EX-99.1 2 brhc10048693_ex99-1.htm EXHIBIT 99.1
Exhibit 99.1


Interim condensed consolidated
financial statements
 
31 DECEMBER 2022

ioneer Ltd
ABN 76 098 564 606

Contents
 
Directors’ report
3
   
Auditor’s independence declaration
 5
   
Interim condensed consolidated statement of profit or loss and other comprehensive income
7
   
Interim condensed consolidated statement of financial position
8
   
Interim condensed consolidated statement of cash flows
 9
   
Interim condensed consolidated statement of changes in equity
10
   
Notes to the interim condensed consolidated financial statements
11
   
 
Section 1.
Basis of preparation and changes to the Groups accounting policies
11
       
 
Section 2.
Financial performance
 12
       
 
Section 3.
Invested and working capital
 14
       
 
Section 4.
Funding and risk management
 16
       
Directors’ declaration
 18
   
Independent auditor’s review report
 19

IONEER LTD
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2022
 2
Directors’ report

The directors of ioneer Ltd present their report together with the condensed consolidated financial statements of ioneer Ltd (‘ioneer’ or the ‘Company’) and its controlled entities (collectively the Group) for the six months ended 31 December 2022 (‘half- year’) and the Auditor’s review report thereon.

Directors
 
Mr J. D. Calaway (Executive Chairman) – Appointed Non-executive Director 5 April 2017, Executive Chairman 1 July 2020
Mr B. Rowe (Managing Director) – Appointed 1 August 2007
Mr A. Davies (Non-executive Director) – Appointed 22 May 2017
Mr S. Gardiner (Non-executive Director) – Appointed 25 August 2022
Ms R. McKinney-James (Non-executive Director) – Appointed 1 February 2021
Ms M. Walker (Non-executive Director) – Appointed 1 February 2021

Results and review of operations
 
The Group reported a consolidated net loss of US$6.3 million for the half year ending 31 December 2022 (2021: loss US$2.9 million) after income tax expense.

The Group changed its presentation currency from Australian dollars (AUD) to United States dollars (USD) from 1 July 2022. With the exception of the parent entity, all of the Group’s entities utilise USD as their functional currency and the major asset of the Group is capitalised exploration and evaluation expenditure relating to the Rhyolite Ridge Lithium-Boron Project located in Western Nevada, USA. As a result, the Group has historically experienced volatility in its financial position and performance as a result of volatility in the applicable AUD:USD exchange rate each period. As the Group plans to raise debt funding denominated in USD and aims to develop and operate the Rhyolite Ridge Project, which would earn revenues and incur expenses almost entirely in USD, the volatility in the consolidated position and performance could significantly worsen due to movements in the AUD:USD foreign exchange rate in the future. In order to reduce this risk and provide more comparative financial reporting against US based peer companies, the Board determined with effect from 1 July 2022, that ioneer will present its consolidated results in US dollars.

Further details of the Group’s performance can be found in the ‘Summary of Performance and financial position’ review on page 4.

Principal activities
 
The principal activity of the Group continues to be the development of the Rhyolite Ridge Lithium-Boron Project (‘Rhyolite Ridge’ or ‘Project’) in Nevada, United States of America.

Rhyolite Ridge is one of the largest lithium and boron deposits in the world and has the potential to become a strategic, long-life and low-cost source of lithium and boron. The Project is located close to existing infrastructure and is well positioned to become a major US domestic lithium producer capable of supplying a meaningful portion of future American lithium demand.

No significant change in the nature of these activities occurred during the half year.
 
Significant changes in the state of affairs
 
There have been no significant changes in the state of affairs of the group during the half year.

Matters subsequent to the end of the financial period
 
The directors are not aware of any matter of material circumstance which has arisen since the end of the half year ending 31 December 2022 which would be expected to have a material effect on the financial and operating performance or results of the Group.

Dividends
 
The directors have determined that there will be no dividend paid in respect of the half year ending 31 December 2022 (2021: $nil). No dividends have been proposed or paid since the start of the financial year.

IONEER LTD
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2022
 3
Directors’ report continued
Operating and financial performance
 
The operating and financial performance review forms part of the Directors’ Report and has been prepared in accordance with section 299A of the Corporations Act 2001 (Cth). The information provided aims to assist users to better understand the operations and financial position of the Group.

