Exhibit
|
Description
|
|
Interim Financial Report for the Six Months Ended December 31, 2020
|
||
101
|
XBRL Interactive Data File
|
Piedmont Lithium Limited
|
|
(registrant)
|
|
Date: March 18, 2021
|
By: /s/ Bruce Czachor
|
Name: Bruce Czachor
|
|
Title: Vice President and General Counsel
|
PAGE
|
|
UNAUDITED CONDENSED 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
|
Six Months Ended
December 31, 2020
US$
|
Six Months Ended
December 31, 2019
US$
|
||||||||||
Continuing operations
|
||||||||||||
Exploration and evaluation expenses
|
(3,534,510
|
)
|
(2,244,601
|
)
|
||||||||
Corporate and administrative expenses
|
(1,160,742
|
)
|
(721,382
|
)
|
||||||||
Business development expenses
|
(306,719
|
)
|
(564,702
|
)
|
||||||||
Share based payments
|
(286,607
|
)
|
(99,137
|
)
|
||||||||
Finance income
|
3
|
17,407
|
146,825
|
|||||||||
Finance costs
|
3
|
(156,208
|
)
|
(39,153
|
)
|
|||||||
Other income and expenses
|
3
|
(37,948
|
)
|
46,171
|
||||||||
Loss before income tax
|
(5,465,327
|
)
|
(3,475,979
|
)
|
||||||||
Income tax expense
|
-
|
-
|
||||||||||
(5,465,327
|
)
|
(3,475,979
|
)
|
|||||||||
Loss attributable to members of Piedmont Lithium Limited
|
(5,465,327
|
)
|
(3,475,979
|
)
|
||||||||
Other comprehensive income
|
||||||||||||
Items that may be reclassified subsequently to profit or loss:
|
||||||||||||
Exchange differences arising on translation of foreign operations
|
-
|
(10,521
|
)
|
|||||||||
Other comprehensive loss for the period, net of tax
|
-
|
(10,521
|
)
|
|||||||||
Total comprehensive loss for the period
|
(5,465,327)
|
(3,486,500
|
)
|
|||||||||
Total comprehensive loss attributable to members of Piedmont Lithium Limited
|
(5,465,327
|
)
|
(3,486,500
|
)
|
||||||||
Loss per share
|
||||||||||||
Basic and diluted loss per share (cents per share)
|
(0.44
|
)
|
(0.43
|
)
|
Note
|
December 31, 2020
US$
|
June 30, 2020
US$
|
||||||||||
ASSETS
|
||||||||||||
Current Assets
|
||||||||||||
Cash and cash equivalents
|
70,936,994
|
18,857,088
|
||||||||||
Trade and other receivables
|
189,175
|
27,412
|
||||||||||
Other assets
|
117,926
|
128,271
|
||||||||||
Total Current Assets
|
71,244,095
|
19,012,771
|
||||||||||
Non-Current Assets
|
||||||||||||
Exploration and evaluation assets
|
4
|
13,467,275
|
7,720,957
|
|||||||||
Property, plant and equipment
|
5
|
774,925
|
774,440
|
|||||||||
Other assets
|
91,671
|
150,781
|
||||||||||
Total Non-Current Assets
|
14,333,871
|
8,646,178
|
||||||||||
TOTAL ASSETS
|
85,577,966
|
27,658,949
|
||||||||||
LIABILITIES
|
||||||||||||
Current Liabilities
|
||||||||||||
Trade and other payables
|
2,780,952
|
1,007,507
|
||||||||||
Other liabilities
|
6
|
1,156,242
|
705,536
|
|||||||||
Total Current Liabilities
|
3,937,194
|
1,713,043
|
||||||||||
Non-Current Liabilities
|
||||||||||||
Other liabilities
|
6
|
1,774,863
|
1,910,413
|
|||||||||
Total Non-Current Liabilities
|
1,774,863
|
1,910,413
|
||||||||||
TOTAL LIABILITIES
|
5,712,057
|
3,623,456
|
||||||||||
NET ASSETS
|
79,865,909
|
24,035,493
|
||||||||||
EQUITY
|
||||||||||||
Contributed equity
|
7
|
136,239,389
|
74,877,325
|
|||||||||
Reserves
|
8
|
200,447
|
515,110
|
|||||||||
Accumulated losses
|
(56,573,927
|
)
|
(51,356,942
|
)
|
||||||||
79,865,909
|
24,035,493
|
Note
|
Contributed Equity
US$ |
Share Based Payments Reserve
US$ |
Foreign Currency Translation Reserve
US$ |
Accumulated Losses
US$ |
||||||||||||||||||||
As at July 1, 2020
|
74,877,325
|
1,311,675
|
(796,565
|
)
|
(51,356,942
|
)
|
24,035,493
