XML 28 R13.htm IDEA: XBRL DOCUMENT v3.22.0.1
EQUITY INVESTMENTS IN UNCONSOLIDATED AFFILIATES
 6 Months Ended
Dec. 31, 2021
Equity Method Investments and Joint Ventures [Abstract]  
EQUITY INVESTMENTS IN UNCONSOLIDATED AFFILIATES EQUITY INVESTMENTS IN UNCONSOLIDATED AFFILIATES
We apply the equity method to investments when we have the ability to exercise significant influence over the operational decision-making authority and financial policies of the investee. We account for our existing investments in Atlantic Lithium Limited (“Atlantic Lithium”), Sayona Mining Limited (“Sayona”) and Sayona Quebec Inc. (“Sayona Quebec”) as equity method investments. Our share of the income or loss from Atlantic Lithium, Sayona and Sayona Quebec is recorded on a one quarter lag.
Atlantic Lithium Limited
On August 31, 2021, we entered into a strategic partnership with Atlantic Lithium Limited (formerly named IronRidge Resources Limited) by acquiring an equity interest of approximately 10% in Atlantic Lithium Limited for $16.0 million.
As part of our strategic partnership, we entered into a long-term supply agreement whereby Atlantic Lithium will sell 50% of spodumene concentrate produced in Ghana to Piedmont Lithium, subject to us exercising our ability to acquire an equity interest of 50% in Atlantic Lithium’s lithium-based portfolio in Ghana through expected future staged investments totaling approximately $87 million. (See Note 6—Other Assets).
Sayona Quebec
On August 30, 2021, Sayona Quebec acquired substantially all of the assets of North American Lithium Inc. (“NAL”) for $77.8 million. We paid $19.5 million to Sayona Quebec, representing our 25% equity interest contribution, and Sayona paid $58.3 million, representing Sayona’s 75% equity interest contribution, which collectively gave Sayona Quebec the ability to fund the purchase of NAL. During the six months ended December 31, 2021, we made additional investments of
$0.8 million in Sayona Quebec, which were proportional to the additional investments made by Sayona, and as such, our investment ownership percentage in Sayona Quebec did not change. As of December 31, 2021, our equity interest in Sayona Quebec was 25%.
Sayona

During the six months ended December 31, 2021, we invested in additional equity offerings by Sayona in the amount of $7.2 million. Our equity interest in Sayona, including the additional shares acquired, was approximately 16.5% as of December 31, 2021.
The following table summarizes the carrying amount, including changes therein, of our equity method investments for the periods presented below:
Sayona
Sayona QuebecAtlantic LithiumTotal
Initial investment(1)
$11,290,819 $5,067,593 $— $16,358,412 
Loss from equity method investments(64,626)— — (64,626)
Share of income from equity method investments included in other comprehensive income (loss)(31,288)— — (31,288)
Balance at June 30, 202111,194,905 5,067,593 — 16,262,498 
Initial investment(2)
— — 15,969,503 15,969,503 
Additional investment(3)
7,423,086 20,211,235 — 27,634,321 
Return of capital(4)
— — (513,511)(513,511)
Loss from equity method investments(525,679)(62,977)(53,479)(642,135)
Share of income from equity method investments included in other comprehensive income (loss)164,176 — (2,142)162,034 
Balance at December 31, 2021$18,256,488 $25,215,851 $15,400,371 $58,872,710 
Fair value of equity investments where market values from publicly traded entities are readily available$104,699,010 Not publicly traded$21,682,656 
____________________________________________________________________________
(1)Initial investment includes transaction costs of $212,713 for the year ended June 30, 2021.
(2)Initial investment includes transaction costs of $111,071 for the six months ended December 31, 2021.
(3)Additional investment includes transaction costs of $171,379 for the six months ended December 31, 2021.
(4)In December 2021, Atlantic Lithium demerged its gold business assets by exchanging them for shares in a newly formed company, Ricca Resources Limited. The shares in Ricca Resources Limited received were distributed to the shareholders of Atlantic Lithium and treated as a return of capital. (See Note 6—Other Assets).
The following tables present summarized financial information for our significant equity investments compiled from information provided to us by the investee. The amounts shown represent 100% of investee financial information for the respective periods.
Summarized financial information for the six months ended and as of December 31, 2021:
Sayona
Sayona QuebecAtlantic Lithium
Summarized statement of operations information:
Revenue$— $— $— 
Net loss from operations(2,692,205)(251,909)(539,649)
Other comprehensive income (loss), net of tax844,581 — (21,619)
Comprehensive loss(1,847,624)(251,909)(561,268)
 
Summarized balance sheet information:
Current assets18,302,011 712,057 24,332,412 
Non-current assets99,752,858 97,957,054 43,422,205 
Current liabilities2,071,478 917,461 3,354,029 
Non-current liabilities23,048 — — 
Summarized financial information for the year ended and as of June 30, 2021:
Sayona
Summarized statements of operations information:
Revenue$— 
Net loss from operations(324,754)
Other comprehensive income (loss), net of tax(157,224)
Comprehensive loss(481,979)
 
Summarized balance sheet information:
Current assets9,710,517 
Non-current assets17,718,789 
Current liabilities4,746,137 
Non-current liabilities24,285