significant lithium mineralisation,
with possible extensions to Moblan mineralisation. The strategic
location and size of this package make it a valuable addition to
Sayona’s exploration portfolio, contributing to the company’s
growth strategy in the Eeyou Istchee James Bay region.
No new activities were undertaken at the project during the period.
The strategic location and
size of this package make it
a valuable addition to Sayona’s
exploration portfolio
Eeyou Istchee James Bay Hub
Troilus Claims
Number of claims
1,824
Hectares of claims
98,423ha
Sayona Annual Report 2024
25
Review of Australian
Operations and Projects
Sayona’s WA portfolio includes lithium
rights across 478 square kilometres
including the well-positioned Tabba Tabba
project. We also hold gold leases in the
Pilbara region and a 49% stake in the
Morella Lithium Joint Venture.
Sayona Annual Report 2024
26
AUS MAP
WA Lithium
WA Lithium
WA Graphite
WA Gold
KALGOORLIE
MT MAGNET
PERTH
GERALDTON
WYNDHAM
PORT HEDLAND
Western Australia
250km
Lithium
Gold
Port
Graphite
Overview
Sayona Annual Report 2024
27
WA Lithium and Gold Projects
Overview
WA Lithium Projects
Sayona holds the lithium rights to the Deep Well, Tabba Tabba,
Red Rock, Mt Dove, Friendly Creek, Station Peak and Mount Satirist
tenements, which cover a total of 478 square kilometres. The
most advanced is the Tabba Tabba Project, where exploration
has identified rare metal pegmatites.
WA Gold Projects
Sayona’s twelve 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.
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 with a 51% stake and Sayona interest at 49%.
The JV comprises lithium rights to six tenements in the Pilbara
covering 426 square kilometres and two tenements in South
Murchison covering 48 square kilometres.
Number of claims
17
Hectares of claims
95,200ha
Exploration Activities
Tabba Tabba
Throughout the year, exploration activities have been conducted
at the Tabba Tabba project. The primary focus has been to identify
strike extensions immediately south of recent discoveries by Wildcat
Resources at the Leia and Luke pegmatite systems. This strategic
initiative aims to expand our understanding of the mineralisation
potential within this promising region.
Extensive geochemical sampling has been undertaken to gather
baseline data to identify anomalies that may indicate the presence
of pegmatite-hosted lithium mineralisation. This sampling has
been crucial in guiding subsequent drilling efforts.
The results of a 77 hole, 1,473 metres air core drilling programme
completed in December 2023 identified targets at the north and
south drill areas, providing encouragement to carry out a ground
gravity geophysical survey which commenced in April. Gravity data
was captured over a 14 square kilometre area with approximately
2,500 stations completed on 160m x 40m traverses with local infill
at 80mx20m spacing. A number of prospective targets and trends,
potential gabbro host units and structural settings were identified.
In the north drill area, a total of 16 reverse circulation (RC) holes
for 2,716 metres were completed on four drill fences spaced 200m
apart. Drilling was sited over the southern extension to the Tabba
Tabba mine stratigraphy and mineralisation identified by Wildcat.
Targets include a western gravity feature linked to outcropping
gabbro to the south and an eastern gravity feature coincident with a
zone of alteration identified in air core drilling.
At the Roadside prospect to the south, five RC holes for 822 metres
were completed along two drill traverses spaced 200m apart. Drilling
was in follow up to narrow pegmatites intersected in shallow air core
drilling and pegmatite and geochemical anomalism at surface.
Planning is advanced for a follow up diamond drilling programme
in the north drill area. This will extend RC drill holes and test targets
to greater depth in the search for Luke style pegmatite systems
and extensions.
Morella Lithium Joint Venture Project
A total of 66 RC drillholes for 3,754 metres were completed at the
Eastern Pegmatite 2 prospect within the Mallina project. The drilling
results confirmed and improved the understanding of mineralisation
previously identified within the Pegmatite 2 area, with 42 holes
intersecting lithium mineralisation above 0.5% Li2O. The Pegmatite
2 area is host to a 1.5 kilometre long pegmatite swam with the latest
drilling confirming pegmatite thicknesses up to 20 metres.
Also, during the year RC drilling was carried out at the Tabba Tabba
East project with 14 holes for 1,392 metres completed. Drilling
targeted lithium geochemical soil anomalies along a major fault
structure linked to the main shear hosting the Wildcat lithium
discovery at Tabba Tabba.
Sayona Annual Report 2024
28
Sayona Annual Report 2024
29
People and Culture
Our workforce is integral to how we operate our business.
Our workforce and contracting partners provide the skills,
experience and technical expertise needed to safely and
successfully operate our business. At Sayona, we are
committed to maintaining transparency and promoting
a culture of fairness, inclusion, diversity and support.
Attraction and retention
The competition to attract and retain talent in our
Québec operating region is high. Faced with this reality,
we have implemented several innovative strategies to
attract and retain our employees.
Offering employment opportunities to different generations and
cultures is a key element of our strategy to attract and engage
a multigenerational and multicultural workforce. To this end, we
actively encourage applications from new migrants to the region,
thereby enriching our corporate culture. In addition, we have launched
a recruitment campaign targeting early retirees or retirees interested
in positions within the Company, enabling our younger employees
to benefit from their experience and know-how. In addition, we have
set up a retirement assistance and phased retirement program for
our employees. This program offers employees the possibility of
reducing their working hours or transferring to a position with less
responsibility. Phased retirement thus enables a smooth transition
between work and retirement, while allowing the Company to retain
valuable skills and avoid the costs associated with the departure of
experienced employees.
To enhance talent acquisition, the Company has set up a scholarship
program for its students and trainees, enabling them to pursue their
studies and gain employment opportunities at Sayona.
To attract new talent, we firmly believe that the voice and experiences
of our existing employees is a great asset. By highlighting existing
employees experiences through testimonials, we are able to
share employees’ positive experiences and explain why they enjoy
working at Sayona. This allows us to authentically showcase our
organisational culture and the benefits we offer. Our employees’
opinions are crucial to our continuous improvement. For this reason,
we have set up two discussion committees to gather feedback
on various employment-related topics. These committees play an
essential role in providing us with direct feedback on what’s working
well and where we can make further progress.
In response to this feedback, the Company undertook a
comprehensive review of employment conditions and practices
to ensure that they are aligned and competitive with those of the
mining sector. Changes included improving the health and wellness
programs to support the general well-being of our staff.
At Sayona, it’s important for us to train our workforce to help them
improve operational capability and progress within the Company.
We recently set up an individual development program for the mine
and mill sector. This program enables us to select the best talent
and collaboratively build a personalised training program to help
them develop the required capability to progress within the Company.
We have also identified a variety of
training opportunities to help our
employees acquire new skills and
experience. By way of example,
we have more than 12 health and
safety training and compliance
courses delivered by our trainers.
We actively encourage internal promotion, offering our employees
opportunities for advancement within the Company. Vacancies are
advertised both internally and externally, and we encourage our
employees to apply for roles that match their career aspirations. This
approach not only motivates our employees by showing them that
their growth is valued, but also helps retain talent by offering them
long-term career prospects at Sayona.
In conclusion, all of our talent attraction and retention efforts
are aimed at ensuring that Sayona remains competitive in an
ever-changing job market, while creating a positive and stimulating
work environment, where employees feel valued and supported,
and where their contribution is recognised.
Sayona Annual Report 2024
30
Inclusion and diversity
Sayona is committed to developing a diverse team
at all levels. The Company employs 22% women,
including 44% in management positions at North
American Lithium and 31% in management positions
across the Company.
The Company aims to increase the representation of women
in the workforce, thus promoting gender diversity across the
organisation. This initiative is part of our commitment to ensuring
equal opportunities for women and men, by ensuring that every
individual has the same opportunities to succeed, regardless of
gender, nationality or background.
The Company encourages the
hiring of local employees for North
American Lithium and currently
has 152 employees from the
Abitibi-Témiscamingue region.
Multicultural and multigenerational recruitment is an essential
component of our global inclusion and diversity strategy. By
integrating talent from different cultural backgrounds and different
ages, we enrich our team. The Company has 47% of its employees
from the millennial generation, followed by Generation X at
27%. We anticipate an increase in the proportion of Generation Z
employees in future years.
At Sayona, inclusion and diversity are not just words, but fundamental
principles that guide our daily actions. We firmly believe that diversity
is a source of strength and innovation, and we are committed to
creating an environment where every employee feels valued and
respected. By adopting ethical recruitment practices and promoting
equal opportunities, we strive to build a more inclusive, equitable
and prosperous workplace for all. The Company currently employs
20 visible minority employees.
Distribution of generations
Millennials
Gen Z
Gen X
Boomers
47%
27%
19%
7%
Sayona Annual Report 2024
31
Culture and values
At Sayona, our organisational culture is rooted in our
core values of integrity, respect and excellence.
These values guide the way we work together and interact with
our partners, customers and communities. Integrity is at the
heart of everything we do. We are committed to transparency
and honesty in our actions and decisions. Respect is a core
value that underpins our commitment to diversity and inclusion.
We believe that every employee deserves to be treated with
dignity and respect, regardless of their origin, gender, culture
or role within the Company. Excellence is our short and long
term objective. We aim to exceed expectations in everything we
do, constantly striving to improve our work and outcomes.
By integrating integrity, respect and excellence into everything we
do, we create a positive and dynamic working environment. We are
proud of our commitment to our employees, our customers and our
communities, and we will continue to promote these values to build a
prosperous and sustainable future.
Flexibility and support
At Sayona, we are committed to balancing work and
family, recognising that flexibility is essential to the
well-being of our employees.
We have revised our telecommuting policy to allow greater flexibility
in working hours, both in the office and at home. In addition, we
offer our office employees the possibility of working a compressed
schedule of 4 working days followed by 3 days off. These policies
and working hours reflect our adaptation to constant digital
developments and meet the varied needs of our employees.
The well-being of our employees remains a top priority. We have
launched several awareness-raising initiatives to promote mental
health and well-being at work. Our programs include information
sessions on mental health and well-being at work, as well as clear
guidelines on harassment, discrimination, alcohol and drug use,
among other crucial topics. We also recognise the importance of
supporting managers, making them aware of their own mental
health and providing them with the tools they need to effectively
support their teams.
Over the past year, we have seen a significant increase in the number
of employees using our Employee Assistance Program (EAP). This
trend underlines our commitment to actively supporting the personal
and professional well-being of our staff, by providing resources and
confidential support tailored to their individual needs.
People and Culture continued
Sayona Annual Report 2024
32
Workforce composition at a glance
Total global workforce
231
Men
78%
Women
22%
Actions and key focus areas
We plan to develop phase
two of our Individual
Development Program
to offer professional
growth opportunities to
our workforce and expand
phase one of the program
to other departments.
We are committed to
increasing diversity
within our organisation
by increasing the
representation of
women, multicultural
and Indigenous
employees. We will
implement targeted
initiatives to create an
even more inclusive
and representative
work environment.
We will increase our
efforts to train our
managers on mental
health and warning signs.
We plan to conduct an
in-depth analysis of
psychosocial risks within
the Company. The aim
is to strengthen our
culture of mental health
prevention and support.
We will focus our
efforts on enhancing
our employer brand
to increase our
attractiveness as an
employer of choice.
Internal communication
Ensuring that our team is kept informed as to key organisational
developments is cornerstone of our employee engagement and
we have a number of instances that allow for the free-flow of
information, including but not limited to:
• Quarterly meetings with all employees to explain the results from
last quarter and inform the team the expectations and objectives
for the upcoming quarter
• Monthly internal newsletter that recaps all actions from different
departments in the past month (InfoLAN)
• Production KPI graphs on televisions illustrating real time
production data
• Two discussion committees for office and field staff
• Social Committee.
Visible minority and disability
9%
First Nation
2%
Turnover (voluntary)
14%
Sayona Annual Report 2024
33
FY24 Health and Safety Performance
FY24 was marked by numerous activities beyond
normal operations. The year’s key focus was on
ramping up to nameplate capacity and completing
project construction, such as the Crushed Ore Dome.
Significant activities were also undertaken remotely to the NAL site,
with two major exploration projects completed, each presenting
unique safety challenges. Additionally, a range of contractors were
involved in construction and exploration which added complexity to
maintaining strong safety outcomes. It is anticipated that FY25 will
offer a more stable environment and focus to foster a stronger safety
culture and lead to improved safety outcomes.
Total Recordable Injuries
Sustainability
At Sayona, our approach toward sustainability is rooted in
a commitment to environmental stewardship, community
engagement, and responsible resource management. We strive
to minimise our environmental footprint by utilising hydro-power
for our operations, waste reduction and water conservation. Our
dedication to sustainability extends beyond our operations, as we
actively collaborate with local communities and stakeholders to
foster economic development and social well-being. By integrating
sustainability into every aspect of our business, we aim
to create long-term value and ensure a positive legacy
for future generations.
TRIFR (per 200,000 work hours)
5.58
Total recordable injuries
42
Total hours worked
1.44 million
Preventative activities completed
96%
Planned activities
1,212
Completed activities
1,160
Extra completed activities
357
Medical aid
Modified duty
Lost time injury
18
18
6
Sayona Annual Report 2024
34
HS Management System
At Sayona, the Health and Safety of our employees is paramount in
everything that we do. The HS Management System ensures that we
identify, assess, control risks or mitigate the consequences of them.
This applies to everyone at Sayona.
The focus in FY25 is to enhance the health and safety standards
and policies for Sayona with a focus on the critical risks and their
controls. We continue to implement our management systems to
ensure that critical risk management is embedded in every process
at the site.
Preventative activities
At Sayona, each level of management, from supervisors to the
directors on site, have specific preventative activities planned each
month (planned task observations, field management visits, toolbox
evaluation, work card evaluation, etc.). During FY24, 96% of planned
activities have been accomplished. Safety compliance improved
in the second half of the year with a 100% completion rate of
preventative actions.
The focus in FY25 is to enhance
the quality of interactions with
strong and visible leadership.
Health and Safety (HS) joint committee
At NAL, the HS joint committee has been set up to provide the
opportunity to employees and management team to discuss risks
and their controls.
During FY24 risks that were analysed by the committee with
mitigation recommendations include:
• Hazardous products at the mill (segregation, identification
and proper storage)
• Communication in the mining operations
(issues with the radio signal)
• PPE management
• On-site traffic and signage.
Emergency response team
At NAL, an emergency response team is in place. The purpose of
the team is to be able to control a minor HSE event and if needed,
to support an external team to control any major events. Team
members are trained on technical rescue so that the overall team has
competency in, confined space, rescue at height, firefighting, acting
as a first responder and environmental containment. In FY25, we will
continue to enhance and develop the effectiveness of the team with
continuous training and rehearsals.
The “ici” Program
The “ici” program was developed by Sayona to build a
strong risk management culture at a corporate level.
Ici stands for: Implication-Courage-Impact in French.
The program has 3 pillars: Critical risks management program,
toolbox meeting and work cards. The critical risks management
program includes 13 key risks and their controls:
The training requirements matrix is aligned with the critical risks. So,
each employee has a general training in their site induction regarding
the critical risks and a specific one if they are exposed to the risk.
The toolbox meetings are a time when information is exchanged
between the supervisor and his team regarding risks of tasks to be
undertaken, provision of general site information and production
information. The work card is now used by each department
including regular contractors on site.
In FY25, we will include a stretching program to the toolbox meeting
to reduce the risk of musculoskeletal disorders.
1
Working
at heights
2
Confined
spaces
3
Mobile
equipment
4
Hazardous
products
5
Safety
devices
6
Control of
hazardous
energies
7
Ground
control
8
Fire
9
Lifting and
rigging
10
Explosives
and
flammable
products
11
Impact on the
community
12
Impact on the
environment
13
Hazardous
material
spills
Sayona Annual Report 2024
35
Environmental Governance
Respect for the environment is a cornerstone of
our operations. We are committed to minimising
our environmental footprint and ensuring the
sustainable use of resources. Our environmental
programs are designed to manage natural
habitats, promote biodiversity, and reduce
emissions. We work closely with community
stakeholders to address environmental concerns
and implement eco-friendly practices.
Climate change and carbon intensity
During Sayona’s financial year 2024, Scope 1&2 CO2 eq emissions
were 35,511 tonnes and account for approximately 94% of total
green house gas (GHG) emissions. NAL produced 155,822 dmt of
spodumene concentrate which is equivalent to 17,856 tons lithium
carbonate equivalent (LCE). As such, NAL’s Scope 1 emissions carbon
intensity is 1.99 tonnes of CO2 eq per tonne of lithium carbonate
equivalent produced.
Scope 2 emissions are very limited and are mainly associated with
the distribution and use of electricity from renewable sources of
hydropower of Hydro-Québec.
Carbon intensity for Scope 1 and Scope 2 emissions associated
with spodumene concentration production at NAL
Units
FY24
Carbon
intensity(1)
Spodumene concentrate
produced (dmt)
tons
155,822
Total of CO2 eq (Scope 1&2 only)
tons
35,511
Lithium carbonate equivalent (LCE)
tons
17,856
1.99 t CO2 e
per t of LCE
(1) Carbon intensity data has not been verified by a third party.
Left: During International Environment Day, Sayona participated in the distribution of
native trees to NAL employees. More than 200 trees were given to employees so they
could plant them on their land and in the Abitibi-Temiscamingue region.
Certification for exploration—
ECOLOGO-UL
Sayona has implemented an integrated management system
to meet the UL ECOLOGO standard. This standard, unique in
Canada, considers all aspects of sustainable exploration
activities such as OHS, the environment, community relations
and corporate governance.
Internal and external audits carried out by Sayona and UL indicate
that the management system is effectively implemented and
operating. Formal certification should be obtained in the near future.
The integrated management system applies to all exploration
activities carried out in Canada, including North American Lithium,
the Moblan Lithium Project and Tansim Lithium Project.
Biodiversity management
Sayona believes it is important to minimise the impact of its activities
on biodiversity. During the year, an external independent expert was
retained to support Sayona in the development of a biodiversity
index for its projects in Québec. This index will support Sayona in
decisions regarding the establishment of mitigation measures to
maintain optimal biological diversity while mining activities occur
and ultimately the restoration of local biodiversity following the future
closure of the mine.
This index will be completed during FY25.
Sayona Annual Report 2024
36
Case Study: 20,000 Willows Planted To
Treat Mining Water And Produce Biomass
Sayona is committed to reducing lightly contaminated water
coming from the open pit by setting up a technological showcase
(EVAPLANT™) with our partner RAMO, for water treatment by willow
evapotranspiration on the La Corne mining site.
This nature-based approach aims to use pit dewatering to feed a
plantation of 20,000 fast-growing willows, thereby reducing water
management and producing forest biomass which, in a spirit of the
circular economy, increases the quantity of organic carbon for the
progressive restoration of the waste rock piles.
In addition to producing the
organic matter needed for
progressive restoration, this
plantation has the power to
capture 16 tonnes of CO2
equivalent annually.
Every three years, the willows from the system will be harvested in
the form of chips and then used as organic inputs for the progressive
restoration of the NAL Complex. The partnership between RAMO
and Sayona perfectly expresses our desire to innovate in the spirit of
sustainable development.
The benefits of this project for Sayona are:
• The development of a locally developed innovative process with
RAMO which is implemented directly at the mine
• The reduction of water discharges and increased carbon capture
• The development of a nature based waste management process
• The local production of materials for progressive site restoration
• The possibility of maintaining or even increasing biodiversity while
mining operations are underway.
This project will continue over the next few years to confirm the
feasibility and optimise costs associated with the implementation of
EVAPLANT™ technology.
Mine closure and rehabilitation
Since 2023 Sayona has engaged with government authorities to
develop an appropriate mine closure and rehabilitation plan as
required under Québec regulation.
At this time Sayona has provided all necessary information to
government authorities which should result in a final closure plan
being approved in the near future.
Tailings management
The tailings dam was expanded during the course of FY24,
significantly increasing the storage capacity for mine tailings.
This project was overseen by a third party, who approved the final
construction. The expansion extends the tailing installation’s useful
life, thereby avoiding the need for a new facility for several years.
Sayona is currently planning additional lifts to further extend the
tailings pond’s capacity whilst ensuring its structural integrity.
Concurrently with the planned tailing pond lifts, Sayona is also
planning the design, authorisation, construction, and operation of a
new tailings pond. This approach aims to identify the best applicable
technologies for NAL, incorporating environmental and safety
considerations into the design of the new infrastructure.
During the year a minor leak of tailings water was identified during
regular surveillance and rectified without damage to the environment.
Water management
The NAL site is located in a region where water is abundant.
Consequently, the mining and spodumene concentration
operations have a surplus of water sourced primarily from the
dewatering of the open pit.
During the financial year 880,349 cubic metres of water were
released into the environment through a series of retention basins
after stringent analysis and assessment.
Waste management
The industrial site and exploration operations produced 942 tons of
residual or hazardous materials. In all cases, these materials were
recovered and sent to be treated according to local standards.
In addition, 432 tons of contaminated soil were recovered and treated
at a government authorised site.
Sayona Annual Report 2024
37
First Nations
During FY24, Sayona’s team has taken the opportunity
to reconnect with various stakeholders, including First
Nations. We have actively worked to strengthen existing
ties by ensuring open and transparent communication.
Our goal is to build mutual and lasting trust with First Nations
communities. To achieve this, we are promoting collaborative
initiatives that address the needs and aspirations of these
communities. These initiatives include regular consultations,
community development projects, and partnerships focussed on
environmental respect and shared prosperity.
At Sayona, we firmly believe that the success of our projects relies
on a harmonious and respectful relationship with First Nations. We
are committed to continuing to work hand in hand with First Nations’
people, valuing their traditional knowledge and contributing to their
economic and social development.
Host communities
Building Strong Relationships with Our
Host Communities
At Sayona, we firmly believe that our success is intertwined
with the well-being and prosperity of the communities that host
us. Our commitment goes beyond mere business operations; it
encompasses fostering meaningful and lasting relationships built
on trust, transparency, and mutual respect.
Our approach to community relations is centred around active
engagement and collaboration. We prioritise open dialogue with
community members to understand their concerns, aspirations,
and needs. This dialogue helps us tailor our initiatives to support
local development effectively. We regularly hold community
meetings, forums, and workshops to ensure continuous and
inclusive communication.
We recognise and honour the cultural heritage and diversity of our
host communities. Our initiatives are inclusive and respectful of local
traditions and customs. We strive to create an environment where
everyone feels valued and included, fostering a sense of belonging
and shared purpose.
Transparency and accountability are fundamental to our community
relations strategy. We are committed to providing clear and accurate
information about our activities and their impacts. Regular reporting
and feedback mechanisms ensure that we remain accountable to our
community partners and continuously improve our practices.
At Sayona, we envision a future where our host communities
thrive alongside our business. By working together, we can create
a sustainable and prosperous future for all. We are proud of the
relationships we have built and look forward to continuing this
journey with our communities, ensuring that our growth benefits
everyone involved.
Monitoring committee
The Sayona Monitoring Committee has been actively engaging
with various stakeholders throughout the year on a quarterly basis,
holding meetings to discuss ongoing operations, environmental
monitoring, and community feedback. These meetings cover topics
such as:
• Biological Monitoring: An update on the environmental impact
assessments and ongoing biological monitoring programs.
• NAL Operations Update: A detailed update on the progress and
status of NAL operations.
• Drilling Campaign Progress: Insights into the advancements in the
drilling campaign.
• Noise Monitoring Program for Lac Legendre: Introduction of a new
noise monitoring initiative for the Lac Legendre area.
• Authier BAPE Process: Updates on the Bureau d’audiences
publiques sur l’environnement (BAPE) process for the Authier project.
• Consultation Results: Presentation of the results from community
consultations held in June.
• Stakeholder Engagement Overview: A review of the various
meetings held with different stakeholders throughout the year.
• Complaint Review from Lac Legendre: An analysis of the
complaints received from Lac Legendre residents and subsequent
actions taken.
• NAL DFS Presentation: A presentation of the NAL Definitive
Feasibility Study (DFS), as requested by the committee members.
• Site Visit Explanation and Tour: Detailed explanation of the planned
site visit, including a tour of the mine, tailings storage facility (TSF),
and the mill.
The committee continues to play a crucial role in ensuring
transparency, addressing community concerns, and fostering strong
relationships between Sayona and its stakeholders. We look forward
to introducing the new committee coordinator and continuing our
collaborative efforts in the upcoming meetings.
Social Responsibility
Sayona Annual Report 2024
38
Community Engagement Highlights
In the past year, several new initiatives were implemented to
enhancing our community relations and ensure a harmonious
coexistence with our neighbours.
• Noise Monitoring Program: We have implemented a
comprehensive noise monitoring program to better manage and
mitigate any potential disturbances caused by our operations.
• New Complaint Submission Tool: To make it easier for our
community to communicate concerns, we have introduced a new
tool designed to streamline the process of submitting complaints.
• Good Neighbourhood Committee: In our ongoing effort to foster
positive relations, we have established a Good Neighbourhood
Committee. This committee will be instrumental in developing a
Good Neighbourhood Guide, ensuring that we adhere to the highest
standards of community engagement and support.
• Safety and Infrastructure Study for Access Road: We conducted
a thorough Safety and infrastructure study for the access road to
our site. The findings have been shared with the local community to
facilitate obtaining government support for road rehabilitation. This
investment is crucial to accommodate the increased number of
users following the opening of NAL.
Management of reports or concerns
Since March 2024, Sayona has implemented a streamlined process
to manage reports and concerns efficiently. All reports are addressed
within a 48-hour timeframe, ensuring that issues are promptly
investigated and resolved. Additionally, feedback is provided to
complainants within 24-28 hours, demonstrating our commitment to
transparent and responsive communication. This new process aims
to enhance trust and satisfaction among stakeholders by ensuring
that their concerns are taken seriously and acted upon quickly. By
prioritising timely responses and effective communication, Sayona is
dedicated to maintaining a positive relationship with the community
and continually improving our operational practices.
Recognition
Sayona has been awarded Business of the Year at the Québec
Mineral Exploration Association (QMEA) Annual Gala. This
prestigious recognition is a testament to our dedication to
excellence and innovation in the mineral exploration industry.
We extend our heartfelt gratitude to our entire team for their
hard work and commitment, as well as to our stakeholders
and community partners for their continuous support. This
achievement underscores our commitment to responsible
mining and sustainable development.
