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 Financial Report For the Half - Year Ended 31 December 2025 Financial Report For the Half - Year Ended 31 December 2025 Table of Contents Livium Ltd Page i Table of Contents Corporate Directory......................................................................................................................1 Directors’ Report...........................................................................................................................2 1 Director’s Report ................................................................................................................................... 2 2 Review of Operations............................................................................................................................ 4 Auditor’s Independence Declaration......................................................................................... 10 Condensed Consolidated Statement of Comprehensive Income for the Half-Year Ended 31 December 2025 ........................................................................................................................... 11 Condensed Consolidated Statement of Financial Position as at 31 December 2025............. 12 Condensed Consolidated Statement of Changes in Equity for the Half-Year Ended 31 December 2025 ........................................................................................................................... 13 Condensed Consolidated Statement of Cash Flows for the Half-Year Ended 31 December 2025.............................................................................................................................................. 15 Notes to the Condensed Consolidated Financial Statements for the Half-Year Ended 31 December 2025 ........................................................................................................................... 16 Note 1 Statement of material accounting policies ..................................................................... 16 Note 2 Revenue.............................................................................................................................. 17 Note 3 Other Income ..................................................................................................................... 17 Note 4 Gain on Formation of Joint Venture ................................................................................ 17 Note 5 Share of Net Profit of Equity Accounted Investment..................................................... 17 Note 6 Finance Costs.................................................................................................................... 18 Note 7 Employee Benefits Expense ............................................................................................ 18 Note 8 Intangible Assets............................................................................................................... 18 Note 9 Provisions .......................................................................................................................... 19 Note 10 Loans and Borrowings ..................................................................................................... 19 Note 11 Deferred Tax Assets .......................................................................................................... 20 Note 12 Issued Capital .................................................................................................................... 20 Note 13 Operating Segments ......................................................................................................... 21 Note 14 Investment in Joint Venture ............................................................................................. 23 Note 15 Contingent Liabilities........................................................................................................ 24 Note 16 Share Based Payments..................................................................................................... 25 Note 17 Subsequent Events ........................................................................................................... 26 Directors’ Declaration................................................................................................................. 27 Independent Auditor’s Report.................................................................................................... 