Exhibit
|
Description
|
|
Interim Financial Report for the Nine Months Ended March 31, 2020
|
||
101
|
XBRL Interactive Data File
|
Piedmont Lithium Limited
|
||
(registrant)
|
||
Date: June 8, 2020
|
By:
|
/s/ Keith Phillips
|
Name: Keith Phillips
|
||
Title: President and Chief Executive Officer
|
PAGE
|
||
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
||
CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
|
F-2
|
|
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
F-3
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
|
F-4
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
F-5
|
|
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
F-6
|
Note
|
Nine Months Ended
March 31, 2020
US$
|
Nine Months Ended
March 31, 2019
US$
|
|||||||||
Continuing operations
|
|||||||||||
Interest income/(expenses)
|
3
|
108,955
|
98,147
|
||||||||
Exploration and evaluation expenses
|
(2,951,474
|
)
|
(5,014,434
|
)
|
|||||||
Corporate and administrative expenses
|
(1,243,847
|
)
|
(1,056,029
|
)
|
|||||||
Business development expenses
|
(802,340
|
)
|
(953,095
|
)
|
|||||||
Share based payments
|
(263,519
|
)
|
(383,636
|
)
|
|||||||
Other income/(expenses)
|
3
|
1,074,861
|
181,550
|
||||||||
Loss before income tax
|
(4,077,364
|
)
|
(7,127,497
|
)
|
|||||||
Income tax expense
|
-
|
-
|
|||||||||
(4,077,364
|
)
|
(7,127,497
|
)
|
||||||||
Loss attributable to members of Piedmont Lithium Limited
|
(4,077,364
|
)
|
(7,127,497
|
)
|
|||||||
Other comprehensive income
|
|||||||||||
Items that may be reclassified subsequently to profit or loss:
|
|||||||||||
Exchange differences arising on translation of foreign operations
|
(1,214,413
|
)
|
(300,155
|
)
|
|||||||
Other comprehensive loss for the period, net of tax
|
(1,214,413
|
)
|
(300,155
|
)
|
|||||||
Total comprehensive loss for the period
|
(5,291,777
|
)
|
(7,427,652
|
)
|
|||||||
Total comprehensive loss attributable to members of Piedmont Lithium Limited
|
(5,291,777
|
)
|
(7,427,652
|
)
|
|||||||
Loss per share
|
|||||||||||
Basic and diluted loss per share (cents per share)
|
(0.5
|
)
|
(1.2
|
)
|
Note
|
March 31, 2020
US$
|
June 30, 2019
US$
|
|||||||||
ASSETS
|
|||||||||||
Current Assets
|
|||||||||||
Cash and cash equivalents
|
8,951,553
|
4,432,150
|
|||||||||
Trade and other receivables
|
35,961
|
59,679
|
|||||||||
Other assets
|
109,470
|
-
|
|||||||||
Total Current Assets
|
9,096,984
|
4,491,829
|
|||||||||
Non-Current Assets
|
|||||||||||
Exploration and evaluation assets
|
4
|
6,579,123
|
2,265,121
|
||||||||
Property, plant and equipment
|
5
|
781,555
|
26,195
|
||||||||
Other assets
|
149,884
|
-
|
|||||||||
Total Non-Current Assets
|
7,510,562
|
2,291,316
|
|||||||||
TOTAL ASSETS
|
16,607,546
|
6,783,145
|
|||||||||
LIABILITIES
|
|||||||||||
Current Liabilities
|
|||||||||||
Trade and other payables
|
748,323
|
2,144,071
|
|||||||||
Other liabilities
|
6
|
717,810
|
-
|
||||||||
Total Current Liabilities
|
1,466,133
|
2,144,071
|
|||||||||
Non-Current Liabilities
|
|||||||||||
Other liabilities
|
6
|
1,674,776
|
-
|
||||||||
Total Non-Current Liabilities
|
1,674,776
|
-
|
|||||||||
TOTAL LIABILITIES
|
3,140,909
|
2,144,071
|
|||||||||
NET ASSETS
|
13,466,637
|
4,639,074
|
|||||||||
EQUITY
|
|||||||||||
Contributed equity
|
7
|
63,429,107
|
48,853,707
|
||||||||
Reserves
|
8
|
91,228
|
1,990,135
|
||||||||
Accumulated losses
|
(50,053,698
|
)
|
(46,204,768
|
)
|
|||||||
13,466,637
|
4,639,074
|
Contributed
Equity
US$
|
Share
Based
Payments
Reserve