Research project with Abitibiwinni and
UQAT—a 3 year commitment
The research project “Strategies for Creating Anicinapek Service
Enterprises in the Mining Sector” was launched in May. This initiative
is a collaboration between the University of Québec in Abitibi-
Témiscamingue (UQAT), Canada Economic Development for Québec
Regions, Abitibiwinni, and Sayona. This project aims to explore and
develop strategies to support the creation and growth of service
enterprises within the Anicinapek community, specifically tailored to
the unique needs and opportunities within the mining industry.
Financial contributions and
economic benefits
We are dedicated to contributing to the social and economic
development of our host communities. Our investments focus on
arts and culture, socio-economic development projects and, youth
health and well-being. By partnering with local organisations and
authorities, we aim to create opportunities that enhance the quality
of life and promote long-term growth. This year a total of C$176,932
has been allocated to donations and sponsorships for a variety of
events and initiatives in our host communities.
Donations and sponsorship
77%
9%
9%
5%
Arts and culture
Health and well-being
Youth
Socio-economic
development
Right: Abitibiwinni & UQAT research team
Sayona Annual Report 2024
39
Case Study: Noise Monitoring Program
and Noise Reduction Action Plan
Over the past year, Sayona has invested significant effort in
implementing a noise monitoring program and an action plan to
reduce the noise impact of its operations. This initiative addresses a
major concern of the residents of Lac Legendre, a lake located near
Sayona’s site. These residents often visit during the summer vacation
period to enjoy the tranquillity and natural beauty of the area.
In September 2023, Sayona organised an initial meeting with the
residents of Lac Legendre to present the noise monitoring program.
Two sound level metres were installed at strategic locations to
continuously record noise levels. However, the residents expressed
concerns about the limited scope of the action plan to reduce noise.
Following this meeting, Sayona collaborated with a firm specialising
in industrial noise to develop a comprehensive noise reduction plan.
The Sayona team met twice a month to discuss the measures to be
implemented and to monitor progress. The reporting system was
improved to ensure that each complaint from residents received a
detailed response.
In March 2024, a follow-up meeting was held with the residents.
Although some improvements were noted, the residents felt that
additional measures were necessary before the summer. Sayona,
therefore, proposed forming a monthly working group to discuss
the progress of the action plan and address other concerns such
as water management and the environment.
In April, Sayona implemented an early warning system to alert the
team when noise levels approached regulatory limits. A shutdown
procedure for equipment was developed, and training was provided
to site personnel responsible for noise monitoring. Since early April,
the shutdown procedure has been implemented whenever an early
warning is received.
In June, Sayona launched a pilot project treating residents’ reports
as early warnings to address any shortcomings of the sound level
metres. Following the success of this procedure, it was extended
for the entire summer season and will be reassessed in
September 2024.
A subsequent meeting with residents yielded very positive feedback.
Comments such as “We have to say, we really see an improvement!”
and “We are happy with the measures put in place” were expressed.
Sayona’s efforts to reduce
noise impact have been widely
recognised and appreciated.
The working group is satisfied with the measures implemented and
now wishes to address other topics to develop a good neighbour
guide. This collaboration is a priority for the coming year, aiming to
strengthen community relations and ensure harmonious coexistence.
This case study illustrates Sayona’s commitment to its neighbours
and the environment, demonstrating a proactive and collaborative
approach to addressing community concerns and reducing the noise
impact of its operations.
Actions and key focus areas
We are dedicated to fostering strong and positive relationships with our community and stakeholders. As part of this
commitment, we are pleased to share the following initiatives:
Good Neighbourhood Guide Development
with Lac Legendre Citizens: We are actively
working with the residents of Lac Legendre
to develop a Good Neighbourhood Guide.
This collaborative effort aims to ensure that
our operations align with the community’s
expectations and contribute positively to the
local environment.
Transparent Communication with
Stakeholders: We are committed to
maintaining transparent communication and
strong relationships with all our stakeholders.
Keeping an open dialogue helps us address
concerns promptly and fosters mutual
understanding and cooperation.
Building Trust with Indigenous Communities:
We are dedicated to continuing our efforts to
build and strengthen trustworthy relationships
with indigenous communities. Respectful
engagement and collaboration are at the core
of our approach, ensuring that we support
and respect their rights and traditions.
These initiatives reflect our ongoing commitment to being a responsible and considerate member of the community. We value the input and
partnership of all our stakeholders as we work together towards a sustainable and harmonious future.
Social Responsibility continued
Sayona Annual Report 2024
40
Risk Management
Sayona’s risk management processes and internal control systems
are based on the principles of the ISO 31000 Standard for Risk
Management adopted by ASX, which contributes to ensuring that risk
and assurance activities are continually adding value to the business
activities of Sayona and supporting the delivery of its projects.
Sayona’s Board is responsible for overseeing risk and has assigned
accountabilities and responsibilities for risk management to the
Audit and Risk Committee (ARC), the Managing Director and
executive management.
Sayona’s risk management processes and internal control systems
apply across Sayona’s entire business, including all of its operations
and projects. The risk focus is on material issues that could prevent
the delivery of Sayona’s objectives (including, without limitation,
safety, sustainability, and exposure to environmental and climate
change risks).
The annual review of the Company’s risk management processes has
identified the need to enhance and expand the effectiveness of the
Group’s risk management program over the next 12 months.
Risk Materiality
The Board defines the term ‘materiality’ recognising that financial
measures criteria in its determination are complemented with non-
financial criteria that are important to the achievement of corporate
objectives such as health, safety and environmental impacts, and the
reputation of Sayona.
The Board’s risk tolerance utilises the materiality definition. This
means that, in practice, every ‘material’ risk must be referred to the
ARC for its review and acceptance. The ARC assumes delegated
authority on behalf of the Board to review and accept ‘material’ risks
reported to it by the Managing Director and executive management.
The Company’s Nomination and Remuneration Committee also
oversees risks relevant to the areas it is responsible for.
The following section describes (in no order of significance) the
material risks that have been identified and are being managed for
the Company to deliver on its objectives. It is not intended to be all
encompassing, nor is any of the information intended to be taken
as a statement of fact. These risks can be affected by a variety of
factors, which can, in turn, impact the Company’s performance.
Sayona’s risk management
processes and internal control
systems apply across Sayona’s
entire business, including all of its
operations and projects.
Sayona recognises that risk is an
inherent part of its business. Effectively
identifying and managing risk is critical
to Sayona’s success.
Sayona Annual Report 2024
41
Risk
Description
Mitigating Actions
1 Safety and Sustainability
Operational Safety
Material safety event at site.
Sayona is subject to extensive laws and regulations regarding occupational
health and safety, and the risk of non-compliance with those laws and
regulations may adversely impact Sayona’s operations, reputation, financial
performance and financial position.
All operations and development activities continue to have a strong focus
on safe production and development.
Sayona’s HSE standards have been developed and rolled out across the
organisation, to its operations and development projects, to establish a
consistent good practice approach to HSE management and in compliance
with local laws and regulations.
Further work is being undertaken to ensure that comprehensive HSE
risk-based management plans are developed for each project and that
appropriate oversight is applied.
Climate Change Risk
Operational productivity
is dependent on
climatic variables.
Severe weather events and the challenges posed by climate change are
inherently uncertain and have the potential to adversely affect Sayona’s
operations and financial performance.
Future climate scenarios are considered in project planning and operations.
Sayona continues to monitor climate-related risks and is developing and
beginning to implement climate change and decarbonisation initiatives.
Social and Environment
Sayona’s activities involve
direct engagement with local
communities, including First
Nations groups. We operate
in the environment where we
may impact biodiversity, air,
land and water resources.
Sayona’s relations with local communities and First Nations people in the
areas where its assets are located are important to its operations and may
be affected by uncertain factors.
We actively engage with all our stakeholders on a regular basis to better
understand and address their individual needs. We work with local
communities to develop meaningful relationships and regularly carry out
social impact assessment on work programs.
We undertake environmental monitoring programs and studies to better
understand and mitigate our impact on the environment.
2 Operational and Project Risks
Operational Performance
Inability to deliver safe,
stable and predictable
operational performance.
The performance of North American Lithium continues to target improvements
and/or consistency of the quality of product and the ability to meet production
targets and tonnages, cost of production and return on capital.
Major External Events
or Natural Disasters
Damage to site infrastructure
or offsite transport/energy
related infrastructure,
disruption to services and
suppliers and access to site
by employees.
Sayona’s operations are susceptible to certain physical and other risks,
including natural disasters, environmental hazards, pandemics and other
catastrophic events, which could disrupt production and have a material
adverse effect on Sayona’s financial and operational performance.
To ameliorate these risks, hydrogeological and geotechnical assessments
are carried out during the design process.
Contingencies are in place to ensure operational continuity during any route
closure/disruption periods. Stocks of critical reagents are maintained to
ensure operating continuity.
Projects Fail to Deliver
The Sayona project
portfolio fails to deliver
NPV expectations
(Cost, Schedule, Revenue).
Sayona has a considerable portfolio of development assets. All projects
have inherent delay and cost risks, particularly in the current challenging
global market (low lithium pricing, geopolitical instability, logistics, inflation,
skilled labour availability, etc.).
Sayona is focussed on de-risking the development of these projects by
dedicating experienced professionals focussed solely to manage these
projects, by utilising proven technology based on Sayona’s existing
operational expertise and by staging development to smooth capital
expenditure and reduce market risk.
Risk Management continued
Sayona Annual Report 2024
42
Risk
Description
Mitigating Actions
3 Strategic and Financial Risks
Commodity Price Risk
Fluctuation of the market
Lithium price versus basis
for revenue forecasting.
The prices of commodities, including lithium, are volatile and such volatility
may negatively affect Sayona’s revenue and cash flows.
Commodity prices fluctuate and are affected by many factors beyond
Sayona’s control, such as inflation, interest rates and currency exchange.
The price of lithium and the global demand for lithium is also reactive
to supply and demand fluctuations. Such fluctuations are influenced
by various factors, including the level of consumer demand, potential
distribution problems, technological advances, availability of alternatives,
global economic and political developments, forward-selling activities and
other macro-economic factors. In particular, the demand for lithium is
also dependent upon the demand for lithium batteries and battery electric
vehicles. Any one of these factors may affect the price of, or demand for,
lithium, which in turn may affect the price that Sayona is able to obtain for
lithium or the amount of lithium that Sayona can sell.
While the lithium market continues to be volatile, Sayona has endeavoured
to manage these risks by establishing operations to be able to operate
through a low-price environment and focussing on cost reduction and
efficiency opportunities.
Market Changes in the
Lithium Industry
The demand for lithium
is dependent on the
use of lithium in end
markets, and the general
economic conditions.
The growth of Sayona’s business, as well as Sayona’s financial condition
and financial performance, are dependent on the continued growth in
demand for electric vehicles, the growth in demand for lithium chemicals
and the growth of the lithium markets generally.
The Company has a clear understanding of market trends and navigates
risks concerning market changes.
Macro Risk
Global external factors
including macro-economic
risk affecting profitability and
business continuity.
General economic conditions may adversely impact Sayona’s operating and
financial performance and financial position, including its future revenues
and share price.
Sayona’s operating and financial performance is influenced by a variety
of general economic and business conditions, including consumer
spending levels, lithium prices, inflation, interest and exchange rates, supply
and demand trends, key customer concentration, industrial disruption,
availability of debt and capital markets, and government fiscal, monetary
and regulatory policies.
While Sayona has limited direct controls over these issues, continued
oversight is essential to ensuring the ongoing profitability of the operations
and projects.
Geopolitical Risk
Rivalries between geopolitical
powers resulting in a
fracture of multilateral
relations or conflicts with
global consequences.
Global and local conflicts, including the tensions between China and
Taiwan and the war in Ukraine, could adversely impact Sayona’s operations,
financial performance and financial position.
While Sayona has limited controls over these external issues, it continuously
evaluates threats and risks associated with carrying out business activities
with organisations that have a large exposure or concentration in areas with
high geopolitical risks to reduce/avoid such risks.
Sayona Annual Report 2024
43
Risk
Description
Mitigating Actions
3 Strategic and Financial Risks
Political Risk
Changes in political,
regulatory, or fiscal
frameworks impacting
Sayona’s business.
Sayona’s financial performance, operations, share price and profitability
may be adversely affected due to circumstances in the countries where
Sayona operates, particularly in Canada.
To conduct its business, Sayona must obtain various governmental
licenses, permits, authorisations, concessions and other approvals in
connection with its activities in relevant jurisdictions, including Canada
and Australia. Such approvals are related to the laws and regulations that
govern prospecting, developing, mining, production, exports, taxes, labour
standards, occupational health, waste disposal, toxic substances, land use,
surface rights, environmental protection, safety and other matters.
Changes in political, regulatory, or fiscal frameworks in these countries
could adversely impact Sayona’s financial performance, operations, share
price and profitability.
Continuous engagement between key management and government
at both national and provincial levels actively mitigate this risk. Ongoing
engagement will ensure these relationships continue.
Liquidity Risk—Debt and
Capital Markets
Availability of debt or
capital on terms acceptable
to the Company.
Sayona’s operations and development plans may require additional funding
or capital for future activities.
If Sayona is unable to secure adequate external funding or capital on
acceptable terms, or at all, its development and expansion plans may be
adversely affected.
Staffing and Key
Management Personnel
Failure to effectively attract,
train and retain employees
with the required skillset
to implement business
strategy in each area
where we operate.
Sayona’s operations, financial performance and financial position are
dependent on attracting and retaining qualified key personnel.
Sayona relies on the experience, skills and knowledge of its key personnel
in Canada and Australia to successfully manage its business. The
availability and retention of skilled personnel is highly competitive in the
current market, particularly in Canada with current mining industry growth
in certain sectors. Sayona relies heavily on critical executive and senior
management level individuals, as well as those with niche technical skills.
The inability to attract and retain key personnel, including personnel with
technical skills, or the unexpected loss of such personnel may adversely
affect Sayona’s operations, financial performance and financial position.
Sayona has recently reviewed its approach to retaining key personnel and
attracting talent. This includes employee development programs, ensuring
a diverse and inclusive work environment and a focus on hiring talent
from local communities. The Company provides competitive and fair total
remuneration packages, a safe workplace, and a commitment to strong
corporate values.
Fraud, Corruption or Misconduct
Actual or alleged fraudulent
or corrupt actions involving
Company activities or assets.
Contravention of Sayona’s
Code of Conduct creating
reputational and other issues.
Sayona’s reputation, business and financial performance may be
materially and adversely impacted by fraud or violations of anti-bribery
and anti-corruption laws.
Group wide policies have been developed to address anti-corruption
and fraud. In addition, Sayona’s Code of Conduct defines the required
business standards and ethics for the entire workforce (staff,
employees, contractors).
Contravention of these policies can result in disciplinary action or dismissal.
Risk Management continued
Sayona Annual Report 2024
44
03 Governance
Sayona Annual Report 2024
45
Board of Directors
Mr James Brown
Executive Director
Age
61
Location
Singapore
Term of Office
Mr Brown has served as a Non-Executive
Director since 12 August 2013. He held the
role of Executive Director and Interim
Chief Executive Officer from 27 August
2023 until 3 July 2024. Mr Brown now
serves as an Executive Director until
31 January 2025.
Qualifications
Mr Brown holds a Graduate Diploma in
Mining from University of Ballarat and is
a Member of the Australian Institute of
Company Directors.
Experience
Mr Brown is a senior executive with over
40 years’ experience in the mining industry
in Australia, United States, Africa and
Indonesia, including the last 15 years as
Managing Director of Morella Corporation
Limited. Mr Brown has successfully
sourced, developed and operated
numerous key global projects with a focus
on lithium and battery materials. He has
an extensive global investment network
to underpin the capital requirements for
project investment and development.
Current Directorships in Other
Listed Entities
Managing Director—
Morella Corporation Limited
Non-Executive Director—
Greenwing Resources Limited
Former Directorships in other
listed entities in the last 3 years
Nil
Mr Paul Crawford
Non-Executive Director
Age
67
Location
Australia
Term of Office
Mr Crawford was appointed as a Director
on 10 March 2000.
Qualifications
Mr Crawford holds a Bachelor of Business
from Queensland University of Technology
and is a Certified Practising Accountant
(CPA). He also holds a Graduate Diploma
in Business Law from University of
Southern Queensland, Graduate Diploma
in Company Secretarial Practice from
Governance Institute of Australia and
Master of Financial Management from
Central Queensland University.
Experience
Mr Crawford has over 45 years of
commercial experience, including various
technical and management roles within the
minerals, coal and petroleum industries.
In 2001, Mr Crawford established his own
corporate consultancy firm, providing
accounting, corporate governance,
business advisory and commercial
management services. Mr Crawford was
appointed as Company Secretary in 2012
and has held the position of Chief Financial
Officer from 2018 until April 2024.
Current Directorships in Other
Listed Entities
Nil
Former Directorships in other
listed entities in the last 3 years
Nil
Mr Allan Buckler
Non-Executive Director
Age
77
Location
Australia
Term of Office
Mr Buckler was appointed as a Non-
Executive Director on 5 August 2013.
Qualifications
Mr Buckler holds a Certificate in Mine
Surveying and Mining, First Class
Mine Managers Certificate and Mine
Surveyor Certificate from the Queensland
Government’s Department of Mines.
Experience
Mr Buckler is a senior executive with over
55 years’ experience in the mining industry
and has been directly responsible for the
commercialisation of several projects
from resource identification through to
production in Australia and Indonesia.
Current Directorships in Other
Listed Entities
Non-Executive Director—
Morella Corporation Limited
Former Directorships in other
listed entities in the last 3 years
Non-Executive Director—
Interra Resources Limited
Sayona Annual Report 2024
46
Mr Philip Lucas
Non-Executive Director
Age
57
Location
Australia
Term of Office
Mr Lucas was appointed as a Non-
Executive Director on 27 August 2023 and
re-elected at the Annual General Meeting
of the Company on 30 November 2023.
Mr Lucas is Chair of the Audit and Risk
Committee and Chair of the Nomination
and Remuneration Committee.
Qualifications
Mr Lucas holds a Bachelor of Laws
and Juris Doctor from University of
Western Australia.
Experience
Mr Lucas is Partner and Chair at the
corporate and resources law firm Allion
Partners. He has extensive knowledge
of the Australian corporate and resources
sectors. He also provides advice
predominantly in the areas of public
company mergers and acquisitions, equity
capital markets, corporate governance
and corporate law.
Current Directorships in Other
Listed Entities
Nil
Former Directorships in other
listed entities in the last 3 years
Chilwa Minerals Limited
Mr Lucas Dow
Managing Director and Chief
Executive Officer
Age
48
Location
Australia
Term of Office
Mr Dow was appointed as a Non-Executive
Director on 14 February 2024 and as
Managing Director and Chief Executive
Officer on 3 July 2024.
Qualifications
Mr Dow holds a Bachelor of Engineering
(Mining) Hons. from University
of Queensland.
Experience
Mr Dow is a highly experienced mining
executive with a proven track record of
outstanding performance across a diverse
range of businesses, commodities and
geographies, skills which will facilitate
Sayona’s next stage of growth as a leading
North American lithium producer.
As a mining engineer with extensive
hands-on operational experience in both the
mining resources and the renewable energy
sector, Mr Dow is well versed in global
resource trends and growth markets.
Current Directorships in Other
Listed Entities
Nil
Former Directorships in other
listed entities in the last 3 years
Nil
Sayona Annual Report 2024
47
Mr Lucas Dow
Managing Director and
Chief Executive Officer
Age
48
Location
Australia
Term of Office
Mr Dow was appointed as a Non-Executive
Director on 14 February 2024 and as
Managing Director and Chief Executive
Officer on 3 July 2024.
Qualifications
Mr Dow holds a Bachelor of Engineering
(Mining) Hons from University
of Queensland.
Experience
Mr Dow is a highly experienced mining
executive with a proven track record of
outstanding performance across a diverse
range of businesses, commodities and
geographies, skills which will facilitate
Sayona’s next stage of growth as a leading
North American lithium producer.
As a mining engineer with extensive
hands-on operational experience in
both the mining resources and the
renewable energy sector, Mr Dow is
well versed in global resource trends
and growth markets.
Current Directorships in Other
Listed Entities
Nil
Former Directorships in other
listed entities in the last 3 years
Nil
Mr Dougal Elder
Chief Financial Officer
Age
38
Location
Australia
Term of Office
Mr Elder was appointed as Chief Financial
Officer on 26 April 2024.
Qualifications
Mr Elder holds a Bachelor of Commerce
(Honours) from University of Queensland
and is a member of Chartered Accountants
Australia and New Zealand.
Experience
Mr Elder is a chartered accountant with
more than 15 years’ experience in large
private and publicly owned companies
in Australia and the United Kingdom,
including group finance and financial
planning and analysis roles. He has
extensive experience in driving budget
management, systems implementations,
treasury management and strategic
initiatives across a range of industries
including energy, manufacturing
and agriculture.
Current Directorships in Other
Listed Entities
Nil
Former Directorships in other
listed entities in the last 3 years
Nil
Mr Sylvain Collard
President and Chief Operating
Officer of Canada
Age
45
Location
Canada
Term of Office
Mr Collard joined Sayona in October 2022
and was appointed as President and Chief
Operating Officer of Canada in July 2024.
Qualifications
Mr Collard holds a degree in Mechanical
Engineering and is PMP Certified.
Experience
Mr Collard is a specialist in mine project
management and continuous process
improvement, he has extensive experience
in operations management for both open
pit and underground mines.
During his career, Mr Collard has worked on
several IAMGOLD mining projects, notably
as manager of a major capital project at
the Essakane mine in Burkina Faso, where
3,500 workers were under his direction. He
has also managed copper and gold mines
and projects in Québec, Ontario and the
United States.
Current Directorships in Other
Listed Entities
Nil
Former Directorships in other
listed entities in the last 3 years
Nil
Executive Leadership Team
Sayona Annual Report 2024
48
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 2024.
The report is prepared in accordance with the requirements of the
Corporations Act 2001, with the following information forming part
of this report:
• Operating and Financial Review on pages 9 to 44
• Biographical Information on pages 46 to 48
• Remuneration Report on pages 53 to 72
• Auditor’s Independence Declaration on page 73
• Financial Report on pages 74 to 122
• Additional Information on pages 124 to 138
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(1)
Appointed 12 August 2013
Mr Allan Buckler
Appointed 5 August 2013
Mr Paul Crawford(2)
Appointed 10 March 2000
Mr Lucas Dow(3)
Appointed 14 February 2024
Mr Philip Lucas
Appointed 27 August 2023
Mr Brett Lynch(4)
Appointed 1 July 2019; resigned 27 August 2023
Further information on the Directors’ qualifications, experience and
other directorships are set out in this report on pages 46 to 47.
(1) 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 Brown stepped down as Interim Chief Executive Officer on 3 July 2024.
(2) Mr Crawford served as Executive Director and Company Secretary until 5 August
2024. He was appointed as a Non-Executive Director on 6 August 2024.
(3) Mr Dow was appointed as a Non-Executive Director on 14 February 2024. He was
appointed as Managing Director and Chief Executive Officer on 3 July 2024.
(4) Mr Lynch resigned as Managing Director and Chief Executive Officer on
27 August 2023.
Sayona Annual Report 2024
49
Company Secretary
Mr Dylan Darbyshire-Roberts was appointed to the position of Company Secretary and General Counsel on 6 August 2024. Mr Roberts is a Fellow of
the Institute of Chartered Secretaries and Administrators and The Governance Institute of Australia, and a Solicitor of the Supreme Court of Western
Australia. Mr Roberts has over 25 years of experience in governance and legal affairs with extensive knowledge across a diverse range of industries.
Meetings of Directors
The number of meetings of the Board of Directors and of each Committee attended by each Director during the year ended 30 June 2024 were:
Board Meetings
Audit and Risk Committee
Nomination and Remuneration
Committee
Director
Attended(1)
Eligible(2)
Attended(1)
Eligible(2)
Attended(1)
Eligible(2)
James Brown
12
12
–
–
–
–
Allan Buckler
11
12
2
2
2
2
Paul Crawford
12
12
–
–
–
–
Lucas Dow(3)
2
2
2
2
1
1
Philip Lucas(4)
8
8
2
2
2
2
Brett Lynch(5)
–
–
–
–
–
–
(1) Number of meetings attended during the year.
(2) Number of meetings held during the year while the Director was a member of the Board or a member of the Committee.
(3) Mr Dow was appointed as a Non-Executive Director on 14 February 2024.
(4) Mr Lucas was appointed as a Non-Executive Director on 27 August 2024.
(5) Mr Lynch resigned as Managing Director and Chief Executive Officer on 27 August 2023.
The Audit and Risk Committee and Nomination and Remuneration Committee consist solely of Non-Executive Directors, the majority of whom
(including the Chair) are independent.
Principal Activities
The principal activities of the Group during the year were lithium
mining and processing at North American Lithium (NAL) and
ongoing identification, evaluation and development of its portfolio
of mineral exploration assets in Australia and Canada, predominantly
focusing on lithium.
During the year, the Group sold the first commercial shipment of
lithium spodumene concentrate produced from North American
Lithium. The sale of spodumene concentrate resulted in the first
revenue earned by Group since the restart of operations at NAL
in March 2023.
There were no other significant changes in the Group’s principal
activities during the year.
Operational and Financial Review
The Group’s operations during the year ended 30 June 2024 have
been focussed on the development of its lithium assets in Québec
and working to realise value from its lithium and gold tenements in
Western Australia. A review of the Group’s operations and financial
performance for the year ended 30 June 2024 is set out in the
Operating and Financial Review on pages 9 to 44 of this report.
The Operating and Financial Review includes, where possible, an
indication of likely developments in the Group’s operations in future
financial years and expected results.
The Group’s consolidated loss after income tax for the year ended
30 June 2024 was $119.0 million (2023: $10.3 million loss). The
operating loss for year ended 30 June 2024 reflected the production
ramp-up of North American Lithium and softness in lithium
prices during the period. At 30 June 2024, the Group’s consolidated
financial position comprises total assets of $952.5 million (2023:
$1,009.6 million), total liabilities of $156.9 million (2023: $136.1
million) and net assets of $795.6 million (2023: $873.4 million).
The Group reported cash and cash equivalents of $90.6 million
(2023: $211.1 million) as at 30 June 2024.
The Group has various funding options available including the
standby equity capital facility of $194 million under the 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.
Directors' Report continued
Sayona Annual Report 2024
50
Dividends
No dividends were declared or paid during the financial year.
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. Information relating to the risks affecting the Group’s
results is set out in the Operating and Financial Review on pages
9 to 44 of this report.
Significant Changes in the State of Affairs
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.