28 Financial Report For the Half - Year Ended 31 December 2025 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: Unit 1, 79 - 83 High Street, Kew VIC 3101 Principal Place of Business: Unit 1, 79 - 83 High Street, Kew VIC 3101 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 Financial Report For the Half - Year Ended 31 December 2025 Directors’ Report Livium Ltd Page 2 Directors’ Report The Directors present their report on Livium Ltd (“LIT” or the “Group”) and its controlled entities (the “Group”) for the half-year ended 31 December 2025 (the “half-year”). 1 Director’s Report 1.1 Principal Activities The principal activities of the Group during the period 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, develops leading-edge processing technology to produce lithium ferro phosphate (LFP), and develops patented lithium extraction technology. There were no significant changes in the nature of the Group’s principal activities during the period. 1.2 Results of Operations The operating profit after income tax of the Group for the year half-year ended 31 December 2025 was $0.23m (31 December 2024: loss of $3.70m). The key movements between the half-years are summarised in the following graphic: Employee costs: Staff wage expenses decreased compared to the prior corresponding period, reflecting the restructure undertaken in FY25 and the absence of short-term incentive (STI) payments in the current period. SBP (Share based payments): Share-based payment expense decreased to $0.25m (pcp: $1.28m), primarily due to a lower number of performance rights on issue compared to the pcp, and a charge of $0.86m in the pcp related to cancellation of performance rights in that period. LieNA JV: The Group recognised a gain on JV formation of approximately A$2.9m and share of profit from the equity-accounted investment of approximately A$0.3m (pcp: Nil). Others: “Others” include lab and plant expenses, selling and distribution costs, administration expenses, depreciation and amortisation, finance costs, finance income, other revenue and other expenditure. Gross Profit: Gross profit was lower due to lower than expected LIB collection volumes, and therefore sales, compared to the prior corresponding period, however volume receipts in early 2026 have seen a more positive trend than the end of 2025. (3.70) 1.31 1.04 3.19 (0.55) (1.06) 0.23 31 Dec 24 Net Loss Employee costs SBP LieNA JV Others Gross Profit 31 Dec 25 Net Profit (4.00) (3.00) (2.00) (1.00) 0.00 1.00 2.00 3.00 Net Profit / (Loss) After Tax: HY 31 Dec 2024 vs 2025 ($'m) Financial Report For the Half - Year Ended 31 December 2025 Directors’ Report Livium Ltd Page 3 Net assets of the Group for the half-year ended 31 December 2025 were $11.29m (30 June 2025: $6.66m). The key movements over the financial period are summarised in the following graphic: Current Assets: Increased primarily due to funds raised from a $4.5m placement completed during the period, along with the receipt of $1.3m R&D incentive rebates, as disclosed in ASX announcements, less cash expenditure over the period. Non-Current Assets: Primarily due to the deconsolidation of LieNA®, which resulted in the derecognition of intangible assets of $6.8m from the consolidated financial statements, partially offset by the recognition of an investment in the LieNA joint venture of $5.3m. Current Liabilities: Decreased primarily due to the conversion of MinRes’ convertible note of $5.2m into equity on 8 August 2025, upon the formation of the LieNA joint venture. The Group’s working capital position improved during the period, moving from a deficit of $6.2m at 30 June 2025 to a surplus of $0.6m at 31 December 2025. This improvement primarily reflects the conversion of the MinRes convertible notes into equity upon the formation of the LieNA joint venture, with the provision relating to the January 2019 Envirostream fire remaining unchanged and expected to be covered by insurance (refer Note 9). Accordingly, there are reasonable grounds to believe the Group can meet its obligations as they fall due. 1.3 Dividends There are no dividend or distribution reinvestment plans in operation and there have been no dividend or distribution payments during the financial half-year ended 31 December 2025 (31 December 2024: Nil). 6.66 1.23 (2.23) 5.52 0.11 11.29 30-Jun-25 Current Assets Non Current Assets Current Liabilities Non Current Liabilities 31-Dec-25 0.00 2.00 4.00 6.00 8.00 10.00 12.00 Net Assets: 30 June 25 vs 31 Dec 25 ($'m) Financial Report For the Half - Year Ended 31 December 2025 Directors’ Report Livium Ltd Page 4 2 Review of Operations 2.1 Overview Livium Ltd (“Livium” or the “Company”) is building Australia’s platform for circular material recovery — unlocking critical materials from batteries and clean-energy infrastructure. Livium's subsidiary, Envirostream, is Australia’s market-leading lithium-ion battery recycler. Envirostream is seeking to expand its services into processing black mass, and recycling of solar panels and rare earth elements to meet its customers' needs. 