|
|||||||||||||||||
Net loss for the period
|
-
|
-
|
-
|
(5,465,327
|
)
|
(5,465,327
|
)
|
|||||||||||||||||
Total comprehensive loss
|
-
|
-
|
-
|
(5,465,327
|
)
|
(5,465,327
|
)
|
|||||||||||||||||
Issuance of shares
|
7
|
65,283,560
|
-
|
-
|
-
|
65,283,560
|
||||||||||||||||||
Share issue costs
|
7
|
(4,407,319
|
)
|
-
|
-
|
-
|
(4,407,319
|
)
|
||||||||||||||||
Exercise of employee options
|
8
|
455,464
|
(322,569
|
)
|
-
|
-
|
132,895
|
|||||||||||||||||
Conversion of employee rights
|
8
|
30,359
|
(30,359
|
)
|
-
|
-
|
-
|
|||||||||||||||||
Expiration of employee options
|
8
|
-
|
(248,342
|
)
|
-
|
248,342
|
-
|
|||||||||||||||||
Share based payments
|
8
|
-
|
286,607
|
-
|
-
|
286,607
|
||||||||||||||||||
As at December 31, 2020
|
136,239,389
|
997,012
|
(796,565
|
)
|
(56,573,927
|
)
|
79,865,909
|
|||||||||||||||||
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
|
-
|
-
|
-
|
(3,475,979
|
)
|
(3,475,979
|
)
|
|||||||||||||||||
Exchange differences arising on translation of foreign operations
|
-
|
-
|
(10,521
|
)
|
-
|
(10,521
|
)
|
|||||||||||||||||
Total comprehensive loss
|
-
|
-
|
(10,521
|
)
|
(3,475,979
|
)
|
(3,486,500
|
)
|
||||||||||||||||
Issuance of shares
|
14,557,710
|
-
|
-
|
-
|
14,557,710
|
|||||||||||||||||||
Share issue costs
|
(689,009
|
)
|
-
|
-
|
-
|
(689,009
|
)
|
|||||||||||||||||
Exercise of employee options
|
706,570
|
(706,570
|
)
|
-
|
-
|
-
|
||||||||||||||||||
Expiration of employee options
|
-
|
(273,935
|
)
|
-
|
273,935
|
-
|
||||||||||||||||||
Share based payments
|
-
|
99,137
|
-
|
-
|
99,137
|
|||||||||||||||||||
As at December 31, 2019
|
63,428,978
|
1,405,933
|
(307,687
|
)
|
(49,419,821
|
)
|
15,107,403
|
Note
|
Six Months Ended
December 31, 2020 US$ |
Six Months Ended
December 31, 2019 US$ |
||||||||||
Payments to suppliers and employees
|
(3,414,372
|
)
|
(5,082,888
|
)
|
||||||||
Interest paid
|
(156,208
|
)
|
(39,153
|
)
|
||||||||
Interest received
|
17,407
|
117,836
|
||||||||||
Repayment of government grant
|
3
|
(138,100
|
)
|
-
|
||||||||
Net cash flows used in operating activities
|
(3,691,273
|
)
|
(5,004,205
|
)
|
||||||||
Cash flows from investing activities
|
||||||||||||
Purchase of exploration and evaluation assets
|
(4,979,977
|
)
|
(1,169,141
|
)
|
||||||||
Purchase of property, plant and equipment
|
(13,740
|
)
|
(652,000
|
)
|
||||||||
Net cash flows used in investing activities
|
(4,993,717
|
)
|
(1,821,141
|
)
|
||||||||
Cash flows from financing activities
|
||||||||||||
Proceeds from issue of shares
|
7
|
65,416,455
|
14,557,710
|
|||||||||
Share issue costs
|
(4,417,570
|
)
|
(689,008
|
)
|
||||||||
Repayment of loans and borrowings
|
6
|
(324,865
|
)
|
(95,727
|
)
|
|||||||
Payment of principal portion of lease liabilities
|
6
|
(64,092
|
)
|
(33,088
|
)
|
|||||||
Proceeds from principal portion of sub-lease receivables
|
54,816
|
-
|
||||||||||
Net cash inflow from financing activities
|
60,664,744
|
13,739,887
|
||||||||||
Net increase in cash and cash equivalents
|
51,979,754
|
6,914,541
|
||||||||||
Net foreign exchange differences
|
100,152
|
46,171
|
||||||||||
Cash and cash equivalents at the beginning of the period
|
18,857,088
|
4,432,150
|
||||||||||
Cash and cash equivalents at the end of the period
|
70,936,994
|
11,392,862
|
1. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
(a) |
Statement of compliance
|
(b) |
Basis of Preparation
|
(c) |
New standards, interpretations and amendments
|
• |
Amendments to References to the Conceptual Framework in IFRS Standards
