Announcement PDF Livium Ltd ACN 126 129 413 +61 (0) 3 7017 2656 info@lithium-au.com liviumcorp.com LIVIUM LTD ACN 126 129 413 Annual Report For the Year Ended 30 June 2026 Annual Report For the Year Ended 30 June 2026 Table of Contents Livium Ltd Page i Table of Contents Corporate Directory......................................................................................................................1 Chairs’ Letter.................................................................................................................................2 Directors’ Report...........................................................................................................................4 1 Directors’ Report ................................................................................................................................... 4 2 Review of Operations............................................................................................................................ 8 3 Sustainability Report .......................................................................................................................... 16 4 Remuneration report (audited)........................................................................................................... 22 5 Governance.......................................................................................................................................... 27 Auditor’s Independence Declaration......................................................................................... 29 Consolidated Statement of Profit or Loss and Other Comprehensive Income for the Year Ended 30 June 2026.................................................................................................................... 30 Consolidated Statement of Financial Position for the Year Ended 30 June 2026................... 31 Consolidated Statement of Changes in Equity for the Year Ended 30 June 2026.................. 32 Consolidated Statement of Cash Flows for the Year Ended 30 June 2026 ............................. 34 Notes to the Consolidated Financial Statements for the Year Ended 30 June 2026 .............. 35 Note 1 Statement of material accounting policies ..................................................................... 35 Note 2 Revenue.............................................................................................................................. 44 Note 3 Other Income ..................................................................................................................... 44 Note 4 Gain on Formation of Joint Venture ................................................................................ 45 Note 5 Share of Net Profit of Equity Accounted Investment..................................................... 45 Note 6 Finance Costs.................................................................................................................... 45 Note 7 Auditor’s Remuneration ................................................................................................... 45 Note 8 Expenses from Ordinary Activities.................................................................................. 46 Note 9 Income Tax Expense ......................................................................................................... 47 Note 10 Trade and Other Receivables ........................................................................................... 48 Note 11 Inventory ............................................................................................................................ 48 Note 12 Financial Assets ................................................................................................................ 48 Note 13 Intangible Assets............................................................................................................... 49 Note 14 Property, Plant and Equipment ........................................................................................ 50 Note 15 Trade and Other Payables ................................................................................................ 50 Note 16 Leases ................................................................................................................................ 51 Note 17 Provisions .......................................................................................................................... 52 Note 18 Loans and Borrowings ..................................................................................................... 52 Note 19 Deferred Tax Assets .......................................................................................................... 53 Note 20 Capital Management.......................................................................................................... 53 Note 21 Issued Capital .................................................................................................................... 