Summary of performance and financial position

Half year ended
Unit
  
31-Dec-22
    
31-Dec-21
Restated (1)
    
% Change
  
Total operating cash flows
US$'000
    
(7,286
)
    
(5,604
)
    
(30
%)
Investing cash flows
US$'000
    
(16,873
)
    
(15,501
)
    
(9
%)
Financing cash flows - equity
US$'000
    
(122
)
    
69,795
    
>100
 %
Total cash increased/(decreased) in the half year
US$'000
    
(24,281
)
    
48,690
      
150
%
Net loss after tax
US$'000
    
(5,811
)
    
(5,489
)
    
6
%

Balance as at
Unit  
31-Dec-22
    
30-Jun-22
Restated (1)
    
% Change
  
Net cash

US$'000    
69,297
      
94,177
      
(26
%)
Capitalised exploration for period
US$'000
    
15,157
      
32,499
      
(53
%)
Net assets

US$'000    
198,315
      
203,699
      
(3
%)
                             
Mineral Resource:
Measured and Indicated
mt
    
127.0
      
127.0
      
0
%

Inferred 
mt
    
19.5
      
19.5
      
0
%
Mineral Resource:
Total (2)
mt
    
146.5
      
146.5
      
0
%
 

 (1)
Further detail regarding the restatement of the comparative accounts is in note 1 to the financial statements on page 11.

(2)
Further detail on Mineral Resources and Ore Reserves can be found in the Group’s annual consolidated financial statements as at 30 June 2022.

The Group recorded a Loss from ordinary activities for the period of US$5.8 million (2021: loss US$5.5 million).

The net assets of ioneer decreased to US$198.3 million as at 31 December 2022, from US$203.7 million at 30 June 2022, due primarily to a lower cash balance offset by continued investment in the Rhyolite Ridge asset and lower total liabilities.
 
Exploration and evaluation expenditure for the first half of FY2023 was US$15.2 million (first half FY2022 US$13.6 million) on advancing the engineering and permitting of the Project.
 
Net cash at 31 December 2022 was US$69.3 million (30 June 2022: US$94.2 million).
 
Highlights of the half year ended 31 December 2022
 

 •
Sales & Marketing

o
Binding 5-year lithium offtake agreement signed with the Ford Motor Company for 7,000 tonnes per annum of lithium carbonate from the Rhyolite Ridge Project.

o
Binding 5-year lithium offtake agreement signed with Prime Planet Energy & Solutions (PPES), a joint venture between Toyota Motor Corporation and Panasonic Corporation, for 4,000 tonnes per annum of lithium carbonate.

•
State & Federal permitting process

o
Rhyolite Ridge Project advances into final stage of permitting with Bureau of Land Management (BLM) publishing Notice of Intent.

o
Major milestone toward completion of the NEPA process and approval of the Project’s Plan of Operations.

•
Environmental

o
U.S. Fish and Wildlife Service establishes formal clarification in line with expectations, through decision to list Tiehm’s buckwheat as an endangered species.

o
Dedicated Tiehm’s buckwheat greenhouse completed and operational.

•
Engineering and Vendor packages

o
Memorandum of Understanding signed with Shell Canada Energy for sulphur supply.

o
Detailed engineering and procurement activities advancing.

•
Funding

IONEER LTD
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2022
 4
Directors’ report continued

 o
U.S. Department of Energy offers conditional commitment for a loan of up to US$700 million for the Rhyolite Ridge Project (announced Jan 16, 2023).

•
Corporate

o
ioneer and Caterpillar complete definitive agreement regarding autonomous haul trucks at Rhyolite Ridge.

Environmental performance
 
The Group holds exploration licences issued by the relevant government authorities which specify guidelines for environmental impacts in relation to exploration activities. The licence conditions provide for the full rehabilitation of the areas of exploration in accordance with regulatory guidelines and standards. There have been no known breaches of the licence conditions.

In late December 2022, it was announced that the Rhyolite Ridge Project had advanced into the final stage of federal permitting with the decision by the U.S. Bureau of Land Management (BLM) to publish a Notice of Intent (NOI) in the Federal Register. This marked a major milestone toward the completion of the National Environmental Policy Act (NEPA) process and approval of the Project’s Plan of Operations (“Plan”).

The Plan is the foundational permitting document for the Project and will become the basis for compliance during operations and closure. Ioneer commenced work on the Plan almost four years ago. The latest revised Plan was submitted to the BLM in July 2022. Under the revised Plan, there are no Project-related direct impacts to any of the subpopulations of Tiehm’s buckwheat.