There were no other significant changes in the Group’s state
of affairs during the year.
Significant Events After Reporting Date
No matters or circumstances have arisen since the end of the
financial year that have significantly affected or may significantly
affect the operations, results of operations or state of affairs of the
Group in subsequent financial years.
Environmental Regulation and Performance
Sayona seeks to be compliant with all applicable environmental laws
and regulations relevant to its operations.
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.
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
regulations as they apply to mining and manufacturing operations.
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 relevant regulatory authorities as the Group seeks
to obtain permits required to develop a new mine.
The Directors are not aware of any compliance breach arising during
the year and up to the date of this report.
Directors Interest in Shares and Equity Rights
At the date of this report, the interests of the Directors in the ordinary
shares, options and equity rights of the Company are as follows:
Director
Ordinary
shares
Options over
ordinary shares
Equity
rights
J Brown
10,757,094
–
–
A Buckler
112,589,051
–
–
P Crawford
166,526,303
–
–
L Dow
–
–
–
P Lucas
–
–
–
The total number of equity rights over the ordinary shares of
the Company as at 30 June 2024 is set out in Note 30 to the
financial statements.
No equity rights over the ordinary shares of the Company are
held by Non-Executive Directors at the date of this report.
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
Options
Equity-settled services(1)
2,234,482
$0.1825
28-Nov-25
(1) Equity-settled services relate to options granted to Jett Capital Advisors, LLC in
respect of corporate advisory services undertaken for the Group.
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.
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 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.
Sayona Annual Report 2024
51
Corporate Governance
The Group’s Corporate Governance Statement is available at
sayonamining.com.au/corporate-governance.
Auditor Independence
The Group’s auditor has provided an independence declaration
in accordance with the Corporations Act 2001, which is set out
on page 73 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.
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 (ASIC Instrument
2016/191) applies. Amounts in this Directors’ Report and financial
statements have been rounded in accordance with ASIC Instrument
2016/191, unless otherwise stated.
Directors' Report continued
Sayona Annual Report 2024
52
Dear Shareholders,
On behalf of the Board, I am pleased to present the
Remuneration Report for Sayona Mining Limited
for the financial year ended 30 June 2024.
Over the past year, Sayona has taken several steps to improve the
skills and experience of the Board and advance the Company’s
corporate governance practices. The Board was strengthened
with the appointment of two independent Non-Executive Directors,
myself and Lucas Dow, who joined the Board in August 2023 and
February 2024 respectively. The Board also established the Audit and
Risk Committee and the Nomination and Remuneration Committee
in December 2023 to further strengthen our corporate governance
practices. We welcomed new executive appointments during the year,
in addition to the appointment of Lucas Dow as Managing Director
and Chief Executive Officer on 3 July 2024. We look forward to the
new leadership team, under the direction of Lucas and with guidance
from the Board, delivering on the growth strategy for Sayona.
The Board acknowledges the first strike the Company received
on the adoption of the Remuneration Report at the 2023 Annual
General Meeting (AGM). Following engagement with and taking into
account feedback from shareholders and proxy advisors, the Board
has taken action to address the key issues raised. The Nomination
and Remuneration Committee undertook a comprehensive review
and evaluation of the Company’s remuneration practices, resulting
in a new remuneration framework which we are confident is aligned
with the expectations of shareholders. Key elements of the new
framework include partial deferral of the short-term incentive (STI),
a policy on malus and clawback provisions, introduction of minimum
shareholding requirements for Executive KMP and a long-term
incentive (LTI) plan designed to deliver strategic objectives that
will drive long-term shareholder value creation. We expect the
new remuneration framework to be fully implemented for the
year ending 30 June 2025.
Our Year in Review
Sayona enjoyed a year of strong operational performance at
our North American Lithium (NAL) operation. NAL has set
new benchmarks in the lithium industry, demonstrating its
operational capability as it neared steady state operations by
the end of the FY24 year. Full year spodumene concentrate
production of 155,822 dmt was delivered at the upper end of
market guidance, with operating expenditure ending the year higher
than expected. The significant capital works program undertaken
at NAL during the year was delivered with minor cost overruns,
as the Company delivered the projects that will sustain improved
levels of operational performance moving forward.
The Company still has significant room for improvement in relation
to safety performance. Enhanced safety programs and initiatives
are moving outcomes in the right direction, with the safety and
well-being of employees and stakeholders remaining a top priority
as the Company continues to grow. The commitment to sustainable
practices will ensure that Sayona minimises the environmental
impact of its operations.
Sayona continued to deliver on strategic milestones during FY24, with
the completion of planned exploration drilling programs in Canada
and Australia and the release of the Definitive Feasibility Study for the
Moblan Lithium Project. The progression of strategic milestones is
critical to underpin long-term value creation for shareholders.
Letter from Chair of Nomination
and Remuneration Committee
Sayona Annual Report 2024
53
Remuneration Report
Executive Remuneration
The changes to executive remuneration structures in FY24 reflected
the transitioning of practices to the new remuneration framework
which is more reflective of shareholder expectations.
Two key changes have been incorporated into the STI. Weighted
outcomes to business and individual performance have been
introduced and 50 per cent of the STI outcome is deferred for
twelve months. We believe these changes improve the alignment
between the achievement of the Group’s short-term objectives
and shareholder interests.
In FY24, Business performance outcomes were determined by
reference to sustainability, operational and financial performance and
strategic initiative measures. Sustainability measures were not met,
operational and financial performance and strategic measures were
below target resulting in a final STI business outcome of 46 per cent.
The STI outcomes for Executive KMP range between 47 per cent and
62 per cent of maximum STI opportunity.
In response to feedback from shareholders regarding the irregular
and retrospective nature of equity grants to KMP in the past, the
Board determined that no long-term incentive (LTI) awards would
be granted to Executive KMP in FY24 other than those approved
by shareholders at the Extraordinary General Meeting held in
July 2023. As the new Managing Director was appointed to his
role on 3 July 2024, no LTI grants were made in FY24 given the
Interim Chief Executive Officer was not entitled to performance
based remuneration. At the 2024 AGM shareholders will be asked
to approve an equity grant under the new remuneration framework
to the Managing Director.
Non-Executive Director Remuneration
At the 2023 AGM, shareholders approved an increase in the
Non-Executive Director fee pool to $900,000 to allow the Board
to appoint suitably qualified independent directors. There was
no increase in base fees for Non-Executive Directors in FY24.
Following the establishment of the Audit and Risk Committee and
Nomination and Remuneration Committee, the Board approved to
implement committee fees to remunerate Non-Executive Directors
for the broad range and complexity of matters considered by each
Committee. The following fees were effective from the date of
appointment to each Committee:
• Committee Chair fee of $25,000 per annum
• Committee Member fee of $12,500 per annum
We are committed to improving our remuneration transparency and
I would invite you to review the full remuneration report for FY24.
We trust the FY24 report provides clarity on the links between our
strategic objectives, performance and remuneration outcomes as
well as shareholder value creation.
We greatly appreciate your past engagement and we welcome your
feedback on the remuneration framework as we look to continue to
improve the transparency of our reporting to shareholders.
Philip Lucas
Chair, Nomination and
Remuneration Committee
30 August 2024
Sayona Annual Report 2024
54
The Remuneration Report forms part of the Directors’ Report for the year ended
30 June 2024. The information provided in this report has been prepared in accordance
with Australian Accounting Standards and section 300A of the Corporations Act 2001
(the Act) and audited in accordance with section 308(3C) of the Act.
1. Introduction
This Remuneration Report outlines the overarching remuneration strategy, framework and practices adopted by the Company, and the
remuneration arrangements of Directors and other Key Management Personnel (KMP) of the Group during the year ended 30 June 2024.
Key Management Personnel
KMP are defined as those persons having authority and responsibility for planning, directing and controlling the activities of the Group,
either directly or indirectly, including any Director (whether Executive or otherwise) of the Company.
The following table specifies the KMP of the Group for the year ended 30 June 2024, unless otherwise stated:
Name
Position
Term
Non-Executive Directors
J Brown(1)
Non-Executive Director
Ceased on 26 August 2023
A Buckler(2)
Non-Executive Director
Full term
L Dow(3)
Non-Executive Director
Appointed on 14 February 2024
P Lucas(4)
Non-Executive Director
Appointed on 27 August 2023
Executive KMP
J Brown(1)
Interim Chief Executive Officer
Appointed on 27 August 2023
S Collard(5)
Executive Vice President and Chief Operating Officer
Appointed on 24 January 2024
P Crawford(6)
Executive Director and Company Secretary
Full term
D Elder
Chief Financial Officer
Appointed on 26 April 2024
Former Executive KMP
G Belleau
Chief Executive Officer, Sayona Canada
Ceased on 24 January 2024
B Lynch
Managing Director and Chief Executive Officer
Ceased on 27 August 2023
(1) Mr Brown transitioned from Non-Executive Director to Interim Chief Executive Officer on 27 August 2023 following the resignation of Mr Lynch as Managing Director and Chief
Executive Officer.
(2) Appointed Member of Audit and Risk Committee and Member of Nomination and Remuneration Committee on 3 December 2023.
(3) Appointed Member of Audit and Risk Committee and Member of Nomination and Remuneration Committee on 14 February 2024.
(4) Appointed Chair of Audit and Risk Committee and Chair of Nomination and Remuneration Committee on 3 December 2023.
(5) Mr Collard held the position of Executive Vice President and Chief Operating Officer prior to 24 January 2024; however, this position only became a member of
Executive KMP upon termination of Mr Belleau as Chief Executive Officer, Sayona Canada.
(6) Mr Crawford transitioned from Executive Director and Chief Financial Officer to Executive Director and Company Secretary on 26 April 2024 following the appointment
of Mr Elder as Chief Financial Officer.
In this report, a reference to “Executive” or “Executives” is a reference to Executive KMP.
Sayona Annual Report 2024
55
2. Remuneration Governance
Sound governance is key to delivering executive remuneration that fairly attracts and retains talent and fairly rewards performance that
creates sustainable value consistent with the long-term interests of shareholders. The roles and responsibilities of the Board, Nomination
and Remuneration Committee, executive management and independent external advisors are detailed below:
Roles and Responsibilities
Board
• Maintains overall responsibility for overseeing the remuneration framework of the Group and the principles, policies
and practices that underpin it.
• Approves matters relevant to remuneration for the Managing Director and Chief Executive Officer, Executive Directors
and Non-Executive Directors(1).
Nomination and
Remuneration
Committee
• Operates under the delegated authority of the Board.
• Supports the Board and makes recommendations in relation to:
a. the size and composition of the Board (including relevant skills, knowledge, experience, independence
and diversity)
b. the performance of the Board, Audit and Risk Committee, Nomination and Remuneration Committee,
and Executive and Non-Executive Directors
c. recruitment of Executive and Non-Executive Directors
d. remuneration for Key Management Personnel and direct reports of the Managing Director and
Chief Executive Officer (including base salary, other fixed benefits, incentive payments, equity awards,
termination payments and service agreements)
e. succession planning for Executive and Non-Executive Directors
f. recruitment, retention and termination policies and practices of the Group
g. remuneration policies and practices (including the design of executive incentive plans), taking
into account legislative, regulatory and market developments.
• Ratifies recommendations from executive management for submission to the Board for approval.
Executive
Management
• Prepares and submits recommendations to the Nomination and Remuneration Committee on matters relevant
to remuneration for executives (other than the Managing Director and Chief Executive Officer) and employees of
the Group, including but not limited to:
a. remuneration framework, strategy, quantum and mix for executives (other than the Managing Director
and Chief Executive Officer) and employees of the Group
b. performance target setting and measurement
c. people and talent management including policies and practices designed to attract and retain talent
d. design of short-term and long-term incentive plans that align the remuneration outcomes of executives
and employees with the interests of shareholders
e. approval of short-term and long-term incentives for executives and employees of the Group
f. compliance with pay equity legislation in Québec
g. compliance with all applicable laws and appropriate standards of governance, including relevant provisions
of the ASX Listing Rules and Corporations Act 2001.
Independent
External Advisors
• Provides information and advice on remuneration-related issues, including benchmarking information and market data.
(1) Changes to the Non-Executive Director fee pool and equity grants to Executive Directors are approved by shareholders in accordance with the relevant ASX Listing Rules.
The Board and Nomination and Remuneration Committee may seek independent external advice to ensure that remuneration practices are
competitive and in line with industry standards. This advice helps the Board make informed decisions and maintain best practices in
remuneration governance.
No remuneration recommendations, as defined under Division 1, Part 1.2, 9B (1) of the Corporations Act 2001, were received during the year.
Remuneration Report continued
Sayona Annual Report 2024
56
3. Remuneration Framework
The Board understands and accepts shareholder expectations
that remuneration of executives and employees should be linked
to balanced financial and non-financial performance outcomes,
appropriately governed and aligned with delivery and execution of
the Company’s strategy and supported by sustainable long-term
value creation for shareholders.
With these elements in mind, the Board has undertaken a
comprehensive review and evaluation of the Company’s
remuneration practices to ensure that our remuneration framework
remains contemporary and appropriate for the scale and evolution
of the Company whilst also maintaining a fair and equitable approach
to remuneration decisions.
In determining the remuneration framework for the Group, the
Board followed a robust process which included discussions and
engagement with investors and proxy advisers, taking into account
the needs of the business and evolving market and best practices.
The Board also considered input and advice from independent
external advisers.
Remuneration Strategy
The Board is responsible for ensuring that remuneration policies,
practices and outcomes across the Group are effective for the
purposes of attraction, retention and reward of talent, whilst also
ensuring alignment with the interests of shareholders and delivery
of the Company’s strategy and performance.
The remuneration framework has been designed to support the
Company’s vision to support the global decarbonisation drive
by sustainably producing high quality lithium products and
incorporates the values that guide our actions being integrity,
respect and excellence.
In setting our remuneration framework, the Board aims to ensure
the outcomes of the framework recognise the overall value and
contribution that each employee delivers to the Company. In doing
so, the Board’s primary objective is ensuring the framework is
designed to address the following key principles:
• Attract, retain and reward employees to perform to the best of
their abilities, competencies and skill sets.
• Ensure remuneration outcomes are market-based and fairly
reflect an employee’s skills and experience.
• Ensure remuneration outcomes are directly and transparently
linked to the Company’s strategy and performance, and reward
executives and employees to deliver the long-term growth and
success of the Company.
• Ensure there is no discrimination or bias based on race, age,
gender, religion, country of origin, sexual orientation, marital
status, dependents, disability, social class or political views.
• Ensure remuneration practices are fair, equitable, transparent
and consistent and that positions with similar levels of
responsibility within the Group gain access to similar rewards.
• Maintain compliance with all applicable laws and appropriate
standards of governance.
When structuring executive remuneration, the Board aims to
ensure that:
• Remuneration packages are competitive to attract, retain
and reward talented executives.
• Executives are remunerated with an appropriate mix of fixed
and performance-based remuneration.
• Executive remuneration is aligned with the interests
of shareholders.
• Fixed remuneration is fair and reasonable relative to applicable
market practices, prevailing market conditions and the scale
and evolution of the Company.
• Performance-based remuneration is clearly defined through the
achievement of realistic, predetermined goals which are directly
linked to the Company’s short-term and long-term objectives,
and which take into account the Company’s overall performance
(ie. financial and non-financial measures covering sustainability,
operational and financial performance, and strategic initiatives).
• Total remuneration packages are designed to encourage and
reward superior performance and aligned to the creation of
long-term shareholder value.
To ensure our remuneration framework is competitive and
maintains the Company’s ability to attract and retain key talent,
the Board endeavours to ensure fair, competitive and commensurate
remuneration outcomes by benchmarking rewards levels in
accordance with market practices and a clearly defined peer group
of similar sized companies on the Australian Securities Exchange
(ASX) and within the global mining industry.
The remuneration framework
has been designed to support
the Company’s vision to support
the global decarbonisation drive
by sustainably producing high
quality lithium products and
incorporate the values that guide
our actions being integrity,
respect and excellence.
Sayona Annual Report 2024
57
Remuneration Framework
Our remuneration framework is designed to provide a total remuneration package that is appropriately balanced between fixed and variable
components, with an emphasis on long-term variable pay. The framework is designed to build a performance-based culture that supports
the strategic objectives of the Company and aims to attract, retain and reward executives and employees by offering market-competitive
remuneration outcomes.
The framework proposes that remuneration packages are comprised of a mix of the following components:
Description
Purpose
Fixed Remuneration
Fixed Annual
Remuneration
• Fixed annual remuneration consists of a market-
competitive base salary, statutory entitlements
(ie. pension or superannuation) and other fixed benefits
as a guaranteed, fixed element of remuneration.
• Other fixed benefits include healthcare, housing
allowances, insurance, matched pension or
superannuation, motor vehicle allowances, salary
sacrifice arrangements, and signing bonus.
• Other fixed benefits are either aligned to Company
policy or specific to individual roles.
• To meet the basic expectations of the role and deliver
satisfactory outcomes.
• To assist with attraction and retention of talent by
providing market-competitive remuneration outcomes
based on company size, industry benchmarks, business
complexity, individual role responsibility, and individual
skills and experience.
• To meet remuneration package expectations of specific
jurisdictions or professions.
Variable Performance Related Remuneration
Short-Term
Incentives (STI)
• Annual incentive paid in a combination of cash and
deferred equity rights.
• Subject to achievement of short-term performance
targets (ie. typically 12 months) of both the Group and
individual roles, which typically includes both financial
and non-financial performance measures.
• To reward employees to drive short-term performance for
the Group by focusing efforts on key priorities.
• To reward performance outside of the basic expectations
of the role.
• To assist with attraction and retention of talent.
Long-Term
Incentives (LTI)
• Annual grant of equity rights (ie. rights to receive fully
paid ordinary shares in Sayona Mining Limited), subject
to performance and service conditions.
• Awards assessed over a three (3) year measurement
period, with vesting to occur at the end of the
measurement period.
• Awards directly linked to Relative Total Shareholder
Return and strategic objectives.
• To reward employees to deliver the strategic
objectives that will drive the long-term growth
and success of the Company.
• To ensure remuneration outcomes are aligned with
shareholder experience over the long-term.
• To assist with attraction and retention of talent over
the long-term.
The remuneration structure for executives, including the relationship between each element of remuneration and Group performance, is set out on
the following pages:
Fixed Annual Remuneration
Element
Description
Purpose
Fixed annual remuneration (FAR) is designed to assist with attraction and retention of talent by providing market-competitive
remuneration outcomes based on company size, industry benchmarks, business complexity, individual role responsibility,
and individual skills and experience.
Opportunity
FAR is determined on appointment based on the individual’s role and reward grade within the business and includes base
salary, statutory entitlements (ie. pension or superannuation) and other fixed benefits.
Base salary is determined based on the individual’s role, skills, experience, and prevailing market conditions.
Reviews
Base salaries are reviewed annually. The Board determines any increases based on Group and individual performance, global
economic conditions, role responsibilities, an assessment against relevant comparator groups, and internal relativities.
Any increase in base salary is generally aligned with average base salary increases applying to the broader employee population
unless there were significant changes to an individual’s role or responsibilities during the year. Such changes may include a
promotion or increase in responsibility or where the executive’s base salary is significantly below prevailing market levels.
Benchmarking is undertaken periodically to ensure rewards levels remain aligned with market practices.
Remuneration Report continued
Sayona Annual Report 2024
58
Short-Term Incentives
Element
Description
Purpose
The STI plan is designed to reward executives for delivery of annual performance goals set by the Board over a 12 month period.
Opportunity
The STI opportunity is determined by the individual’s role and reward grade within the business based on a percentage of
base salary.
STI payments are awarded to executives annually based on the achievement of annual performance goals above a minimum
threshold for a range of performance objectives, including both Business KPIs (Business Outcome) and Individual KPIs (Individual
Outcome), with 50 per cent of the award paid in cash and 50 per cent delivered in rights to receive fully paid ordinary shares in
Sayona Mining Limited. The equity rights are deferred for 12 months and remain subject to continued service with the Group.
Target and
Maximum
Opportunity
The target STI opportunity for Executive KMP is:
• Interim Chief Executive Officer—no STI opportunity.
• Executive Vice President and Chief Operating Officer—target opportunity of 50 per cent of base salary, with a maximum
opportunity of 75 per cent of base salary for the achievement of stretch outcomes.
• Executive Director and Company Secretary—target opportunity of 40 per cent of FAR, with a maximum opportunity of
60 per cent of FAR for the achievement of stretch outcomes.
• Chief Financial Officer—target opportunity of 60 per cent of base salary, with a maximum opportunity of 90 per cent of base
salary for the achievement of stretch outcomes.
The maximum STI opportunity represents 150 per cent of the individual’s target STI opportunity for the achievement of stretch
outcomes. A minimum performance threshold of 50 per cent of target must be achieved for individuals to receive an STI award.
Performance
Measures
The STI award is an at-risk component of the individual’s total remuneration which is contingent upon the achievement of
predetermined performance measures relating to Business KPIs (Business Outcome) and Individual KPIs (Individual Outcome).
Each year, targets are set by the Board based on metrics that are measurable and transparent, and which are designed to reward
executives on the achievement of outcomes that deliver value for shareholders.
In FY24, the Business Outcome of the STI award is determined by reference to the following financial and non-financial measures,
as set out on page 63 of the report:
• Sustainability—20 per cent weighting
• Operational and Financial Performance—60 per cent weighting
• Strategic Initiatives—20 per cent weighting
The Individual Outcome of the STI award is based on a system of continuous performance feedback to drive executive
performance, which is regularly reviewed by the Board throughout the financial year against defined KPIs. A final performance
assessment for each individual occurs annually following the completion of the financial year.
Executives are assessed on their contribution to the achievement of Business KPIs (Business Outcome) and Individual KPIs
(Individual Outcome). The overall STI outcome is calculated based on the following weightings:
• Managing Director and Chief Executive Officer—80 per cent weighting to Business Outcome, 20 per cent weighting to
Individual Outcome.
• All other Executive KMP—70 per cent weighting to Business Outcome, 30 per cent weighting to Individual Outcome.
Measurement
Period
The STI plan is measured over a 12 month period from 1 July to 30 June each year.
Delivery
Method
The STI award is delivered as follows:
• 50 per cent to be paid in cash in October each year.
• 50 per cent to be delivered in equity rights (to be granted in November each year following the Annual General Meeting),
with vesting to occur 12 months after the cash component is paid and subject to a service condition to remain employed
at the vesting date.
Cessation of
Employment
If an individual’s employment is terminated before the end of the financial year, the individual may or may not receive a pro-rata
payment, depending on the circumstances of the cessation of employment. Outstanding unvested equity rights will also be
reviewed by the Board and may or may not vest, depending on the circumstances of the cessation of employment.
Board DiscretionThe payment of STI awards is subject to Board approval. The Board has the discretion to adjust remuneration
outcomes higher or lower to prevent any inappropriate reward outcomes, including reducing (down to zero, if appropriate)
any STI award.
Reviews
The STI opportunity is benchmarked to market and reviewed by the Board annually.
Malus and
Clawback
The Board may, at its discretion, reduce the number of shares to be received on vesting of an award, or in certain circumstances
clawback all vested and unvested STI awards from a participant for a period of two years after the vesting or payment of a cash
or equity award.
Sayona Annual Report 2024
59
Long-Term Incentives
Element
Description
Purpose
The LTI plan is designed to reward executives to drive long-term performance by focusing participants on the creation
of long-term shareholder value and delivery of strategic objectives set by the Board.
Opportunity
The LTI opportunity is determined by the individual’s role and reward grade within the business based on a percentage of base
salary and is awarded by the offer of an equivalent number of rights to receive fully paid ordinary shares in Sayona Mining Limited.
The equity rights remain subject to meeting specific performance and service conditions over a three (3) year measurement period.
The maximum LTI opportunity for Executive KMP is:
• Interim Chief Executive Officer—no LTI opportunity.
• All other Executive KMP—no LTI opportunity.
As the rights are an element of remuneration, no amount is payable by executives to be allocated the rights. If the rights vest,
no consideration or exercise price is payable for the allocation of shares.
Grant Date
Equity rights are anticipated to be granted in November each year following the Annual General Meeting based on the
Volume Weighted Average Price (VWAP) of ordinary fully paid shares in Sayona Mining Limited traded on the ASX over
the ten (10) trading days following the announcement of the annual financial results.
Service
Condition
Equity rights remain subject to continued service with the Group for the duration of the measurement period.
Performance
Measures
The LTI award is determined by reference to the following performance measures:
• Relative Total Shareholder Return (TSR)—80 per cent of the LTI award is based on a percentile ranking of the Company’s
TSR relative to the TSR of a Comparator Group of similar sized companies on the ASX and within the global mining
industry over the same three (3) year measurement period, with vesting as follows:
- Below 50th percentile—0 per cent of LTI award vests
- Between 50th to 75th percentile—50 per cent to 100 per cent of LTI award vests (pro-rata straight line)
- Above 75th percentile—100 per cent of LTI award vests
• Strategic Objectives—20 per cent of the LTI award is based on the delivery of strategic measures that will underpin
the long-term success of the Company, as determined by the Board.
Measurement
Period
Equity rights will be assessed over a three (3) year measurement period commencing on 1 July each year and completing at the
end of the three (3) year measurement period.
Vesting Date
Vesting will occur at the end of the three (3) year measurement period (ie. 30 June), subject to performance and service conditions
being satisfied.
Expiry Date
Equity rights will expire three years after grant date.
Retesting
Performance conditions will be tested at the end of the three (3) year measurement period. If the performance conditions have
not been met, the equity rights will lapse. No retesting of the performance hurdles will be performed.
Forfeitures
Unless the Board otherwise determines, equity rights will lapse on the earlier of cessation of employment of a participant or
the vesting conditions not being achieved or being incapable of being achieved by a participant.
Dividend and
Voting Rights
Equity rights carry no entitlement to voting, dividends or dividend equivalent payments.
Restrictions
Equity rights granted under the LTI plan may not be assigned, transferred, encumbered or otherwise disposed of by a participant
unless the Board (in its sole and absolute discretion) approves, or the relevant dealing is effected by operation of law on death or
legal incapacity of the participant.
Cessation of
Employment
If an individual’s employment is terminated as a result of death or serious injury, disability or illness that prevents continued
employment or total permanent disability, or in circumstances otherwise agreed between the Company and the individual, the
Board has discretion to determine that vesting of some or all unvested equity rights will vest immediately should be accelerated.