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. 2.1.1 Working Capital Management At 31 December 2025, Livium held cash and cash equivalents of approximately $5.7m. 2.1.1.1 Fund Raising During the period, the company completed a placement with gross proceeds of $4.5m to existing shareholders, alongside new institutional and sophisticated investors (Placement). The Placement resulted in the issue of 360,000,000 new fully paid ordinary shares at an issue price of $0.0125 per share (a discount of 15% to the Company’s 5-day VWAP), and 360,000,000 free-attaching option for every Placement Share. 2.1.1.2 R&D Tax Incentive Rebates During the period, the Company received approximately $1.3m in R&D tax incentives relating to activities undertaken by Envirostream and VSPC. 2.1.1.3 Joint Venture Distribution During the period, the Company received a shareholder distribution of $173,065 from its 50% joint venture interest in LieNA Pty Ltd (refer Note 14). 2.2 Battery Recycling Division The Company operates Australia’s market leading battery recycler through wholly owned subsidiary Envirostream Australia Pty Ltd (“Envirostream”). Envirostream provides national collection and recycling services to customers and undertakes shredding and battery processing in Melbourne. Its proprietary process involves recovery of energy metals as a black mass, which is then exported for further refining. Envirostream is seeking to build its services into processing black mass, and recycling of solar panels and rare-earth elements to meet its customers' needs. 2.2.1 Mixed Performance 2.2.1.1 Operating and Financial Summary During the period, Envirostream delivered a loss before tax of $0.3m (pcp1: profit before tax of $0.4m). The financial performance was driven by a reduction in gross profit of $1.2m (pcp: $2.3m), resulting from lower revenues of $2.7m (pcp: $3.8m) partially offset by cost of sales of $1.5m (pcp: $1.5m). Gross profit margins achieved of ~45% (pcp: 61%) demonstrate that the Envirostream’s commercial model remains robust. Volume performance, as described in section 2.2.1.2, is the biggest driver for performance, especially due to the high fixed nature of Envirostream’s cost structures. Gross margins were reduced in the period due to lower large format lithium-ion batteries in the mix of battery collections. Smaller battery types typically require higher direct costs than large format batteries, increasing costs of sales on a unit rate basis. 1 pcp = prior corresponding period, being the 6 months to 31 December 2024 Financial Report For the Half - Year Ended 31 December 2025 Directors’ Report Livium Ltd Page 5 Reduction of Envirostream expenses to $2.1m (pcp: $2.4m) were delivered through cost reduction activities including finalisation of the organisational restructure which commenced in FY25. 2.2.1.2 Volume Delivery Envirostream continues to prioritise the receipt of large-format lithium-ion batteries (LIB), such as energy storage and electric vehicles. This is because of the significantly higher margin opportunity relative to other battery types and the medium to long term battery waste outlook. During the period, Envirostream collected 399 tonnes (22% decrease on pcp), with large-format LIB collections of 101 tonnes, 75% lower relative to the pcp. This was driven by a major lithium-ion contract which commenced in late FY24 and completed in early FY25. 2.2.1.3 Battery Recycling Performance Summary During the period, Envirostream achieved revenue of A$2.7m (pcp: A$3.8m). The largest contributor to revenue is customer service fees, followed by sales of finished goods which in primarily sale of black mass (also referred to as mixed metal dust). Gross profit of A$1.2m was generated (pcp: A$2.3m), representing a gross margin of 45% (pcp: 61%). This reflects a largely cost of sales which are largely fixed in nature. 2.2.2 Customer Development Envirostream continues to penetrate new and existing markets to deliver more consistent baseload volumes, overlayed by larger project opportunities. During the period, new contracts were secured. An emerging “market” is that of battery stockpiling which has increased in the past few years. Other core targets include grid-scale and residential energy storage, supported by policy initiatives such as the Cheaper Home Batteries Program, and electric vehicles, with some customers experiencing strong year-on-year growth. Looking ahead, we have started to see LIB volumes flow again in 2026. Current volumes, coupled with customer development activities, underpin future revenue growth for the balance of FY26 and beyond. The medium to long term volume outlook is positive (Figure 1), driven by strong penetration of residential and commercial energy storage systems, growth