Publication of the NOI marks the beginning of the public review and comment phase of the NEPA process, starting with a public comment period on the scope of the environmental review. The Environmental Impact Statement (EIS) contractor Stantec, the BLM, and other cooperating government agencies will use comments received during scoping and resource information gathered by Ioneer to prepare the EIS. The Plan will be updated to reflect the outcomes of the NEPA review before it is finalised.
 
The NEPA process culminates in the BLM’s Record of Decision (ROD), which represents the Department of Interior’s final decision on ioneer’s application for an approved Plan of Operations. An approved Plan will allow the Company to commence construction of the Rhyolite Ridge Project. The Company’s current best estimate is that a ROD would be received in 1Q 2024.

Auditor’s independence declaration
 
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 forms part of this report and is set out on page 6.

Rounding off
 
The Group is of a kind referred to in ASIC Corporations (rounding in Financial / Directors’ Report) Instrument 2016/191 and in accordance with that Class Order, amounts in the financial statements and directors’ reports have been rounded off to the nearest thousand dollars, unless otherwise stated.

This report is made in accordance with a resolution of Directors made pursuant to s.306(3) of the Corporations Act 2001. On behalf of the Directors.

/s/ James D Calaway
 
James D Calaway
Chairman
Sydney, 27 February 2023

IONEER LTD
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2022
 5
Ernst & Young
200 George Street
Sydney NSW 2000 Australia
GPO Box 2646 Sydney NSW 2001
Tel: +61 2 9248 5555
Fax: +61 2 9248 5959
ey.com/au
 
Auditor’s Independence Declaration to the directors of ioneer Ltd
 
As lead auditor for the review of the half-year financial report of ioneer Ltd for the half-year ended 31 December 2022, I declare to the best of my knowledge and belief, there have been:


 a.
No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review;
 

 b.
No contraventions of any applicable code of professional conduct in relation to the review; and
 

 c.
No non-audit services provided that contravene any applicable code of professional conduct in relation to the review.

This declaration is in respect of ioneer Ltd and the entities it controlled during the financial period.

/s/ Ernst & Young
 
Ernst & Young

/s/ Scott Nichols
 
Scott Nichols Partner Sydney
27 February 2023
 
A member firm of Ernst & Young Global Limited

Liability limited by a scheme approved under Professional Standards Legislation

Interim condensed consolidated statement of profit or loss and other comprehensive income
For the six months ended 31 December 2022
 
 
31-Dec-22
 
 
31-Dec-21
  







Restated

Note

US$'000

US$'000
Exploration expenditure written off
 
 
 
 
(43
)
 
 
-
  
Employee benefits expensed
2.2
 
 
 
(2,175
)
 
 
(2,211
)
Other expenses
2.3
 
 
 
(4,115
)
 
 
(3,576
)
Results from operating activities
 
 
 
 
(6,333
)
 
 
(5,787
)
Finance income
2.4
 
 
 
574
 
 
 
307
  
Finance costs
2.4
 
 
 
(52
)
 
 
(9
)
Net finance income
 
 
 
 
522
 
 
 
298

Loss before tax
 
 
 
 
(5,811
)
 
 
(5,489
)
Income tax expense
 
 
 
 
-
 
 
 
-
  
Loss for the year
 
 
 
 
(5,811
)
 
 
(5,489
)
Loss attributable to members of the company
 
 
 
 
(5,811
)
 
 
(5,489
)
Items that may be reclassified subsequently to profit and loss
 
 
 
 

 
 
 
Foreign currency translation difference on foreign operations
 
 
 
 
(509
)
 
 
(3,230
 )
Other comprehensive income (net of tax)
 
 
 
 
(509
)
 
 
(3,230
 )
Total comprehensive profit / (loss) for the year
 
 
 
 
(6,320
)
 
 
(8,719
)
Total comprehensive income / (loss) attributable to the owners of the company
 
 
 
 
(6,320
)
 
 
(8,719
)

 
  
31-Dec-22
      
31-Dec-21
   





Restated
Earnings per share
Cents

Cents
Loss per ordinary share
    
(0.277
)
    
(0.270
)
Diluted loss per ordinary share
    
(0.277
)
    
(0.270
)
 
The interim condensed consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.