US$
|
Foreign
Currency
Translation
Reserve
US$
|
Accumulated
Losses
US$
|
Equity
US$
|
||||||||||||||||
As at July 1, 2019
|
48,853,707
|
2,287,301
|
(297,166
|
)
|
(46,204,768
|
)
|
4,639,074
|
|||||||||||||
Effect of adoption of IFRS 16
|
-
|
-
|
-
|
(13,009
|
)
|
(13,009
|
)
|
|||||||||||||
As at July 1, 2019 (restated)
|
48,853,707
|
2,287,301
|
(297,166
|
)
|
(46,217,777
|
)
|
4,626,065
|
|||||||||||||
Net loss for the period
|
-
|
-
|
-
|
(4,077,364
|
)
|
(4,077,364
|
)
|
|||||||||||||
Exchange differences arising on translation of foreign operations
|
-
|
-
|
(1,214,413
|
)
|
-
|
(1,214,413
|
)
|
|||||||||||||
Total comprehensive loss
|
-
|
-
|
(1,214,413
|
)
|
(4,077,364
|
)
|
(5,291,777
|
)
|
||||||||||||
Issuance of shares
|
14,557,710
|
-
|
-
|
-
|
14,557,710
|
|||||||||||||||
Share issue costs
|
(688,880
|
)
|
-
|
-
|
-
|
(688,880
|
)
|
|||||||||||||
Exercise of incentive options
|
706,570
|
(706,570
|
)
|
-
|
-
|
-
|
||||||||||||||
Expiration of incentive options
|
-
|
(241,443
|
)
|
-
|
241,443
|
-
|
||||||||||||||
Share based payments
|
-
|
263,519
|
-
|
-
|
263,519
|
|||||||||||||||
As at March 31, 2020
|
63,429,107
|
1,602,807
|
(1,511,579
|
)
|
(50,053,698
|
)
|
13,466,637
|
|||||||||||||
As at July 1, 2018
|
40,483,348
|
1,897,391
|
68,917
|
(36,382,142
|
)
|
6,067,514
|
||||||||||||||
Net loss for the period
|
-
|
-
|
-
|
(7,127,497
|
)
|
(7,127,497
|
)
|
|||||||||||||
Exchange differences arising on translation of foreign operations
|
-
|
-
|
(300,155
|
)
|
-
|
(300,155
|
)
|
|||||||||||||
Total comprehensive loss
|
-
|
-
|
(300,155
|
)
|
(7,127,497
|
)
|
(7,427,652
|
)
|
||||||||||||
Issuance of shares
|
8,831,759
|
-
|
-
|
-
|
8,831,759
|
|||||||||||||||
Share issue costs
|
(509,918
|
)
|
-
|
-
|
-
|
(509,918
|
)
|
|||||||||||||
Conversion of performance rights
|
48,465
|
(48,465
|
)
|
-
|
-
|
-
|
||||||||||||||
Share based payments
|
-
|
383,636
|
-
|
-
|
383,636
|
|||||||||||||||
As at March 31, 2019
|
48,853,654
|
2,232,562
|
(231,238
|
)
|
(43,509,639
|
)
|
7,345,339
|
Nine Months Ended
March 31, 2020
US$
|
Nine Months Ended
March 31, 2019
US$
|
|||||||
Payments to suppliers and employees
|
(7,637,406
|
)
|
(7,395,109
|
)
|
||||
Interest paid
|
(85,883
|
)
|
-
|
|||||
Interest received
|
188,383
|
96,807
|
||||||
Net cash flows used in operating activities
|
(7,534,906
|
)
|
(7,298,302
|
)
|
||||
Cash flows from investing activities
|
||||||||
Purchase of exploration and evaluation assets
|
(2,013,950
|
)
|
(1,311,334
|
)
|
||||
Purchase of property, plant and equipment
|
(664,455
|
)
|
(22,316
|
)
|
||||
Refund of deposits
|
-
|
19,427
|
||||||
Net cash flows used in investing activities
|
(2,678,405
|
)
|
(1,314,223
|
)
|
||||
Cash flows from financing activities
|
||||||||
Proceeds from issue of shares
|
14,557,710
|
8,831,759
|
||||||
Share issue costs
|
(688,880
|
)
|
(509,918
|
)
|
||||
Repayment of borrowings
|
(204,589
|
)
|
-
|
|||||
Payment of principal portion of lease liabilities
|
(54,534
|
)
|
-
|
|||||
Net cash inflow from financing activities
|
13,609,707
|
8,321,841
|
||||||
Net increase/(decrease) in cash and cash equivalents
|
3,396,396
|
(290,684
|
)
|
|||||
Net foreign exchange differences
|
1,123,007
|
181,550
|
||||||
Cash and cash equivalents at the beginning of the period
|
4,432,150
|
7,238,489
|
||||||
Cash and cash equivalents at the end of the period
|
8,951,553
|
7,129,355
|
1. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
(a) |
Statement of compliance
|
