| (a) | Identification of reportable segments |
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The Group is an emerging lithium producer with operations in Canada and the United States of America. The principal activities of the Group during the year were lithium mining and processing at North American Lithium (NAL) and ongoing identification, evaluation and development of its portfolio of mineral exploration assets in Canada and the United States of America, predominantly focusing on lithium.
Management has determined the reportable segments of the Group based on the reports that are used by the Managing Director and Chief Executive Officer (the chief operating decision maker) and Board of Directors to make strategic decisions. During the year ended 30 June 2026, following completion of the merger with Piedmont Lithium Inc., the Group changed its reportable segments from a geographical approach to an asset-based approach, with each producing mine to be treated as a separate operating segment. This change more appropriately reflects the way in which the chief operating decision maker examines the performance and activity of the Group following completion of the merger, with the primary focus being on the operations at NAL. As a result, prior period comparatives have been re-presented to conform with the current segment reporting structure.
The principal activities of each reportable segment are summarised as follows:
| Reportable segments | Principal activities |
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| North American Lithium |
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| North American Lithium | Lithium mining and processing |
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| All other operations |
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| Australian operations |
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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 |
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| Authier Lithium Project | Hard rock lithium deposit |
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| Killick Lithium Project | Exploration site for lithium pegmatite occurrences |
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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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| 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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| Troilus Claims | Wholly owned claims located adjacent to the Moblan Lithium Project |
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| Vallée Lithium Project | Mineral rights claims located adjacent to NAL |
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| USA operations |
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| Carolina Lithium | Lithium mining and processing, currently in development and permitting stage |
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| 4. | Segment Reporting (continued) |
The segment information reflects the Group’s interest in subsidiaries and joint operations. 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.
Group / unallocated items and eliminations represent centralised functions, items which are not solely related to North American Lithium or another operation, and consolidation adjustments and eliminations.
Reconciliations of underlying segment information to the statutory information included in the Group’s consolidated financial statements are set out in Note 4 (c).
| Year ended 30 June 2026 | North American Lithium $’000 | All other operations $’000 | Group / unallocated items and eliminations $’000 | Total $’000 |
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| Revenue | 201,675 | – | – | 201,675 |
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| Total revenue | 201,675 | – | – | 201,675 |
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| Underlying EBITDA | 45,717 | (1,299) | (30,073) | 14,345 |
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| Underlying depreciation and amortisation expense (1) | (20,923) | (50) | (511) | (21,484) |
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| Underlying earnings adjustments (2) | 165,467 | – | (112,629) | 52,838 |
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| Profit/(loss) from operations | 190,261 | (1,349) | (143,213) | 45,699 |
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| Net financial income | | 725 |
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| Profit before income tax | | 46,424 |
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| Income tax expense | | (2,034) |
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| Profit after income tax | | 44,390 |
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| Underlying exploration expenditure | – | – | – | – |
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| Underlying capital expenditure (3) | 19,584 | 1,441 | 3 | 21,028 |
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| Total underlying assets | 466,769 | 178,797 | 259,755 | 905,321 |
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| Total underlying liabilities | 137,199 | 3,078 | 37,878 | 178,155 |
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| (1) | Underlying depreciation and amortisation expense is comprised of depreciation and amortisation expense of $23.6 million, partially offset by favourable non-cash inventory movements of $2.1 million 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 and right-of-use asset additions. |
| 4. | Segment Reporting (continued) |
| (b) | Segment results (continued) |
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| Year ended 30 June 2025 | North American Lithium $’000 | All other operations $’000 | Group / unallocated items and eliminations $’000 | Total $’000 |
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| Revenue | 145,016 | – | – | 145,016 |
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| Total revenue | 145,016 | – | – | 145,016 |
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| Underlying EBITDA | (29,483) | (1,444) | (11,973) | (42,900) |
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| Underlying depreciation and amortisation expense (1) | (25,546) | (20) | (361) | (25,927) |
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| Underlying earnings adjustments (2) | (175,388) | – | (4,165) | (179,553) |
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| Loss from operations | (230,417) | (1,464) | (16,499) | (248,380) |
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| Net financial expense | | (670) |
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| Loss before income tax | | (249,050) |
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| Income tax benefit | | 1,936 |
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| Loss after income tax | | (247,114) |
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| Underlying exploration expenditure | 6,304 | 11,390 | – | 17,694 |
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| Underlying capital expenditure (3) | 12,765 | – | – | 12,765 |
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| Total underlying assets | 223,287 | 173,581 | 30,096 | 426,964 |