If an individual’s employment is terminated for any other reason, all unvested equity rights will automatically lapse, unless the Board
determines (in its sole and absolute discretion) to allow some or all unvested equity rights to vest, in which case those unvested
equity rights will vest immediately.
Change of
Control
A change of control occurs when the Board advises participants that one or more persons acting in concert have acquired, or are
likely to imminently acquire, control of the Company, as defined in section 50AA of the Corporations Act 2001.
In the event of a change of control, the Board has discretion to determine that vesting of some or all equity rights should be
accelerated. If a change of control occurs prior to the Board exercising its discretion, a pro-rata portion of the equity rights will vest,
calculated based on the portion of the relevant performance period that has elapsed up to the change of control. The remaining
unvested equity rights will vest or lapse at the Board’s discretion.
Board
Discretion
The Board has discretion to adjust the TSR vesting outcome (both upwards and downwards) so that the overall vesting outcome is
appropriate and aligned with the objectives and principles of our remuneration framework.
Malus and
Clawback
The Board may, at its discretion, reduce the number of shares to be received on vesting of an award, or clawback all vested and
unvested LTI awards from a participant for a period of two years after the vesting or payment of an equity award.
Remuneration Report continued
Sayona Annual Report 2024
60
Timeline for Delivery of Executive Remuneration
The following chart provides a timeline of when remuneration is delivered under the remuneration framework:
Year 1
Paid throughout the year
Performance Period
Performance Period
Restriction
Restriction
Restriction
FAR
STI
LTI
Year 2
50% Cash
Year 3
Year 4
50% Rights Vest
100% Rights Vest
Malus, Clawback and
Suspension Provisions
Under our remuneration framework, malus, clawback and suspension
provisions apply to all STI and LTI awards in cash or equity. Under
both the malus and clawback provisions, the Board may, at its
discretion, reduce the number of shares to be received on vesting
of an award, or clawback all vested and unvested STI and LTI
awards from a participant for a period of two years after the vesting
or payment of a cash or equity award. These provisions apply to
certain circumstances to ensure that employees do not obtain an
inappropriate benefit.
The circumstances in which the Board may exercise such discretion
are broad, and could include:
• Any fraud or misconduct by an employee.
• Any material misstatement or misrepresentation, which would
have affected the size of the award granted or vested.
• A material error or misstatement in the Group’s results, which
would have affected the size of the award granted or vested.
• Any circumstances in which any team or member of the Group
in which the participant works or worked has been found guilty
in connection with any regulatory investigation or has been in
breach of any laws, rules or codes of conduct applicable to it
or the standards reasonably expected of it.
• Any circumstances in which the Board determines that the
personal performance of a participant does not justify vesting or
where the participant’s conduct or performance has been in breach
of their employment contract, any laws, rules or codes of conduct
applicable to them or the standards reasonably expected of a
person in their position.
• An exceptional event which has had, or may have, a material
adverse effect on the value or reputation of any member of the
Group (excluding an exceptional event or events which have a
material adverse effect on global macroeconomic conditions).
• Any circumstances in which the Board determines that there has
been material damage to the Group’s social licence to operate.
• A catastrophic safety or environmental event or events.
• Any significant unexpected or unintended consequence
or outcome.
• Any other factor which the Board deems justifiable.
Under the suspension provisions, the Board may suspend the
vesting or payment of an award for up to five years until the outcome
of any internal or external investigation is concluded. The Board may
then, at its discretion, reduce or lapse the participant’s award based
on the outcome of that investigation. Where the suspension provision
applies, the two-year clawback period will not extend beyond the
period commencing from the original vesting date.
Minimum Shareholding Requirement
The Company has a minimum shareholding requirement for
Executive KMP, equal to 100 per cent of base salary, to focus their
efforts over the long-term and ensure alignment with shareholder
interests. The minimum shareholding requirement must be obtained
within three years of appointment as a member of Executive KMP
by acquiring shares either directly on market or through the vesting
of equity based remuneration.
As at 30 June 2024, Mr Crawford had met the minimum
shareholding requirement under our remuneration framework.
Mr Brown, Mr Collard and Mr Elder, who were appointed as a
member of Executive KMP during the year, have until August 2026,
January 2027 and April 2027 respectively to meet the
minimum shareholding requirement.
Sayona Annual Report 2024
61
4. FY24 Remuneration Opportunity
The Group sets target remuneration for each member of Executive KMP at a competitive level to attract and retain appropriately skilled and
experienced talent in the markets in which we operate.
The following table provides the components of FAR for Executive KMP for the year ended 30 June 2024:
Executive KMP
Position
Base Salary(1)
$
Pension
$
Other Fixed
Benefits
$
Total
$
J Brown
Interim Chief Executive Officer
600,000
27,500
–
627,500
S Collard(2)
Executive Vice President and Chief Operating Officer
394,070
7,881
35,547
437,498
P Crawford
Executive Director and Company Secretary
347,500
27,500
–
375,000
D Elder
Chief Financial Officer
447,500
27,500
–
475,000
(1) Base salary reflects service agreements in place as at 30 June 2024.
(2) Amounts reported for Mr Collard have been converted to Australian dollars using an exchange rate of A$1.00:C$0.8882.
Other fixed benefits include healthcare, insurance and matched pension contributions.
The following table provides the STI opportunities for Executive KMP for the year ended 30 June 2024:
Executive KMP
Position
STI Opportunity
Basis(1)
$
Threshold
%
Target
%
Maximum
%
J Brown
Interim Chief Executive Officer
–
–
–
–
S Collard
Executive Vice President and Chief Operating Officer
394,070
25.0%
50.0%
75.0%
P Crawford
Executive Director and Company Secretary
375,000
20.0%
40.0%
60.0%
D Elder
Chief Financial Officer
447,500
30.0%
60.0%
90.0%
(1) STI opportunity basis reflects base salary or fixed annual remuneration in place as at 30 June 2024.
5. FY24 Performance and Executive Remuneration Outcomes
Determination of Short-Term Incentive Outcomes
As outlined in our remuneration framework, the STI plan is designed to reward executives to drive short-term performance by focusing
participants on delivery of key business priorities set by the Board, both in the financial year and into the future. The overall STI outcome
is determined by assessing two key inputs: the Business Scorecard and individual performance and behaviours.
0%–100%
Individual Performance
and Behaviours
Individual Outcome
Business Outcome
0%–100%
Business
Scorecard
Maximum 100%
Target 67%
Overall STI Outcome
The Business Scorecard includes a balanced set of challenging measures that consider both financial and non-financial performance. The Business
Scorecard is cascaded throughout the organisation and is used to focus the efforts of executives and employees on outcomes that are a priority for
the Board for a particular year.
Individual performance is measured based on delivery against relevant operational or functional plans and individual performance goals. Our people
are also assessed on demonstrated behaviours in performing their work and achieving their individual performance goals in alignment with our
values (i.e. individual performance assessed on what is achieved and how it is achieved).
Remuneration Report continued
Sayona Annual Report 2024
62
FY24 Business Scorecard
The STI plan rewards executives for driving short-term performance through the achievement of weighted performance measures set by the Board
at the beginning of the year. The following table summarises the STI performance measures and outcomes for the year ended 30 June 2024:
Measure
Performance(1)
Weighting
(A)
%
Performance
Assessment(2)
(B)
%
Outcome
(A x B)
%
Sustainability
Below Threshold
20.0%
0%
0%
Health and Safety
• 17 per cent reduction in Total Recordable
Injury Frequency Rate (TRIFR) compared to
FY23 baseline (TRIFR Target: 5.0)(3)
Below Threshold
• TRIFR decreased by 8 per cent
compared to FY23 baseline
Environment
• Zero significant environmental incidents
(actual or potential)
Below Threshold
• 1 potential significant environmental
incident recorded
Operational and Financial Performance
Below Target
60.0%
58.3%
35.0%
Production
• Deliver production at North American Lithium
of 95 to 105 per cent of the upper end of
FY24 Market Guidance(4).
Target Met
• Production of 97 per cent of the upper
end of FY24 Market Guidance achieved at
North American Lithium.
Operating Expenditure
• Deliver operating expenditure within 95 to
105 per cent of budget (adjusted for foreign
exchange, price-linked costs and any other
applicable adjustments)(5).
Below Target
• Adjusted operating expenditure of
110 per cent of budget achieved.
Capital Expenditure
• Deliver key capital projects in accordance with
planned milestones.
• Deliver capital expenditure (including capitalised
exploration expenditure) within 95 to 105 per cent
of budget (adjusted for foreign exchange and any
other applicable adjustments)(5).
Below Target
• Crushed Ore Dome and TSF 1 completed
in accordance with planned milestones.
• Adjusted capital expenditure of
90 per cent of budget achieved.
Strategic Initiatives
Below Target
20.0%
55.0%
11.0%
Exploration Drilling and Mineral
Resource Updates
• Progress exploration drilling activity in Australia and
Canada in accordance with planned milestones.
Below Target
• Exploration drilling activity delivered
as planned; delays in exploration results
and Mineral Resource Estimates.
Moblan Lithium Project
• Finalise Definitive Feasibility Study (DFS) in
accordance with planned milestones.
Below Target
• Delays to finalisation and publication
of DFS compared to plan.
Business Outcome
100%
46.0%
(1) Performance is assessed on a five-point scale—Stretch, Above Target, Target Met, Below Target, Below Threshold.
(2) The performance assessment rating for each category reflects the overall outcome as a percentage of the maximum opportunity.
(3) TRIFR based on 200,000 hours worked in accordance with Occupational Safety and Health Act (OSHA) Guidelines.
(4) Refer to ASX Announcement on 30 October 2023.
(5) Other applicable adjustments may include exceptional, non-recurring items and adjustments resulting from decisions imposed by the Board.
Sayona Annual Report 2024
63
FY24 Individual Performance
The Board assesses individual performance outcomes of Executive KMP based on delivery against relevant operational or functional plans and
individual performance goals. Our people are also assessed on demonstrated behaviours in performing their work and achieving their individual
performance goals, which considers leadership behaviours aligned to our values, risk framework and governance processes (ie. individual
performance assessed on what is achieved and how it is achieved).
The individual outcomes applied to Executive KMP reflect the performance outcomes in their areas of accountability. These outcomes ranged
from 50 per cent to 100 per cent, as indicated in the table below.
Short-Term Incentive Outcomes
The FY24 STI award for Executive KMP is determined through the Board’s assessment of business and individual outcomes, as summarised
in the following table:
Percentage of
Maximum STI Award
Executive KMP
Business
Outcome
(70%)(1)
%
Individual
Outcome
(30%)(2)
%
Overall STI
Outcome(3)
%
Total STI
Awarded
$
Cash STI
(50%)
$
Deferred
Rights STI
(50%)
$
Maximum
STI
Award(4)
$
Awarded
%
Forfeited
%
J Brown(5)
–
–
–
–
–
–
–
–
–
S Collard(6)
46.0
100.0
62.2
79,862
39,931
39,931
128,396
62
38
P Crawford(7)
46.0
50.0
47.2
106,200
53,100
53,100
150,000
47
53
D Elder(8)
46.0
66.7
52.2
37,911
18,955
18,956
72,627
52
48
(1) The Business Outcome reflects the performance outcome as a percentage of the maximum opportunity. Refer to Business Outcome as detailed in the FY24 Business
Scorecard on page 63 of the report.
(2) The Individual Outcome reflects the performance outcome as a percentage of the maximum opportunity.
(3) The overall STI outcome for Mr Collard, Mr Crawford and Mr Elder is calculated based on a 70 per cent weighting to the Business Outcome and 30 per cent weighting
to the Individual Outcome.
(4) The maximum STI award is pro-rated for time serviced as a member of Executive KMP.
(5) Mr Brown was not entitled to an STI award in the position of Interim Chief Executive Officer, as outlined in the ASX Announcement on 28 August 2023.
(6) Details reported for Mr Collard reflect service as a member of Executive KMP from 24 January 2024 to 30 June 2024. The amounts reported for Mr Collard have
been converted to Australian dollars using an exchange rate of A$1.00:C$0.8882.
(7) Mr Crawford transitioned from Executive Director and Company Secretary to Non-Executive Director on 6 August 2024. The Board has resolved to settle the deferred
STI component in a cash equivalent amount on a deferred basis in 2025.
(8) Details reported for Mr Elder reflect service as a member of Executive KMP from 26 April 2024 to 30 June 2024.
Long-Term Incentive Outcomes
Equity Rights Granted
The following table summarises the equity rights granted to Executive KMP in FY24:
Executive KMP
Award
Grant date
Number of equity
rights granted
#
Share price on
grant date
$
Fair value of equity
rights granted
$
Vesting
date
B Lynch(1)
FY23 LTI
17-Jul-23
10,000,000
0.1750
1,750,000
17-Jul-23
Total
10,000,000
1,750,000
(1) The FY23 LTI award for Mr Lynch was granted following shareholder approval at the Extraordinary General Meeting on 17 July 2023, prior to implementing changes to our
remuneration framework in FY24.
In response to strong feedback from shareholders regarding the irregular and retrospective nature of equity grant practices to KMP in the
past, the Board determined that no further LTI awards would be granted to Executive KMP in FY24. Future grants of performance-based
equity remuneration will be awarded in accordance with our remuneration framework, as described in Section 3 of the Remuneration Report.
Grants to Executive Directors will be subject to shareholder approval at the 2024 Annual General Meeting.
Remuneration Report continued
Sayona Annual Report 2024
64
Equity Rights Vested, Lapsed or Forfeited
The following table summarises the number of equity rights that were granted, vested and forfeited during the year:
Executive KMP
Award
Equity rights
granted
#
Equity rights
vested
#
Equity rights
forfeited /
lapsed
#
Value of
rights at
grant date(1)
$
Value of rights
forfeited
/lapsed(2)
$
Value of
share price
movement(3)
$
Value of
rights at
vesting(4)
$
G Belleau
FY23 LTI
8,559,808
–
8,559,808
1,626,364
1,626,364
–
–
B Lynch
FY23 LTI
10,000,000
10,000,000
–
1,750,000
–
–
1,750,000
Total
18,559,808
10,000,000
8,559,808
3,376,364
1,626,364
–
1,750,000
(1) ’Value of rights at grant date’ is the number of equity rights granted multiplied by the grant price.
(2) ‘Value of rights forfeited / lapsed is the number of rights forfeited or lapsed based on performance relative to the performance measures, multiplied by the grant price.
(3) ‘Value of share price movement’ is the number of shares that vested multiplied by the difference between the grant price and the share price on the date of vesting.
This reflects the value added or lost due to the change in share price over the performance period.
(4) ‘Value of rights at vesting’ is the number of shares that vested multiplied by the closing share price of ordinary fully paid shares in Sayona Mining Limited on the vesting date.
Options Granted
The following table summarises the options granted to Executive KMP in FY24:
Executive KMP
Award
Grant date
Exercise price
$
Number of
options granted
#
Fair value of
options granted
$
Expiry date
P Crawford(1)
FY23 LTI
17-Jul-23
0.1500
10,000,000
300,000
17-Jul-24
Total
10,000,000
300,000
(1) The FY23 LTI award for Mr Crawford was granted following shareholder approval at the Extraordinary General Meeting on 17 July 2023, prior to implementing changes to
our remuneration framework in FY24. These options were not exercised and subsequently lapsed on 17 July 2024.
Options Exercised, Lapsed or Forfeited
The following table summarises the number of options that were granted, exercised and forfeited during the year:
KMP
Award
Options
granted
#
Options
exercised
#
Options
forfeited /
lapsed
#
Fair value
of options
granted
$
Fair value
of options
forfeited /
lapsed
$
Value of
options on
exercise(1)
$
Value of
shares in
excess of
exercise
value(2)
$
Non-Executive
A Buckler
FY22 LTI
10,000,000
10,000,000
–
400,000
–
1,500,000
–
Executive
J Brown
FY22 LTI
10,000,000
10,000,000
–
400,000
–
1,500,000
–
P Crawford
FY22 LTI
20,000,000
20,000,000
–
800,000
–
3,000,000
–
FY23 LTI
10,000,000
–
–
300,000
–
–
–
Total
50,000,000
40,000,000
–
1,900,000
–
6,000,000
–
(1) ’Value of options on exercise’ is the number of options exercised multiplied by the exercise price on the date of exercise, being $0.1500 per option. This reflects the value of funds
received by the Company on exercise of the options.
(2) ‘Value of shares in excess of exercise value’ is the number of options exercised multiplied by the closing share price of ordinary fully paid shares in Sayona Mining Limited on the
date of exercise, being $0.1500 per option. This reflects the value added or lost compared to the exercise price.
In response to strong feedback from shareholders regarding the irregular and retrospective nature of equity grant practices to KMP in the past,
the Board resolved to discontinue the practice of granting options to KMP.
Sayona Annual Report 2024
65
6. Non-Executive Director Remuneration
Components of Non-Executive Remuneration
The remuneration of Non-Executive Directors is determined by the Board and is fixed to encourage impartiality, high ethical standards and
independence. Non-Executive Directors are not entitled to retirement benefits other than statutory superannuation or other statutory benefits.
Non-Executive Directors do not participate in STI or LTI plans designed for executives or employees.
The remuneration framework proposes that Non-Executive Director remuneration is comprised of the following components:
Description
Purpose
Fixed Remuneration
Board Fees
• Market-competitive fee paid to the Non-Executive Chair and
Non-Executive Directors of Sayona Mining Limited, consisting of a base
fee inclusive of statutory entitlements (ie. pension or superannuation).
• Board fees are a guaranteed, fixed element of remuneration
(ie. remuneration does not include an ‘at risk’ element).
• Board fees reflect the size, complexity and global nature of our business
and the responsibilities of serving on our Board.
• To assist with attraction and
retention of appropriately skilled and
experienced Non-Executive Directors
from a diverse global pool.
• To preserve the independence of
Non-Executive Directors and
impartiality and high ethical standards.
Committee
Fees
• Committee Chair and Committee Member fees (as applicable) paid to
Non-Executive Directors (excluding the Non-Executive Chair) who serve
on each Committee(1).
• To recognise additional responsibilities
associated with participating on
each Committee.
(1) The Non-Executive Chair is paid a fixed fee for all responsibilities, including participation on any Committees.
Non-Executive Director Fees
The Board recognises the increased scrutiny and expectations placed on Boards and Committees over the last few years, and the range
and complexity of matters considered by Committees of ASX listed companies. During the year, the Board reviewed and benchmarked
our Non-Executive Director fees against industry and ASX peer data, taking into consideration the size and complexity of the business.
To align with market practice, the Board approved the following changes to Non-Executive Director fees:
• Non-Executive Chair fee of $300,000 per annum.
• Committee Chair fee of $25,000 per annum for each Committee.
• Committee Member fee of $12,500 per annum for each Committee.
The following table outlines Non-Executive Director fees inclusive of statutory entitlements (ie. pension or superannuation), effective
as at 30 June 2024:
Fee
Position
2024
$
2023
$
Variance
%
Board Fees
Non-Executive Chair(1)
300,000
–
–
Non-Executive Director(2)
125,000
125,000
–
Committee Fees(3)
Committee Chair
25,000
–
–
Committee Member
12,500
–
–
(1) The position of Non-Executive Chair was vacant from 1 July 2023 to 30 June 2024 and therefore no fee was paid during the year.
(2) The 2023 Notice of Annual General Meeting indicated that Non-Executive Director fees were expected to increase to $130,000 per annum in FY24; however,
the Board subsequently determined to maintain fees at $125,000 per annum.
(3) The Non-Executive Chair is paid a fixed fee for all responsibilities and would not receive additional fees for participation on any Committees.
The maximum aggregate fee pool for Non-Executive Directors is $900,000 which was approved by shareholders at the Annual General Meeting
on 30 November 2023.
Minimum Shareholding Requirement
The Company has a minimum shareholding requirement for Non-Executive Directors, equal to 100 per cent of base Board fees, to ensure alignment
with shareholder interests. The minimum shareholding requirement must be obtained within three years of appointment as a Non-Executive
Director by acquiring shares directly on market.
As at 30 June 2024, Mr Buckler had met the minimum shareholding requirement under our remuneration framework. Mr Dow and Mr Lucas,
who were appointed as Non-Executive Directors during the year, have until August 2026 and February 2027 respectively to meet the minimum
shareholding requirement.
Remuneration Report continued
Sayona Annual Report 2024
66
Non-Executive Director Remuneration
The following table details the statutory disclosures required under the Act and in accordance with Australian Accounting Standards and
Corporations Regulations disclosure requirements:
Short-term benefits
Board and
Committee
fees
Other
benefits
Superannuation
Termination
benefits
Equity
rights
Total
remuneration
Performance
related
Non-Executive Directors
Year
$
$
$
$
$
$
%
J Brown(1)
2024
19,663
–
–
–
–
19,663
0%
2023
125,000
–
–
–
–
125,000
0%
A Buckler(2)
2024
139,382
–
–
–
–
139,382
0%
2023
125,000
–
–
–
–
125,000
0%
L Dow(3)
2024
56,755
–
–
–
–
56,755
0%
2023
–
–
–
–
–
–
–
P Lucas(4)
2024
132,926
–
–
–
–
132,926
0%
2023
–
–
–
–
–
–
–
Total
2024
348,726
–
–
–
–
348,726
2023
250,000
–
–
–
–
250,000
(1) Mr Brown transitioned from Non-Executive Director to Interim Chief Executive Officer on 27 August 2023 following the resignation of Mr Lynch as Managing Director and
Chief Executive Officer. Remuneration reported for Mr Brown reflects service as a Non-Executive Director from 1 July 2023 to 26 August 2023.
(2) Remuneration reported for Mr Buckler reflects service as a Non-Executive Director from 1 July 2023 to 30 June 2024 and Member of the Audit and Risk Committee and
Nomination and Remuneration Committee from 3 December 2023 to 30 June 2024.
(3) Remuneration reported for Mr Dow reflects service as a Non-Executive Director from 14 February 2024 to 30 June 2024 and Member of the Audit and Risk Committee and
Nomination and Remuneration Committee from 14 February 2024 to 30 June 2024.
(4) Remuneration reported for Mr Lucas reflects service as a Non-Executive Director from 27 August 2023 to 30 June 2024 and Chair of the Audit and Risk Committee and
Chair of the Nomination and Remuneration Committee from 3 December 2023 to 30 June 2024.
Sayona Annual Report 2024
67
7. Statutory Remuneration Disclosures
Statutory Remuneration
The following table details the statutory disclosures required under the Act and in accordance with Australian Accounting Standards and
Corporations Regulations disclosure requirements:
Short-term benefits
Cash salary
and fees
Cash
incentive
Other
benefits(1)
Superannuation
Termination
benefits(2)
Equity
rights(3)
Total
remuneration
Performance
related
Executive KMP
Year
$
$
$
$
$
$
$
%
Current
J Brown(4)
2024
506,575
–
–
27,500
–
–
534,075
0%
2023
–
–
–
–
–
–
–
–
S Collard(5)
2024
171,194
39,931
31,209
6,982
–
–
249,316
16%
2023
–
–
–
–
–
–
–
–
P Crawford(6)
2024
347,500
15,600
–
27,500
–
–
390,600
4%
2023
347,500
150,000
–
36,922
-
300,000
834,422
54%
D Elder(7)
2024
81,140
18,955
6,901
–
–
–
106,996
30%
2023
–
–
–
–
–
–
–
–
Former
G Belleau(8)
2024
364,406
194,319
44,243
14,576
619,252
–
1,236,796
16%
2023
305,073
302,565
45,985
24,406
–
310,686
988,715
51%
B Lynch(9)
2024
112,083
45,000
8,198
6,850
700,000
–
872,131
5%
2023
672,500
280,000
114,983
27,500
–
1,610,000
2,704,983
70%
Total
2024
1,582,898
313,805
90,551
83,408
1,319,252
–
3,389,914
2023
1,325,073
732,565
160,968
88,828
–
2,220,686
4,528,120
(1) 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.
(2) The termination benefits for Mr Belleau and Mr Lynch are less than or equal to twelve months of fixed annual remuneration.
(3) Equity rights are calculated in accordance with Australian Accounting Standards and reflect the fair value of equity and equity-related instruments that have been expensed
during the year.
(4) Mr Brown transitioned from Non-Executive Director to Interim Chief Executive Officer on 27 August 2023 following the resignation of Mr Lynch as Managing Director and
Chief Executive Officer. Remuneration reported for Mr Brown reflects service as a member of Executive KMP from 27 August 2023 to 30 June 2024.
(5) Remuneration reported for Mr Collard reflects service as a member of Executive KMP from 24 January 2024 to 30 June 2024. The amounts reported have been converted
to Australian dollars using an exchange rate of A$1.00:C$0.8882.
(6) Mr Crawford has changed roles with the transition from Executive Director and Company Secretary to Non-Executive Director on 6 August 2024. The Board has resolved
to settle the deferred STI component in a cash equivalent amount on a deferred basis in 2025.
(7) Remuneration reported for Mr Elder reflects service as a member of Executive KMP from 26 April 2024 to 30 June 2024.
(8) Remuneration reported for Mr Belleau reflects service as a member of Executive KMP from 1 July 2023 to 24 January 2024. The amounts reported have been converted
to Australian dollars using an exchange rate of A$1.00:C$0.8882.
(9) Remuneration reported for Mr Lynch reflects service as a member of Executive KMP from 1 July 2023 to 27 August 2023.
Remuneration Report continued
Sayona Annual Report 2024
68
Ordinary Shares Held by KMP
The following table details the number of ordinary shares held in Sayona Mining Limited either directly, indirectly or beneficially by each KMP,
including their related parties:
KMP
Opening
balance as at
1 July 2023
#
Received on
vesting of equity
rights
#
Received
from exercise
of options
#
Other net
changes(1)
#
Closing
balance as at
30 June 2024
#
Non-Executive Directors
A Buckler
102,589,051
–
10,000,000
–
112,589,051
L Dow
–
–
–
–
–
P Lucas
–
–
–
–
–
Executive KMP
G Belleau(2)
–
–
–
–
–
J Brown
757,094
–
10,000,000
–
10,757,094
S Collard
–
–
–
–
–
P Crawford
160,135,689
–
20,000,000
(13,609,386)
166,526,303
D Elder(3)
–
–
–
1,700,000
1,700,000
B Lynch(4)
163,032,516
10,000,000
–
555,556
173,588,072
Total
426,514,350
10,000,000
40,000,000
(11,353,830)
465,160,520
(1) Other net changes include purchases and sales of ordinary shares and participation in equity issues (in capacity as shareholders).
(2) Mr Belleau ceased as a member of Executive KMP on 24 January 2024. The closing balance reported reflects the number of ordinary shares held on cessation
as a member of Executive KMP.