IONEER LTD
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2022
 7
Interim condensed consolidated statement of financial position
As at 31 December 2022

   

   
31-Dec-22
    
30-Jun-22
  








Restated


Note

US$'000

US$'000
Current assets
                  
Cash assets
    
3.1
      
69,297
      
94,177
  
Receivables
    
3.2
      
607
      
142
  
Total current assets
            
69,904
      
94,319
  
                         
Non-current assets
                        
Receivables
    
3.2
      
194
      
195
  
Plant and equipment
            
42
      
-
  
Right of use asset
            
286
      
245
  
Exploration and evaluation expenditure
    
3.3
      
133,644
      
118,487
  
Total non-current assets
            
134,166
      
118,927
  
Total assets
            
204,070
      
213,246
  
                         
Current liabilities
                        
Payables
    
3.4
      
5,132
      
8,795
  
Lease liabilities - current
    
3.4
      
164
      
168
  
Provisions
    
3.5
      
323
      
497
  
Total current liabilities
            
5,619
      
9,460
  
                         
Non-current liabilities
            

     
 
Lease liabilities - non-current
    
3.4
      
136
      
87
  
Total non-current liabilities
            
136
      
87
  
Total liabilities
            
5,755
      
9,547
  
Net assets
            
198,315
      
203,699
  
                         
Equity
                        
Contributed equity
    
4.1
      
255,324
      
254,273
  
Reserves
            
(5,062
 )    
(4,438
 )
Accumulated losses
            
(51,947
)
    
(46,136
)
Total equity
            
198,315
      
203,699
  

The interim condensed consolidated statement of financial position should be read in conjunction with the accompanying notes.

IONEER LTD
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2022
 8
Interim condensed consolidated statement of cash flows
For the six months ended 31 December 2022
 
  
31-Dec-22
    
31-Dec-21
  
 




Restated
  Note
US$'000

US$'000
Cash flows from operating activities
              
Payment to suppliers and employees
      
(7,283
)
    
(5,604
)
Interest and other finance costs paid
      
(3
)
    
-
  
Net cash flows used in operating activities
      
(7,286
)
    
(5,604
)
Cash flows from investing activities
                  
Expenditure on mining exploration and evaluation
      
(17,346
)
    
(15,509
)
Purchase of equipment
      
(45
)
    
-
  
Interest received
      
518
      
8
  
Net cash flows used in investing activities
      
(16,873
)
    
(15,501
)
Cash flows from financing activities
                  
Proceeds from the issue of shares
      
-
      
71,793
  
Equity raising expenses
      
(11
)
    
(1,913
)
Payment of lease liability
      
(111
)
    
(85
)
Net cash flows (used in)/from financing activities
      
(122
)
    
69,795
  
Net increase (decrease) in cash held
      
(24,281
)
    
48,690
  
Opening cash balance
      
94,177
      
62,481
  
Net foreign exchange difference
      
(599
)
    
(2,920
)
Closing cash carried forward
3.1
    
69,297
      
108,251
  
 
The interim condensed consolidated statement of cash flows should be read in conjunction with the accompanying notes.

IONEER LTD
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2022
 9
Interim condensed consolidated statement of changes in equity
For the six months ended 31 December 2022


 		 
   
Issued
capital
    
Foreign
currency
translation
reserve
    
Equity
compensation
reserve
    
Accumulated
losses
    
Total
equity
  
   
Note
    
US$'000
    
US$'000
    
US$'000
    
US$'000
    
US$'000
  
As at 1 July 2021 (Restated)
          
174,390
      
(832
)
    
7,753
      
(37,633
)
    
143,678
  
Loss for the half year ended 31 December 2021
          
-
      
-
      
-
      
(5,489
)
    
(5,489
)
Other comprehensive income
                                              
Foreign currency translation differences
          
-
      
(3,230
 )    
-
      
-
      
(3,230
 )
Total other comprehensive income
          
-
      
(3,230
 )    
-
      
-
      
(3,230
 )
Total comprehensive income for the year
          
-
      
(3,230
 )    
-
      
(5,489
)
    
(8,719
)
Issue of share capital
                                              
Ordinary shares cash
    
4.1
      
71,793
      
-
      
-
      
-
      
71,793
  
Share-based payments
             -      
-
      
1,031


-


1,031
Share -based payments expensed/capitalised
    
4.1
      

     
     

     
     

 
Fair value of performance rights exercised
    
4.1
      
978
      
-
      
(978
)
    
-
      
-
  
Share issue costs
    
4.1
      
(1,913
)
    
-
      
-
      
-
      
(1,913
)
As at 31 December 2021 (Restated)
            
245,248
      
(4,062
 )
   
7,806
      
(43,122
)
    
205,870
  
As at 1 July 2022 (Restated)
            
254,273
      
(10,193
)
    
5,755
      
(46,136
)
    
203,699
  
Loss for the half year ended 31 December 2022
            
-
      
-
      
-
      
(5,811
)
    