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| Total underlying liabilities | 99,697 | 1,054 | 15,212 | 115,963 |
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| (1) | Underlying depreciation and amortisation expense is comprised of depreciation and amortisation expense of $25.0 million and unfavourable non-cash inventory movements of $0.9 million 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 and right-of-use asset additions. |
| 4. | Segment Reporting (continued) |
| (b) | Segment results (continued) |
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| Year ended 30 June 2024 | North American Lithium $’000 | All other operations $’000 | Group / unallocated items and eliminations $’000 | Total $’000 |
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| Revenue | 132,163 | – | – | 132,163 |
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| Total revenue | 132,163 | – | – | 132,163 |
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| Underlying EBITDA | (14,377) | (265) | (19,796) | (34,438) |
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| Underlying depreciation and amortisation expense (1) | (22,118) | (11) | (325) | (22,454) |
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| Underlying earnings adjustments (2) | (13,053) | (4,033) | (3,636) | (20,722) |
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| Loss from operations | (49,548) | (4,309) | (23,757) | (77,614) |
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| Net financial income | | 1,918 |
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| Loss before income tax | | (75,696) |
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| Income tax expense | | (2,344) |
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| Loss after income tax | | (78,040) |
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| Underlying exploration expenditure | 10,959 | 10,817 | 80 | 21,856 |
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| Underlying capital expenditure (3) | 58,822 | 7,695 | 2,687 | 69,204 |
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| Total underlying assets | 429,072 | 123,264 | 77,585 | 629,921 |
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| Total underlying liabilities | 73,391 | 2,725 | 23,484 | 99,600 |
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| (1) | Underlying depreciation and amortisation expense is comprised of depreciation and amortisation expense of $22.1 million and unfavourable non-cash inventory movements of $0.4 million 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 and right-of-use asset additions. |
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:
| 2026 $’000 | 2025 $’000 | 2024 $’000 |
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| Underlying EBITDA | 14,345 | (42,900) | (34,438) |
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| Underlying depreciation and amortisation expense | (21,484) | (25,927) | (22,454) |
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| Underlying earnings adjustments |
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| Fair value adjustments to financial instruments (1) | – | 2,942 | – |
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| Gain on bargain purchase (2) | 33,109 | – | – |
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| Income from sale of tax benefits under flow through share arrangements (3) | – | 3,937 | 3,471 |
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| Impairment and write down of financial assets (4) | – | – | (5,333) |
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| Merger transaction and integration costs (5) | (8,738) | (8,102) | – |
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| Net loss on disposal of financial assets (6) | – | – | (828) |
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| Net movement in inventories relating to net realisable value adjustments (7) | 9,454 | (2,718) | (6,843) |
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| Reversal of impairment/(impairment) of non-financial assets (8) | 156,013 | (175,612) | (11,189) |
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| Write down on settlement of pre-existing contractual arrangement (9) | (137,000) | – | – |
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| Profit/(loss) from operations | 45,699 | (248,380) | (77,614) |
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| Net financial income/(expense) | 725 | (670) | 1,918 |
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| Income tax benefit/(expense) | (2,034) | 1,936 | (2,344) |
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| Profit/(loss) after income tax | 44,390 | (247,114) | (78,040) |
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| (1) | Adjustment to profit/(loss) which is reported as part of ‘North American Lithium’. |
| (2) | Adjustment to profit/(loss) which is reported as part of ‘Group / unallocated items and eliminations’. Refer to Note 30 (d) for further details. |
| (3) | Adjustment to profit/(loss) which is reported as part of ‘Group / unallocated items and eliminations’. |
| (4) | Adjustment to profit/(loss) which is reported as part of ‘North American Lithium’ (2026 and 2025: Nil; 2024: $2.4 million) and ‘Group / unallocated items and eliminations’ (2026 and 2025: Nil; 2024: $2.9 million). Management has deemed the impairment and write down of financial assets of $0.4 million for the year ended 30 June 2025 to have been incurred in the ordinary course of business, and therefore no adjustment has been made for the purpose of the underlying results reconciliation. Refer to Note 7 for further details. |
| (5) | Adjustment to profit/(loss) which is reported as part of ‘Group / unallocated items and eliminations’. Refer to Note 7 for further details. |
| (6) | Adjustment to profit/(loss) which is reported as part of ’Group / unallocated items and eliminations’. |
| (7) | Adjustment to profit/(loss) which is reported as part of ‘North American Lithium’. Refer to Note 11 (b) for further details. |
| (8) | Adjustment to profit/(loss) which is reported as part of ‘North American Lithium’ (2026: profit of $156.0 million; 2025: $175.6 million; 2024: $3.8 million), ‘All other operations’ (2026 and 2025: Nil; 2024: $4.1 million) and ‘Group / unallocated items and eliminations’ (2026 and 2025: Nil; 2024: $3.3 million). Refer to Note 14 for further details. |
| (9) | Adjustment to profit/(loss) which is reported as part of ‘Group / unallocated items and eliminations’. Refer to Note 30 (d) 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:
| 2026 % | | 2025 % | | 2024 % | |
| External Customer 1 | | 76 | | 33 | | – |
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| External Customer 2 | | 16 | | – | | – |
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| External Customer 3 | | 8 | | 67 | | 45 |
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| External Customer 4 | | – | | – | | 29 |
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| External Customer 5 | | – | | – | | 25 |
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