53 Note 22 Reserves............................................................................................................................. 54 Note 23 Financial Instruments ....................................................................................................... 55 Annual Report For the Year Ended 30 June 2026 Table of Contents Livium Ltd Page ii Note 24 Loss Per Share .................................................................................................................. 56 Note 25 Cash Flow........................................................................................................................... 57 Note 26 Operating Segments ......................................................................................................... 57 Note 27 Investment in Joint Venture ............................................................................................. 60 Note 28 Contingent Liabilities and Contingent Assets................................................................ 62 Note 29 Related Party Transactions .............................................................................................. 63 Note 30 Controlled Entities............................................................................................................. 63 Note 31 Consolidated Entity Disclosure ....................................................................................... 64 Note 32 Parent Entity ...................................................................................................................... 64 Note 33 Commitments..................................................................................................................... 65 Note 34 Share Based Payments..................................................................................................... 65 Note 35 Subsequent Events ........................................................................................................... 66 Directors’ Declaration................................................................................................................. 67 Independent Auditor’s Report.................................................................................................... 68 Additional ASX Information........................................................................................................ 74 6 Additional ASX Information................................................................................................................ 74 Annual Report For the Year Ended 30 June 2026 Corporate Directory Livium Ltd Page 1 Corporate Directory Livium Ltd Corporate Directory Directors Managing Director and CEO: Simon Linge Non-Executive Chair: Phillip Campbell Non-Executive Directors: Kristie Young Phil Thick Executive Management Chief Financial Officer: Stuart Tarrant Joint-Company Secretary: Catherine Grant-Edwards Melissa Chapman Business Details Registered Office: 15 Marwen Drive, Derrimut, Victoria, 3026 Principal Place of Business: 15 Marwen Drive, Derrimut, Victoria, 3026 Phone: +61 (0) 3 7017 2656 Email: info@liviumcorp.com Website: www.liviumcorp.com Stock Exchange Listing: Livium Ltd securities are listed on Australian Securities Exchange (ASX Codes: LIT, LITOC) Other Details Bank: National Australia Bank, 100 St Georges Terrace, Perth WA 6000 Auditors: Hall Chadwick WA Audit Pty Ltd (Hall Chadwick), 283 Rokeby Road, Subiaco WA 6008 Share Registry: Automic Group on 1300 429 179 (domestic calls) or +61 2 7208 4522 (international calls) or by email at corporate.actions@automicgroup.com.au Annual Report For the Year Ended 30 June 2026 Chairs’ Letter Livium Ltd Page 2 Chairs’ Letter Dear Shareholders, This is my first letter to you covering a full financial year as Chair, having joined the Board in April 2025. My joining followed closely on the heels of a strategic review which took place in the second half of calendar 2024 and focused on the commercial growth strategy. Subsequently, we have further refined our approach, including the tightening of operational objectives and timelines for their completion. The body of this annual report lays out the details of how we expanded, strengthened and deepened relationships with our customers, and how we laid the foundation of infrastructure to support our future growth − so I won't repeat that here. What I want to reflect on, as Chair, is the discipline behind those choices. Battery recycling remains Livium's core priority, and Envirostream's position Australia's leading lithium-ion battery recycler is the platform everything else is built upon. Safety is our number one priority. Given the nature of our business, having a safe and respectful workplace is non-negotiable and I am pleased to report that our executive and production teams have acquitted themselves with an almost perfect safety record, despite having to achieve more with less this past year. They have