(5,811
)
Other comprehensive income
                                                
Foreign currency translation differences
            
-
      
(509
)
    
-
      
-
      
(509
)
Total other comprehensive income
            
-
      
(509
)
    
-
      
-
      
(509
)
Total comprehensive income for the year
            
-
      
(509
)
    
-
      
(5,811
)
    
(6,320
)
Share-based payments
                                                
Share -based payments expensed/capitalised
    
4.1
      
-
      
-
      
947
      
-
      
947
  
Fair value of performance rights exercised
    
4.1
      
1,062
      
-
      
(1,062
)
    
-
      
-
  
Share issue costs
    
4.1
      
(11
)
    
-
      
-
      
-
      
(11
)
As at 31 December 2022
            
255,324
      
(10,702
)
    
5,640
      
(51,947
)
    
198,315
  
 
The interim condensed consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

IONEER LTD
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2022
 10
Notes to the interim condensed consolidated financial statements

Section 1.
Basis of preparation and changes to the Groups accounting policies
 
INTRODUCTION - What’s New in this Report
Change in presentation currency
 
The Group changed its presentation currency from Australian dollars (AUD) to United States dollars (USD) from 1 July 2022. With the exception of the parent entity, all of the Group’s entities utilise USD as their functional currency and the major asset of the Group is capitalised exploration and evaluation expenditure relating to the Rhyolite Ridge Lithium-Boron Project located in Western Nevada, USA. As a result, the Group has historically experienced volatility in its financial position and performance as a result of volatility in the applicable AUD:USD exchange rate each period. As the Group plans to raise debt funding denominated in USD and aims to develop and operate the Rhyolite Ridge Project, which would earn revenues and incur expenses almost entirely in USD, the volatility in the consolidated position and performance could significantly worsen due to movements in the AUD:USD foreign exchange rate in the future. In order to reduce this risk and provide more comparative financial reporting against US based peer companies, the Board determined with effect from 1 July 2022, that ioneer will present its consolidated results in US dollars.
 
Accordingly, to satisfy the requirement of IAS 21 The Effects of Changes in Foreign Exchange Rates, the reported results for the years ended 31 December 2021, 30 June 2022 and 31 December 2022 have been translated from AUD to USD using the following procedures:


 •
Assets and liabilities denominated in non-USD currencies were translated into USD at the closing rates of exchange on the relevant balance sheet date;

•
Income and expenses whose functional currency was other than USD were translated into USD at the relevant proxy of daily rates of exchange;

•
Share capital was translated at the historic rates prevailing on the date of each transaction; and,

•
Movements in other reserves were translated into USD at the relevant average rates of exchange.

The change in presentation currency is accounted for retrospectively under AASB 108/IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors (“AASB 108/IAS 8). The comparative balance in consolidated statement of financial position and consolidated statement of profit or loss and other comprehensive income has been presented showing the impact of the change in presentation currency on 30 June 2022 and 31 December 2021 respectively.

1.1.
Corporate information
 
The interim condensed consolidated financial statements of ioneer Ltd and its subsidiaries (collectively the “Group” or the “Company”) for the six months ended 31 December 2022 were authorised for issue in accordance with a resolution of the directors on 27 February 2023.
 
ioneer Ltd is a for profit company limited by shares and incorporated in Australia whose shares are publicly traded on the Australian Securities Exchange (“ASX”) under the ticker code “INR”. The registered office of the Company is suite 5.03, 140 Arthur Street, North Sydney, NSW 2060 Australia.
1.2.
Basis of preparation
 
The interim condensed consolidated financial statements for the six months ended 31 December 2022 have been prepared in accordance with AASB 134 Interim Financial Reporting.
The Group has prepared the financial statements on the basis that it will continue to operate as a going concern. The Directors consider that there are no material uncertainties that may cast significant doubt over this assumption. They have formed a judgement that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, and not less than 12 months from the end of the reporting period.
The Group is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors Reports) Instrument 2016/191, and as such, consistently with the 30 June 2022 financial report, amounts presented in the financial and directors report for 31 December 2022 have been rounded to the nearest $1,000 (where rounding is permitted), unless otherwise stated.
 