(b) |
Basis of Preparation
|
1. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
|
(b) |
Basis of Preparation (Continued)
|
(c) |
New standards, interpretations and amendments
|
• |
International Financial Reporting Standard (“IFRS”) 16 Leases
|
• |
Interpretation 23 Uncertainty over Income Tax Treatments
|
• |
Annual Improvements to IFRS Standards 2015–2017 Cycle
|
• |
Amendments to IAS 19 Employee Benefits – Plan Amendment, Curtailment or Settlement
|
1. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
|
(c) |
New standards, interpretations and amendments (Continued)
|
• |
did not recognise right-of-use assets and liabilities for leases for which the lease term ends within 12 months of the date of initial application;
|
• |
did not recognise right-of-use assets and liabilities for leases of low value assets (e.g. IT equipment);
|
• |
excluded initial direct costs from the measurement of the right-of-use asset at the date of initial application; and
|
• |
used hindsight when determining the lease term.
|
As previously
reported
US$
|
IFRS 16
adjustment
US$
|
As adjusted at
July 1, 2019
US$
|
||||||||||
Right-of-use assets
|
-
|
222,116
|
222,116
|
|||||||||
Other liabilities
|
-
|
(235,125
|
)
|
(235,125
|
)
|
|||||||
Accumulated losses
|
(46,204,768
|
)
|
(13,009
|
)
|
(46,217,777
|
)
|
1. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
|
(d) |
Issued standards and interpretations not early adopted
|
Standard/Interpretation
|
Application Date
of Standard
|
Application Date
for Company
|
Definition of a Business (Amendments to IFRS 3)
|
January 1, 2020
|
July 1, 2020
|
Definition of Material (Amendments to IAS 1 and IAS 8)
|
January 1, 2020
|
July 1, 2020
|
Amendments to References to the Conceptual Framework in IFRS Standards
|
January 1, 2020
|
July 1, 2020
|
Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7)
|
January 1, 2020
|
July 1, 2020
|
2. |
SEGMENT INFORMATION
|
3. |
INCOME AND EXPENSES
|
|
Nine Months Ended
March 31, 2020
US$
|
Nine Months Ended
March 31, 2019
US$
|
||||||
Interest income/(expenses)
|
||||||||
Interest income
|
194,838
|
98,147
|
||||||
Interest expense
|
(85,883
|
)
|
-
|
|||||
Total interest income/(expenses)
|
108,955
|
98,147
|
||||||
Other income/(expenses)
|
||||||||
Net foreign exchange gain
|
1,123,006
|
181,550
|
||||||
Other receivables written-off
|
(63,733
|
)
|
-
|
|||||
Other
|
15,588
|
-
|
||||||
Total other income/(expenses)
|
1,074,861
|
181,550
|
4. |
EXPLORATION AND EVALUATION ASSETS
|
Piedmont Lithium Project
US$
|
||||
Carrying amount at July 1, 2019
|
2,265,121
|
|||
Additions 2
|
4,314,002
|
|||
Carrying amount at March 31, 2020 1,3
|
6,579,123
|
|||
Carrying amount at July 1, 2018
|
742,017
|
|||
Additions 2
|
1,523,104
|
|||
Carrying amount at June 30, 2019 3
|
2,265,121
|
1 |
As at March 31, 2020, the Piedmont Lithium Project comprised approximately 2,129 acres (June 30, 2019: approximately 2,207 acres) of surface property and associated mineral rights in North Carolina, United States, of which
approximately 370 acres are owned, approximately 70 acres are subject to lease-to-own agreements, approximately 1,551 acres are subject to purchase option agreements, and approximately 138 acres are subject to long-term lease option
agreements. For those properties under option, no liability has been recorded for the consideration payable to landowners if the Group chooses to exercise its option (refer to Note 10 for further details of contingent liabilities).