(3) Mr Elder commenced as a member of Executive KMP on 26 April 2024. The amount reported as ‘Other net changes’ reflects ordinary shares held prior to
commencement as a member of Executive KMP.
(4) Mr Lynch ceased as a member of Executive KMP on 27 August 2023. The closing balance reported reflects the number of ordinary shares held on cessation
as a member of Executive KMP.
Options Held by KMP
The following table details the number of options held in Sayona Mining Limited either directly, indirectly or beneficially by each KMP, including
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:
KMP
Opening
balance as at
1 July 2023
#
Granted
#
Exercised and
converted to
ordinary shares
#
Other net
changes
#
Closing
balance as at
30 June 2024(1)
#
Non-Executive Directors
A Buckler
10,000,000
–
(10,000,000)
–
–
Executive KMP
J Brown
10,000,000
–
(10,000,000)
–
–
P Crawford(2)
20,000,000
10,000,000
(20,000,000)
–
10,000,000
Total
40,000,000
10,000,000
(40,000,000)
-
10,000,000
(1) All options held as at 30 June 2024 are unlisted.
(2) The outstanding options for Mr Crawford as at 30 June 2024 were not exercised and subsequently lapsed on 17 July 2024.
Sayona Annual Report 2024
69
8. Looking Forward
Planned Remuneration Changes
The Board has confidence in the integrity of the remuneration framework and believes it incorporates the necessary flexibility to reward executives
for performance that is aligned with the creation of shareholder value.
The Board is not proposing to make any major remuneration changes in FY25; however, we remain open to improving the Company’s remuneration
policies and practices as a result of feedback from shareholders.
Fixed Annual Remuneration
The Board approved the following changes to the fixed annual remuneration of Executive KMP:
Executive KMP
Position
FY24
Fixed Annual
Remuneration
$
FY25
Fixed Annual
Remuneration
$
Increase
%
J Brown(1)
Interim Chief Executive Officer
627,500
–
–
Executive Director
–
240,000
–
S Collard(2)
Executive Vice President and Chief Operating Officer
437,498
–
–
President and Chief Operating Officer, Canada
–
722,134
–
P Crawford(3)
Executive Director and Company Secretary
375,000
377,500
0.7%
L Dow(4)
Managing Director and Chief Executive Officer
–
730,000
–
D Elder(5)
Chief Financial Officer
475,000
477,500
0.5%
(1) Mr Brown transitioned from Interim Chief Executive Officer to Executive Director on 3 July 2024. Mr Brown is expected to remain as an Executive Director
until 31 January 2025 when he will return to a Non-Executive Director role.
(2) Mr Collard was promoted to President and Chief Operating Officer, Canada on 3 July 2024. Amounts reported have been converted to Australian dollars
using an exchange rate of A$1.00:C$0.9120.
(3) Mr Crawford transitioned from Executive Director and Company Secretary to Non-Executive Director on 6 August 2024. The increase in fixed annual
remuneration relates to the increase in the superannuation concessional contributions cap.
(4) Mr Dow was appointed as Managing Director and Chief Executive Officer on 3 July 2024.
(5) The increase in fixed annual remuneration relates to the increase in the superannuation concessional contributions cap.
Short-Term Incentives
The structure of the STI plan will remain unchanged for FY25, with the Business Scorecard to be broadly aligned to the following performance measures:
Measure
Performance
FY25 Weighting
%
Sustainability
Safety, environment and risk management
20.0%
Operational and Financial Performance
Production, unit cost, operating expenditure and capital expenditure
60.0%
Strategic Initiatives
Asset development, resource base and strategic partnerships
20.0%
Long-Term Incentives
The Board is not proposing to change the design of the LTI plan for FY25.
In accordance with our remuneration framework, the Company will grant equity rights subject to meeting specific performance and service
conditions over a three (3) year measurement period, with 80 per cent assessed on TSR performance relative to our comparator group and
20 per cent assessed against objectives aligned to our long-term strategy.
Non-Executive Director Fees
There will be no increase to Non-Executive Director fees in FY25.
Remuneration Report continued
Sayona Annual Report 2024
70
FY25 Remuneration Opportunity
The following charts provide an indication of the minimum, target and maximum remuneration opportunity for Executive KMP for the year ended
30 June 2025, together with the proportion of the package delivered through fixed and variable remuneration. The STI and LTI are both
performance-related remuneration.
Managing Director and Chief Executive Officer
President and Chief Operating Officer, Canada(¹)
Chief Financial Officer
Minimum
Target
Maximum
Minimum
Target
Maximum
Minimum
Target
Maximum
Fixed Annual Remuneration
STI (Cash)
STI (Deferred Equity Rights)
LTI
Fixed Annual Remuneration
STI (Cash)
STI (Deferred Equity Rights)
LTI
Fixed Annual Remuneration
STI (Cash)
STI (Deferred Equity Rights)
LTI
730
730
245
368
368
770
245
385
730
722
722
197
296
296
559
197
280
722
478
478
134
201
201
380
134
190
478
(1) Amounts reported for Mr Collard have been converted to Australian dollars using an exchange rate of A$1.00:C$0.9120.
Sayona Annual Report 2024
71
9. Additional Statutory Information
Service Agreements, Notice Periods and Termination
Remuneration and other terms of employment for Executive KMP are formalised in service agreements. These service agreements specify
the components of remuneration, benefits and notice periods. Participation in the STI and LTI plans is subject to the Board’s discretion.
The following table summarises the service agreements in place with Executive KMP as at 30 June 2024:
Executive KMP
Position
Term of
agreement
Notice period
by either party
Termination
benefit
J Brown(1)
Interim Chief Executive Officer
No fixed term
3 months
3 months
S Collard
Executive Vice President and Chief Operating Officer
No fixed term
3 months
3 months
P Crawford(2)
Executive Director and Company Secretary
No fixed term
3 months
3 months
D Elder
Chief Financial Officer
No fixed term
3 months
3 months
(1) As outlined in the ASX Announcement on 3 July 2024, Mr Brown is expected to remain as an Executive Director until 31 January 2025 when he will return to
a Non-Executive Director role.
(2) Mr Crawford transitioned from Executive Director and Company Secretary to Non-Executive Director on 6 August 2024.
In the case of dismissal for cause, the Company may terminate employment without notice and without payment of any salary or compensation
in lieu of notice. The Board will apply the malus and clawback provisions under our remuneration framework, and outstanding awards under any
of the Group’s incentive plans may be forfeited and previous awards clawed back.
On appointment to the Board, all Non-Executive Directors enter into a service agreement with the Company in the form of a letter of appointment
which details remuneration arrangements.
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.
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 framework 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.
Philip Lucas
Chair, Nomination and Remuneration Committee
30 August 2024
Lucas Dow
Managing Director and Chief Executive Officer
Remuneration Report continued
Sayona Annual Report 2024
72
Auditor’s Independence Declaration
Under section 307C of the Corporations Act 2001
To the Directors of Sayona Mining Limited
As lead auditor for the audit of the financial statements of Sayona Mining Limited for the financial
year ended 30 June 2024, I declare that to the best of my knowledge and belief, there have been no
contraventions of:
a. the auditor independence requirements of the Corporations Act 2001 in relation to the audit;
and
b. any applicable code of professional conduct in relation to the audit.
Registered Audit Company 299289 | +61 7 3229 2022 | Level 28, 10 Eagle St, Brisbane QLD 4001
Nexia Brisbane Audit Pty Ltd (ABN 49 115 261 722) is a firm of Chartered Accountants. It is affiliated with, but independent from Nexia Australia Pty Ltd. Nexia Australia Pty Ltd is a
member of Nexia International, a leading, global network of independent accounting and consulting firms. For more information please see www.nexia.com.au/legal. Neither Nexia
International nor Nexia Australia Pty Ltd provide services to clients.
Liability limited under a scheme approved under Professional Standards Legislation.
Nexia Brisbane Audit Pty Ltd
Ann-Maree Robertson
Director
30 August 2024
Sayona Annual Report 2024
73
04 Financial Report
Sayona Annual Report 2024
74
Consolidated Statement of Profit or Loss
for the year ended 30 June 2024
Note
2024
$’000
2023
$’000
Restated *
Revenue
5
200,873
-
Other income
6
6,131
4,273
Expenses
7
(326,072)
(25,794)
Loss from operations
(119,068)
(21,521)
Financial income
21
7,668
16,327
Financial expenses
21
(4,046)
(1,506)
Net financial income
21
3,622
14,821
Loss before income tax
(115,446)
(6,700)
Income tax expense
8
(3,576)
(3,649)
Loss after income tax
(119,022)
(10,349)
Attributable to:
Equity holders of Sayona Mining Limited
(101,398)
(11,048)
Non-controlling interests
(17,624)
699
Earnings per share
Basic earnings per share (cents)
9
(0.99)
(0.13)
Diluted earnings per share (cents)
9
(0.99)
(0.13)
*
Refer to Note 34 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 2024
Note
2024
$’000
2023
$’000
Restated *
Loss after income tax
(119,022)
(10,349)
Other comprehensive loss
Items that may be reclassified to the Consolidated Statement of Profit or Loss:
Foreign exchange rate differences on translation of foreign operations
(24,041)
(4,408)
Total items that may be reclassified to the Consolidated Statement of Profit or Loss
(24,041)
(4,408)
Items that will not be reclassified to the Consolidated Statement of Profit or Loss:
Fair value gains/(losses) on financial assets at fair value through other comprehensive income
25
3,827
(1,544)
Total items that will not be reclassified to the Consolidated Statement of Profit or Loss
3,827
(1,544)
Total other comprehensive loss
(20,214)
(5,952)
Total comprehensive loss
(139,236)
(16,301)
Attributable to:
Equity holders of Sayona Mining Limited
(116,741)
(16,054)
Non-controlling interests
(22,495)
(247)
*
Refer to Note 34 for details on restatement of prior period comparatives.
The accompanying notes form part of the consolidated financial statements.
Sayona Annual Report 2024
75
Consolidated Statement of Financial Position
as at 30 June 2024
*
Refer to Note 34 for details on restatement of prior period comparatives.
The accompanying notes form part of the consolidated financial statements.
Note
2024
$’000
2023
$’000
Restated *
ASSETS
Current assets
Cash and cash equivalents
18
90,624
211,119
Trade and other receivables
10
27,548
19,298
Inventories
11
73,040
48,664
Current tax assets
3,138
1,557
Other assets
12
23,339
33,919
Total current assets
217,689
314,557
Non-current assets
Other financial assets
22
740
12,943
Property, plant and equipment
13
734,084
682,073
Total non-current assets
734,824
695,016
Total assets
952,513
1,009,573
LIABILITIES
Current liabilities
Trade and other payables
15
60,876
29,497
Interest bearing liabilities
19
15,470
1,944
Other liabilities
16
6,084
7,117
Provisions
17
5,963
846
Total current liabilities
88,393
39,404
Non-current liabilities
Interest bearing liabilities
19
15,150
29,270
Other liabilities
16
12,007
18,217
Deferred tax liabilities
8
16,021
13,983
Provisions
17
25,309
35,254
Total non-current liabilities
68,487
96,724
Total liabilities
156,880
136,128
Net assets
795,633
873,445
EQUITY
Share capital
24
795,773
756,744
Reserves
25
(11,991)
12,773
Accumulated losses
(118,740)
(24,738)
Total equity attributable to equity holders of Sayona Mining Limited
665,042
744,779
Non-controlling interests
130,591
128,666
Total equity
795,633
873,445
Sayona Annual Report 2024
76
Consolidated Statement of Changes in Equity
for the year ended 30 June 2024
Attributable to equity holders of Sayona Mining Limited
Note
Share
capital
$’000
Reserves
$’000
Accumulated
losses
$’000
Total
$’000
Non-
controlling
interests
$’000
Total
equity
$’000
Balance as at 1 July 2023
756,744
12,773
(24,738)
744,779
128,666
873,445
Loss after income tax
-
-
(101,398)
(101,398)
(17,624)
(119,022)
Other comprehensive loss
-
(15,343)
-
(15,343)
(4,871)
(20,214)
Total comprehensive loss
-
(15,343)
(101,398)
(116,741)
(22,495)
(139,236)
Transactions with owners:
Shares issued
24
37,399
-
-
37,399
-
37,399
Transaction costs
24
(120)
-
-
(120)
-
(120)
Share based payments
25
-
96
-
96
-
96
Transfers and other movements
1,750
(9,517)
7,396
(371)
24,420
24,049
Balance as at 30 June 2024
795,773
(11,991)
(118,740)
665,042
130,591
795,633
Restated *
Balance as at 1 July 2022
504,255
13,551
(13,782)
504,024
56,597
560,621
Profit/(loss) after income tax
-
-
(11,048)
(11,048)
699
(10,349)
Other comprehensive loss
-
(5,006)
-
(5,006)
(946)
(5,952)
Total comprehensive loss
-
(5,006)
(11,048)
(16,054)
(247)
(16,301)
Transactions with owners:
Shares issued
24
262,448
-
-
262,448
-
262,448
Transaction costs
24
(9,959)
-
-
(9,959)
-
(9,959)
Share based payments
25
-
4,320
-
4,320
-
4,320
Transfers and other movements
-
(92)
92
-
72,316
72,316
Balance as at 30 June 2023
756,744
12,773
(24,738)
744,779
128,666
873,445
*
Refer to Note 34 for details on restatement of prior period comparatives.
The accompanying notes form part of the consolidated financial statements.
Sayona Annual Report 2024
77
Consolidated Statement of Cash Flows
for the year ended 30 June 2024
*
Refer to Note 34 for details on restatement of prior period comparatives.
The accompanying notes form part of the consolidated financial statements.
Note
2024
$’000
2023
$’000
Restated *
Operating activities
Loss before income tax
(115,446)
(6,700)
Adjustments for:
Depreciation and amortisation expense
7
33,777
6,162
Impairment and write down of financial assets
8,134
-
Impairment and write down of non-financial assets
14
17,066
-
Income from sale of tax benefits under flow through share arrangements
6
(5,294)
(2,578)
Loss on disposal of financial assets
22
1,264
-
Net financial income and expenses
21
(3,622)
(14,830)
Net movement in inventories relating to net realisable value adjustments
11
10,437
-
Reversal of unvested equity options
(333)
-
Share based payments
25
96
4,281
Changes in assets and liabilities:
Trade and other receivables
(9,734)
(12,287)
Inventories
(37,122)
(47,603)
Other assets
5,216
(19,626)
Trade and other payables
19,033
4,466
Provisions and other liabilities
5,166
19,747
Cash generated from/(used in) operations
(71,362)
(68,968)
Interest received
7,713
2,817
Interest paid
(987)
(329)
Net cash flows from operating activities
(64,636)
(66,480)
Investing activities
Exploration expenditure
(26,281)
(66,274)
Purchases of property, plant and equipment
(102,448)
(127,088)
Investments in financial assets
-
(14,431)
Cash outflows from investing activities
(128,729)
(207,793)
Proceeds from sale of financial assets
22
14,690
-
Proceeds from sale of property, plant and equipment
-
63
Net cash flows from investing activities
(114,039)
(207,730)
Financing activities
Proceeds from associated entities
26,878
77,806
Proceeds from interest bearing liabilities
-
110
Repayment of interest bearing liabilities
(2,728)
(776)
Proceeds from issue of shares and exercise of options
24
37,399
231,870
Transaction costs associated with share issues
(1,211)
(9,959)
Net cash flows from financing activities
60,338
299,051
Net increase in cash and cash equivalents
(118,337)
24,841
Cash and cash equivalents at the beginning of the financial year
211,119
184,559
Foreign exchange rate differences on cash and cash equivalents
(2,158)
1,719
Cash and cash equivalents at the end of the financial year
18
90,624
211,119
Sayona Annual Report 2024
78
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
material 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 2024 were authorised for issue in accordance with a
resolution of the Directors on 30 August 2024.
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 33 of this 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), and 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
the end of the reporting period is provided in Note 26.
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.
(b)
Critical accounting estimates and judgements
The preparation of the consolidated financial statements requires
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 material to the financial statements,
are disclosed in the following notes:
Note
5
Revenue
8
Tax
13
Property, Plant and Equipment
14
Impairment of Non-Financial Assets
17
Provisions
(c)
Foreign currency translation
The 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.
Transactions denominated in foreign currencies are initially
translated into Australian dollars using the exchange rate on the date
of the underlying transaction. Monetary assets and liabilities
denominated in foreign currencies are translated using the 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 initially recognised 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.
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.
I
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
within other receivables or payables in the Consolidated Statement
of Financial Position.
Cash flows are presented on a gross basis. The GST/QST component
of cash flows arising from investing or financing activities are
presented as operating cash flows.
Sayona Annual Report 2024
79
Notes to the Financial Statements
3.
New Standards and Interpretations
(a)
New accounting standards and interpretations effective from
1 July 2023
The following new accounting standards and interpretations have
been published and are effective for the year ended 30 June 2024:
AASB 2021-2: Amendments to Australian Accounting Standards –
Disclosure of Accounting Policies and Definition of Accounting
Estimates
This Standard amends:
F
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;
c)
AASB 108, to clarify how entities should distinguish
changes in accounting policies and changes in
accounting estimates;
d)
AASB 134, to identify material accounting policy
information as a component of a complete set of financial
statements; and
e)
AASB Practice Statement 2, to provide guidance on how
to apply the concept of materiality to accounting policy
disclosures.
Additional conforming amendments to AASB 1049, AASB 1054, and
AASB 1060 were made by AASB 2021-6.
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 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
2024 and have not been early adopted by the Group:
AASB 2020-1 and AASB 2022-6: Amendments to Australian
Accounting Standards – Non-Current Liabilities with Covenants –
effective date 1 January 2024
The amendments to AASB 101 specify that conditions (covenants) to
be complied with after the reporting date do not affect the
classification of debt as current or non-current at the reporting date.
Instead, an entity discloses information about these conditions in the
notes to the financial statements.
Where AASB 2022-6 is adopted before its mandatory application
date, AASB 2020-1 must also be applied at the same date.
AASB 2023-1: Amendments to Australian Accounting Standards –
Supplier Finance Arrangements – effective date 1 January 2024
The amendment requires the disclosure of information about an
entity’s supplier finance arrangements (also known as supply chain
finance, payables finance or reverse factoring arrangements).
The new disclosures are designed to enable users of financial
statements to assess the effects of those arrangements on the
entity’s liabilities and cash flows.
AASB 2023-5: Amendments to Australian Accounting Standards –
Lack of Exchangeability – effective date 1 January 2025
The Standard amends AASB 121 and AASB 1 to require entities to
apply a consistent approach to determining whether a currency is
exchangeable into another currency and the spot exchange rate to
use when it is not exchangeable.
AASB 2014-10: Sale or Contribution of Assets between an Investor
and its Associate or Joint Venture (Amendments to AASB 10 and
AASB 128) – effective date 1 January 2025
Amends AASB 10 and AASB 128 to remove the inconsistency in
dealing with the sale or contribution of assets between an investor
and its associate or joint venture. A full gain or loss is recognised
when a transaction involves a business (whether it is housed in a
subsidiary or not). A partial gain or loss is recognised when a
transaction involves assets that do not constitute a business, even if
these assets are housed in a subsidiary.
AASB 18: Presentation and Disclosure in Financial Statements –
effective date 1 January 2027
AASB 18 will replace AASB 101 Presentation of Financial Statements.
AASB 18 will:
a)
better align the presentation of the statement of profit or
loss to the categories in the statement of cash flows by
introducing two new defined subtotals – operating profit
and profit before financing and income taxes (EBIT);
b)
require disclosure of management-defined performance
measures – subtotals of income and expenses not
specified by IFRS Accounting Standards that are used in
public communications to communicate management’s
view of an aspect of a company’s financial performance
(such as funds from operations, cash profit, etc); and
c)
enhance
the
requirements
for
aggregation
and
disaggregation to help a company to provide useful
information.
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 2024
80
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
Principal activities
Australian operations
Operations located in Western Australia, Australia
Graphite projects
Exploration site for graphite in the East Kimberley region
Lithium and gold projects
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)
Lithium mining and processing
Authier Lithium Project
Hard rock lithium deposit
Pontiac Claims
Exploration site for lithium pegmatite occurrences
Tansim Lithium Project
Exploration site for lithium, tantalum and beryllium
Vallée Lithium Project
Mineral rights claims located adjacent to NAL
Eeyou Istchee James Bay Hub
Lac Albert Lithium Project
Exploration site for lithium pegmatite occurrences
Moblan Lithium Project
Hard rock lithium deposit host to high-grade spodumene mineralisation
Troilus Claims
Wholly owned claims located adjacent to the Moblan Lithium Project
Corporate
Corporate activities not directly related to operations
(b)
Segment results
The segment information reflects the Group’s interest in subsidiaries and joint operations, as well as material equity accounted joint ventures on a
proportional consolidation basis. The segment information includes non-IFRS financial measures.
Segment performance is measured by Underlying EBIT and Underlying EBITDA. Underlying EBIT is profit before net financial income and expenses,
income tax expense and other earnings adjustment items. Underlying EBITDA is Underlying EBIT before Underlying depreciation and amortisation
expense.
Reconciliations of underlying segment information to statutory information included in the Group’s consolidated financial statements are set out in
Note 4 (c).
Sayona Annual Report 2024
81
Notes to the Financial Statements
4.
Segment Reporting (continued)
(b)
Segment results (continued)
Year ended 30 June 2024
Australian
operations
$’000
Canadian
operations
$’000
Corporate
$’000
Group
eliminations
$’000
Total
$’000
Revenue
-
200,873
-
-
200,873
Total underlying revenue
-
200,873
-
-
200,873
Underlying EBITDA
(193)
(49,091)
(4,870)
-
(54,154)
Underlying depreciation and amortisation expense
(2)
(33,207)
(98)
-
(33,307)
Underlying EBIT
(195)
(82,298)
(4,968)
-
(87,461)
Net financial income/(expense)
-
392
3,230
-
3,622
Income tax expense
-
(3,576)
-
-
(3,576)
Underlying profit/(loss) after income tax
(195)
(85,482)
(1,738)
-
(87,415)
Total adjustments to profit/(loss)
(5,930)
(24,413)
(40,760)
39,496
(31,607)
Profit/(loss) after income tax
(6,125)
(109,895)
(42,498)
39,496
(119,022)
Underlying exploration expenditure
2,534
31,152
-
-
33,686
Underlying capital expenditure (1)
-
105,528
37
-
105,565
Total underlying assets
36
888,774
814,010
(750,307)
952,513
Total underlying liabilities
119
145,941
14,106
(3,286)
156,880
(1)
Capital expenditure excludes capitalised exploration expenditure.
Year ended 30 June 2023
Restated *
Revenue
-
-
-
-
-
Total underlying revenue
-
-
-
-
-
Underlying EBITDA
(247)
(14,604)
(8,614)
-
(23,465)
Underlying depreciation and amortisation expense
-
(569)
(65)
-
(634)
Underlying EBIT
(247)
(15,173)
(8,679)
-
(24,099)
Net financial income/(expense)
-
(946)
15,767
-
14,821
Income tax expense
-
(3,649)
-
-
(3,649)
Underlying profit/(loss) after income tax
(247)
(19,768)
7,088
-
(12,927)
Total adjustments to profit/(loss)
-
2,578
-
-
2,578
Profit/(loss) after income tax
(247)
(17,190)
7,088
-
(10,349)
Underlying exploration expenditure
593
91,773
-
-
92,366
Underlying capital expenditure (1)
5
152,989
40
-
153,034
Total underlying assets
3,750
839,539
805,945
(639,661)
1,009,573
Total underlying liabilities
17
124,084
9,804
2,223
136,128
*
Refer to Note 34 for details on restatement of prior period comparatives.
(1)
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.
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 2024
82
Notes to the Financial Statements
4.
Segment Reporting (continued)
(c)
Underlying results reconciliation
The following table reconciles the underlying segment information to the Group’s statutory results for the year:
2024
$’000
2023
$’000
Restated *
Underlying EBITDA
(54,154)
(23,465)
Underlying depreciation and amortisation expense
(33,307)
(634)
Underlying EBIT
(87,461)
(24,099)
Income from sale of tax benefits under flow through share arrangements (1)
5,294
2,578
Impairment and write down of financial assets (2)
(8,134)
-
Impairment and write down of non-financial assets (3)
(17,066)
-
Loss on disposal of financial assets (4)
(1,264)
-
Net movement in inventories relating to net realisable value adjustments (5)
(10,437)
-
Loss from operations
(119,068)
(21,521)
Underlying loss after income tax
(87,415)
(12,927)
Total adjustments to profit/(loss)
(31,607)
2,578
Loss after income tax
(119,022)
(10,349)
*
Refer to Note 34 for details on restatement of prior period comparatives.
(1)
Adjustment to profit/(loss) for Canadian operations segment. Refer to Note 16 (a) for further details.
(2)
Adjustment to profit/(loss) for Canadian operations segment.
(3)
Adjustment to profit/(loss) for both the Australian operations ($5.9 million) and Canadian operations ($11.2 million) segments. Refer to Note 14 for further details.
(4)
Adjustment to profit/(loss) for Corporate segment. Refer to Note 22 (a) for further details.
(5)
Adjustment to profit/(loss) for Canadian operations segment. Refer to Note 11 for further details.
(d)
Major customers
The Group generates revenue from external customers who individually account for greater than 10 per cent of the Group’s total revenue. The following
table sets out the applicable revenue percentage generated from each of these customers:
2024
%
2023
%
External Customer 1
45
-
External Customer 2
29
-
External Customer 3
25
-
Sayona Annual Report 2024
83
Notes to the Financial Statements
5.
Revenue
2024
$’000
2023
$’000
Sales revenue from contracts with customers (1)
254,597
-
Other revenue (2)
(53,724)
-
Total revenue
200,873
-
(1)
Revenue relates solely to the sale of spodumene concentrate from North American Lithium. Refer to Note 5 (b) for a disaggregation of revenue by primary geographical market.
(2)
Other revenue relates predominantly to provisional pricing adjustments recognised at fair value.
Recognition and measurement
The Group generates revenue primarily from the production and sale of spodumene concentrate. Revenue from the sale of goods is recognised at
the point in time in which control of the product passes to the customer based upon agreed delivery terms. In most instances, control passes when
the product is loaded onto the vessel and the bill of lading is received, or the product is delivered to a destination specified by the customer. In cases
where control of the product is transferred to the customer before shipping takes place, revenue is recognised when the customer has formally
acknowledged their legal ownership of the product, which includes all inherent risks associated with control of the product.
