For personal use only
HALF YEAR REPORT
31 December 2021
THIS DOCUMENT SHOULD BE READ IN CONJUNCTION WITH THE
30 JUNE 2021 ANNUAL REPORT OF THE COMPANY
LODGED ON 25 OCTOBER 2021
ASX Code: LEL
Lithium Energy Limited
A.B.N. 94 647 135 108
REGISTERED OFFICE | SHARE REGISTRY | |
Advanced Share Registry | ||
Suite 1, Level 1, | Western Australia - Main Office | New South Wales - Branch Office |
680 Murray Street, | 110 Stirling Highway | Suite 8H, 325 Pitt Street |
West Perth, Western Australia 6005 | Nedlands, Western Australia 6009 | Sydney, New South Wales 2000 |
PO Box 1156 | PO Box Q1736 | |
T | (08) 9214 9737 | Nedlands WA 6909 | Queen Victoria Building NSW 1230 |
Local T | 1300 113 258 | ||
T | (08) 9214 9701 | T | (08) 9389 8033 | T | (02) 8096 3502 |
E | info@lithiumenergy.com.au | F | (08) 6370 4203 | |
W | www.lithiumenergy.com.au | E | admin@advancedshare.com.au | W | www.advancedshare.com.au |
For personal use only
31 DECEMBER 2021 | LITHIUM ENERGY LIMITED |
A.B.N. 94 647 135 108 |
CONTENTS | CORPORATE DIRECTORY | |||
Directors' Report | 2 | BOARD | ||
21 | William Johnson | Executive Chairman | ||
Auditor's Independence Declaration | Peter Smith | Executive Director | ||
Consolidated Statement of Profit or Loss | 22 | Farooq Khan | Executive Director | |
and Other Comprehensive Income | COMPANY SECRETARY | |||
23 | ||||
Consolidated Statement of | Victor Ho | |||
Financial Position | Email: | cosec@lithiumenergy.com.au | ||
Consolidated Statement of | 24 | PRINCIPAL AND REGISTERED OFFICE | ||
Changes in Equity | ||||
25 | Suite 1, Level 1 | |||
Consolidated Statement of Cash Flows | 680 Murray Street | |||
West Perth, Western Australia 6005 | ||||
Notes to Consolidated Financial | 26 | Telephone: | +61 8 9214 9737 | |
Statements | Facsimile: | +61 8 9214 9701 | ||
31 | Email: | info@lithiumenergy.com.au | ||
Directors' Declaration | Website: | www.lithiumenergy.com.au | ||
Auditors' Independent Review Report | 32 | AUDITOR | ||
34 | ||||
List of Mineral Concessions | Rothsay Auditing | |||
35 | Level 1, Lincoln House | |||
JORC Mineral Resources | 4 Ventnor Avenue | |||
36 | West Perth, Western Australia 6005 | |||
JORC Code Competent Persons' | Telephone: | +61 8 9486 7094 | ||
Statements | Website: | www.rothsay.com.au | ||
Securities Information | 38 | STOCK EXCHANGE | ||
Australian Securities Exchange | ||||
Perth, Western Australia | ||||
ASX CODE | ||||
LEL | ||||
Visit www.lithiumenergy.com.au for | SHARE REGISTRY | |||
• | Market Announcements | Advanced Share Registry | ||
• | Financial Reports | Main Office: | ||
• | Corporate Governance | 110 Stirling Highway | ||
• | Forms | Nedlands, Western Australia 6009 | ||
• | Email Subscription | Local Telephone: | 1300 113 258 | |
Telephone: | +61 8 9389 8033 | |||
Facsimile: | +61 8 6370 4203 | |||
Email: | admin@advancedshare.com.au | |||
Investor Web: | www.advancedshare.com.au | |||
Sydney Office: | ||||
Suite 8H, 325 Pitt Street | ||||
Sydney, New South Wales 2000 | ||||
Telephone: | +61 2 8096 3502 | |||
Investor Portal | ||||
www.advancedshare.com.au/Investor-Login |
HALF YEAR REPORT | 1
For personal use only
31 DECEMBER 2021 | LITHIUM ENERGY LIMITED |
A.B.N. 94 647 135 108 |
DIRECTORS' REPORT
The Directors present their report on Lithium Energy Limited ABN 94 647 135 108 (ASX Code: LEL) (Company or LEL) and its controlled entities (the Consolidated Entity or Lithium Energy) for the financial half year ended 31 December 2021 (Balance Date).
LEL is a company limited by shares that was incorporated in Western Australia on 14 January 2021 as a wholly- owned subsidiary of Strike Resources Limited (ASX:SRK) (Strike or SRK). Lithium Energy (holding various battery minerals assets) was spun-out of Strike following the successful completion of LEL's $9 million initial public offering (IPO) under a Prospectus (dated 30 March 2021).
The Company was admitted to the Official List of the Australian Securities Exchange (ASX) on 17 May 2021 and commenced quotation/trading on ASX on 19 May 2021.
Lithium Energy has prepared a consolidated financial report incorporating the entities that it controlled during the financial half year.
