| (a) | Identification of reportable segments |
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The Group is an emerging lithium producer with operations in Australia and Canada. The principal activities of the Group during the year were lithium mining and processing at North American Lithium and ongoing identification, evaluation and development of its portfolio of mineral exploration assets in Australia and Canada, predominantly focusing on lithium.
Management has determined the operating segments based on the reports that are used by the Executive Leadership Team (the chief operating decision maker) and Board of Directors to make strategic decisions. Due to the geographically disparate nature of the operations, management examines the Group’s financial performance and activity from a geographical perspective. During the year, the reportable segments for the Group were segregated between Australian operations, Canadian operations and Corporate activities.
The principal activities of each reportable segment are summarised as follows:
| Reportable segment | Principal activities |
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| Australian operations | Operations located in Western Australia, Australia |
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| Lithium and gold projects | Exploration of lithium and gold tenements in the Pilbara and Yilgarn regions |
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| Canadian operations | Operations located in Québec, Canada |
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| Abitibi-Témiscamingue Hub |
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| North American Lithium (NAL) | Lithium mining and processing |
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| Authier Lithium Project | Hard rock lithium deposit |
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| Pontiac Claims | Exploration site for lithium pegmatite occurrences |
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| Tansim Lithium Project | Exploration site for lithium, tantalum and beryllium |
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| Vallée Lithium Project | Mineral rights claims located adjacent to NAL |
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| Eeyou Istchee James Bay Hub |
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| Lac Albert Lithium Project | Exploration site for lithium pegmatite occurrences |
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| Moblan Lithium Project | Hard rock lithium deposit host to high-grade spodumene mineralisation |
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| Troilus Claims | Wholly owned claims located adjacent to the Moblan Lithium Project |
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| Corporate | Corporate activities not directly related to operations |
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The segment information reflects the Group’s interest in subsidiaries and joint operations on a proportional consolidation basis. The segment information includes non-IFRS financial measures.
Segment performance is measured by Underlying EBITDA. Underlying EBITDA is earnings before underlying depreciation and amortisation expense, underlying earnings adjustments, net financial income and expenses, and income tax expense.
Reconciliations of underlying segment information to statutory information included in the Group’s consolidated financial statements are set out in Note 4 (c).
| 4. | Segment Reporting (continued) |
| (b) | Segment results (continued) |
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| Year ended 30 June 2025 | Australian operations $’000 | Canadian operations $’000 | Corporate $’000 | Group / unallocated items and eliminations $’000 | Total $’000 |
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| Revenue | – | 223,365 | – | – | 223,365 |
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| Total revenue | – | 223,365 | – | – | 223,365 |
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| Underlying EBITDA | (1,751) | (60,402) | (4,762) | – | (66,915) |
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| Underlying depreciation and amortisation expense (1) | (2) | (39,908) | (146) | – | (40,056) |
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| Underlying earnings adjustments (2) | – | (264,880) | (385,692) | 373,171 | (277,401) |
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| Profit/(loss) from operations | (1,753) | (365,190) | (390,600) | 373,171 | (384,372) |
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| Net financial expense | | (358) |
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| Loss before income tax | | (384,730) |
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| Income tax benefit | | 2,989 |
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| Loss after income tax | | (381,741) |
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| Underlying exploration expenditure | – | 27,345 | – | – | 27,345 |
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| Underlying capital expenditure (3) | – | 19,629 | 98 | – | 19,727 |
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| Total underlying assets | 264 | 646,079 | 445,711 | (439,340) | 652,714 |
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| Total underlying liabilities | 12 | 176,534 | 4,234 | (3,512) | 177,268 |
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| Revenue | – | 200,873 | – | – | 200,873 |
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| Total revenue | – | 200,873 | – | – | 200,873 |
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| Underlying EBITDA | (193) | (49,091) | (4,870) | – | (54,154) |
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| Underlying depreciation and amortisation expense (1) | (2) | (33,207) | (98) | – | (33,307) |
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| Underlying earnings adjustments (2) | (5,930) | (24,413) | (40,760) | 39,496 | (31,607) |
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| Profit/(loss) from operations | (6,125) | (106,711) | (45,728) | 39,496 | (119,068) |
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| Net financial income | | 3,622 |
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| Loss before income tax | | (115,446) |
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| Income tax expense | | (3,576) |
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| Loss after income tax | | (119,022) |
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| Underlying exploration expenditure | 2,534 | 31,152 | – | – | 33,686 |
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| Underlying capital expenditure (3) | – | 105,528 | 37 | – | 105,565 |
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| Total underlying assets | 36 | 881,307 | 814,010 | (750,307) | 945,046 |