in e-mobility uptake, and regulatory reforms. Over time, as installed battery volumes increase and stewardship frameworks mature, the Company expects more predictable and scalable EOL battery flows to emerge. Figure 1 EOL Battery Projections by Market Segment2 2.2.3 Hub and Spoke Development Livium is committed to supporting growth through the measured, responsible development of its operations. The initial stage is to identify a suitable site to consolidate current Victorian operations into a larger, centralised 2 Source: Battery Market Analysis - The latest market data for the battery industry in Australia: B-cycle (Oct23); Company analysis 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% - 50 100 150 200 250 300 350 400 450 500 550 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 % EV/ESS of Total EOL Batteries EOL Battery Volumes (kT) Forecast (Mixed) tonnes Forecast (ESS) tonnes Forecast (EV) tonnes Forecast (Lead Acid) tonnes Financial Report For the Half - Year Ended 31 December 2025 Directors’ Report Livium Ltd Page 6 processing “Hub” facility. Zoning identified for the Hub targets 24/7 operations and an increased footprint to allow equipment expansion at a future point. This Hub will allow capacity increases immediately, if required, through increased operating hours. Over the medium term the Hub will allow expansion of processing capacity by up to three times. Livium is in advanced discussions related to the Hub lease. Upon execution of the lease, Envirostream’s Laverton North site will be relocated to the Hub, with completion planned by the end of March 2026 and operational impacts expected to be limited. Envirostream’s LIB processing site in Campbellfield is not expected to relocate before the end of 2026, with detailed planning to consider factors such as lease expiry and operational disruption. Livium is also seeking to establish regional “Spokes”, which focus on collection, sorting, discharge, and safe storage of LIBs prior to transport to the Hub for processing into black mass. Western Australia has been identified as a Spoke location, supported by the previously awarded A$850,000 grant. 2.2.4 Intellectual Property During the period, IP Australia granted a standard patent protecting Livium’s wet shredding and separation process for lithium‑ion battery recycling. Held under Livium’s IP‑owning subsidiary Resource Conservation and Recycling Corporation Pty Ltd (RCARC), the patent provides protection through 2041 and formally acknowledges the process’ safety benefits, including thermal‑event mitigation and enhanced capture of volatile compounds. Financial Report For the Half - Year Ended 31 December 2025 Directors’ Report Livium Ltd Page 7 2.3 Other Recycling Verticals Envirostream is seeking to build its services into processing black mass, and recycling of solar panels and rare-earth elements to meet its customers' needs. 2.3.1 Exclusive Global Rights to UoM Microwave Technology for REE Extraction During the period, Livium executed binding agreements with the University of Melbourne (UoM) securing exclusive global rights to microwave‑assisted leaching technology for rare earth elements (REE) extraction, with an option to expand the licence to include platinum‑group metals (PGMs). Subsequent to the end of the period, the Company released a successful Stage 1 update confirming sustained progress and strong technical validation of the microwave assisted REE extraction process. Testwork to date has demonstrated leach efficiencies consistently exceeding 90% for both Neodymium (Nd) and Praseodymium (Pr), with strong repeatability across larger sample sizes. Stage 1 also included completion of optimisation work across key process parameters—solid to liquid ratio, leaching solution concentration, and iron (Fe) separation—with further recovery improvements identified. Remaining Stage 1 activities focus on microwave parameter optimisation and enhanced Fe removal, which are targeted for completion by the end of February 2026. The partnership supports Livium’s strategy to recover critical minerals through recycling rather than primary mining. Stage 2 will progress to construction of a prototype scale microwave reactor, enabling REE extraction testing at scale and marking the next phase of Livium’s technology commercialisation roadmap. 2.3.2 Iondrive Secured as Extraction Technology Partner During the period, Livium executed a binding term sheet with Iondrive Limited (ASX: ION) that combines Livium’s customer and feedstock access with Iondrive’s technology to advance the application of Iondrive’s proprietary Deep Eutectic Solvent (DES) technology to process end-of-life solar panels, black mass and rare- earth magnets. Subsequent to the period, Iondrive reported strong initial silver recovery results of ~85% from laboratory testing on solar panel material supplied by Livium, providing important validation and supporting Livium’s strategy via collaboration to develop an integrated, commercially viable solar panel recycling solution focused on the recovery of high-value critical materials. 