The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group’s annual consolidated financial statements as at 30 June 2022.
1.3.
New standards, interpretations and amendments adopted by the Group
 
The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group’s annual consolidated financial statements for the year ended 30 June 2022 except for the change in presentation currency effective 1 July 2022. The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.
IONEER LTD
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2022
 11
Section 2.
Financial performance
 
2.1.
Operating segments
 
Description of segments
 
The Group operates predominantly as a mineral exploration and development company. The operating segments are based on the reports reviewed by the Managing Director for assessing performance and determining the allocation of resources and strategic decision making within the Group. The following summary describes the operations in each of the Groups reportable segments:
 
North America
Represents activity in the US, primarily in relation to Rhyolite Ridge and the Reno office.
Australia
Represents head office expenditure, exchange gains and losses and corporate assets (predominantly cash).

The following table presents segment information for the six months ended 31 December 2022 and 2021, respectively:
                           
Segment information  
 
       North America    
       Australia    
    Total  
        
 31-Dec-22
  		         
31-Dec-21
Restated
         
31-Dec-22
 		         
31-Dec-21
Restated
      
31-Dec-22
 

31-Dec-21
Restated
   
       
US$’000
      
US$’000
      
US$’000
      
US$’000
    
US$’000
      
US$’000
  
Exploration expenditure - non core
    
(43
)
    
-
      
-
      
-
      
(43
)
    
-
  
Reportable segment profit / (loss)
    
(43
)
    
-
      
-
      
-
      
(43
)
    
-
  
Other expenses
    
(3,375
)
    
(1,858
)
    
(2,915
)
    
(3,929
)
    
(6,290
)
    
(5,787
)
Net financing (expense) / income
    
126
      
294
      
396
      
4
       522      
298
  
Net loss before income tax
    
(3,292
)
    
(1,564
)
    
(2,519
)
    
(3,925
)
    
(5,811
)
    
(5,489
)
 
 
31-Dec-22
    
30-Jun-22
    
31-Dec-22
    
30-Jun-22
    
31-Dec-22
    
30-Jun-22
  

 
   
Restated
    
   
Restated
    
   
Restated
  

 
US$’000
    
US$’000
    
US$’000
    
US$’000
    
US$’000
    
US$’000
  
Segment assets
                                    
Exploration assets
    
133,644
      
118,487
      
-
      
-
      
133,644
      
118,487
  
Other assets
    
8,800
      
6,159
      
61,626
      
88,600
      
70,426
      
94,759
  
Total assets
    
142,444
      
124,646
      
61,626
      
88,600
      
204,070
      
213,246
  
Segment liabilities
                                                
Payables
    
5,228
      
8,147
      
68
      
816
      
5,296
      
8,963
  
Provisions
    
127
      
332
      
196
      
165
      
323
      
497
  
Total current liabilities
    
5,355
      
8,479
      
264
      
981
      
5,619
      
9,460
  
Payables
    
136
      
87
      
-
      
-
      
136
      
87
  
Total non-current liabilities
    
136
      
87
      
-
      
-
      
136
      
87
  
Total liabilities
    
5,491
      
8,566
      
264
      
981
      
5,755
      
9,547
  
Net assets
    
136,953
      
116,080
      
61,362
      
87,619
      
198,315
      
203,699
  

IONEER LTD
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2022
 12
Notes to the interim condensed consolidated financial statements continued
2.2.
Employee benefits expense
 
    Half year ended  
    31 Dec 2022
    31 Dec 2021  
          Restated  
    US$’000     US$’000  
Directors fees
    
336
      
446
  
Employee benefits expense
    
1,542
      
1,283
  
Share-based payments
    
297
      
482
  
Total employee benefits expensed
    
2,175
      
2,211
  

2.3.
Other expenses
   
   
Half year ended
  
    31 Dec 2022
    31 Dec 2021  
          Restated  
    US$’000     US$’000  
General and administrative expenses
    
1,767
      
1,450
  
Consulting and professional costs
    
2,345
      
2,124
  
Depreciation and amortisation
     3      
2
  
Total other expenses
    
4,115
      
3,576
  

2.4.
Net finance income

    Half year ended  
    31 Dec 2022
    31 Dec 2021  
          Restated  
    US$’000     US$’000  
Interest income
    
558
       41  
Other revenue
    
16
      
33
  
Net foreign exchange gain

-


233
Finance income
    
574
       307  
Bank charges
    
(3
)
    
(6
)
Lease interest
    
(6
)
    
(3
)
Net foreign exchange loss
    
(43
)
    
-
Finance costs
    
(52
)
    
(9
)
Net finance income
    
522
      
298


IONEER LTD
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2022
 13
Notes to the interim condensed consolidated financial statements continued
Section 3.
Invested and working capital