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| Total underlying liabilities | 119 | 138,474 | 14,106 | (3,286) | 149,413 |
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| (1) | Underlying depreciation and amortisation expense is comprised of depreciation and amortisation expense and other non-cash inventory movements recognised within ‘Changes in inventories of finished goods and work in progress’. Refer to Note 7 for further details. |
| (2) | Refer to Note 4 (c) for further details. |
| (3) | Underlying capital expenditure excludes capitalised exploration expenditure. |
| 4. | Segment Reporting (continued) |
| (b) | Segment results (continued) |
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| Year ended 30 June 2023 | Australian operations $’000 | Canadian operations $’000 | Corporate $’000 | Group / unallocated items and eliminations $’000 | Total $’000 |
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| Revenue | – | – | – | – | – |
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| Total revenue | – | – | – | – | – |
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| Underlying EBITDA | (247) | (14,604) | (8,614) | – | (23,465) |
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| Underlying depreciation and amortisation expense (1) | – | (569) | (65) | – | (634) |
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| Underlying earnings adjustments (2) | – | 2,578 | – | – | 2,578 |
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| Loss from operations | (247) | (12,595) | (8,679) | – | (21,521) |
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| Net financial income | | 14,821 |
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| Loss before income tax | | (6,700) |
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| Income tax expense | | (3,649) |
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| Loss after income tax | | (10,349) |
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| Underlying exploration expenditure | 593 | 91,773 | – | – | 92,366 |
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| Underlying capital expenditure (3) | 5 | 152,989 | 40 | – | 153,034 |
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| Total underlying assets | 3,750 | 839,539 | 805,945 | (639,661) | 1,009,573 |
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| Total underlying liabilities | 17 | 124,084 | 9,804 | 2,223 | 136,128 |
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| (1) | Underlying depreciation and amortisation expense is comprised of depreciation and amortisation expense and other non-cash inventory movements recognised within ‘Changes in inventories of finished goods and work in progress’. Refer to Note 7 for further details. |
| (2) | Refer to Note 4 (c) for further details. |
| (3) | Underlying capital expenditure excludes capitalised exploration expenditure. |
Inter-segment transactions
Inter-segment transactions are made on a commercial basis. All such transactions are eliminated on consolidation of the Group's financial statements.
Segment assets
Where an asset is used across multiple segments, the asset is allocated to the segment that receives the majority of the economic value from the asset. In most instances, segment assets are clearly identifiable on the basis of their nature and physical location.
Segment liabilities
Liabilities are allocated to segments where there is a direct nexus between the incurrence of the liability and the operations of the segment.
| 4. | Segment Reporting (continued) |
| (c) | Underlying results reconciliation |
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The following table reconciles the underlying segment information to the Group’s statutory results for the year:
| 2025 $’000 | 2024 $’000 | 2023 $’000 |
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| Underlying EBITDA | (66,915) | (54,154) | (23,465) |
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| Underlying depreciation and amortisation expense | (40,056) | (33,307) | (634) |
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| Underlying earnings adjustments |
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| Gain on remeasurement of deferred income (1) | 4,546 | – | – |
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| Income from sale of tax benefits under flow through share arrangements (2) | 6,084 | 5,294 | 2,578 |
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| Impairment and write down of financial assets (3) | – | (8,134) | – |
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| Impairment and write down of non-financial assets (4) | (271,310) | (17,066) | – |
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| Loss on disposal of financial assets (5) | – | (1,264) | – |
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| Merger transaction and integration costs (6) | (12,521) | – | – |
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| Net movement in inventories relating to net realisable value adjustments (7) | (4,200) | (10,437) | – |
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| Loss from operations | (384,372) | (119,068) | (21,521) |
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| Net financial income/(expense) | (358) | 3,622 | 14,821 |
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| Income tax benefit/(expense) | 2,989 | (3,576) | (3,649) |
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| Loss after income tax | (381,741) | (119,022) | (10,349) |
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| (1) | Adjustment to profit/(loss) for the Canadian operations segment. |
| (2) | Adjustment to profit/(loss) for the Canadian operations segment. Refer to Note 16 (a) for further details. |
| (3) | Adjustment to profit/(loss) for the Canadian operations segment. |
| (4) | Adjustment to profit/(loss) for both the Australian operations segment of nil (2024: $5.9 million; 2023: Nil) and Canadian operations segment of $271.3 million (2024: $11.2 million; 2023: Nil). |
| (5) | Adjustment to profit/(loss) for the Corporate segment. |
| (6) | Adjustment to profit/(loss) for the Corporate segment. Refer to Note 7 for further details. |
| (7) | Adjustment to profit/(loss) for the Canadian operations segment. Refer to Note 11 for further details. |
The Group generates revenue from external customers who individually account for greater than 10 per cent of the Group’s total revenue. The following table sets out the applicable revenue percentage generated from each of these customers:
| 2025 % | | 2024 % | | 2023 % | |
| External Customer 1 | | 67 | | 45 | | – |
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| External Customer 2 | | 33 | | – | | – |
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| External Customer 3 | | – | | 29 | | – |
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| External Customer 4 | | – | | 25 | | – |
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