OPERATING RESULTS
December 2021 | |
Consolidated | $ |
Total revenue | 17,795 |
Total expenses | (1,774,994) |
Loss before tax | (1,757,199) |
Income tax expense | - |
Loss after tax | (1,757,199) |
CASH FLOWS
December 2021 | |
Consolidated | $ |
Net cash flow used in operating activities | (656,355) |
Net cash flow from investing activities | 5,490 |
Net cash flow from financing activities | - |
Net change in cash held | (650,865) |
Effect of exchange rate changes on cash held | 19,358 |
Cash held at half year end | 7,362,837 |
FINANCIAL POSITION
December 2021 | June 2021 | |
Consolidated | $ | $ |
Cash | 7,362,837 | 7,994,344 |
Exploration and evaluation expenditure | 7,122,532 | 7,011,511 |
Receivables | 184,185 | 133,997 |
Other assets | 43,995 | 52,543 |
Liabilities | (106,890) | (187,625) |
Net assets | 14,606,659 | 15,004,771 |
Issued capital | 15,006,458 | 15,006,458 |
Reserves | 2,485,761 | 1,126,674 |
Accumulated losses | (2,885,560) | (1,128,361) |
Total equity | 14,606,659 | 15,004,771 |
HALF YEAR REPORT | 2
For personal use only
31 DECEMBER 2021 | LITHIUM ENERGY LIMITED |
A.B.N. 94 647 135 108 |
DIRECTORS' REPORT
DIVIDENDS
No dividends have been paid or declared during the financial half year.
CAPITAL MANAGEMENT
Securities on Issue
The following securities were on issue as at balance date:
Class of Security | Quoted on ASX | Unlisted | Total | |
Fully paid ordinary shares | 45,000,000 | 35,010,000 | 80,010,000 | |
Executive Options ($0.30, 18 | Mar 2024)1 | - | 10,000,000 | 10,000,000 |
Broker Options ($0.30, 4 May 2024)2 | - | 4,000,000 | 4,000,000 | |
Executive Options ($1.39, 29 | Nov 2024)3 | - | 3,500,000 | 3,500,000 |
On 16 February 2021, the Company issued 100,000 Securities Incentive Plan (SIP) Options ($1.595, 15 Feb 2025)4.
Restricted Securities
The following restricted securities are subject to escrow (as imposed under the ASX Listing Rules) as at balance date:
Class of Security | Number | Escrow Period | |
Fully paid ordinary shares | 34,860,000 | 19 May 2023 | |
(24 months from date of Quotation5) | |||
Fully paid ordinary shares | 150,000 | 10 May 2022 | (12 months from date of issue) |
Total | 35,010,000 | ||
Executive Options ($0.30, 18 Mar 2024) | 10,000,000 | 19 May 2023 | (24 months from Quotation) |
Broker Options ($0.30, 4 May 2024) | 4,000,000 | 19 May 2023 | (24 months from Quotation) |
Executive Options ($1.39, 29 Nov 2024) | 3,500,000 | 2 December 2023 (24 months from Quotation) |
Option Issues
The following options were issued during and subsequent to the financial half year:
Class of Unlisted Options | Issue Date | Exercise Price | Expiry Date | Number of options | |
Executive Options ($1.39, 29 Nov 2024) | 30 Nov 2021 | $1.39 | 29 Nov 2024 | 3,500,000 | |
SIP Options ($1.595, 15 Feb 2025) | 16 Feb 2022 | $1.595 | 15 Feb 2025 | 100,000 | |
- Refer Section 16.3 (Rights Attaching to Executive Options) of the Company's Prospectus (dated 30 March 2021) for terms and conditions of the Executive Options
- Refer Section 16.2 (Rights Attaching to Broker's Options) of the Company's Prospectus (dated 30 March 2021) for terms and conditions of the Broker Options
- Refer LEL Announcement dated 2 December 2021: Notification regarding unquoted securities - LEL and Annexure B (Terms and Conditions of New Executive Options) of LEL's Notice of Annual General Meeting and Explanatory Statement dated 18 October 2021 and released on ASX on 28 October 2021
- Refer LEL Announcement dated 18 February 2022: Notification regarding unquoted securities - LEL
- The Company was admitted to the Official List of ASX on 17 May 2021 and commenced quotation/trading on ASX on 19 May 2021.
HALF YEAR REPORT | 3
For personal use only
31 DECEMBER 2021 | LITHIUM ENERGY LIMITED |
A.B.N. 94 647 135 108 |
DIRECTORS' REPORT
REVIEW OF OPERATIONS
Solaroz Lithium Brine Project (Argentina) | (90%) |
Lithium Energy's flagship Solaroz Lithium Brine Project (Solaroz Project or Solaroz) comprises 8 mineral tenements totalling approximately 12,000 hectares, located approximately 230 kilometres north-west of the provincial capital city of Jujuy within South America's 'Lithium Triangle' in North-West Argentina (refer Figure 1) in the Salar de Olaroz basin (Olaroz Salar).
Figure 1: Lithium Projects Located in 'Lithium Triangle'
The highly prospective nature of the Solaroz Project is highlighted by its close proximity to two world class Lithium brine assets, being the flagship Olaroz Lithium Facility of Allkem Limited (ASX/TSX:AKE) (formerly Orocobre Limited) (Allkem)6 and the advanced Cauchari-Olaroz development project held by Lithium Americas Corporation (TSX/NYSE:LAC) (Lithium Americas) (under a joint venture with Ganfeng Lithium).
The Solaroz Project is directly adjacent to or principally surrounded by tenements held by Allkem and Lithium Americas in the Olaroz Salar (refer Figure 2). Allkem currently has a market capitalisation of approximately A$6.3 Billion. Allkem's Olaroz Lithium Facility at the Olaroz Salar (under a joint venture with Tokyo Stock Exchange listed Toyota Tsusho Corporation (TYO:8015)) has been extracting lithium brine and producing lithium carbonate since 2014.7
- Orocobre Limited (former ASX:ORE) changed its name to Allkem Limited (ASX:AKE) with effect on 6 December 2021
- Refer also Allkem's December 2021 Quarterly Activities Report released on ASX on 18 January 2022 and Allkem's (then known as Orocobre) 2021 Annual Report released on 25 August 2021
HALF YEAR REPORT | 4
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