incurred no Lost Time Injuries and one Medical Treatment Injury. While any injury is unacceptable, these results are a testament to our focus on safety management in the battery recycling industry. This focus is important in a workplace with operations that involve disassembling batteries with ever present electrical hazards from undischarged batteries. In this regard, the Board wishes to recognise the leadership shown by Steven Marshall, our COO. A laser focus on long-term resilience. Extracting value from the company’s legacy interests in LieNA® and preserving value in VSPC to enable focus on growth opportunities presented by the Envirostream recycling business has been the theme of FY26. Ably led by our MD, Simon Linge, the management team has been largely successful in realising cash while positioning Envirostream for stronger future performance. The provision related to the 2019 fire, which has cast a shadow over the Balance Sheet for many years, has been resolved subsequent to year end, with no settlement cash outflow by Livium − as at the date of this financial report, the fire-related provision is nil. LieNA® Mineral Resources Limited (MinRes) exercised their right to convert their funding of the technology to LieNA® equity, resulting in the formation of a 50:50 Joint Venture with us in August 2025. The next phase of technology development requires MinRes to design, fund and develop a Demonstration Plant. No decision has yet been made by MinRes, who are assessing the best time to scale the technology. VSPC A decision on commercialisation of VSPC, Livium’s lithium ferro phosphate (LFP) cathode powder technology, remains a priority for the Board. During FY26, Livium held discussions with a large multinational industrial organisation regarding a potential strategic alliance and investment in Livium, and subsequent to year end they confirmed their interest to undertake due diligence, underscoring strong external validation of VSPC's Gen4 technology. If the discussions are successful, opportunities across battery materials, battery recycling and potential international growth pathways will emerge. These discussions are ongoing and no binding agreement has yet been reached. Subsequent to year end, the Company secured funding agreements with The Lind Partners providing potential funding capacity of up to $11.75 million, along with a Share Purchase Plan. Together, these provide the necessary funding to complete discussions. Whilst we hope these discussions conclude successfully, we are prepared to undertake an orderly transition of VSPC to care and maintenance in the event they are unsuccessful. Annual Report For the Year Ended 30 June 2026 Chairs’ Letter Livium Ltd Page 3 Envirostream The major focus for the executive team in FY26, which continues apace in FY27, is the growth in lithium-ion battery collection and processing, leading to a sustainably profitable, environmentally responsible business. The ending of the lease at our previous warehousing and preparation facility in North Laverton, Victoria created an opportunity for us to consolidate battery processing operations into a singular site, which we secured at Derrimut, Victoria. Known as the Derrimut Recycling Hub, this facility is capable of accommodating our projected growth based on independent forecasts of failed batteries entering the market in the medium term. The Board is encouraged that this decision is already proving well-founded, with Envirostream subsequently partnering with CATL, the world’s leading lithium-ion battery manufacturer, and Sigenergy, Australia’s leading residential battery brand. Securing these customers in addition to the collection of household names that consider Envirostream as a suitable long-term recycling partner is testament to what we are building. There is more detail on customer development throughout this report. The Operating Environment. Regulatory settings across Australia currently leave gaps in the enforcement of proper battery collection, transport and processing, including through illegal export, landfill disposal and non-compliant processing. This enforcement deficiency has featured in recent media coverage, including reporting by The Age and The Sydney Morning Herald in early May. It raised serious questions for the industry. Together with industry peers, Livium continues to advocate for regulatory reform that supports consistent, high-integrity standards across the sector. New South Wales remains the leading jurisdiction on recycling legislation, as noted in last year's report, though progress elsewhere at state and federal level has been limited over the past 12 months. The appointment of John Bradley as CEO of the National EPA, reporting to Minister Murray Watt, is an encouraging development and we were pleased to host senior National EPA officials at our Derrimut operations on 13 August 2026 to discuss the opportunities and challenges facing the industry. During the year, we wrote to the Chairs of the