The amount of revenue recognised reflects the consideration which the Group expects to be entitled in exchange for transferring the goods to the
customer. In some instances, the amount of revenue to be received is provisionally priced and recognised at the estimate of the consideration
receivable that is highly probable of not reversing by reference to the relevant contractual price and the estimated product specifications. Provisionally
priced sales are subsequently repriced at each reporting period up until when final pricing and settlement is confirmed, with revenue adjustments
relating to the quantity and quality of goods sold being recognised in sales revenue.
Provisionally priced sales in which final pricing is referenced to a relevant index include an embedded commodity derivative. The embedded derivative
is carried at fair value through profit or loss and presented as part of trade payables or receivables. The period between provisional pricing and final
invoicing is typically between 60 and 120 days, with invoices payable on terms of up to 30 days.
(a)
Provisional pricing adjustments
The Group’s sales contracts may provide for provisional pricing of sales at the time the product is delivered to the vessel, with final pricing determined
using a relevant index price on or after the vessel’s arrival at the port of discharge. This provisional pricing relates to the quantity and quality of the
commodity sold, which is included in sales revenue, and an embedded derivative relating to the price of the commodity sold. Provisional pricing
adjustments relating to the embedded derivative are separately identified as movements in the financial instrument rather than being included within
sales revenue. The pricing adjustment mechanism is separated from the host contract and recognised at fair value through profit or loss in
accordance with AASB 9 Financial Instruments. These amounts are disclosed separately as provisional pricing adjustments within other revenue
rather than being included within sales revenue.
(b)
Disaggregation of revenue from contracts with customers
The following table disaggregates revenue from contracts with customers by primary geographical market:
2024
$’000
2023
$’000
Primary geographical markets (1)
China
197,666
-
United States of America
3,207
-
200,873
-
(1)
Revenue is primarily presented by the geographical destination of the product.
Key judgements and estimates
Estimating variable consideration
Revenue 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, it is probable that future economic benefits will flow to the entity and specific criteria have been
met for each of the Group’s performance obligations.
Judgement is exercised in estimating variable consideration. This is determined by past experience with respect to returned goods
where the customer maintains a right of return pursuant to the customer contract or where the sale of goods or services has a
variable component. Revenue will only be recognised to the extent that it is highly probable that a significant reversal in the amount
of cumulative revenue recognised under the contract will not occur when the uncertainty associated with the variable consideration
is subsequently resolved.
Sayona Annual Report 2024
84
Notes to the Financial Statements
6.
Other Income
2024
$’000
2023
$’000
Restated *
Government grants and incentives
432
598
Income from sale of tax benefits under flow through share arrangements
5,294
2,578
Other income
405
1,097
Total other income
6,131
4,273
*
Refer to Note 34 for details on restatement of prior period comparatives.
7.
Expenses
2024
$’000
2023
$’000
Acquisition and transaction costs
441
-
Administration and corporate overheads
6,798
8,040
Changes in inventories of finished goods and work in progress
(32,623)
(41,408)
Depreciation and amortisation expense
33,777
6,162
Employee benefits expense
46,501
18,928
External services
176,140
21,970
Impairment and write down of financial assets
8,134
-
Impairment and write down of non-financial assets (1)
17,066
-
Loss on disposal of financial assets (2)
1,264
-
Net movement in inventories relating to net realisable value adjustments (3)
10,437
-
Raw materials and consumables used
44,769
5,060
All other operating expenses
13,368
7,042
Total expenses
326,072
25,794
(1)
Refer to Note 14 for details on impairment and write down of non-financial assets.
(2)
Refer to Note 22 (a) for details on the accounting treatment on disposal of the investment in Troilus Gold Corporation.
(3)
Refer to Note 11 for details on the net movement in inventories relating to net realisable value adjustments.
8.
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.
2024
$’000
2023
$’000
Current income tax expense
1,008
-
Deferred income tax expense
2,568
3,649
Total income tax expense
3,576
3,649
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.
Sayona Annual Report 2024
85
Notes to the Financial Statements
8.
Tax (continued)
(b)
Reconciliation of prima facie tax expense to income tax expense
2024
$’000
2023
$’000
Restated *
Loss before income tax
(115,446)
(6,700)
Income tax on loss before income tax calculated at 30 per cent (2023: 30 per cent)
(34,634)
(2,010)
Adjust for tax effect of:
Mining tax
(73)
1,650
Non-deductible expenses
10,982
4,366
Other non-assessable income
(18)
(4,820)
Tax losses and temporary differences not brought to account
27,319
4,463
Total income tax expense
3,576
3,649
*
Refer to Note 34 for details on restatement of prior period comparatives.
(c)
Deferred tax balances
Deferred income tax assets and liabilities are attributable to the following tax losses and temporary differences:
Deferred tax assets
Deferred tax liabilities
Net charge/(credit)
2024
$’000
2023
$’000
2024
$’000
2023
$’000
2024
$’000
2023
$’000
Temporary differences
Deferred income
1,989
1,896
-
-
(93)
(15)
Property, plant and equipment
5,565
7,331
69,003
91,119
(20,350)
25,293
Provisions
10,286
13,321
-
-
3,035
(83)
Tax losses
34,175
52,856
-
-
18,681
(21,658)
Other
3,927
3,279
2,960
1,547
765
272
Total
55,942
78,683
71,963
92,666
2,038
3,809
Set off temporary differences
(55,942)
(78,683)
(55,942)
(78,683)
-
-
Total
-
-
16,021
13,983
2,038
3,809
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 reporting period
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 2024
86
Notes to the Financial Statements
8.
Tax (continued)
(d)
Movement in deferred tax balances
2024
$’000
2023
$’000
At the beginning of the financial year
13,983
10,174
Charged/(credited) to profit or loss
2,568
3,649
Charged/(credited) to equity
(530)
160
At the end of the financial year
16,021
13,983
(e)
Unrecognised deferred tax assets and liabilities
The composition of the Group’s unrecognised deferred tax assets and liabilities is as follows:
2024
$’000
2023
$’000
Tax losses – capital
6,736
6,736
Tax losses – revenue
53,857
22,472
Temporary differences
1,810
-
Total unrecognised deferred tax assets
62,403
29,208
The Group has carry forward revenue losses of $327,646,048 (2023: $287,902,521) and capital losses of $22,454,683 (2023: $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, mine 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.
Sayona Annual Report 2024
87
Notes to the Financial Statements
9.
Earnings per Share
The following table reflects the profit or loss and number of shares used in the basic and diluted earnings per share (EPS) computations:
2024
2023
Restated *
Loss attributable to equity holders of Sayona Mining Limited ($’000)
(101,398)
(11,048)
Weighted average number of ordinary shares (‘000)
Basic earnings per share denominator
10,277,968
8,695,396
Ordinary shares contingently issuable (1)
-
-
Diluted earnings per share denominator
10,277,968
8,695,396
Earnings per share (cents)
Basic
(0.99)
(0.13)
Diluted
(0.99)
(0.13)
*
Refer to Note 34 for details on restatement of prior period comparatives.
(1)
The weighted average number of options contingently issuable into ordinary shares as at 30 June 2024 is 14.7 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 2024
88
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 98 to 109.
10. Trade and Other Receivables
2024
$’000
2023
$’000
Trade receivables
9,208
174
GST/QST receivable from taxation authorities
15,671
18,410
Other receivables
2,669
714
Total trade and other receivables (1)
27,548
19,298
Comprising:
Current
27,548
19,298
Non-current
-
-
(1)
Net of allowances for expected credit losses of $1.9 million (2023: Nil).
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.
11. Inventories
2024
$’000
2023
$’000
Raw materials and consumables
10,504
6,333
Work in progress
25,608
5,166
Finished goods
36,928
37,165
Total inventories
73,040
48,664
Comprising:
Current
73,040
48,664
Non-current
-
-
Recognition and measurement
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.
(a)
Inventories recognised as an expense
Inventories totalling $247.8 million were recognised as an expense for the year ended 30 June 2024 (2023: Nil) and included in Note 7.
(b)
Net movement in inventories relating to net realisable value adjustments
The value of work in progress and finished goods inventories carried at net realisable value as at 30 June 2024 was $62.5 million (2023: Nil). Net
inventory write downs of $10.4 million were recognised in profit or loss for the year ended 30 June 2024 (2023: Nil).
Sayona Annual Report 2024
89
Notes to the Financial Statements
12. Other Assets
2024
$’000
2023
$’000
Deposits
18,530
31,993
Prepayments
4,809
1,926
Total other assets
23,339
33,919
Comprising:
Current
23,339
33,919
Non-current
-
-
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 Ministère des Ressources naturelles et des Forêts (MRNF) for mine closure and rehabilitation of North American
Lithium.
13. Property, Plant and Equipment
Year ended 30 June 2024
Land and
buildings
$’000
Plant and
equipment
$’000
Mine
properties
$’000
Capital
works in
progress
$’000
Exploration
and
evaluation
$’000
Total
$’000
Cost
At the beginning of the financial year
6,215
322,193
230,126
158
129,958
688,650
Additions
-
1,963
-
105,565
33,341
140,869
Changes in closure provision estimate
-
(10,121)
-
-
-
(10,121)
Disposals
-
(93)
-
(4,991)
(4,809)
(9,893)
Transfers and other movements
15,275
68,130
34,273
(72,594)
(74,003)
(28,919)
At the end of the financial year
21,490
382,072
264,399
28,138
84,487
780,586
Accumulated depreciation
At the beginning of the financial year
(406)
(5,005)
(1,166)
-
-
(6,577)
Depreciation charge for the year
(921)
(29,976)
(2,880)
-
-
(33,777)
Impairment charge for the year
-
-
-
-
(7,266)
(7,266)
Disposals
-
72
-
-
-
72
Transfers and other movements
8
860
143
-
35
1,046
At the end of the financial year
(1,319)
(34,049)
(3,903)
-
(7,231)
(46,502)
Net book value as at 30 June 2024
20,171
348,023
260,496
28,138
77,256
734,084
Year ended 30 June 2023
Cost
At the beginning of the financial year
149
236,126
152,234
27,385
37,325
453,219
Additions
1,522
5,976
-
141,611
92,366
241,475
Changes in closure provision estimate
-
3,925
-
-
-
3,925
Disposals
(124)
(13,369)
-
-
-
(13,493)
Transfers and other movements
4,668
89,535
77,892
(168,838)
267
3,524
At the end of the financial year
6,215
322,193
230,126
158
129,958
688,650
Accumulated depreciation
At the beginning of the financial year
(114)
(69)
-
-
-
(183)
Depreciation charge for the year
(408)
(4,860)
(894)
-
-
(6,162)
Disposals
124
32
-
-
-
156
Transfers and other movements
(8)
(108)
(272)
-
-
(388)
At the end of the financial year
(406)
(5,005)
(1,166)
-
-
(6,577)
Net book value as at 30 June 2023
5,809
317,188
228,960
158
129,958
682,073
Sayona Annual Report 2024
90
Notes to the Financial Statements
13. 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.
Sayona Annual Report 2024
91
Notes to the Financial Statements
13. Property, Plant and Equipment (continued)
(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 20 for details on the Group’s right-of-use assets and corresponding lease liabilities.
(d)
Exploration and evaluation expenditure
Exploration and evaluation expenditure (including initial payments for the right to explore) 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. 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.
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.
(e)
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
Depreciation method
Buildings
2 to 20 years straight-line
Land
Not applicable
Mine properties (including mineral rights)
Based on ore reserves on a units of production basis
Plant and equipment
2 to 20 years straight-line
Right-of-use assets
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 2024
92
Notes to the Financial Statements
14. Impairment of Non-Financial Assets
In testing for indications of impairment and performing impairment calculations, assets are considered as collective groups known as cash generating
units (CGUs). The Group assesses whether there is any indication that a CGU may be impaired at each reporting period. This assessment includes
consideration of external and internal sources of information. If such an indication exists, the Group uses the higher of fair value less cost of disposal
(FVLCD) and value in use to assess the recoverable amount of the asset.
If the carrying value of the CGU exceeds its recoverable amount, the CGU is impaired and an impairment loss is recognised immediately in the
Consolidated Statement of 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 CGU to which the asset belongs. Previously impaired CGUs are reviewed for possible reversal of impairment at each
reporting period. Impairment reversals cannot exceed the carrying value that would have been determined (net of depreciation) had no impairment
loss been recognised for the CGU. Goodwill is not subject to impairment reversal.
For areas not yet in production, any mineral rights acquired, together with subsequent capitalised exploration and evaluation expenditure, are reviewed
for indicators of impairment to determine the appropriateness of continuing to carry forward costs in relation to that area of interest.
The Group recognised the following impairments and write downs for the year ended 30 June 2024:
(a)
Recognised write down of capital works in progress
During the year, a write down of capital works in progress occurred on discontinued projects for which it was deemed unlikely that future economic
benefits associated with the asset would flow to the Group. The Group has categorised the write down of capital works in progress assets as
‘Disposals’ in Note 13 and recognised a loss of $5.0 million in the Consolidated Statement of Profit or Loss.
(b)
Recognised impairment and write down of exploration and evaluation assets
Impairment of specific exploration and evaluation assets has occurred during the year where the Group has concluded that capitalised expenditure
is unlikely to be recovered by sale or future exploitation. During each reporting period, the Group undertakes an assessment of the carrying value of
its exploration and evaluation assets. Indicators of impairment were identified on certain exploration and evaluation assets in accordance with AASB
6 Exploration for and Evaluation of Mineral Resources. The Group has recognised a loss of $7.3 million in the Consolidated Statement of Profit or
Loss.
In addition, a write down of exploration and evaluation assets occurred during the year on areas of interest in which the rights to exploration were
disposed of. The Group has categorised the write down of exploration and evaluation assets as ‘Disposals’ in Note 13 and recognised a loss of $4.8
million in the Consolidated Statement of Profit or Loss.
(c)
Impairment assessment of NAL CGU
For the year ended 30 June 2024, the Group identified several indicators of impairment for North American Lithium which subsequently led to an
assessment of the carrying value of the NAL CGU. The key indicators of impairment included the decline in market capitalisation of the Company and
significant deterioration in market conditions, specifically relating to the price of spodumene concentrate.
Background
On 27 August 2021, the Group acquired 100 per cent of the issued capital of North American Lithium Inc., a Canadian-based mining and exploration
company and former producer of spodumene concentrate from its operations in Québec, Canada. Following the acquisition, the Group invested
significant funds into the operation to enable the restart of production in March 2023, with the first sale of spodumene concentrate occurring in
August 2023.
The Group considers that NAL is a separate CGU as it operates independently from the rest of the Group.
Methodology and key assumptions
Given the nature of the Group’s activities, information on the fair value of an asset is usually difficult to obtain unless negotiations with potential
purchasers or similar transactions are taking place. As a result, the value in use of the NAL CGU has been calculated over the life of mine based on
the discounted cash flows expected to be generated from the continued use of the CGU.
The key assumptions used to estimate the recoverable amount of the NAL CGU are set out below. The assumptions used represent management’s
assessment of future trends in the relevant industry and have been based on data from external and internal sources.
Key assumptions
Low
High
LOM average
Average realised spodumene concentrate price (US$ / tonne) (1)
US$838
US$1,526
US$1,121
Foreign exchange rate (CAD/USD)
0.73
Discount rate
8%
(1)
During the period, the lithium industry observed a significant and continued decline in lithium market prices. This change in market conditions is reflected in the short-term price
assumptions used to calculate the discounted cash flows of the NAL CGU.
Production and cost assumptions are based on forecasted production levels, operating cost and capital requirements, derived from the latest life of
mine plans.
Sayona Annual Report 2024
93
Notes to the Financial Statements
14. Impairment of Non-Financial Assets (continued)
Outcomes
The Group performed impairment testing over the NAL CGU and determined that no impairment was required. Additional sensitivities (particularly
with respect to spodumene concentrates prices and foreign exchange rates) were also performed to assess the impact on discounted cash flows.
The outcome of those sensitivities determined that no impairment was required.
Key judgements and estimates
Determination of CGUs
Judgement is applied to identify the Group’s CGUs, particularly when assets form part of integrated operations. A key judgement was
applied in identifying the NAL operation as a single CGU. As a result, only the CGU assets and cash flows directly attributable to this
operation were considered in the impairment assessment of the NAL CGU.
Impairment testing and calculations
An assessment of whether there is any indication of impairment and the calculation of a CGU’s recoverable amount requires
management to make estimates and assumptions about expected production and sales volumes, commodity prices, foreign
exchange rates, Mineral Resources and Ore Reserves, regulatory approvals, operating costs, closure and rehabilitation costs, future
capital expenditure and allocation of corporate costs. These estimates and assumptions are subject to risk and uncertainty. There is
a possibility that changes in circumstances will alter these projections, which may impact the recoverable amount. In such
circumstances, some or all of the carrying value may be impaired or a previously recognised impairment charge may be reversed,
with the impact recognised in the Consolidated Statement of Profit or Loss.
The key estimates and assumptions used in the assessment of impairment are as follows:
Commodity prices and
market traded consumables
Spodumene concentrate price assumptions are based on the Q2 2024 lithium price forecast
from Benchmark Mineral Intelligence.
Foreign exchange rates
The foreign exchange rate assumption applied in the discounted cash flow model reflects the
CAD/USD spot exchange rate as at 30 June 2024.
Discount rate
In determining fair value, the estimated future cash flows of the CGU have been discounted
using a post-tax discount rate of 8 per cent. The discount rate applied is in line with industry
standards for low-risk mining jurisdictions such as Australia and Canada.
Future production
Life of mine plans based on Mineral Resource and Ore Reserve estimates and economic life of
processing facilities.
Operating and capital costs
Operating and capital cost assumptions are based on the Group’s latest approved budget and
life of mine plans.
Regulatory approvals
Life of mine plans include assumptions associated with the successful application and timing
of ongoing and future regulatory approvals.
Where impairment testing is undertaken, a range of external sources are considered as further input to the above assumptions.
Exploration and evaluation expenditure
For areas not yet in production, acquired mineral rights, together with subsequent capitalised exploration and evaluation expenditure,
require judgement to determine the likelihood of future economic benefits from future development, and whether sufficient data
exists to indicate that, although a development in the specific area is likely to proceed, the carrying value of the exploration and
evaluation asset is unlikely to be recovered in full. When facts and circumstances suggest that the carrying value exceeds the
recoverable amount, an impairment test is required which may result in an adjustment to the carrying value of acquired mineral rights
together with subsequent capitalised exploration and evaluation expenditure.
Sayona Annual Report 2024
94
Notes to the Financial Statements
15. Trade and Other Payables
2024
$’000
2023
$’000
Trade payables
29,330
18,682
Accrued expenses
17,044
9,059
Other payables – associated entities
2,467
681
Other payables – provisional pricing adjustments (1)
6,505
-
Other payables
5,530
1,075
Total trade and other payables
60,876
29,497
Comprising:
Current
60,876
29,497
Non-current
-
-
(1)
Refer to Note 5 (a) for details on provisional pricing adjustments.
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.
16. Other Liabilities
2024
$’000
2023
$’000
Restated *
Deferred income (1)
12,007
13,956
Flow through share premium liability
6,084
11,378
Total other liabilities
18,091
25,334
Comprising:
Current
6,084
7,117
Non-current
12,007
18,217
*
Refer to Note 34 for details on restatement of prior period comparatives.
(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.
(a)
Flow Through Shares
Under Canadian taxation legislation, mining companies may issue flow through shares to finance eligible exploration programs. A flow through share
arrangement enables an entity to incur qualifying exploration and evaluation expenditure and renounce the related income tax deductions to investors.
On issuance, the entity allocates the proceeds from issuance between issued capital and the sale of tax benefits (or flow through share premium),
which is equal to the estimated premium that investors pay for the flow through feature. Issued share capital is recognised at fair value with the
residual value recognised as a flow through share premium liability.
At initial recognition, the sale of tax benefits is deferred and presented as other liabilities in the Consolidated Statement of Financial Position as the
entity has not yet fulfilled its obligations to pass on the tax deductions to investors. Upon expenditure being incurred, the entity derecognises the
liability and recognises the premium as other income in the Consolidated Statement of Profit or Loss. The expenditure also gives rise to a deferred
tax liability which is recognised as the difference between the carrying value and tax base of the qualifying expenditure.
The Company has elected to apply the renunciation process prospectively and has relied upon the “look-back” rule which allows the Company to
renounce eligible expenditures incurred up to an entire calendar year following the last day of the calendar year in which the flow through shares were
issued.
Sayona Annual Report 2024
95
Notes to the Financial Statements
17. Provisions
2024
$’000
2023
$’000
Employee benefits
5,963
846
Mine closure and rehabilitation
25,309
35,254
Total provisions
31,272
36,100
Comprising:
Current
5,963
846
Non-current
25,309
35,254
The movement in provisions during the year is as follows:
Year ended 30 June 2024
Employee
benefits
$’000
Mine
closure and
rehabilitation
$’000
Total
$’000
At the beginning of the financial year
846
35,254
36,100
Charge/(credit) for the year to the Consolidated Statement of Profit or Loss:
Changes in underlying costs and estimates
6,784
-
6,784
Foreign exchange rate differences
(166)
-
(166)
Released during the year
(4,251)
-
(4,251)
Unwinding of discount rate
-
1,380
1,380
Amounts capitalised for changes in underlying costs and estimates
-
(5,679)
(5,679)
Amounts capitalised for changes in discount rate
-
(4,714)
(4,714)
Amounts capitalised on translation of mine closure and rehabilitation provision
-
(932)
(932)
Transfers and other movements
2,750
-
2,750
At the end of the financial year
5,963
25,309
31,272
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 benefits
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.
Sayona Annual Report 2024
96
Notes to the Financial Statements
17. Provisions (continued)
(b)
Mine closure and rehabilitation
The mining and processing activities of the Group normally give rise to obligations for site closure or rehabilitation. Mine 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.
Mine 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.
Mine 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.
Mine 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 of North American Lithium
Mine closure and rehabilitation 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.
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.
The recognition of mine closure and rehabilitation provisions requires judgement. The provision at reporting date represents
management’s best estimate of the present value of future closure and rehabilitation costs.
Sayona Annual Report 2024
97
Notes to the Financial Statements
Capital Structure and Financial Management
This section details the capital structure and related financing activities of the Group.
18. Cash and Cash Equivalents
2024
$’000
2023
$’000
Cash
38,803
106,458
Short-term deposits
51,821
104,661
Total cash and cash equivalents (1)
90,624
211,119
(1)
Cash and cash equivalents include $29.3 million (2023: $54.7 million) 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.
19. Interest Bearing Liabilities
2024
$’000
2023
$’000
Lease liabilities (1)
5,415
6,253
Non-convertible redeemable cumulative preference shares
25,205
24,849
Other interest bearing liabilities
-
112
Total interest bearing liabilities
30,620
31,214
Comprising:
Current
15,470
1,944
Non-current
15,150
29,270
(1)
Refer to Note 20 for further details on the Group’s leases.
Recognition and measurement
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 23 (e).
(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.
On 24 June 2024, IQ agreed to extend the delivery date of the feasibility study condition for a period of three months from 12 August 2024 to 12
November 2024.
The terms of the preference shares are detailed below:
•
interest is accrued or paid at 5 per cent per annum, except for the period from 12 August 2024 to 12 November 2024 in which interest is accrued
or paid at 16.25 per cent 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 2024
98
Notes to the Financial Statements
20. 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:
2024
$’000
2023
$’000
Right-of-use assets recognised in property, plant and equipment
Land and buildings
Cost
1,483
1,522
Accumulated depreciation
(709)
(369)
Net book value
774
1,153
Plant and equipment
Cost
7,121
5,387
Accumulated depreciation
(2,967)
(449)
Net book value
4,154
4,938
Total right-of-use assets
4,928
6,091
Lease liabilities
Land and buildings – current
373
349
Land and buildings – non-current
496
892
Plant and equipment – current
2,425
1,595
Plant and equipment – non-current
2,121
3,417
Total lease liabilities
5,415
6,253
Right-of-use asset additions during the year were $1.8 million (2023: $6.9 million).
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 4.5 per cent and 10 per cent (2023: 4.5 per cent and 10 per cent).
(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:
2024
$’000
2023
$’000
Depreciation of right-of-use assets
2,795
811
Interest on lease liabilities
678
148
(c)
Amounts recognised in the Consolidated Statement of Cash Flows
The Consolidated Statement of Cash Flows includes the following amounts relating to leases:
2024
$’000
2023
$’000
Total cash outflow for leases
3,280
773
Sayona Annual Report 2024
99
Notes to the Financial Statements
20. Leases (continued)
Recognition and measurement
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.
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.
21. Financial Income and Expenses
2024
$’000
2023
$’000
Financial income
Interest on bank accounts
7,668
2,817
Net foreign exchange gains
-
13,510
Total financial income
7,668
16,327
Financial expenses
Discounting on provisions and other liabilities
(1,380)
-
Interest on lease liabilities
(727)
(148)
Interest on preference shares
(1,209)
(1,177)
Net foreign exchange losses
(470)
-
Other financial expenses
(260)
(181)
Total financial expenses
(4,046)
(1,506)
Net financial income
3,622
14,821
Sayona Annual Report 2024
100
Notes to the Financial Statements
22. Other Financial Assets
2024
$’000
2023
$’000
Investments in listed entities
Consolidated Lithium Metals Inc.
740
2,296
Troilus Gold Corporation
-
10,647
Total other financial assets
740
12,943
Comprising:
Current
-
-
Non-current
740
12,943
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 23 (d).
(a)
Disposal of investment in Troilus Gold Corporation
Between 12 April 2024 and 18 April 2024, the Group completed multiple block trades to sell 19,213,000 shares in Troilus Gold Corporation.
Changes in the fair value of this investment were recognised through OCI in accordance with the recognition and measurement principles outlined
above.
A summary of the financial reporting impacts of the disposal is summarised below:
Note
Amount
$’000
Amount capitalised on initial acquisition of investment
11,923
Net gain on fair value adjustments recognised through OCI, transferred to retained earnings
4,031
Fair value of investment in Troilus Gold Corporation
15,954
Gross proceeds from sale
14,690
Loss on disposal recognised in Consolidated Statement of Profit or Loss
7
(1,264)
Sayona Annual Report 2024
101
Notes to the Financial Statements
23. Financial Instruments and Risk Management
The Group is exposed to market, liquidity and credit risk through its financial instruments. The main purpose of these financial instruments is to fund
the principal activities of the Group.