2.3.3 Pursuit of a PV Recycling Facility in Australia During the period, Livium executed a memorandum of understanding (MOU) with Won Kwang S&T to establish a cooperation model for end-of-life PV recycling, with the long-term goal of forming a joint venture to build and operate a PV recycling facility in Australia. This agreement provides for the export of end-of-life photovoltaic (PV) modules from Australia to Won Kwang S&T’s facility in the near term, followed by partial dismantling in Australia and, ultimately, the development of a joint-venture PV-recycling facility domestically. During the period, Livium collected PV panels in preparation for shipment to Won Kwang S&T’s South Korean site. These panels, which shipped in January 2026, support the validation of Won Kwang’s advanced technology for high‑value material recovery. Financial Report For the Half - Year Ended 31 December 2025 Directors’ Report Livium Ltd Page 8 2.4 Non-Recycling Verticals 2.4.1 Lithium Chemicals Division (LieNA®) Livium has developed a patented lithium extraction technology (LieNA®) and entered into a joint development agreement (JDA) with leading ASX-listed mining company Mineral Resources Ltd (ASX: MIN) (“MinRes”) to commercialise the lithium extraction technology through the issuance of licenses to third parties via LieNA Pty Ltd, a 50:50 Joint Venture (JV) entity held between Livium and MinRes. 2.4.1.1 Formation of 50:50 Joint Venture with Mineral Resources During the period, the Company concluded optimisation activities for the LieNA® technology (Stage 1A Activities). Stage 1A Activities included an assessment of alternate commercialisation pathways, and the selection of the preferred lithium product for LieNA®, including the potential for battery grade lithium carbonate. Following completion of Stage 1A Activities, Livium and MinRes executed key documentation to form the 50:50 JV. Execution included a Shareholders Agreement, which defines the JV’s structure, governance, and decision-making processes of the JV company. Following execution of these documents, MinRes issued a Conversion Notice and LieNA Pty Ltd issued shares to MinRes equal to the number held by Livium. 2.4.1.2 Future Commercialisation The JV intends to initially license the LieNA® technology to a semi-commercial facility, which MinRes can elect to independently fund, develop, and operate. The JV will then seek to license the LieNA® technology to third parties at a target headline gross product royalty rate of 8%3. The royalty model materially expands LieNA®’s addressable market as it has the potential to capture a fee on all tonnage processed via any mine utilising the LieNA® technology. Current market conditions do not support the economic construction and funding of the LieNA® Demonstration Plant. Whilst market conditions remain, the Company is exploring alternate partnership and monetisation opportunities for the LieNA® Technology. 2.4.2 Battery Materials Division (VSPC) Livium produces critical battery material lithium ferro phosphate (LFP) through its wholly owned subsidiary VSPC Pty Ltd (VSPC). 2.4.2.1 Pathway to Commercialisation The development pathway includes the construction of an LFP demonstration plant (“Project”) capable of continuous operation to produce both lithium ferro phosphate, and the emerging lithium manganese ferro phosphate (LMFP). This small-scale, capital efficient demonstration plant allows production of larger sample sizes to match customer’s product qualification requirements and enables the securing of binding offtake agreements for VSPC products. Binding offtake agreements are a critical requirement before establishment of a full-scale production facility. 2.4.2.2 Up to A$30m ARENA Grant VSPC has previously executed a binding agreement for a grant of up to A$30m with the Australian Renewable Energy Agency (“ARENA”). The ARENA funding needs to be matched with other investment funds in order to complete the front-end engineering design of, and start construction of, a demonstration plant. 2.4.2.3 Project Financing Livium’s preferred funding pathway seeks to eliminate reliance on Livium shareholder contributions, whilst maximising value creation for stakeholders. During the period, the Company confirmed the viability and subsequently launched funding on a phased approach, which lowers the initial funding hurdle but matches requirements of the ARENA grant. If secured and approved by the board, the managed sell down of Livium’s equity in VSPC will commence. If funding is not confirmed, options to preserve or realise value while minimising spending may be pursued. 