Risk and Audit Committees of major ASX-listed companies with exposure to battery collection or disposal, including major retailers and mining companies. We also wrote to the CEOs of major electric and hybrid vehicle importers and retailers. Our letters highlighted their chain-of- custody and the ESG reporting responsibilities relevant to battery disposal. Discouragingly, we are yet to receive any responses, but we will continue our engagement and remain optimistic about adoption. The potential for reputational damage, let alone environmental damage, and latent personal injury risk from improper disposal of batteries, has yet to be fully recognised in the boardrooms of Australia. Recent media reporting has also raised questions about how effectively the Battery Stewardship Council's accreditation scheme is delivering on its stated goal of ensuring every imported battery is recovered and reprocessed. We believe the scheme would benefit from stronger governance and management oversight particularly related to the audit and verification processes of battery recyclers. In Closing. Livium has the opportunity to participate in and benefit from the accelerating global transition to electrification and decarbonisation. Our focus remains on improving revenue from recycling. Achieving that growth involves the disciplined evaluation of improved battery collection methods, including interstate collection hubs, and joint ventures with like-minded recyclers of materials key to the net zero energy transition. We remain grateful for the continued support of our shareholders and the dedication of all of our employees, particularly while we implement some difficult but necessary restructuring initiatives. Phillip Campbell Non-Executive Chair Annual Report For the Year Ended 30 June 2026 Directors’ Report Livium Ltd Page 4 Directors’ Report The Directors present their report on Livium Ltd (“LIT” or the “Group”) and its controlled entities (the “Group”) for the year ended 30 June 2026 (the “year”). 1 Directors’ Report 1.1 Board of Directors The names and details of the Group’s directors in office during the year and until the date of this report are as follows. Directors were in office for this entire period unless otherwise stated. Board of Directors Managing Director and CEO: Simon Linge Non-Executive Chair: Phillip Campbell Non-Executive Director: Kristie Young Phil Thick 1.2 Information on Directors Information on Directors Managing Director and CEO Name: Simon Linge Qualifications: BEco (Hons), MAICD Experience: Mr Linge has over 30 years’ experience in manufacturing, logistics and infrastructure. Mr Linge has held multiple senior leadership positions. This included an executive role at Pact Group, a leader in the circular economy focused on minimising waste through packaging, reuse, and recycling solutions. He also served as Managing Director & CEO of Bradken Limited, a global manufacturer of designed alloyed steel components, with a primary focus on the mining sector. Prior to these roles, Mr Linge also held senior executive positions with BlueScope throughout Australia, Asia, New Zealand, and USA. Mr Linge is the President of Association for the Battery Recycling Industry (ABRI). Other directorships in listed entities held in the past three years: None Non-Executive Chair Name: Phillip Campbell Qualifications: BEng (Hons), GAICD Experience: Phillip is an experienced independent non-executive director on publicly listed and private company boards. He has executive experience (MD/CEO roles) in a range of national manufacturing and engineering businesses and has significant experience in expanding and developing businesses. Phillip has a Bachelor of Electrical and Electronics Engineering from the University of Queensland and is a graduate member of the Australian Institute of Company Directors (GAICD). Corporate governance committee roles: • Member of the Audit & Risk Committee • Member of the Remuneration & Nominations Committee Other directorships in listed entities held in the past three years: • Non-Executive Chair – Verbrec Limited (ASX:VBC) Annual Report For the Year Ended 30 June 2026 Directors’ Report Livium Ltd Page 5 Information on Directors Non-Executive Director Name: Kristie Young Qualifications: BEng (Hons) Mining, Post Grad Dip (Education), FAICD, FAusIMM Experience: Ms Young has over 25 years’ experience in industry with a focus on the resources sector, coupled with over 15 years' experience on boards and committees. Experience spans across technical mining engineering, project evaluation, strategy, growth, marketing, commercial, client management, governance, executive search and business development (BD) including BD Director roles with both EY and PwC. Ms Young is Non-Executive Director with MinEx CRC and two other ASX listed entities. She holds a BEng(Mining)Hons, Post Grad DipEd (Maths, IT), Cert IV(HR), is a Graduate and Fellow of the AICD and a Fellow of the AusIMM. Corporate governance committee roles: • Chair of the Audit & Risk Committee • Member of the Remuneration & Nominations Committee Other directorships in listed entities held in the past three years: • Non-Executive Director – Brazilian Rare Earths Ltd (ASX:BRE) • Non-Executive Director – Tasmea Ltd (ASX:TEA) • Non-Executive Chair – Corazon Mining Limited (ASX:CZN) (Resigned 11 August 2026) • Non-Executive Director – Tesoro Resources Limited (ASX:TSO) (Resigned 5 October 2023) Non-Executive Director Name: Phil Thick Qualifications: BE (Hons), FAICD, FIEAust Experience: Phil Thick has over 30 years’ senior executive experience in oil and gas, mining and chemical processing in large multinational companies, smaller ASX listed companies and privately owned companies. In addition, Mr Thick has extensive experience in Non- Executive Director roles and has chaired many of those boards for extended periods. Mr Thick had a 20-year career with Shell in Australia and overseas and for the last 3 years was Downstream Director on the Board of Shell Australia. This was followed by 5 years as a director and CEO of Coogee Chemicals and then 4 years as CEO of New Standard Energy. Prior to joining the Group, Mr Thick led Tianqi Lithium Australia, a subsidiary of Tianqi Lithium Corp out of China, one of the world’s largest lithium companies. Tianqi owns 51% of the Greenbushes mine in Western Australia, the world’s best hard-rock lithium resource, and Mr Thick was charged with building the world’s largest lithium hydroxide plant in Kwinana south of Perth, an investment of nearly $1billion. Mr Thick also chairs the boards of the Chamber of Arts and Culture WA and Perth Symphony Orchestra. During the year, Mr Thick was appointed as Interim Non-Executive Chair from 3 January 2025 to 31 March 2025. Corporate governance committee roles: • Chair of the Remuneration & Nominations Committee • Member of the Audit & Risk Committee Other directorships in listed entities held in the past three years: • Non-Executive Chair – Macallum New Energy Limited (ASX:MNE) (Listed 25 February 2026) • Non-Executive Director – Patriot Resources Limited (ASX:PAT) (Resigned 26 March 2026) 1.3 Joint Company Secretary Ms Catherine Grant-Edwards (Chartered Accountant (CA)) and Ms Melissa Chapman (Certified Practicing Accountant (CPA), AGIA/ACIS, GAICD) are directors of Bellatrix Corporate Pty Ltd (Bellatrix), a company that provides company secretarial and accounting services to a number of ASX listed companies. Between them, Ms Chapman and Ms Grant-Edwards have over 40 years’ experience in the provision of accounting, finance and company secretarial services to public listed resource and private companies in Australia and the UK, and in the field of public practice external audit. Annual Report For the Year Ended 30 June 2026 Directors’ Report Livium Ltd Page 6 1.4 Principal Activities The principal activities of the Group during the year were battery recycling and the development and commercialisation of recycling and battery-related technologies. The Group operates Australia’s market leading lithium-ion battery recycler, and is expanding its services into processing of black mass, recycling of solar panels and recovery of rare earth elements. Beyond recycling, Livium has developed other innovative technologies. Lithium extraction technology, LieNA®, has progressed to a 50:50 joint venture with Mineral Resources. Livium’s subsidiary, VSPC, has developed next generation lithium ferro phosphate (LFP) process, the fastest growing battery material. There were no significant changes in the nature of the Group’s principal activities during the year. 1.5 Results of Operations The operating loss after income tax of the Group for the year ended 30 June 2026 was $4.04m (2025: loss of $4.57m). The key movements between the financial years are summarised in the following graphic: Employee costs: Employee costs decreased compared with FY25, primarily reflecting the workforce restructure undertaken in FY25, the absence of short-term incentive (STI) payments in the current year, and lower share-based payment expense. LieNA® JV: The Group recognised a gain on JV formation of approximately $2.9m and share of profit from the equity-accounted investment of approximately $0.3m (FY25: Nil). Fire Provision: $2.2m year-on-year movement, reflecting a $0.1m increase in the provision in FY26 compared with a $2.1m reduction in FY25. Income Tax Benefit: FY25 included an income tax benefit of $1.6m arising from the recognition of a Deferred Tax Asset. No corresponding income tax benefit was recognised in FY26. Gross Profit: Gross profit decreased compared with FY25, primarily due to lower-than-expected lithium-ion battery collection volumes, resulting in lower sales volumes. Others: Other movements primarily comprise changes in laboratory and plant expenses, selling and distribution costs, administration expenses, depreciation and amortisation, finance costs, other revenue and other operating expenses. Relocation costs: Non-recurring costs incurred in connection with the Group's site relocation activities to Derrimut during FY26 (FY25: Nil). (4.57) 3.66 3.18 (2.20) (1.60) (1.44) (0.73) (0.34) (4.04) FY25 Net Loss Employee costs LieNA JV Fire Provision Income tax benefit Gross Profit Others Relocation costs FY26 Net Loss (5.00) (4.00) (3.00) (2.00) (1.00) 0.00 1.00 2.00 3.00 Net Loss After Tax: FY26 vs FY25 ($'m) Annual Report For the Year Ended 30 June 2026 Directors’ Report Livium Ltd Page 7 Net assets of the Group for the year ended 30 June 2026 were $7.31m (2025: $6.66m). The key movements over the financial year are summarised in the following graphic: Current Assets: Decreased primarily due to cash utilised during the year, including the deconsolidation of LieNA® following the formation of the 50:50 joint venture, lower trade receivables and reduced battery inventories. These decreases were partially offset by proceeds from the $4.2m placement net of transaction costs and the receipt of $1.3m in R&D tax incentive refunds. Financial assets increased primarily due to net increase of bank guarantees related to the relocation to the new Derrimut facility. Non-Current Assets: Increased primarily due to the recognition of the Group's investment in the LieNA® joint venture following its formation. This was partially offset by the deconsolidation of LieNA®, including the derecognition of intangible assets, and was further supported by the recognition of a right-of-use asset following commencement of the Derrimut lease in March 2026. Current Liabilities: Decreased primarily due to the conversion of the MinRes convertible note into equity upon formation of the LieNA® joint venture on 8 August 2025, partially offset by higher current lease liabilities following commencement of the Derrimut lease. Non-Current Liabilities: Increased primarily due to the recognition of the lease liability associated with the new Derrimut facility following commencement of the lease in March 2026. The Group’s working capital position remained in deficit during the year, improving from $6.2m at 30 June 2025 to $3.5m at 30 June 2026. This primarily reflects the conversion of the MinRes convertible note into equity upon formation of the LieNA® joint venture, partially offset by current lease liabilities and other working capital movements. The fire-related provision of $5.465m was included in current liabilities at 30 June 2026. As the five claims were settled after year end, the full $5.465 million provision has been released in FY27. As at the date of this financial report, the fire-related provision is nil. Envirostream has been indemnified by its insurer in respect of the claims and, accordingly, settlement of the claims does not result in a cash outflow by Livium (refer Note 17). Accordingly, there are reasonable grounds to believe the Group can meet its obligations as they fall due. 1.6 Dividends There are no dividend or distribution reinvestment plans in operation and there have been no dividend or distribution payments during the financial year ended 30 June 2026 (2025: Nil). 6.66 (2.18) 1.02 4.84 (3.03) 7.31 FY25 Current Assets Non Current Assets Current Liabilities Non Current Liabilities FY26 0.00 2.00 4.00 6.00 8.00 10.00 12.00 Net Assets: FY25 vs FY26 ($'m) Annual Report For the Year Ended 30 June 2026 Directors’ Report Livium Ltd Page 8 2 Review of Operations 2.1 Overview Livium Ltd (“Livium” or the “Company”) is building an Australian platform for circular material recovery, focused on recovering critical materials from batteries and clean-energy infrastructure. During FY26, the Company confirmed recycling as its core strategic focus, with its wholly owned subsidiary, Envirostream Australia Pty Ltd (“Envirostream”), at the centre of the Group’s operations. Livium’s recycling strategy is founded on lithium-ion battery recycling and supported by selected adjacent opportunities, including black mass processing, photovoltaic (“PV”) panel recycling and rare-earth element (“REE”) recovery. The Company continued to strengthen its battery-recycling infrastructure, customer base and technical capabilities during the year. This included securing and commencing operations from a new, larger recycling facility in Derrimut, Victoria, entering into new and expanded customer agreements and advancing technology partnerships across adjacent opportunities. Livium also continued to preserve and maximise value from its complementary technology portfolio. The partnership with Mineral Resources Limited (“MinRes”) related to the LieNA® lithium-extraction technology was formalised through the formation of a 50:50 joint venture. VSPC Pty Ltd (“VSPC”) continued to pursue a strategic funding pathway for its lithium ferro phosphate (“LFP”) technology to allow development of a Demonstration Plant, for its Gen4 cathode powders. 2.1.1 Working Capital Management At 30 June 2026, Livium held cash and cash equivalents of approximately $2.3m. The Company’s focus is progress