|
2 |
Additions to ‘exploration and evaluation assets’ relate to land acquisition costs (relating to our owned properties) and option costs (relating to our optioned properties) which are capitalised as ‘exploration and evaluation assets’ as
part of the Piedmont Lithium Project.
|
3 |
The ultimate recoupment of costs carried for exploration and evaluation phases is dependent on the successful development and commercial exploitation or sale of the respective areas.
|
5. |
PROPERTY, PLANT AND EQUIPMENT
|
Freehold
land
US$
|
Plant and
equipment
US$
|
Right-of-use
assets
US$
|
Total
US$
|
|||||||||||||
Carrying amount at July 1, 2019
|
-
|
26,195
|
-
|
26,195
|
||||||||||||
Effect of adoption of IFRS 16
|
-
|
-
|
222,116
|
222,116
|
||||||||||||
Carrying amount at July 1, 2019 (adjusted)
|
-
|
26,195
|
222,116
|
248,311
|
||||||||||||
Additions
|
687,000
|
12,455
|
116,400
|
815,855
|
||||||||||||
De-recognition of right-of-use assets1
|
-
|
-
|
(210,230
|
)
|
(210,230
|
)
|
||||||||||
Depreciation and amortization
|
-
|
(9,264
|
)
|
(63,117
|
)
|
(72,381
|
)
|
|||||||||
Carrying amount at March 31, 2020
|
687,000
|
29,386
|
65,169
|
781,555
|
||||||||||||
- at cost
|
687,000
|
48,880
|
89,608
|
825,488
|
||||||||||||
- accumulated depreciation and amortization
|
-
|
(19,494
|
)
|
(24,439
|
)
|
(43,933
|
)
|
|||||||||
Carrying amount at July 1, 2018
|
-
|
3,982
|
-
|
3,982
|
||||||||||||
Additions
|
-
|
31,025
|
-
|
31,025
|
||||||||||||
Depreciation and amortization
|
-
|
(8,812
|
)
|
-
|
(8,812
|
)
|
||||||||||
Carrying amount at June 30, 2019
|
-
|
26,195
|
-
|
26,195
|
||||||||||||
- at cost
|
-
|
36,426
|
-
|
36,426
|
||||||||||||
- accumulated depreciation and amortization
|
-
|
(10,231
|
)
|
-
|
(10,231
|
)
|
1 |
During the period, the Group entered into an agreement to sublease one of its offices in the United States. The Group has assessed that as a result of entering into the sublease, the Group no longer retains the significant risks and
rewards associated with the use of the office space and as such has de-recognised the right-of-use asset recorded in relation to this lease, and recognised a corresponding lease receivable of US$109,470 at March 31, 2020, which is
classified as ‘other assets’ in the unaudited condensed consolidated statement of financial position. The Group has not adjusted the corresponding lease liability recognised under the office lease as it is still responsible for the lease
payments to the lessor.