|
• |
Definition of a Business (Amendments to IFRS 3)
|
• |
Definition of Material (Amendments to IAS 1 and IAS 8)
|
• |
Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7)
|
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
|
Interest Rate Benchmark Reform – Phase 2 – Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16
|
January 1, 2021
|
July 1, 2021
|
Reference to the Conceptual Framework – Amendments to IFRS 3
|
January 1, 2022
|
July 1, 2022
|
Property, Plant and Equipment: Proceeds before Intended Use – Amendments to IAS 16
|
January 1, 2022
|
July 1, 2022
|
Classification of Liabilities as Current or Non-current - Amendments to IAS 1
|
January 1, 2023
|
July 1, 2023
|
2. |
SEGMENT INFORMATION
|
3. |
INCOME AND EXPENSES
|
Six Months Ended
December 31, 2020 US$ |
Six Months Ended
December 31, 2019 US$ |
|||||||
Finance income
|
||||||||
Interest income
|
17,407
|
146,825
|
||||||
17,407
|
146,825
|
|||||||
Finance costs
|
||||||||
Interest on loans and borrowings
|
(138,347
|
)
|
(4,840
|
)
|
||||
Interest on lease liabilities
|
(17,861
|
)
|
(34,313
|
)
|
||||
(156,208
|
)
|
(39,153
|
)
|
|||||
Depreciation
|
||||||||
Depreciation of property, plant and equipment
|
(27,869
|
)
|
(44,314
|
)
|
||||
(27,869
|
)
|
(44,314
|
)
|
|||||
Other income and expenses
|
||||||||
Repayment of government grant (1)
|
(138,100
|
)
|
-
|
|||||
Net foreign exchange gain
|
100,152
|
46,171
|
||||||
(37,948
|
)
|
46,171
|
(1) |
During the half year, the Group voluntarily repaid 100% of the funds it received during fiscal 2020 under the Paycheck Protection Program, a business loan program established by the 2020 US Federal Government Coronavirus Aid, Relief, and
Economic Security Act (CARES Act). The funds were not required to be repaid, but as part of good corporate social responsibility, the Group chose to voluntarily repay in full.
|
4. |
EXPLORATION AND EVALUATION ASSETS
|
Piedmont Lithium Project(1)
US$
|
||||
December 31, 2020
|
||||
Carrying amount at July 1, 2020
|
7,720,957
|
|||
Additions (2)
|
5,746,318
|
|||
Carrying amount at December 31, 2020 (3)
|
13,467,275
|
|||
June 30, 2020
|
||||
Carrying amount at July 1, 2019
|
2,265,121
|
|||
Additions
|
5,455,836
|
|||
Carrying amount at June 30, 2020 (3)
|
7,720,957
|
(1) |
At December 31, 2020, the Piedmont Lithium Project comprised approximately 2,322 acres (June 30, 2020: approximately 2,126 acres) of surface property and associated mineral rights in North Carolina, United States, of which approximately
691 acres are owned, approximately 113 acres are subject to long-term lease, approximately 79 acres are subject to lease-to-own agreements, and approximately 1,438 acres are subject to exclusive option agreements, which upon exercise,
allows the Group to purchase or, in some cases long-term lease, the surface property and associated mineral rights. 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) |
During the six months ended December 31, 2020, the Group made land acquisition payments and land option payments totalling US$5,746,318 (June 30, 2020: US$5,455,836) to landowners which have been treated as acquisition costs and
capitalised as ‘exploration and evaluation assets’. These acquisitions were settled through a combination of cash payments of US$5,056,818 (June 30, 2020: US$2,747,784) and vendor financed loans and borrowings of US$689,500 (June 30, 2020:
US$2,708,052). Refer to Note 6 for further information on loans and borrowings.