3 The Company cautions that although it considers this to be a reasonable expectation, there is no guarantee that this rate will be achieved Financial Report For the Half - Year Ended 31 December 2025 Directors’ Report Livium Ltd Page 9 2.5 Other Information 2.5.1 Subsequent Events • On 14 January 2026, the Group updated the market on progress with microwave-assisted rare earth element (REE) extraction technology in collaboration with the University of Melbourne. • On 21 January 2026, the Group announced progress in Phase 1 of its collaboration with Won Kwang S&T Co., Ltd (“Won Kwang S&T”), demonstrated by the collection, packing and shipment of end-of- life (“EoL”) solar panels from Australia to South Korea for recycling. The shipment was undertaken in accordance with a non-binding Memorandum of Understanding (“MOU”) executed in September 2025. • On 4 February 2026, the Group announced that the Board of LieNA Pty Ltd, the Group’s 50:50 joint venture with Mineral Resources Limited, had approved a shareholder distribution of $670,000, subject to member approval of an equal capital reduction, of which Livium is entitled to receive $335,000. The distribution followed the receipt of R&D tax incentive proceeds by LieNA on 4 February 2026. There are no other events subsequent to 31 December 2025 and up to the date of this report that would materially affect the results of those operations of the Group or its state of affairs which have not otherwise been disclosed in this financial report. 2.6 Auditor’s Independence Declaration Section 307C of the Corporations Act 2001 requires our auditors, Hall Chadwick, to provide the Directors of the Group with an Independence Declaration in relation to the review of the interim financial report. This Independence Declaration is set out on page 10 and forms part of this directors’ report for the half-year ended 31 December 2025. This report is made in accordance with a resolution of the Directors. Phillip Campbell Non-executive Chair Dated at Melbourne this 18th day of February 2026 To the Board of Directors AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 As lead audit director for the review of the financial statements of Livium Limited for the half year ended 31 December 2025, I declare that to the best of my knowledge and belief, there have been no contraventions of:  the auditor independence requirements of the Corporations Act 2001 in relation to the review; and  any applicable code of professional conduct in relation to the review. Yours Faithfully, HALL CHADWICK WA AUDIT PTY LTD D M BELL FCA Director Dated this 18th day of February 2026 Perth, Western Australia Page 10 Financial Report For the Half - Year Ended 31 December 2025 Condensed Consolidated Statement of Comprehensive Income for the Half-Year Ended 31 December 2025 Livium Ltd Page 11 Condensed Consolidated Statement of Comprehensive Income for the Half-Year Ended 31 December 2025 Condensed Consolidated Statement of Comprehensive Income Note Half-Year December 2025 Half-Year December 2024 $ $ Revenue from continuing operations Note 2 2,746,630 3,763,685 Cost of sales (1,506,460) (1,467,488) Gross profit 1,240,170 2,296,197 Finance income 41,942 59,273 Gain on establishment of joint venture Note 4 2,889,491 - Share of net profit of equity accounted investment Note 5 300,084 - Other income Note 3 1,339,135 2,388,590 Laboratory/plant expense (128,426) (159,972) Share based payment expense 0 (246,333) (1,282,785) Employee benefits expense Note 7 (3,462,698) (4,772,097) Selling and distribution expense (245,223) (653,636) Administration costs (690,253) (786,184) Depreciation and amortisation (623,249) (419,865) Finance costs Note 6 (80,450) (352,249) Other expenses (108,386) (19,392) Profit/(Loss) before income tax 225,804 (3,702,120) Income tax expense - - Profit/(Loss) from continuing operations 225,804 (3,702,120) Other comprehensive income Items that may not be reclassified subsequently to profit or loss: Net fair value gain on financial assets - 136,958 Total comprehensive income/(loss) for the period 225,804 (3,565,162) Profit/(Loss) for the period attributable to: Members of the controlling entity 225,804 (3,701,824) Non-controlling interest - (296) 225,804 (3,702,120) Total comprehensive income/(loss) attributable to: Members of the controlling entity 225,804 (3,564,866) Non-controlling interest - (296) 225,804 (3,565,162) Basic earnings/(loss) per share (cents per share) 0.01 (0.29) The above statement of comprehensive income should be read in conjunction with the accompanying notes. Financial Report For the Half - Year