ioneer (IONR) - 2024 Q4 - Annual Report

Project Overview - ioneer Ltd holds a 100% interest in the Rhyolite Ridge Project, with a potential 50% interest for Sibanye-Stillwater upon a US$490 million equity contribution[109] - The Rhyolite Ridge Project is a lithium-boron mine in Nevada, with ioneer Ltd holding a 100% interest; a potential joint venture with Sibanye-Stillwater could involve a $490 million equity contribution for a 50% ownership[161] - The Rhyolite Ridge Project is expected to generate approximately 30% of its revenue from boron production, with 100% of the first year's projected boric acid production already secured through agreements[124] - The Rhyolite Ridge Lithium-Boron project covers an area of approximately 7,861 acres and is located in Esmeralda County, Nevada, near the only producing lithium mine in the US[178] Financial Commitments and Funding - ioneer has received a conditional commitment for up to US$700 million in debt financing from the DOE Loan Programs Office, in addition to a US$490 million equity contribution from Sibanye-Stillwater[126] - A conditional loan of up to $700 million from the U.S. Department of Energy is available to fund the Rhyolite Ridge Project, contingent on meeting specific conditions[161] - The company expects to incur additional substantial funds to complete the development of the Project, with a conditional commitment from the DOE Loan Program for up to US$700 million[201] Production and Construction Timeline - The company anticipates starting construction in the first half of 2025, with first production targeted for 2028, following a 36-month construction period[128] - The company has completed approximately 70% of detailed engineering for the project, positioning it for efficient construction mobilization[120] Environmental and Regulatory Compliance - The Final Environmental Impact Statement (EIS) was published in September 2024, marking a significant step towards project approval[116] - The permitting process for the Rhyolite Ridge Project includes a Class II Air Quality Permit and a Water Pollution Control Permit, both received in 2021, with ongoing amendments based on updated mine plans[165] - Compliance with environmental regulations may impose substantial costs and liabilities, potentially affecting capital expenditures and operational results[170] - The company is committed to the protection of Tiehm's buckwheat, an endangered species, with measures in place to mitigate impacts on its habitat[139] Resource Estimates - As of June 30, 2024, the total measured and indicated lithium resources are 258,079 Ktonnes with an average lithium grade of 1,731 ppm, containing 2,378 kt of lithium carbonate equivalent[132] - The total inferred lithium resources amount to 93,324 Ktonnes with an average lithium grade of 1,759 ppm, containing 873 kt of lithium carbonate equivalent[132] - The total measured and indicated boron resources are 6,779 Ktonnes with an average boron grade of 3.88 wt%, containing 10,004 kt of boric acid equivalent[132] - The total inferred boron resources are 5,272 Ktonnes with an average boron grade of 3.01 wt%, containing 2,813 kt of boric acid equivalent[132] - The total resource estimate for the Rhyolite Ridge South Basin includes 351,403 Ktonnes of lithium and boron combined, with an average lithium grade of 1,739 ppm and an average boron grade of 3.65 wt%[133] Financial Performance - The company reported a loss from operating activities of US$9,225,000 for fiscal 2024, a decrease of 4.8% from the loss of US$9,696,000 in fiscal 2023[188] - The net loss for fiscal 2024 was US$7,825,000, compared to a net loss of US$6,391,000 in fiscal 2023, reflecting an increase in losses[194] - Total current assets decreased from US$53,062,000 in fiscal 2023 to US$36,058,000 in fiscal 2024, reflecting a decline in cash assets[188] - The company incurred exploration expenditure written off of US$31,000 in fiscal 2024, a decrease of 31% from US$45,000 in fiscal 2023[190] - The cash and cash equivalent position as of June 30, 2024, was US$35,715,000, down from US$52,709,000 as of June 30, 2023[199] Shareholder Information - As of October 1, 2024, the company has 2,338,148,568 ordinary shares outstanding[257] - Major shareholders include Centaurus Capital LP with 377,352,433 shares (16.1%) and Sibanye-Stillwater with 145,862,742 shares (6.2%) as of October 1, 2024[263] - Officers and directors collectively own 154,960,793 shares, representing 6.627% of total shares[258] - The company has not declared any dividends during fiscal years 2022, 2023, or 2024, and does not anticipate doing so in the foreseeable future[268] Employee and Director Remuneration - Total remuneration paid to non-executive directors in the financial year was US$456,563, an increase from US$416,136 in 2022[229] - The total statutory remuneration for 2024 is projected to be $5,738,522, an increase from $5,319,954 in 2023, reflecting a growth of approximately 7.9%[233] - The total remuneration for Executive James D Calaway in 2024 is $796,767, compared to $989,314 in 2023, indicating a decrease of about 19.5%[233] - The total remuneration for Bernard Rowe in 2024 is $972,578, down from $1,116,612 in 2023, representing a decline of approximately 13.0%[233] Performance Metrics and Future Projections - The company reported a performance-based metric of 0.371 for 2022 LT I, with a total of $435.402 million, indicating strong performance growth[239] - The projected performance-based metric for 2023 LT I is 0.599, with expected revenue of $278.462 million, reflecting positive future outlook[239] - The company anticipates a performance-based revenue of $295.17 million for 2023, with a projected growth rate of 100% by 2024[240] - The performance-based revenue for 2023 is projected to be $1,189.47 million, reflecting a strong market position[240] Governance and Compliance - The company has established various committees, including Audit and Risk, Nomination and Remuneration, and Project Execution, to oversee governance and performance[253][254][255] - The quorum for a general meeting requires at least five shareholders or those representing at least 10% of voting shares to be present[282] - An ordinary resolution requires approval by a simple majority, while a special resolution requires at least 75% approval from shareholders[283]