|
(3) |
The ultimate recoupment of costs carried for exploration and evaluation phases is dependent on the successful development and commercial exploitation or sale of the respective areas.
|
5. |
PROPERTY, PLANT AND EQUIPMENT
|
Freehold
land
US$
|
Plant and
equipment
US$
|
Right-of-use assets
US$
|
Total
US$
|
|||||||||||||
December 31, 2020
|
||||||||||||||||
Carrying amount at July 1, 2020
|
688,829
|
28,588
|
57,023
|
774,440
|
||||||||||||
Additions
|
-
|
13,740
|
14,614
|
28,354
|
||||||||||||
Depreciation
|
-
|
(8,836
|
)
|
(19,033
|
)
|
(27,869
|
)
|
|||||||||
Carrying amount at December 31, 2020
|
688,829
|
33,492
|
52,604
|
774,925
|
||||||||||||
- at cost
|
688,829
|
65,808
|
104,221
|
858,858
|
||||||||||||
- accumulated depreciation
|
-
|
(32,316
|
)
|
(51,617
|
)
|
(83,933
|
)
|
|||||||||
June 30, 2020
|
||||||||||||||||
Carrying amount at July 1, 2019 (adjusted)
|
-
|
26,195
|
222,116
|
248,311
|
||||||||||||
Additions
|
688,829
|
15,642
|
116,400
|
820,871
|
||||||||||||
De-recognition of right-of-use assets
|
-
|
-
|
(210,230
|
)
|
(210,230
|
)
|
||||||||||
Depreciation
|
-
|
(13,249
|
)
|
(71,263
|
)
|
(84,512
|
)
|
|||||||||
Carrying amount at June 30, 2020
|
688,829
|
28,588
|
57,023
|
774,440
|
||||||||||||
- at cost
|
688,829
|
52,068
|
89,608
|
830,505
|
||||||||||||
- accumulated depreciation
|
-
|
(23,480
|
)
|
(32,585
|
)
|
(56,065
|
)
|
6. |
OTHER LIABILITIES
|
December 31, 2020
US$ |
June 30, 2020
US$ |
|||||||
Current
|
||||||||
Loans and borrowings (1)
|
1,005,897
|
577,576
|
||||||
Lease liabilities
|
150,345
|
127,960
|
||||||
1,156,242
|
705,536
|
|||||||
Non-current
|
||||||||
Loans and borrowings (1)
|
1,676,356
|
1,740,042
|
||||||
Lease liabilities
|
68,601
|
140,465
|
||||||
Sub-lease security deposit
|
29,906
|
29,906
|
||||||
1,774,863
|
1,910,413
|
|||||||
Total other liabilities
|
2,931,105
|
2,615,949
|
1 |
At December 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.