|
6. |
OTHER LIABILITIES
|
March 31, 2020
US$
|
June 30, 2019
US$
|
|||||||
Current other liabilities
|
||||||||
Loans and borrowings1
|
595,211
|
-
|
||||||
Lease liabilities
|
122,599
|
-
|
||||||
Total current other liabilities
|
717,810
|
-
|
||||||
Non-current other liabilities
|
||||||||
Loans and borrowings1
|
1,500,252
|
-
|
||||||
Lease liabilities
|
174,524
|
-
|
||||||
Total non-current other liabilities
|
1,674,776
|
-
|
||||||
Total other liabilities
|
2,392,586
|
-
|
1 |
At March 31, 2020, the Group had loans and borrowings relating to surface properties that form part of ‘exploration and evaluation assets’ which have been fully or partly financed by the seller of the surface properties. The loans and
borrowings are repayable in monthly instalments, based on an implied interest rate of 10%, and secured by the respective surface property.
|
(a) |
Reconciliation of loans and borrowings
|
Balance at
July 1, 2019
US$
|
Amount
Financed
US$
|
Cash
Repayments
US$
|
Balance at
March 31, 2020
US$
|
|||||||||||||
Seller-financed properties
|
-
|
2,300,052
|
(204,589
|
)
|
2,095,463
|
|||||||||||
Total loans and borrowings
|
-
|
2,300,052
|
(204,589
|
)
|
2,095,463
|
7. |
CONTRIBUTED EQUITY
|
March 31, 2020
US$
|
June 30, 2019
US$
|
|||||||
Issued capital
|
||||||||
824,320,206 fully paid ordinary shares (June 30, 2019: 670,380,352)
|
63,429,107
|
48,853,707
|
(a) |
Movements in issued capital
|
Date
|
Details
|
Number of
Ordinary
Shares
|
Issue
Price |
US$
|
|||||||||
Jul 1, 2019
|
Opening balance
|
670,380,352
|
48,853,707
|
||||||||||
Jul 10, 2019
|
Issuance of shares
|
145,000,000
|
$
|
A0.145
|
14,557,710
|
||||||||
Dec 20, 2019
|
Exercise of incentive options
|
8,939,854
|
-
|
706,570
|
|||||||||
|
Share issue costs
|
-
|
-
|
(688,880
|
)
|
||||||||
Mar 31, 2020
|
Closing balance
|
824,320,206
|
63,429,107
|
||||||||||
Jul 1, 2018
|
Opening balance
|
559,030,352
|
40,483,348
|
||||||||||
Jul 31, 2018
|
Conversion of performance rights
|
200,000
|
-
|
27,828
|
|||||||||
Dec 7–13, 2018
|
Issuance of shares
|
107,590,909
|
$
|
A0.11
|
8,560,221
|
||||||||
Feb 1, 2019
|
Issuance of shares
|
3,409,091
|
$
|
A0.11
|
271,538
|
||||||||
Feb 1, 2019
|
Conversion of performance rights
|
150,000
|
-
|
20,637
|
|||||||||
|
Share issue costs
|
-
|
(509,865
|
)
|
|||||||||
Jun 30, 2019
|
Closing balance
|
670,380,352
|
48,853,707
|
8. |
RESERVES
|
March 31, 2020
US$
|
June 30, 2019
US$
|
|||||||
Reserves
|
||||||||
Share based payments reserve (note 8(a))
|
1,602,807
|
2,287,301
|
||||||
Foreign currency translation reserve
|
(1,511,579
|
)
|
(297,166
|
)
|
||||
91,228
|
1,990,135
|
(a)
|
Movements in share based payments reserve
|
Date
|
Details
|
Number of
Incentive
Options
|
Number of
Performance
Rights
|
Number of
Unissued
Shares
|
US$
|
||||||||||||
Jul 1, 2019
|
Opening balance
|
84,650,000
|
50,000
|
-
|
2,287,301
|
||||||||||||
Various
|
Grants of incentive options, performance rights and shares1
|
25,950,000
|
7,500,000
|
2,000,000
|
-
|
||||||||||||
Dec 20, 2019
|
Exercise of incentive options
|
(31,500,000
|
)
|
-
|
-
|
(706,570
|
)
|
||||||||||
Dec 31, 2019
|
Expiration of incentive options
|
(16,500,000
|
)
|
-
|
-
|
(241,443
|
)
|
||||||||||
Mar 31, 2020
|
Share based payment expense
|
-
|
-
|
-
|
263,519
|
||||||||||||
Mar 31, 2020
|
Closing Balance
|
62,600,000
|
7,550,000
|
2,000,000
|
1,602,807
|
||||||||||||
Jul 1, 2018
|
Opening balance
|
79,700,000
|
1,500,000
|
-
|
1,897,391
|
||||||||||||
Various
|
Grants of incentive options
|
4,950,000
|
-
|
-
|
-
|
||||||||||||
Jul 31, 2018
|
Conversion of performance rights
|
-
|
(200,000
|