The Board has overall responsibility for the establishment and oversight of the Group’s risk management framework. The Board meets on a regular
basis to analyse exposure and evaluate risk management strategies in the context of the most recent economic conditions and forecasts.
During the year, the Board established the Audit and Risk Committee to assist the Board in monitoring and reviewing any matters of significance
affecting financial reporting and compliance, including sustainability objectives, environmental and community obligations, ethical standards, codes
of conduct and compliance procedures. The Audit and Risk Committee reports regularly to the Board on its activities.
The Group’s risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk limits and controls
and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions
and the Group’s activities. The Group, through its training and management standards and procedures, aims to maintain a disciplined and constructive
control environment in which all employees understand their roles and obligations.
Management is responsible for developing and monitoring the Group’s risk management policies. The Audit and Risk Committee oversees how
management monitors compliance with the Group’s risk management policies and procedures and reviews the adequacy of the risk management
framework in relation to the risks faced by the Group.
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.
Sayona Annual Report 2024
102
Notes to the Financial Statements
23. Financial Instruments and Risk Management (continued)
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.
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.
(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, commodity price risk, provisionally priced commodity sales and other price risk, such as equity
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:
2024
$’000
2023
$’000
Financial assets
Cash and cash equivalents
90,624
211,119
Other assets
18,530
31,993
Net exposure
109,154
243,112
Sensitivity analysis
The following table demonstrates the sensitivity to a 100 basis point change in interest rates, with all other variables remaining constant:
Effect
on profit
after tax
2024
$’000
Effect
on profit
after tax
2023
$’000
+100 basis point change in interest rates
764
1,702
-100 basis point change in interest rates
(764)
(1,702)
Sayona Annual Report 2024
103
Notes to the Financial Statements
23. Financial Instruments and Risk Management (continued)
(ii)
Foreign currency risk
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
2024
$’000
Canadian
dollar risk
exposure
2023
$’000
US dollar
risk
exposure
2024
$’000
US dollar
risk
exposure
2023
$’000
Financial assets
Cash and cash equivalents
43,516
106,120
6,290
975
Trade and other receivables
5,483
19,927
6,209
-
Other assets
12,383
33,740
5,940
-
Financial liabilities
Trade and other payables
(49,842)
(24,147)
(6,464)
(2,300)
Interest bearing liabilities
(25,861)
(30,923)
(4,546)
-
Other liabilities
-
(1,946)
(12,007)
(12,009)
Net exposure
(14,321)
102,771
(4,578)
(13,334)
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:
Effect
on profit
after tax
2024
$’000
Effect
on profit
after tax
2023
$’000
5 per cent movement in Canadian dollar
501
3,597
5 per cent movement in United States dollar
160
467
(iii)
Commodity price risk
Contracts for the sale and physical delivery of commodities are executed whenever possible on a pricing basis intended to achieve a relevant index
target. Where pricing terms deviate from the index, the Group may choose to use derivative commodity contracts to realise the index price.
Contracts for the physical delivery of commodities are not typically financial instruments and are not recognised in the Consolidated Statement of
Financial Position.
(iv) Provisionally priced commodity sales and purchases contracts
Provisionally priced sales are those for which price finalisation, referenced to the relevant index and product grade, is outstanding at the reporting
date. Provisional pricing mechanisms embedded within these sales have the character of a commodity derivative and are carried at fair value through
profit or loss as part of trade receivables or trade creditors. Fair value movements on provisionally priced sale contracts are disclosed as other revenue
in the Group’s results. The Group’s exposure at 30 June 2024 to the impact of movements in commodity prices on provisionally invoiced sales related
to spodumene concentrate.
At 30 June 2024, the Group held approximately 27,400 dry metric tonnes of spodumene concentrate inventory that was provisionally priced (2023:
Nil). The final price of these sales will be determined in August 2024. A 10 per cent change in the realised price of the commodity, with all other factors
held constant, would increase or decrease profit or loss after tax by $2.5 million (2023: Nil).
Sayona Annual Report 2024
104
Notes to the Financial Statements
23. Financial Instruments and Risk Management (continued)
(b)
Liquidity risk
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 entities in the Group are funded by a combination of cash generated by the Group’s operations, long-term funding and intercompany loans
provided by the Group. Long-term funding is primarily through equity sources.
To manage the risk, the Group maintains the following financing facilities:
Available
$’000
Used
$’000
Unused
$’000
At-the-Market Subscription Agreement (ATM) (1)
200,000
6,450
193,550
(1)
On 29 October 2019, the Company entered into an At-the-Market Subscription Agreement (ATM) (previously referred to as a Controlled Placement Agreement (CPA)) with Acuity
Capital, expiring on 31 January 2022. On 29 April 2021, the parties agreed to increase the ATM limit from $3 million to $15 million and extend the expiry date to 31 July 2023. On 1
March 2022, the Company announced it had agreed to increase the ATM limit to $50 million. On 5 August 2022, the parties agreed to further increase the ATM limit to $200 million
and extend the expiry date to 31 July 2025.
To date, the Company has utilised the ATM to raise $6.45 million. The remaining standby equity capital available under the ATM is $193.55 million. The Company retains full control
of all aspects of the placement process. There are no requirements on the Company to utilise the facility and it may terminate the Agreement at any time, without cost or penalty.
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 2024
Weighted
average
interest rate
%
1 year
or less
$’000
1 to 5 years
$’000
More than
5 years
$’000
Total
$’000
Financial assets
Cash and cash equivalents
4.34%
90,624
-
-
90,624
Trade and other receivables
-
11,877
-
-
11,877
Other financial assets
-
-
-
740
740
Other assets
2.50%
18,530
-
-
18,530
Total financial assets
121,031
-
740
121,771
Financial liabilities
Trade and other payables
-
60,876
-
-
60,876
Interest bearing liabilities
5.00%
12,672
12,533
-
25,205
Lease liabilities
9.69%
2,798
2,617
-
5,415
Other liabilities
-
-
-
12,007
12,007
Total financial liabilities
76,346
15,150
12,007
103,503
Net financial instruments
44,685
(15,150)
(11,267)
18,268
Year ended 30 June 2023
Financial assets
Cash and cash equivalents
2.68%
211,119
-
-
211,119
Trade and other receivables
-
888
-
-
888
Other financial assets
-
-
-
12,943
12,943
Other assets
2.69%
31,993
-
-
31,993
Total financial assets
244,000
-
12,943
256,943
Financial liabilities
Trade and other payables
-
29,497
-
-
29,497
Interest bearing liabilities
5.00%
-
112
24,849
24,961
Lease liabilities
9.74%
1,944
4,309
-
6,253
Other liabilities
-
-
-
13,956
13,956
Total financial liabilities
31,441
4,421
38,805
74,667
Net financial instruments
212,559
(4,421)
(25,862)
182,276
Sayona Annual Report 2024
105
Notes to the Financial Statements
23. 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 $17.4 million (2023: $10.9 million).
(d)
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.
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 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.
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
Based on unadjusted quoted prices in active markets for identical financial assets and liabilities.
Level 2
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).
Level 3
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 2024
Level 1
$’000
Level 2
$’000
Level 3
$’000
Total
$’000
Other financial assets designated at FVOCI
740
-
-
740
Trade and other payables
-
(6,505)
-
(6,505)
Total
740
(6,505)
-
(5,765)
At 30 June 2023
Other financial assets designated at FVOCI
12,943
-
-
12,943
Total
12,943
-
-
12,943
The following table shows the valuation techniques used in measuring Level 2 fair values for financial instruments in the Consolidated Statement of
Financial Position, as well as the significant unobservable inputs used:
Type
Valuation technique
Significant
unobservable inputs
Inter-relationship between significant unobservable
inputs and fair value measurement
Other payables – provisional
pricing adjustment
Market-based pricing
Market-based pricing
indices
The estimated fair value would increase (decrease) if the
market-based pricing were lower (higher).
The Group did not measure any financial assets or liabilities at fair value on a non-recurring basis as at 30 June 2024. There were no transfers between
levels of the hierarchy during the year.
Sayona Annual Report 2024
106
Notes to the Financial Statements
23. Financial Instruments and Risk Management (continued)
(e)
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 2024
Interest
bearing
liabilities
$’000
Preference
shares
$’000
Lease
liabilities
$’000
Total
$’000
At the beginning of the financial year
112
24,849
6,253
31,214
Cash movements
(112)
-
(3,280)
(3,392)
Other non-cash movements
-
356
2,442
2,798
At the end of the financial year
-
25,205
5,415
30,620
Year ended 30 June 2023
At the beginning of the financial year
-
23,462
10
23,472
Cash movements
110
-
(776)
(666)
Other non-cash movements
2
1,387
7,019
8,408
At the end of the financial year
112
24,849
6,253
31,214
Sayona Annual Report 2024
107
Notes to the Financial Statements
24. 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:
2024
No. shares
2023
No. shares
2024
$’000
2023
$’000
Restated *
At the beginning of the financial year
10,039,138,024
8,246,752,670
756,744
504,255
Shares issued
244,157,990
1,792,385,354
37,399
262,448
Transfers and other movements (1)
10,000,000
-
1,750
-
Transaction costs associated with share issues
-
-
(120)
(9,959)
At the end of the financial year
10,293,296,014
10,039,138,024
795,773
756,744
*
Refer to Note 34 for details on restatement of prior period comparatives.
(1)
Amounts reported relate to equity awards granted to Mr Brett Lynch following shareholder approval at the Extraordinary General Meeting on 17 July 2023.
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 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.
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:
Listed options
Unlisted options
2024
No. options
2023
No. options
2024
No. options
2023
No. options
At the beginning of the financial year
-
308,290,518
42,234,482
42,000,000
Granted during the year
-
-
10,000,000
6,234,482
Exercised during the year
-
(304,196,342)
(40,000,000)
(6,000,000)
Forfeited/lapsed during the year
-
(4,094,176)
-
-
At the end of the financial year
-
-
12,234,482
42,234,482
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
creating 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.
Sayona Annual Report 2024
108
Notes to the Financial Statements
25. Reserves
Year ended 30 June 2024
Financial
asset
reserve
$’000
Foreign
currency
translation
reserve
$’000
Share
based
payments
reserve
$’000
Total
$’000
At the beginning of the financial year
(1,544)
8,327
5,990
12,773
Financial assets at fair value through other comprehensive income
3,827
-
-
3,827
Foreign exchange differences on translation of foreign operations
-
(19,170)
-
(19,170)
Share based payments
-
-
96
96
Transfers and other movements
(4,022)
-
(5,495)
(9,517)
At the end of the financial year
(1,739)
(10,843)
591
(11,991)
Year ended 30 June 2023
At the beginning of the financial year
-
11,789
1,762
13,551
Financial assets at fair value through other comprehensive income
(1,544)
-
-
(1,544)
Foreign exchange differences on translation of foreign operations
-
(3,462)
-
(3,462)
Share based payments
-
-
4,320
4,320
Transfers and other movements
-
-
(92)
(92)
At the end of the financial year
(1,544)
8,327
5,990
12,773
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
30 for details on share based payments.
Sayona Annual Report 2024
109
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.
26. 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:
Ownership interest
Subsidiaries
Country of
incorporation
Principal activity
2024
%
2023
%
9474-9454 Québec Inc.
Canada
Exploration
100
100
North American Lithium Inc. (1)
Canada
Lithium mining and processing
75
75
Sayona East Kimberley Pty Ltd
Australia
Exploration
100
100
Sayona Inc.
Canada
Administrative, management and support services
100
100
Sayona International Pty Ltd
Australia
Investment holding company
100
100
Sayona Lithium Pty Ltd
Australia
Exploration
100
100
Sayona North Inc.
Canada
Exploration
100
100
Sayona Québec Inc. (1)
Canada
Investment holding company
75
75
(1)
Non-controlling ownership interest of 25 per cent is held by Piedmont Lithium Québec Holdings Inc.
27. 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:
Ownership interest
Project
Country
Counterparty
2024
%
2023
%
Moblan Lithium Project (1)
Canada
Investissement Québec
60
60
Morella Lithium Joint Venture (2)
Australia
Morella Corporation Limited
49
49
Vallée Lithium Project (3)
Canada
Consolidated Lithium Metals Inc.
25
-
(1)
On 15 October 2021, the Group acquired a 60 per cent interest in the Moblan Lithium Project, a drilling deposit host to high grade spodumene mineralisation. The project is 40 per
cent owned by Investissement Québec.
(2)
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 per cent interest in the project. The Joint Venture Agreement was executed on 15 July 2024.
(3)
On 14 December 2023, North American Lithium Inc. satisfied a requirement under the Earn-In Agreement relating to the assets and mineral rights of the Vallée Lithium Project located
in Québec, Canada. Under the agreement, North American Lithium Inc. was required to spend C$4.0 million on exploration within a twelve month period to earn a 25 per cent interest
in the project.
The above interests represent arrangements in which the parties maintain direct interests in each asset, and obligations for the liabilities, relating to
the arrangement. 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.
Sayona Annual Report 2024
110
Notes to the Financial Statements
28. 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 26 and Note 27.
(c)
Key management personnel compensation
2024
$
2023
$
Short-term employee benefits
2,335,980
2,468,606
Post-employment benefits
83,408
88,828
Termination benefits
1,319,252
-
Share based payments
-
2,220,686
Total key management personnel compensation
3,738,640
4,778,120
Further information is provided in the Remuneration Report on pages 53 to 72.
(d)
Key management personnel transactions
Excluding the compensation of key management personnel above, there were no transactions with key management personnel during the reporting
period (2023: Nil).
(e)
Transactions with related parties
2024
$
2023
$
Transactions with related parties
Sales of goods and services
90,743,166
18,955,277
Purchases of goods and services
127,203
156,470
Interest expense
-
1,177,044
Net increase (decrease) in other amounts owing with related parties
-
(11,835,180)
Net increase (decrease) in loans with related parties
(87,064)
87,064
Proceeds from related parties
26,878,059
77,805,628
Outstanding balances with related parties
Trade and sundry amounts owing to related parties
702,346
34,375
Trade and sundry amounts owing from related parties
6,099,941
44,478
Other amounts owing to related parties
-
25,529,127
Loan amounts owing from related parties
-
87,064
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 2024
111
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.
29. Auditor’s Remuneration
The Group’s auditor is Nexia Brisbane Audit Pty Ltd.
2024
$
2023
$
Fees paid and payable to the Group’s auditor for assurance services
Audit and review of financial statements
395,300
326,937
Other assurance services
2,300
-
Total auditor’s remuneration
397,600
326,937
30. Share Based Payments
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)
Description of share based payment arrangements
The Group had the following share based payment arrangement in place as at 30 June 2024:
Employee Share and Option Plan
On 16 November 2022, the Group established an Employee Share and Option Plan which enables the grant of performance rights and options to key
management personnel and other senior managers. Invitation to participate in the plan is at the absolute discretion of the Board.
The key terms and conditions related to grants under the plan are as follows:
•
the Board retains discretion to make decisions on the plan and set or amend terms and conditions; and
•
the vesting of performance rights and options will be conditional on the satisfaction of all vesting conditions attaching to the performance rights
and options.
Sayona Annual Report 2024
112
Notes to the Financial Statements
30. Share Based Payments (continued)
(b)
Reconciliation of outstanding equity rights
Equity rights
at beginning
of the year
Granted
during
the year
Vested
during
the year
Forfeited/
lapsed
during
the year
Equity rights
at end
of the year
FY22 Performance Rights (1)
4,894,986
-
-
(4,894,986)
-
FY23 Performance Rights (2)
8,559,808
10,000,000
(10,000,000)
(8,559,808)
-
Total outstanding equity rights
13,454,794
10,000,000
(10,000,000)
(13,454,794)
-
(1)
FY22 Performance Rights relate to equity rights granted to employees on 27 January 2022, subject to the achievement of specific performance measures. All rights were forfeited
during the year.
(2)
FY23 Performance Rights relate to:
(a)
equity rights 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. The rights were forfeited on termination of Mr Guy Belleau during the year; and
(b)
equity rights granted to Mr Brett Lynch following shareholder approval at the Extraordinary General Meeting on 17 July 2023. Vesting occurred on the grant date.
Equity rights are issued for nil consideration and take the form of rights to receive one fully paid ordinary share in Sayona Mining Limited for each
right granted, subject to performance and/or service conditions being met. Equity rights do not confer any dividend or voting rights until they convert
into fully paid ordinary shares at vesting. In addition, equity rights do not confer any rights to participate in a share issue.
(c)
Reconciliation of outstanding options
Equity rights
at beginning
of the year
Granted
during
the year
Exercised
during
the year
Forfeited/
lapsed
during
the year
Equity rights
at end
of the year
Non-recurring awards
Equity-settled services (1)
2,234,482
-
-
-
2,234,482
FY22 Performance Rights (2)
40,000,000
-
(40,000,000)
-
-
FY23 Performance Rights (3)
-
10,000,000
-
-
10,000,000
Total outstanding options
42,234,482
10,000,000
(40,000,000)
-
12,234,482
(1)
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.
(2)
FY22 Performance Rights relate to options granted to KMP. Options were granted on 28 January 2022 at an exercise price of $0.1500, expiring on 28 July 2023. All options were
exercised in July 2023, resulting in cash proceeds of $6.0 million.
(3)
FY23 Performance Rights relate to options granted to KMP. Options were granted on 17 July 2023 at an exercise price of $0.1500, expiring on 17 July 2024. All outstanding options
were not exercised and subsequently lapsed on 17 July 2024.
Options do not confer any dividend or voting rights until they convert into fully paid 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.
31. Commitments
The following commitments exist at balance date but have not been brought to account:
2024
$’000
2023
$’000
Capital expenditure commitments
14,799
79,438
Exploration expenditure commitments (1)
5,995
904
Other contractual commitments
27,224
8,300
Total commitments
48,018
88,642
(1)
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.
Sayona Annual Report 2024
113
Notes to the Financial Statements
32. Contingent Assets and Liabilities
There were no material contingent assets or liabilities at the end of the reporting period (2023: Nil).
33. Parent Entity Information
(a)
Summary financial information
The individual financial statements for the parent entity, Sayona Mining Limited, include the following aggregate amounts:
2024
$’000
2023
$’000
Restated *
Result of parent entity
Profit/(loss) after income tax
(45,970)
108,649
Other comprehensive income
5,307
-
Total comprehensive income/(loss)
(40,663)
108,649
Financial position of parent entity
Current assets
75,905
157,097
Non-current assets
748,048
662,981
Total assets
823,953
820,078
Current liabilities
16,551
12,702
Non-current liabilities
11,769
8,481
Total liabilities
28,320
21,183
Net assets
795,633
798,895
Equity
Share capital
795,773
756,744
Reserves
862
2,850
Retained earnings/(accumulated losses)
(1,002)
39,301
Total equity
795,633
798,895
*
Refer to Note 34 for details on restatement of prior period comparatives.
(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 (2023: Nil).
Sayona Annual Report 2024
114
Notes to the Financial Statements
34. Restatement of Comparative Information
(a)
Recognition of flow through share premium liability
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 provisions under Canadian
tax law. The gross proceeds received by the Group are required to 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).
Subsequent to issuing the consolidated financial statements for the year ended 30 June 2023, the Group conducted a review of the accounting
treatment of the flow through share arrangement. The review identified the need to allocate the proceeds from issuance of flow through shares
between issued capital and the sale of tax benefits (or flow through share premium), which is equal to the estimated premium that investors pay for
the flow through feature.
At initial recognition, issued share capital is recognised at fair value with the residual value recognised as a flow through share premium liability and
presented as other liabilities in the Consolidated Statement of Financial Position. Upon expenditure being incurred, the Company derecognises the
liability and recognises the premium as other income in the Consolidated Statement of Profit or Loss.
A summary of the adjustments made to the consolidated financial statements from the recognition of the flow through share premium liability is set
out as follows:
Year ended 30 June 2023
Reported
balance
$’000
Adjustment
$’000
Restated
balance
$’000
Consolidated statement of profit or loss
Other income
1,695
2,578
4,273
Loss before income tax
(9,278)
2,578
(6,700)
Loss after income tax
(12,927)
2,578
(10,349)
Earnings per share
Basic earnings per share (cents)
(0.16)
0.03
(0.13)
Diluted earnings per share (cents)
(0.16)
0.03
(0.13)
Consolidated statement of financial position
Current liabilities
Other liabilities
-
7,117
7,117
Total current liabilities
32,287
7,117
39,404
Non-current liabilities
Other liabilities
13,956
4,261
18,217
Total non-current liabilities
92,463
4,261
96,724
Total liabilities
124,750
11,378
136,128
Net assets
884,823
(11,378)
873,445
Share capital
770,700
(13,956)
756,744
Accumulated losses
(27,316)
2,578
(24,738)
Total equity attributable to equity holders of Sayona Mining Limited
756,157
(11,378)
744,779
Total equity
884,823
(11,378)
873,445
Consolidated statement of changes in equity
Loss after income tax
(12,927)
2,578
(10,349)
Total comprehensive loss
(18,879)
2,578
(16,301)
Shares issued
348,720
(13,956)
334,764
Balance as at 30 June 2023
884,823
11,378
873,445
Consolidated statement of cash flows
Profit/(loss) before income tax
(9,278)
2,578
(6,700)
Adjustments for:
Income from sale of tax benefits under flow through share arrangements
-
(2,578)
(2,578)
Net cash flows from operating activities
(66,480)
-
(66,480)
Sayona Annual Report 2024
115
Notes to the Financial Statements
35. Subsequent Events
There has not been any matters or circumstance occurring subsequent to the end of the reporting period that have significantly affected, or may
significantly affect, the operations of the Group, the results of those operations, or the state of affairs of the Group in the future.
Sayona Annual Report 2024
116
Consolidated Entity Disclosure Statement
as at 30 June 2024
The following table sets out the disclosure requirements of subsection 295(3A) of the Corporations Act 2001 in respect of Sayona Mining Limited and
its controlled entities as at 30 June 2024:
Body corporates
Tax residency
Entity name
Body corporate,
partnership or trust
Country of
incorporation
or formation
Percentage
of share
capital held (1)
Australian or
foreign
Foreign
jurisdiction
Sayona Mining Limited *
Body corporate
Australia
N/A
Australian
Canada (2)
Sayona East Kimberley Pty Ltd *
Body corporate
Australia
100%
Australian
N/A
Sayona International Pty Ltd *
Body corporate
Australia
100%
Australian
N/A
Sayona Lithium Pty Ltd *
Body corporate
Australia
100%
Australian
N/A
9474-9454 Québec Inc.
Body corporate
Canada
100%
Foreign
Canada
North American Lithium Inc.
Body corporate
Canada
75%
Foreign
Canada
Sayona Inc.
Body corporate
Canada
100%
Foreign
Canada
Sayona North Inc.
Body corporate
Canada
100%
Foreign
Canada
Sayona Québec Inc.
Body corporate
Canada
75%
Foreign
Canada
*
Sayona Mining Limited and its wholly owned Australian resident subsidiaries formed a tax consolidated group. Refer to Note 8 (f) for further details.
(1)
Amounts reported reflect the percentage of issued share capital held directly or indirectly by Sayona Mining Limited.
(2)
Sayona Mining Limited undertakes activity in Canada via a foreign branch.
Sayona Annual Report 2024
117
Directors' Declaration
In accordance with a resolution of the Directors of Sayona Mining Limited, we declare that:
1. In the opinion of the Directors:
a. The consolidated financial statements and notes set out on pages 7 to 117 of this report are in accordance with the
Corporations Act 2001, and:
i.
comply 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) issued by the
International Accounting Standards Board (IASB); and
ii. give a true and fair view of the Group’s financial position as at 30 June 2024 and of its performance for the year ended on that date.
b. There are reasonable grounds to believe that Sayona Mining Limited will be able to pay its debts as and when they become due
and payable.
c. The consolidated entity disclosure statement required by 295(3A) of the Corporations Act 2001, as disclosed on page 117 of this report,
is true and correct.
2. The Directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the Chief Executive Officer
and Chief Financial Officer for the financial year ended 30 June 2024.
This declaration is made in accordance with a resolution of the Board of Directors.
Lucas Dow
Managing Director and Chief Executive Officer
Philip Lucas
Chair, Audit and Risk Committee
30 August 2024
Sayona Annual Report 2024
118
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 2024,
the consolidated statement of profit or loss, 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 material
accounting policy information, the consolidated entity disclosure
statement 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 2024 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.
Independent Auditor’s Report
to the Members of Sayona Mining Limited
Registered Audit Company 299289 | +61 7 3229 2022 | Level 28, 10 Eagle St, Brisbane QLD 4001
Nexia Brisbane Audit Pty Ltd (ABN 49 115 261 722) is a firm of Chartered Accountants. It is affiliated with, but independent from Nexia Australia Pty Ltd. Nexia Australia Pty Ltd is a
member of Nexia International, a leading, global network of independent accounting and consulting firms. For more information please see www.nexia.com.au/legal. Neither Nexia
International nor Nexia Australia Pty Ltd provide services to clients.
Liability limited under a scheme approved under Professional Standards Legislation.
Sayona Annual Report 2024
119
Independent Auditor’s Report
to the Members of Sayona Mining Limited
Key audit matter
How our audit addressed the key audit matter
Assessment of carrying value of property, plant and equipment
Refer to note 14 ‘Impairment of Non-Financial Assets’
Accounting standards require an assessment of indicators of
impairment annually, or more frequently if indicators of impairment
exist, for each cash generating unit (CGU).
The assessment of the indicators of impairment and impairment
testing of CGUs was considered to be a key audit matter as it involved
significant judgement due to the sensitivites and inherent uncertainties
of certain assumptions used in the valuation model.
The Group’s assessment of indicators of impairment included an
evaluation of multiple factors including, but not limited to, market
capitalisation, commodity price forecasts, reserves, regulatory
environment, operating expenditure, asset performance and
production estimates.
During the year, the Group determined that there were indicators
of impairment relating to the North American Lithium (NAL) CGU.
Impairment testing was undertaken on the NAL CGU and no
impairment was subsequently recognised.
The impairment assessment is based on the Definitive Feasibility
Study (DFS) that was released in April 2023. The model has been
modified for impairment assessment purposes to ensure that it
aligns with the requirements of AASB 136 Impairment of Assets
and for any key changes in underlying assumptions.
As the impairment analysis uses forward-looking assumptions, it tends
to be prone to greater risk for potential bias, error and inconsistent
application. These conditions necessitate additional scrutiny by us
to address the objectivity of inputs, and their consistent application.