3.1.
Cash assets
 
   
31 Dec 2022
    
30 Jun 2022
  
         
Restated
  
   
US$’000
    
US$’000
  
Cash at bank
    
69,297
      
94,177
  
Total cash assets
    
69,297
      
94,177
  
 
Cash assets in the consolidated statement of financial position comprise cash at bank and deposits with an average maturity of three months or less.
3.2.
Receivables
 
   
31 Dec 2022
    
30 Jun 2022
  
         
Restated
  
   
US$’000
    
US$’000
  
Current
            
Other debtors
    
191
      
113
  
Prepayments
    
416
      
29
  
Total current trade and other receivables
    
607
      
142
  
 Non-current
    
     
 
Other receivables
    
194
      
195
  
Total non-current trade and other receivables
    
194
      
195
  
Total current and non-current trade and other receivables
    
801
      
337
  
  
3.3
Exploration and evaluation expenditure
  
   
31 Dec 2022
    
30 Jun 2022
  
         
Restated
  
   
US$’000
    
US$’000
  
Exploration and evaluation expenditure
    
133,733
      
118,487
  
Reconciliation of movement
                
Opening balance
    
118,487
      
85,988
  
Additions - Rhyolite Ridge
    
15,108
      
32,049
  
Exploration expenditure - non core
    
92
      
467
  
Exploration expenditure - written off
    
(43
)
    
(17
)
Carrying amount at the end of the period
    
133,644
      
118,487
  

IONEER LTD
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2022
 14
Notes to the interim condensed consolidated financial statements continued
3.4
Payables
 
   
31 Dec 2022
    
30 Jun 2022
  
         
Restated
  
   
US$’000
    
US$’000
  
Current
  
       
Trade creditors and other payables
    
5,091
      
7,879
  
Accrued expenses
    
41
      
916
  
Lease Liabilities
    
164
      
168
  
Total current payables
    
5,296
      
8,963
  
Non-current
    
     
 
Lease Liabilities
    
136
      
87
  
Total non-current payables
    
136
      
87
  
Total current and non-current payables
    
5,432
      
9,050
  
 
3.5
Provisions
 
   
31 Dec 2022
    
30 Jun 2022
  
         
Restated
  
   
US$’000
    
US$’000
  
Current
    

     
 
Provision for employee benefits
    
323
      
497
  
Total provisions
    
323
      
497
  

IONEER LTD
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2022
 15
Notes to the interim condensed consolidated financial statements continued
Section 4.
Funding and risk management
 
4.1
Share capital
 
Ordinary shares
 
               
31 Dec 2022
    
30 Jun 2022
  
                     
Restated
  
               
US$’000
    
US$’000
  
2,098,338,267 (June 2022: 2,091,299,420) ordinary shares, fully paid
      
255,324
      
254,273
  

   
Half year ended
    
Year ended
    
Half year ended
    
Year ended
  
   
31 Dec 2022
    
30 Jun 2022
    
31 Dec 2022
    
30 Jun 2022
  
                       
Restated
  
   
Number
    
Number
    
US$’000
    
US$’000
  
Reconciliation of movement:
                            
Balance at the beginning of the period
    
2,091,299,420
      
1,896,676,204
      
254,273
      
174,390
  
Ordinary shares
    
-
      
145,862,742
      
-
      
71,795
  
Exercise of unlisted options
    
-
      
40,500,000
      
-
      
9,006
  
Performance rights vested
    
7,038,847
      
8,260,474
      
1,062
      
1,012
  
Share issue costs
    
-
      
-
      
(11
)
    
(1,930
)
Balance at the end of the period
    
2,098,338,267
      
2,091,299,420
      
255,324
      
254,273
  
 
4.2
Financial risk management
 
Framework
 
The Group is involved in activities that expose it to a variety of financial risks including:

 		a)
Credit risk

b)
Liquidity risk

c)
Capital management risk

d)
Market risk related to commodity pricing, interest rates and currency fluctuations.
 
The board of directors has overall responsibility for the establishment and oversight of the financial risk management framework of the Group. Management is responsible for monitoring the financial risks.
 
The objective of the financial risk management strategy is to minimise the impact of volatility in financial markets on the financial performance, cash flows and shareholder returns. This requires the identification and analysis of relevant financial risks and possible impact on the achievement of the Group’s objectives.
The Group does not undertake any hedging activities.
 
Fair value measurement
 
All financial instruments for which fair value is recognised or disclosed are categorised within the fair value hierarchy, based on the lowest level input that is significant to the fair value measurement, as follows:
 
Level 1 – Quoted market prices in an active market (that are unadjusted) for identical assets or liabilities.
 