)
|
-
|
(27,828
|
)
|
||||||||||
Dec 31, 2018
|
Expiry of performance rights
|
-
|
(1,100,000
|
)
|
-
|
-
|
|||||||||||
Feb 1, 2019
|
Conversion of performance rights
|
-
|
(150,000
|
)
|
-
|
(20,637
|
)
|
||||||||||
Jun 30, 2019
|
Share based payment expense
|
-
|
-
|
-
|
438,375
|
||||||||||||
Jun 30, 2019
|
Closing Balance
|
84,650,000
|
50,000
|
-
|
2,287,301
|
1
|
During the period, the Group granted the following incentive securities to key management personnel and other employees and consultants of the Company: (a) 2,000,000 fully paid ordinary shares; (b)
23,750,000 unlisted incentive options exercisable at A$0.16 each, expiring December 31, 2022; (c) 1,000,000 unlisted incentive options exercisable at A$0.15 each, expiring June 30, 2020; (d) 1,200,000 unlisted incentive options
exercisable at A$0.20 each, expiring June 30, 2020; (e) 2,500,000 unlisted performance rights subject to the ‘Chemical Plant PFS Milestone’, expiring December 31, 2020; (f) 2,500,000 unlisted performance rights subject to the
‘Integrated Feasibility Study Milestone’, expiring December 31, 2021; and (g) 2,500,000 unlisted performance rights subject to the ‘Construction Milestone’, expiring December 31, 2022.
|
9. |
DIVIDENDS PAID OR PROVIDED FOR
|
10. |
CONTINGENT ASSETS AND LIABILITIES
|
11. |
SUBSEQUENT EVENTS AFTER BALANCE DATE
|
(a) |
On May 26, 2020, the Company announced the results of: (i) its pre-feasibility study (“PFS”) for a proposed lithium hydroxide chemical plant (“Chemical Plant”) in Kings Mountain, North Carolina, assuming a
stand-alone merchant Chemical Plant that would convert spodumene concentrate purchased on the global market to battery-grade lithium hydroxide (“Merchant Project”); and (ii) its updated scoping study (“Scoping Study”) for a proposed
integrated mine-to-hydroxide project (“Integrated Project”) comprising a mine and concentrator (“Mine/Concentrator”) that would produce spodumene concentrate to be transported to a Chemical Plant and converted into battery-grade lithium
hydroxide. Both studies deliver excellent economics and robust internal rates of return over 25-year project lives; and
|
(b)
|
The outbreak of the 2019 novel strain of coronavirus causing a contagious respiratory disease known as COVID-19, and the subsequent quarantine measures imposed by the Australian,
United States and other governments, and related travel and trade restrictions have caused disruption to businesses and resulted in significant global economic impacts. As at March 31, 2020 these impacts have not had a significant
effect on the Group’s financial results or operations. However, as the impact of COVID-19 continues to evolve, including changes in government policy and business reactions thereto, if our staff are unable to work or travel due to
illness or government restrictions, we may be forced to reduce or suspend our exploration and development activities. In addition, as the COVID-19 pandemic and mitigation measures have also negatively impacted global economic
conditions, this, in turn, could adversely affect our business in the future. Due to the continually evolving nature of COVID-19 the Directors cannot reasonably estimate the effects that the COVID-19 pandemic could have on the financial
statements for the year ending June 30, 2020 and future periods, and believe that any disturbance may be temporary. However, there is uncertainty about the length and potential impact of any resultant disturbance. As a result, we are
unable to estimate the potential impact on the Company’s future operations as at the date of these Interim Financial Statements.
|