|
Balance at
July 1, 2020
US$
|
Amount Financed
US$
|
Cash Repayments
US$
|
Balance at
December 31, 2020
US$
|
|||||||||||||
US$
|
US$
|
US$
|
US$
|
|||||||||||||
Loans and borrowings
|
2,317,618
|
689,500
|
(324,865
|
)
|
2,682,253
|
|||||||||||
Lease liabilities
|
268,425
|
14,613
|
(64,092
|
)
|
218,946
|
|||||||||||
2,586,043
|
704,113
|
(388,957
|
)
|
2,901,199
|
7. |
CONTRIBUTED EQUITY
|
December 31, 2020
US$ |
June 30, 2020
US$ |
|||||||
Issued capital
|
||||||||
1,390,704,858 fully paid ordinary shares
(June 30, 2020: 1,035,320,206 fully paid ordinary shares) |
136,239,389
|
74,877,325
|
Details
|
Number of Ordinary Shares
|
Issue
Price |
US$
|
|||||||||
Opening balance at July 1, 2020
|
1,035,320,206
|
-
|
74,877,325
|
|||||||||
Issue of shares – share placement (August 2020)
|
120,000,000
|
$
|
A0.09
|
7,783,560
|
||||||||
Issue of shares – U.S. public offering (October 2020)
|
230,000,000
|
US$0.25
|
57,500,000
|
|||||||||
Issue of shares – exercise of incentive options
|
500,000
|
$
|
A0.35
|
156,465
|
||||||||
Issue of shares – exercise of incentive options (cashless)
|
4,384,652
|
-
|
298,999
|
|||||||||
Issue of shares – conversion of performance rights
|
500,000
|
-
|
30,359
|
|||||||||
Share issue costs
|
-
|
-
|
(4,407,319
|
)
|
||||||||
Closing balance at December 31, 2020
|
1,390,704,858
|
136,239,389
|
8. |
RESERVES
|
December 31, 2020
US$ |
June 30, 2020
US$ |
|||||||
Reserves
|
||||||||
Share based payments reserve
|
997,012
|
1,311,675
|
||||||
Foreign currency translation reserve
|
(796,565
|
)
|
(796,565
|
)
|
||||
200,447
|
515,110
|
Details
|
Number of Incentive Options
|
Number of Performance Rights
|
US$
|
|||||||||
Opening balance at July 1, 2020
|
53,625,000
|
5,000,000
|
1,311,675
|
|||||||||
Grant of employee options and rights
|
5,200,000
|
1,500,000
|
-
|
|||||||||
Exercise of employee options
|
(7,625,000
|
)
|
-
|
(322,569
|
)
|
|||||||
Conversion of employee rights
|
-
|
(500,000
|
)
|
(30,359
|
)
|
|||||||
Expiry of employee options
|
(6,250,000
|
)
|
-
|
(248,342
|
)
|
|||||||
Share based payment expense
|
-
|
-
|
286,607
|
|||||||||
Closing balance at December 31, 2020
|
44,950,000
|
6,000,000
|
997,012
|
9. |
DIVIDENDS PAID OR DECLARED
|
10. |
CONTINGENT ASSETS AND LIABILITIES
|
11. |
SUBSEQUENT EVENTS AFTER BALANCE DATE
|
(a) |
On January 11, 2021, the Company announced that it had entered into agreements with Sayona to: (i) acquire 336,207,043 ordinary shares in Sayona for approximately US$3.1 million; (ii) acquire convertible notes in
Sayona for approximately US$3.9 million that upon conversion would result in the Company acquiring an additional 423,973,899 ordinary shares in Sayona; (iii) acquire a 25.0% stake in Sayona’s subsidiary, Sayona Quebec, which owns the
Authier and Tansim lithium projects in Quebec, for approximately US$5.0 million in cash; and (iv) purchase the greater of 60,000 tonnes per year or 50% of Sayona Quebec’s spodumene concentrate production at market prices on a life-of-mine
basis;
|
(b) |
On January 14, 2021, the Company announced the appointment of the following additional senior management: (i) Ms. Malissa Gordon as Manager – Community and Government Relations; (ii) Mr. Jim Nottingham as Senior
Project Manager – Concentrate Operations; (iii) Mr. Pratt Ray as Production Manager – Chemical Operations; and (iv) Mr. Brian Risinger as Vice President – Corporate Communications and Investor Relations; and (v) Mr. Bruce Czachor as Vice
President and General Counsel;
|
(c) |
On February 8, 2021, the Company announced the appointment of experienced mining company executive, Mr. Todd Hannigan, as a Non-Executive Director of the Company; and
|
(d) |
On March 2, 2021, the Supreme Court of Western Australia approved the despatch of the Company’s Scheme Booklet to shareholders and ordered the convening of a meeting of the Company’s shareholders to consider and,
if thought fit, approve the Scheme to facilitate the Company re-domicile from Australia to the United States. The Scheme Booklet was despatched to shareholders on March 5, 2020.
|