We focussed on the significant forward-looking assumptions the
Group applied in their valuation, including:
• Commodity prices — assumptions in relation to commodity
price forecasts are inherently uncertain. There is a risk that the
assumptions are not reasonable and may not appropriately reflect
changes in supply and demand.
• Forecast operating cash flows, production volumes, capital
expenditure and reserve and resource estimate — these are
determined by the Group based on historical performance,
adjusted for expected changes or plans for development, including
consideration of regulatory approvals. This drives additional audit
effort specific to the feasibility of the forecasts and consistency
with the Group’s strategy.
• Discount rate — given the long life of the Group’s assets,
CGU recoverable amounts are sensitive to the discount rate
applied. Determining the appropriate discount rate to apply to
a CGU is judgemental.
Our audit procedures performed, amongst others, included
the following:
• We evaluated the design and implementation of the internal
controls over the Group’s processes of assessment for indicators
of impairment and impairment testing.
• We performed an analysis for indicators of impairment, which
included considering the performance of the assets and external
market conditions. Our procedures involved assessing the key
inputs such as commodity price forecasts, discount rates, reserve
estimation, operating expenditure, asset performance
and production estimates.
• We assessed the integrity and consistency of the models used
for the impairment assessment, including the accuracy of the
underlying formulae and consistency of modelling to the prior year.
• We assessed the data relating to resource and reserve
estimates and compared these estimates within the DFS and
to those incorporated in the life of operation and project plans
where applicable.
• We compared the forecast operating cash flows, production
volumes, capital expenditure and reserve and resource estimates
contained in the model to the life of operation and project plans
incorporating the approved budgets. We assessed the accuracy
of the Group’s previous forecasts to assist with this assessment.
• Using our knowledge of the Group and our industry experience,
and considering the Group’s strategy and past performance, we
assessed the reasonability of the forecast operating cash flows,
capital expenditure and production volumes.
• Considering the risk factors specific to the Group, we compared
the discount rates to publicly available market data for
comparable entities.
• We compared forecast commodity prices to published views
of market commentators on future trends and long-term
supply agreements.
• We considered the sensitivity of the models by varying key
assumptions, such as forecast commodity prices, operating
expenditure, capital expenditure and discount rates, within a
reasonably possible range, to identify those assumptions that
required significant focus or further procedures.
• We assessed the adequacy of disclosures in the Financial
Report, including those disclosures relating to significant
accounting judgements and estimates using our understanding
obtained from our testing and against the requirements of the
accounting standards.
Sayona Annual Report 2024
120
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 2024, 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:
a. the financial report (other than the consolidated entity
disclosure statement) that gives a true and fair view in
accordance with Australian Accounting Standards and the
Corporations Act 2001; and
b. the consolidated entity disclosure statement that is true and
correct in accordance with the Corporations Act 2001; and
for such internal control as the directors determine is necessary to
enable the preparation of:
i.
the financial report (other than the consolidated entity
disclosure statement) that gives a true and fair view and is free
from material misstatement, whether due to fraud or error; and
ii. the consolidated entity disclosure statement that is true
and correct and is free of 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.
Key audit matter
How our audit addressed the key audit matter
Revenue recognition
Refer to note 5 ‘Revenue’
Recognition of revenue is a key audit matters due to the:
• Significance of revenue to the financial statements; and
• The number of contracts with estimation events potentially occurring
over the course of the contract’s life. This results in complex and
judgemental revenue recognition and therefore significant audit effort
is required to gather sufficient audit evidence for revenue recognition.
The Group generates revenue primarily from the production and sale of
spodumene concentrate. In the past financial year, the Group generated
revenue for the first time which requires significant consideration
of the complexities in applying the measurement and recognition
requirements of AASB 15 Revenue from Contracts with Customers.
The complexities associated with revenue recognition encompass
considerations as to when the Group has satisfied their performance
obligation under various contracts and determination of the
measurement of consideration.
The consideration that the Group expects to be entitled to is considered
with reference to the terms of each underlying contract, the terms
of which will vary. In some instances, the amount of revenue to be
received is provisionally priced and recognised at the estimate of the
consideration receivable.
Provisionally priced sales are subsequently repriced at each reporting
period up until final pricing and settlement is confirmed, with revenue
adjustments relating to the quantity and quality of goods sold being
recognised in sales revenue.
Provisionally priced sales in which final pricing is referenced to a
relevant index include an embedded commodity derivative. The
embedded derivative is carried at fair value through profit or loss
and presented as part of trade payables or receivables.
As at 30 June 2024, total ‘Level 2’ financial liabilities amounted to
$6.5 million. Refer to notes 15 and 23(d).
Our procedures included, amongst others:
• We evaluated the design and implementation of the internal
controls relating to management’s processes for the recognition
of revenue and provisional pricing adjustments.
• We reviewed the accounting policy relating to revenue recognition
and fair value measurements to assess compliance with the
requirements of Australian Accounting Standards.
• We tested all revenue transactions that were recognised in the
year and assessed the recognition and measurement of these
against, amongst other things, the terms of the underlying
contracts, shipping terms and pricing terms to assess whether
the recognition criteria of Australian Accounting Standards had
been met.
• We tested management’s inputs utilised in ‘Level 2’ measurements
in the fair value hierarchy as set out in note 23(d) to the financial
statements and reviewed the considered the resultant financial
liability for reasonableness.
• Based on the results of our testing, we are satisfied that the
revenue recognition policies are in line with Australian Auditing
Standards and were appropriately applied throughout the
period. In addition, we are satisfied that the ‘Level 2’ fair value
measurements are supported by reasonable assumptions.
• We assessed the appropriateness of the Group’s accounting
policy for revenue recognition and the disclosures in the Financial
Report using our understanding obtained from our testing and
against the requirements of the accounting standards.
Sayona Annual Report 2024
121
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.
• 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 72
of the Directors’ Report for the year ended 30 June 2024.
In our opinion, the Remuneration Report of Sayona Mining Limited
for the year ended 30 June 2024 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
30 August 2024
Independent Auditor’s Report
to the Members of Sayona Mining Limited
Sayona Annual Report 2024
122
Sayona Annual Report 2024
123
05 Additional Information
Sayona Annual Report 2024
124
Overview
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 2024. 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 and external 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
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.
Mineral Resources
and Ore Reserves
Competent Persons for JORC Code Reportable Estimates
Activity
Responsibility
Competent Person Professional Association
Relationship
Mineral
Resources
Authier
Maxime Dupéré
Member of Ordre des Géologues du Québec
External consultant employed by SGS
Canada Inc.
Moblan
Alain Carrier
Member of Ordre des Géologues du Québec
External consultant employed by InnovExplo Inc.
NAL
Pierre-Luc Richard
Member of Ordre des Géologues du Québec
External consultant employed by PLR
Resources Inc.
Ore
Reserves
Authier
Isabelle Leblanc
Member of Ordre des Ingénieurs du Québec
External consultant employed by BBA Inc.
Moblan
Simon Boudreau
Member of Ordre des Ingénieurs du Québec
External consultant employed by InnovExplo Inc.
NAL
Mélissa Jarry
Member of Ordre des Ingénieurs du Québec
External consultant employed by BBA Inc.
Sayona Annual Report 2024
125
Mineral Resources
Mineral Resources as at 30 June 2024
Project
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
Authier(2)
Open Pit
6,042
0.98
59.2
8,098
1.03
83.4
2,996
1.00
30.0
17,136
1.01
172.6
Moblan(3,4)
Main
5,901
1.53
–
9,042
1.20
–
5,165
1.10
–
20,108
1.27
–
South
67
1.10
–
30,614
1.18
–
10,323
1.08
–
41,004
1.15
–
New South
–
–
–
15,167
1.24
–
6,834
1.11
–
22,002
1.20
–
Moleon
–
–
–
4,302
1.44
–
5,665
1.33
–
9,967
1.38
–
Total
5,968
1.53
–
59,125
1.22
–
27,987
1.14
–
93,081
1.21
–
NAL(5,6)
Open Pit
900
1.11
–
71,100
1.14
–
13,700
1.08
–
85,700
1.13
–
Underground
2,200
0.87
–
2,200
0.87
–
Total
900
1.11
–
71,100
1.14
–
15,800
1.05
–
87,900
1.13
–
(1) Represents metal contained within mineral resources, expressed in thousand tonnes of lithium oxide.
(2) 75% ownership interest; cut-off grade of 0.55% Li2O.
(3) 60% ownership interest; cut-off grade of 0.55% Li2O.
(4) Moblan Mineral Resource effective date is 27 August 2024.
(5) 75% ownership interest; cut-off grade of 0.60% Li2O.
(6) NAL Mineral Resource effective date is 27 August 2024.
Mineral Resources as at 30 June 2023
Project
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
Authier(2)
Open Pit
6,042
0.98
59.2
8,098
1.03
83.4
2,996
1.00
30.0
17,136
1.01
172.6
Moblan(3)
Inter
–
–
–
5,601
0.89
–
7,209
0.81
–
12,810
0.85
–
Main
6,313
1.46
11,541
1.19
–
3,406
1.00
–
21,260
1.24
–
Moleon
–
–
–
2,932
1.52
–
1,430
1.42
–
4,362
1.49
–
South
–
–
–
23,499
1.17
–
8,939
1.12
–
32,438
1.16
–
NAL(4)
Open Pit
1,000
1.19
11.7
24,000
1.23
296.6
22,000
1.20
264.1
47,000
1.22
572.4
Underground
–
–
–
–
–
–
11,000
1.30
141.8
11,000
1.30
141.8
(1) Represents metal contained within mineral resources, expressed in thousand tonnes of lithium oxide.
(2) 75% ownership interest; cut-off grade of 0.55% Li2O.
(3) 60% ownership interest; cut-off grade of 0.25% Li2O.
(4) 75% ownership interest; cut-off grade of 0.60% Li2O.
Mineral Resources
and Ore Reserves continued
Sayona Annual Report 2024
126
Annual Review of Mineral Resources
North American Lithium and Moblan resources have been updated post 30 June 2024 and those changes are reflected in the table above.
No activities or reviews have taken place during the year of Authier.
Ore Reserves
Ore Reserves as at 30 June 2024
Proved Ore Reserves
Probable Ore Reserves
Total Ore Reserves
Project
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
Authier
Open Pit
75
0.55
6,200
0.93
57.6
5,100
1.00
50.7
11,300
0.96
108.3
Moblan
Open Pit
60
0.60
–
–
–
34,537
1.36
–
34,537
1.36
–
NAL
Open Pit
75
0.60
200
1.09
2.2
19,900
1.09
216.6
20,100
1.09
218.6
(1) Represents metal contained within ore reserves, expressed in thousand tonnes of lithium oxide.
Ore Reserves as at 30 June 2023
Proved Ore Reserves
Probable Ore Reserves
Total Ore Reserves
Project
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
Authier
Open Pit
75
0.55
6,200
0.93
57.6
5,100
1.00
50.7
11,300
0.96
108.3
NAL
Open Pit
75
0.60
700
1.24
8.7
21,000
1.08
226.8
21,700
1.08
235.5
(1) Represents metal contained within ore reserves, expressed in thousand tonnes of lithium oxide.
Annual Review of Ore Reserves
No changes have occurred to the Authier reserves during the reporting period.
Moblan reserves were defined during the year and these are reflected in the table above. No activities or reviews of Authier reserves have
taken place during the year.
The main change to North American Lithium reserves relates to mining depletion. Technical studies are underway to review and further update the
NAL ore reserves to account for the changes to the mineral resources (these changes occurred after June 30 2024). This work should be completed
by the end of 2024.
Sayona Annual Report 2024
127
Tenement Schedule
Australian Tenement Schedule as at 30 June 2024
Project
Location
Tenement
Name
Commodity
Status
Interest
WA Graphite Projects
Western Australia,
Australia
E80/4511
Western Iron
Graphite
Granted
100%
E80/4949
Corkwood
Graphite
Granted
100%
WA Lithium and
Gold Projects
Western Australia,
Australia
E45/2364
Tabba Tabba
Lithium
Granted
100%
E45/4703
Tabba Tabba East
Gold & Lithium
Granted
49% (1,2)
E45/4716
Red Rock
Gold & Lithium
Granted
100%
E45/4726
West Wodgina
Gold & Lithium
Granted
49% (1,2)
E45/5288
Strelley
Gold & Lithium
Granted
49% (1,2)
E45/5289
Strelley West
Gold & Lithium
Granted
49% (1,2)
E47/4863
Ballot
Gold & Lithium
Application
100%
E45/5904
Mac Well
Gold & Lithium
Granted
49% (1,2)
E47/2983
Mallina
Lithium
Granted
49% (1)
E47/3802
Friendly Creek
Gold & Lithium
Granted
100%
E47/3829
Deep Well
Gold & Lithium
Granted
100%
E47/3950
Mt Dove
Gold & Lithium
Granted
100%
E59/2055
Mt Edon West
Lithium
Granted
49% (1)
E59/2092
Mt Edon
Lithium
Granted
39% (1)
E47/4870
Mount Satirist
Gold & Lithium
Application
100%
E47/4872
Station Peak
Gold & Lithium
Application
100%
(1) Tenement subject to Morella Lithium Joint Venture.
(2) Gold rights are 100% owned by Sayona.
Sayona Annual Report 2024
128
Project
Tenement
%
Authier
2116146
100
2116154-6
100
2183454-5
100
2187651-2
100
2192470-1
100
2194819
100
2195725
100
2219206-9
100
2240226-7
100
2247100-1
100
2472424-5
100
2480180
100
2507910
100
Pontiac
2638652-758
100
2638760-894
100
2639224-457
100
2639459-616
100
2639746-854
100
2640010
100
2640026-301
100
2640717-849
100
2641004-14
100
2641108-52
100
2641424-5
100
2643810-14
100
2643819-27
100
2643829-42
100
2644631-44
100
2644648-9
100
2646177-82
100
2648060-1
100
2648686-7
100
2685903-4
100
2687680-5
100
2706313-21
100
2745268-9
100
Tansim
1133877
100
2415443-4
100
2436732-4
100
2440836-60
100
2440890-903
100
2440907-9
100
2440919-20
100
2440925
100
2440930
100
Project
Tenement
%
Tansim
2440935-6
100
2440991-4
100
2450758
100
2519251-317
100
2519323-4
100
2572665-703
100
2579261-71
100
2601768
100
2601773
100
2601778
100
2601783
100
2603823-6
100
Valleé Lithium
Project
2154756-59
18.75
2154762
18.75
2167929-32
18.75
2451339
18.75
2455374-84
18.75
2469674
18.75
2520897
18.75
2520905
18.75
2520960
18.75
2521241-3
18.75
North American
Lithium
1005
75
2145325-36
75
2154760-1
75
2154987-93
75
2167933-8
75
2444462-3
75
2490652-56
75
2520959
75
2521244-7
75
2569722-3
75
Lac Albert
2630529-649
100
Moblan
2195586-7
60
2331201-8
60
2331353-9
60
2338382
60
2378688-9
60
Troilus Claims
22693-4
100
23716-17
100
23730
100
23931
100
24255
100
24257
100
24261
100
Project
Tenement
%
Troilus Claims
24269
100
44235
100
81197-9
100
81203-4
100
1117911-2
100
1117918-9
100
1117926
100
1117936
100
2090518
100
2090923-4
100
2158088
100
2166942
100
2173601
100
2173630-1
100
2173633
100
2173637-8
100
2173640-1
100
2209948
100
2219972-3
100
2220041-2
100
2220063-4
100
2240755
100
2240757
100
2253415
100
2253424
100
2253432
100
2253516-21
100
2253527-31
100
2253877-8
100
2253880
100
2262720
100
2264368-9
100
2264372
100
2264374-6
100
2264400
100
2283442-5
100
2323529
100
2323531
100
2323706
100
2323708-9
100
2323712
100
2323714
100
2323746-9
100
2342477
100
2369221
100
Canadian Tenement Schedule as at 30 June 2024
Sayona Annual Report 2024
129
Project
Tenement
%
Troilus Claims
2371567-9
100
2371577-82
100
2371584
100
2372785-89
100
2372794
100
2385965
100
2385966-9
100
2385971-6
100
2389106-24
100
2391579
100
2401405-7
100
2401410-7
100
2401424-32
100
2401439-43
100
2401449
100
2401452-6
100
2401486-505
100
2404406
100
2424548-51
100
2424553
100
2428481
100
2428483
100
2429184-8
100
2443513-32
100
2447808
100
2447833
100
2447851-2
100
2447983
100
2447986
100
2447993-7
100
2453351-85
100
2454358-70
100
2454375-7
100
2454409-14
100
2457004-11
100
2457014-6
100
2457018-9
100
2457022
100
2457024
100
2457026-31
100
2457033
100
2457034
100
2457035
100
2461571
100
2461984-9
100
Project
Tenement
%
Troilus Claims
2461991-5
100
2465289-92
100
2468133
100
2471375
100
2472338-43
100
2472346-50
100
2472356
100
2510194-200
100
2510205-17
100
2510271-6
100
2510292-5
100
2510726-31
100
2515565
100
2515594
100
2515603
100
2517129
100
2517191-218
100
2517232-47
100
2517378-427
100
2517564-602
100
2517690-735
100
2517740-4
100
2518087-117
100
2518129-53
100
2518931
100
2519330
100
2519775
100
2534958
100
2541680-1
100
2541819-43
100
2542167-70
100
2542817-31
100
2543367-70
100
2543551-2
100
2543558-69
100
2543573
100
2543653-62
100
2543781-89
100
2544905-22
100
2555479-504
100
2555515-6
100
2555520-31
100
2555537-44
100
2555547-51
100
2555555-611
100
Project
Tenement
%
Troilus Claims
2555614-8
100
2555621-6
100
2555630-5
100
2555687-805
100
2555814-36
100
2555847-6134
100
2558334
100
2560642-53
100
2560656-61
100
2560664-7
100
2560670-2
100
2561222-8
100
2561253-4
100
2561649
100
2561842-6
100
2563696-719
100
2564837
100
2565953-8
100
2566120-6
100
2566963-78
100
2567332-41
100
2567470-9
100
2567484-515
100
2571228-307
100
2571348-427
100
2571607-86
100
2571827-96
100
2574357
100
2574420-54
100
2575778
100
2576046-92
100
2582568
100
Canadian Tenement Schedule as at 30 June 2024
Tenement Schedule
Sayona Annual Report 2024
130
Shareholder Information
Securities Exchanges
As at 31 July 2024, 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 31 July 2024:
Size of holding
Number of
shareholders
Number of
shares
Percentage of
shares on issue
1 – 1,000
494
105,849
0.00
1,001 – 5,000
7,736
25,127,609
0.24
5,001 – 10,000
6,410
50,019,555
0.49
10,001 – 100,000
20,564
798,176,300
7.75
100,001 and over
9,082
9,419,866,701
91.51
Total
44,286
10,293,296,014
100.00
As at 31 July 2024, there were 18,849 shareholders holding less than a marketable parcel (A$500) of shares in Sayona Mining Limited based on the
closing market price of A$0.0310.
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 31 July 2024:
Size of holding
Number of
rights holders
Number of
rights
Percentage of
rights on issue
1 – 1,000
-
-
-
1,001 – 5,000
-
-
-
5,001 – 10,000
-
-
-
10,001 – 100,000
-
-
-
100,001 and over
1
2,234,482
100.00
Total
1
2,234,482
100.00
Substantial Shareholders
As at 12 August 2024, Sayona Mining Limited had one substantial shareholder 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 2001:
Name
Date notice
received
Number of
shares in notice
Percentage of
capital in notice
JPMorgan Chase & Co. and its affiliates
5 June 2024
517,194,558
5.02
Sayona Annual Report 2024
131
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 31 July 2024:
Rank
Name
Number of
shares held
Percentage of
shares on issue
1
HSBC Custody Nominees (Australia) Limited
1,175,577,895
11.42
2
Citicorp Nominees Pty Limited
672,993,166
6.54
3
J P Morgan Nominees Australia Pty Limited
394,219,893
3.83
4
Acuity Capital Investment Management Pty Ltd
250,000,000
2.43
5
BNP Paribas Noms Pty Ltd
239,097,264
2.32
6
BNP Paribas Nominees Pty Ltd
233,880,679
2.27
7
Cropanly Pty Ltd
150,299,421
1.46
8
Terryjoy Pty Ltd
105,571,221
1.03
9
BNP Paribas Nominees Pty Ltd
86,388,248
0.84
10
HSBC Custody Nominees (Australia) Limited
80,867,363
0.79
11
Bond Street Custodians Limited
78,153,000
0.76
12
HSBC Custody Nominees (Australia) Limited - A/C 2
67,176,138
0.65
13
National Nominees Limited
66,260,142
0.64
14
Finclear Services Pty Ltd
64,591,689
0.63
15
P Point Pty Ltd
61,262,616
0.60
16
Mr Robert Veitch + Mrs Elaine Veitch
50,000,000
0.49
17
Mr Allan Charles Buckler
41,326,435
0.40
18
Isaiah Sixty Pty Ltd
32,027,852
0.31
19
Mr Richard Karl Hill
30,000,000
0.29
20
Conseil De La Premiere Nation Abitibiwinni
27,500,000
0.27
Top 20 holders of Ordinary Fully Paid Shares (Total)
3,907,193,022
37.96
Total Remaining Holders Balance
6,386,102,992
62.04
Restricted Securities
As at 31 July 2024, 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
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.
Shareholder Information continued
Sayona Annual Report 2024
132
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 is able to share infrastructure and
management with an existing operation.
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.
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 Australian Institute of Geoscientists (AIG), or a ‘Recognised
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.
Glossary
Sayona Annual Report 2024
133
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.
Executive KMP
Key Management Personnel (KMP) comprising the Managing
Director and Chief Executive Officer, Executive Director
(formerly Interim Chief Executive Officer), Executive Director
and Company Secretary Chief Financial Officer, President and
Chief Operating Officer of 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 independent organisation that has established a global
framework and standards for sustainability reporting.
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).
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
techniques from locations such as outcrops, trenches, pits, 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).
Glossary continued
Sayona Annual Report 2024
134
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).
Interim CEO
Interim Chief Executive Officer.
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.
MAC
Mining Association of Canada.
Managing Director and CEO
Managing Director and Chief Executive Officer.
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.
Geological evidence is derived from detailed and 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).
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).
MRNF
Ministère des Ressources naturelles et des Forêts.
Sayona Annual Report 2024
135
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.
NPV
Net present value.
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 focussed
on the financial impacts of sustainability.
Sayona
Sayona Mining Limited and its controlled entities, unless
otherwise stated.
Scope 1 Emissions
Greenhouse gas emissions from our own operations, including
electricity generated at our sites.
Scope 2 Emissions
Indirect greenhouse gas emissions from the generation of
purchased electricity.
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).
Sustainable Development
Activity that supports the needs of the present without compromising
the ability of future generations to meet their own needs.
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.
Total Ore Reserves
The sum of Proved Ore Reserves and Probable Ore Reserves.
TRIFR (Total Recordable Injury Frequency Rate)
The sum of recordable injuries multiplied by 200,000, divided by
exposure hours for employees and contractors. TRIFR is stated in
units per two hundred thousand hours worked.
TSM (Towards Sustainable Mining)
A globally recognised performance system that helps mining
companies evaluate and manage their environmental and
social responsibilities.
Glossary continued
Sayona Annual Report 2024
136
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.
Underlying EBIT
Underlying EBIT is profit before net financial income and expenses,
income tax expense and other earnings adjustment items. It is a non-
IFRS measure of profitability, financial performance or liquidity and
may be defined and used in differing ways by different entities.
Underlying EBITDA
Underlying EBIT before underlying depreciation and amortisation.
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.
Unit Operating Cost
Unit operating cost is calculated on an accruals basis and includes
mining, processing, transport, port charges, site-based general
and administration costs and cash based inventory movements,
and excludes depreciation and amortisation charges, freight and
royalties. It is report in $/dmt sold, FOB Port of Québec.
UNSDG (United Nations Sustainable Development Goals)
Sustainable development goals adopted by the United Nations in
2015 as a universal call to action to end poverty, protect the planet,
and ensure that all people enjoy peace and prosperity.
Wet Metric Tonnes
Production is often quoted in terms of wet metric tonnes (wmt).
To adjust from wet metric tonnes to dry metric tonnes (dmt), a
factor is applied based on moisture content.
Yield
The percentage of material of interest that is extracted during mining
or processing; a measure of mining or processing efficiency.
Units of Measure
%
percentage or per cent
AUD, A$ or $
Australian dollars
CAD or C$
Canadian dollars
dmt
dry metric tonnes
ha
hectare
km
kilometre
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
Sayona Annual Report 2024
137
Corporate Directory
Company
Sayona Mining Limited
ABN 26 091 951 978
The Company is listed on the Australian Securities Exchange (ASX)
ASX Code
SYA
The Company is quoted on the OTCQB Venture Market (OTCQB)
OTCQB Code SYAXF
Directors
Mr Lucas Dow
Managing Director and Chief Executive Officer
Mr James Brown
Executive Director
Mr Allan Buckler
Non-Executive Director
Mr Paul Crawford
Non-Executive Director
Mr Philip Lucas
Non-Executive Director
Executive Leadership Team
Mr Lucas Dow
Managing Director and Chief Executive Officer
Mr Dougal Elder
Chief Financial Officer
Mr Sylvain Collard
President and Chief Operating Officer of Canada
Company Secretary
Mr Dylan Roberts
Office Locations
Brisbane Office (Registered Office)
Level 28, 10 Eagle Street
Brisbane, Queensland 4000
Australia
GPO Box 1638
Brisbane, Queensland 4001
Australia
Telephone
+61 7 3369 7058
Email
info@sayonamining.com.au
Website
www.sayonamining.com.au
Montréal Office
1100, boul. Rene-Lévesque Ouest
Bureau 1230
Montréal, Québec H3B 4N4
Canada
Auditor
Nexia Brisbane Audit Pty Ltd
Level 28, 10 Eagle Street
Brisbane, Queensland 4000
Australia
Telephone
+61 7 3229 2022
Lawyer
GRT Lawyers
Level 27, 111 Eagle Street
Brisbane, Queensland 4000
Australia
Telephone
+61 7 3309 7000
Share Registry
Computershare Investor Services Pty Limited
Level 1, 200 Mary Street
Brisbane, Queensland 4000
Australia
Telephone
1300 850 505 (within Australia)
+61 3 9415 4000 (outside Australia)
Facsimile
+61 3 9473 2500
Website
www.computershare.com
Sayona Annual Report 2024
138
Sayona Annual Report 2024
139
sayonamining.com.au