Level 2 – Valuation techniques (for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable).
 
Level 3 – Valuation techniques (for which the lowest level input that is significant to the fair value measurement is unobservable).
 
The carrying amounts of the Group’s financial assets and liabilities are a reasonable approximation of their fair values. During the 6 months ended 31 December 2022, there were no transfers between Level 1 and Level 2 fair value measurements, and no transfers into or out of Level 3 fair value measurements. (31 December 2021: Nil)
 
The fair value of the options granted is determined using the Black & Scholes option pricing model.
IONEER LTD
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2022
 16
Notes to the interim condensed consolidated financial statements continued
Section 5.
Other
 
5.1
Contingent assets/liabilities
 
Settlement of Rhyolite Ridge
 
The Company entered an option agreement to purchase Rhyolite Ridge from Boundary Peak Minerals LLC on 3 June 2016. The Company has made 4 progress payments to Boundary Peak under the agreement. A final payment will fall due following the board of directors making a ‘decision to mine’ the Rhyolite Ridge property. Once this decision is made, the Company is required under the terms of the contract to either:
 

 		•
Pay Boundary Peak LLC USD $3 million, or

•
Issue shares (or a mix of both shares and cash) to Boundary Peak LLC, to the equivalent of USD $3 million at a fixed exchange rate of USD $0.75 = AUD $1.00.
 
At the date of this report the decision to mine has not yet been made by the Company. There are no other known contingent liabilities as at 31 December 2022.
5.2
Events after reporting date

On 17 January 2023, the Company entered into a new loan commitment with the US Department of Energy that amounted to USD $700 million. The loan will be available to drawdown when the Final Investment Decision is obtained.

Other than above, there has not been in the period since 31 December 2022 and up to the date of this report any other item, transaction or event of a material and unusual nature likely in the opinion of directors, to substantially affect the operations of the Group, the results of those operations or the state of affairs of the Group in subsequent financial years.
IONEER LTD
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2022
 17
Directors’ declaration

In accordance with a resolution of the directors of ioneer Ltd, I state that:
 
(1)
In the opinion of the directors:
 

 		(a)
The financial statements and notes of the Group are in accordance with the Corporations Act 2001, including:


(i)
giving a true and fair view of the Group's financial position as at 31 December 2022 and the performance for the half year ended on that date; and

(ii)
complying with Accounting Standard AASB 134 / IAS 34 ‘Interim Financial Reporting’ and the Corporations Regulations 2001; and


(b)
there are reasonable grounds to believe that the Group will be able to pay its debts as and when they become due and payable.

On behalf of the Board

/s/ James D Calaway
 
James D Calaway
Chairman
Sydney, 27 February 2023
 
IONEER LTD
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2022
 18
Ernst & Young
200 George Street
Sydney NSW 2000 Australia
GPO Box 2646 Sydney NSW 2001
Tel: +61 2 9248 5555
Fax: +61 2 9248 5959
ey.com/au
 
Independent Auditor's Review Report to the Members of ioneer Ltd
 
Conclusion
 
We have reviewed the accompanying half year financial report of ioneer Ltd (the Company) and its subsidiaries (collectively the Group), which comprises the condensed statement of financial position as at 31 December 2022, the condensed statement of profit or loss and other comprehensive income, condensed statement of changes in equity and condensed statement of cash flows for the half year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration.

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half year financial report of the Group does not comply with the Corporations Act 2001, including:
 

 a.
Giving a true and fair view of the consolidated financial position of the Group as at 31 December 2022 and of its consolidated financial performance for the half year ended on that date; and
 

 b.
Complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.
 
Basis for conclusion
 
We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity (ASRE 2410). Our responsibilities are further described in the Auditor’s responsibilities for the review of the half-year 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 and 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 annual financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

Directors’ responsibilities for the half year financial report
 
The directors of the Company are responsible for the preparation of the half year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half year financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.
 
Auditor’s responsibilities for the review of the half-year financial report
 
Our responsibility is to express a conclusion on the half year financial report based on our review. ASRE 2410 requires us to conclude whether we have become aware of any matter that makes us believe that the half year financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the Group’s financial position as at 31 December 2022 and its performance for the half year ended on that date, and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation

 
A review of a half year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

/s/ Ernst & Young
 
Ernst & Young
 
/s/ Scott Nichols
 
Scott Nichols Partner Sydney
27 February 2023

A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation