ABN 79 131 843 868
Annual Report
for the year ended 30 June 2018
PEAKO LIMITED
ABN 79 131 843 868
Corporate Directory
Directors
Geoffrey Albers
Raewyn Clark
Peter Armitage
Non-Executive Chairman
Executive Director
Non-Executive Director
Company Secretary
Robert Wright
Registered Office
Level 21, 500 Collins Street
Melbourne Vic 3000
Website: www.peako.com.au
Email: info@peako.com.au
Ph: (03) 8610 4702
Fax: (03) 8610 4799
Auditor
Grant Thornton Audit Pty Ltd
Collins Square, Tower 1
727 Collins Street
Melbourne, Victoria 3008
Australia
Share Registry
Automic Pty Ltd
Level 3
50 Holt Street
Surry Hills, NSW 2010, Australia
Telephone: 1300 288 664 (within Australia)
Telephone: +61 (2) 9698 5414 (outside Australia)
Website: www.automic.com.au
Securities Exchange Listing
ASX Limited
Level 4, North Tower, Rialto
525 Collins Street
Melbourne Victoria 3000
Website:
www.asx.com.au
ASX Code: PKO
Incorporated in Western Australia 25 June 2008
TABLE OF CONTENTS
Corporate Directory
Chairman’s Letter
Operations Report
Directors’ Report
Remuneration Report
Auditor’s Independence Declaration
Consolidated Statement of Profit or
Loss and Other Comprehensive
Income
Consolidated Statement of Financial
Position
Consolidated Statement of Changes in
Equity
Consolidated Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report to the
Members
Additional Shareholder Information
(unaudited)
2
3
4
7
8
12
13
14
15
16
17
34
35
38
2
PEAKO LIMITED
ABN 79 131 843 868
Chairman’s Letter
Dear Shareholders
2017/18 was a year in which we expanded our minerals exploration activities, focusing on base metal
mineralization in Western Australia.
Geophysical methods are a key focus of our exploration strategy, with previously acquired data over
our Paterson Province - Sunday Creek project reprocessed in order to help identify base metal target
zones for investigation.
During the year we reached an agreement whereby we can earn a 60% interest in the Eastman project,
located in the East Kimberley region, following which we applied for an additional, contiguous
Exploration Licence.
Past exploration in this area has been inhibited by significant superficial cover, deep weathering and
structural complexity, with exploration primarily guided by surface gossans and geochemistry. Only
the more significant geochemical anomalies have been tested by limited drilling. Our recently
completed Induced Polarisation (IP) survey over two previously drilled prospects at the Eastman
project indicates that IP is a suitable method for detecting chargeable or resistive responses within
this geological setting. This opens up exploration opportunities throughout the tenement and the
contiguous application area.
There have been no developments in relation to the Company’s Cadlao petroleum interests during the
year.
During the year the Company raised $315,023, before costs, via a pro-rata non renounceable rights
issue on the basis of four new shares for every five shares held, together with one new option for every
share taken up.
I thank my co-directors for their services to the Company over the past year.
– Chairman
EG Albers
Peako Limited
27 September 2018
3
Minerals Exploration
engaged Resource
a
Following farmin to the Eastman Project in
November 2017, Peako
Potentials Pty Ltd (Resource Potentials),
specialist consultant geophysical company, to
design an Induced Polarisation (IP) survey with
the objective of allowing a better understanding
of the structure and geology of two known and
drilled areas of mineralization, Eastman and
Landrigan, with the objective of defining drill
targets. Geophysical
contractor Moombarriga
Geoscience Pty Ltd was engaged to conduct the
been
now
IP
program
The
completed.
will
data
by Resource
and
processed
which
has
acquired IP
interpreted
survey
be
PEAKO LIMITED
ABN 79 131 843 868
Operations Report
Peako has minerals exploration interests in two
areas of Western Australia; the East Kimberley
Region and the Patterson Province.
East Kimberley
Paterson Province
Figure 1 Peako Exploration Interests Location Map
East Kimberley Region
Eastman Project
km
Potentials.
Figure 2). The Eastman Project lies within
of Halls Creek, Western Australia
Peako has the right to earn a 60% interest in the
Eastman Project Tenement,
located 120
southwest
(refer
the southwest extension of the Central Zone of
the East Kimberley province and close to the
junction between the north-northeast trending
Halls Creek Mobile Zone and the northwest
trending King Leopold Mobile Zone.
anomalies
drilling. Most
southeast
more
been
geochemical
limited
the
significant
by
tested
targeted
exploration
Historical exploration has been primarily guided
by surface gossans and geochemistry and only
the
have
previous
quadrant of the tenement and numerous wide-
spaced and generally shallow drill intercepts of
strongly
not
been effectively explored. In the western part of
the tenement geochemical and magnetic targets
remain untested beneath extensive transported
sand and gravel cover.
mineralisation
anomalous
have
Figure 2 Eastman Project Location
Peako has been awarded a Western Australian
Government Exploration Incentive Scheme (EIS)
grant of $116,000, as a co-funding contribution
towards 50% of direct drilling costs incurred by
Peako prior to 30 June 2019.
Eastman Prospect
gold
silver
the
copper-
at
oxidised
Previous exploration has identified copper, lead,
mineralisation
and
zinc,
Eastman Prospect. This
enriched zone of outcrop has been identified by
geologists as being 25-50 metres wide and 300
metres long at the surface. A shale horizon with
inter-beds
iron-formation (the
banded
“southern BIF”) outcrops immediately to the
north.
of
4
PEAKO LIMITED
ABN 79 131 843 868
of
sulphides
The Eastman prospect consists largely of layered
sequences
which
disseminated
displays some of the characteristics of VMS base
metal deposits, including distinctive patterns of
the
metal zonation,
alteration and an association with exhalative
horizons (BIF,
mineralization remains open to the west. The
morphology of the mineralisation is not well
understood.
chert-carbonate
presence
of
magnesian
rocks).
The
1 intersections include 7m @
Previously reported
50.58g/t Au, 35.2g/t Ag, 1.2% Cu, 2.3% Pb and
Zn, 0.3% Pb, 12.6
associated from 143.3 to 152.9m
g/t Ag
and 1.5
1.
g/t Au
Figure 4 Planned IP survey grid at Landrigan prospect
showing prior drillholes
East Kimberleys Application Area
Exploration Licence E80/5182, comprising 536
2 and contiguous to the Eastman Project, was
km
year. Peako
the
applied
commenced
exploration
of
undertaken in the application area.
during
review
for
a
prior
has
Figure 5 Location of E80/5182 Application (orange)
(Eastman tenement in blue)
Paterson Province
Sunday Creek Project
Peako’s Sunday Creek tenement is located in the
Rudall River area of the Paterson Province of
Western Australia,
base
metals and uranium potential.
known for its gold,
5
3.4% Zn.
Figure 3 Planned IP survey grid at Eastman Prospect
showing prior drillholes
Landrigan Prospect
is
along
displaced
prominently
The Landrigan prospect is located where a BIF
an
ridge
interpreted NW-SE fault. A number of locally
‘gossanous’ and malachite stained, silicified and
talc-altered outcrops are present at the surface.
Initial interest was generated by an airborne
electromagnetic anomaly.
The Landrigan prospect is defined by a single
drillhole (EYD20), drilled by BHP in 1982, which
was reported to intersect 9.6m at 2.7% Cu, 1.5%
1 Refer Peako’s ASX announcement dated 15/8/2018
PEAKO LIMITED
ABN 79 131 843 868
the Sunday Creek Project
Historically,
mainly
for
been
mineralisation in the eastern part of the project
area, with little exploration carried out for base
explored
has
uranium
E 45/ 3278
Figure 7 Broadhurst Formation (yellow) overlain on
aeromagnetic image mosaic
metal mineralisation.
Figure 6 Eastman Project Location
According to historical geological mapping, the
bedrock geology of the project area is entirely
made
shales
the
up
siltstones
quartz
siltstones
underlying Coolbro Sandstone Formation.
carbonaceous
the Broadhurst Formation,
of
of
of
sandstones
and
and
are
shales
Formation
Broadhurst
The
interpreted in regional GSWA bedrock geology
maps, to extend along strike to the north west of
Sunday Creek, where the shale units host the
Metals X Nifty Cu deposit, as well as several Cu
and other base metal prospects (mainly Pb-Zn)
held by Encounter Resources and others.
investigation.
for
metal
Peako is using geophysical methods to identify
base
target zones
Previously acquired open-file airborne EM data
acquired along 1km spaced E-W flight lines has
been re-processed to assist with highlighting
broad scale conductivity patterns, estimating
thickness
Formation sedimentary cover, and estimating
top
to
depth
Formation shale units.
and Permian Paterson
regolith
of
of
conductive Broadhurst
and
the
Paterson Province Application Areas
of
for
the
pyrrhotite
3D inversion modelling has been carried out on
the high-resolution airborne magnetic survey
data acquired by Peako in 2008. As well as
allowing
shallow
Broadhurst Formation
cover, the resulting models can be used to assist
with mapping and targetting folds and faults
within the Broadhurst Formation.
relatively
within
the
regolith
identification
rich
beds
sitting
below
Peako also has three long standing applications
for
to
licences
Sunday Creek Project (Figure 8).
exploration
located
close
its
Figure 8 Patterson province tenements
6
PEAKO LIMITED
ABN 79 131 843 868
Petroleum Interests
There have been no developments in relation to
the
during the year.
company’s Cadlao
petroleum
interests
Directors’ Report
Your directors present their annual financial
report on the consolidated entity (referred to
hereafter as the “Group”) consisting of Peako
Limited (the “Company” or “parent entity”) and
the entities it controlled at the end of, or during,
the financial year ended 30 June 2018. In order
to comply with the Corporations Act 2001, the
directors report is as follows:
Directors
The following persons were directors of the
Company during the financial year and up to the
date of this report:
Geoffrey Albers
Non-Executive Chairman
Raewyn Clark
Executive Director
Peter Armitage
Non-Executive Director
Information on Directors
E. Geoffrey Albers LLB, FAICD
Mr Albers was appointed to the board of Peako
Limited on 4 February 2013. Mr Albers has over
years’
35
administrator
in
exploration and resource sector investment.
a
resource
as
law,
experience
corporate
director
and
of
a
number
interests
in
has
Mr Albers
companies active in the petroleum industry in
Australia and Malaysia. Mr Albers is a director of
the ASX listed companies Octanex Limited and
Enegex Limited.
companies
His
investors.
are
active
resource
sector
Raewyn Clark, B.Bus(dist), CA, MAICD, AGIA,
ACIS
Ms Clark has more than twenty years experience
focussed primarily on the upstream oil and gas
includes
sector. Her
development, financial modelling and analysis,
capital raising and mergers and acquisitions, as
well
venture
managing
government, regulator and investor relations.
partners,
experience
business
joint
as
Ms Clark was appointed to the Board on 4
December 2014. Mrs Clark is also a Director of
the ASX listed companies Octanex Limited and
Enegex Limited.
Peter Armitage FCA FAICD
Mr Armitage was appointed to the board of
Peako Limited on 18 August 2015. Mr Armitage
his
began
international
qualification he was invited into partnership of a
national firm.
professional
accounting
with
firm.
an
After
career
Since the early 1980s he has been a director of a
number of listed exploration companies in both
Australia and New Zealand. He is also a Non-
Executive director of ASX listed Enegex Limited.
with
years
professional
over 25
B Bus, CPA
Information on Company Secretary
Robert Wright
Mr Wright was appointed as Company Secretary
of Peako on 2 May 2017. Mr Wright is a senior
financial
commercial experience in the resource, energy
and manufacturing industries gained at various
companies and locations, including 14 years at
BHP. As well as carrying out his secretarial
duties for Peako, he is the company’s Chief
Financial Officer and the Company Secretary and
CFO
the ASX
Limited and Enegex Limited. Mr Wright is a
member of CPA Australia.
companies Octanex
listed
of
via
costs,
Ordinary shares
During the year, the Company raised $315,023
before
rights
non-renounceable
a
were
issue. 21,001,541
number of shares on issue at 30 June 2018 and
to the date of this report is 72,020,678 fully paid
ordinary shares (2017: 51,019,137).
issued.
shares
The
(see
above), 21,001,541
Options
During the year, via the non-renounceable rights
issue
(exerciseable at $0.025 (2.5 cents) on or before
30 June 2019) were granted. As at 30 June 2018
and
there
report
21,001,541
unlisted
on
5,000,000 unlisted options).
were
listed
issue (30 June 2017:
options
options
this
date
the
to
of
options
and 5,000,000
Dividends
No dividend has been paid or declared since the
start of the financial year and the directors do
7
PEAKO LIMITED
ABN 79 131 843 868
not recommend the payment of a dividend in
respect of the financial year.
Principal activities
The principal activities of the Group during the
financial year continue to be direct and indirect
equity investments made with the objective of
advancing the exploration for and development
of natural resources.
Review of operations
A detailed review of the Group's activities and
operations is set out on pages 4-6 of this Report.
Significant changes in the state of affairs
There have been no significant changes in the
state of affairs of the Group to the date of this
Report, other than those changes detailed in the
review
operations,
activities
of
elsewhere in this Report.
and
and
Matters subsequent to balance date
Following the end of the financial year, Peako
entered into term sheets providing it with
potential exposure to early stage exploration
activities. The term sheets relate to two Western
Australian tenements, one granted, and one in
the application process.
in
the
likely
company’s
Likely developments and expected results
The
developments
operations in future years and the expected
result from those operations are dependent on
exploration success in the tenements in which
the company holds an interest.
is
to
Group
Environmental legislation
The
subject
environmental legal regulations in respect to its
exploration
activities
Australia. There have been no known breaches
of these regulations and principles.
evaluation
and
in
significant
Indemnification of directors and officers
During the financial year and to the date of this
report, the company did not pay premiums in
respect of contracts insuring officers or auditors
of the company against liabilities arising from
auditor
their
company.
position
officers
the
or
of
of
Meetings of directors
the
In
of
board
number
meetings
and
of
relevant
formal
directors
The
Company’s
of
committees attended by each director are set
out in the table below. All other matters that
required formal Board resolutions were dealt
with
resolutions.
addition, the directors met and corresponded at
numerous times throughout the financial year to
discuss the Group’s affairs.
circular
written
via
Directors’
Meetings
Audit Committee
Meetings
Held Attended
Held
Attended
Geoffrey Albers
2
Raewyn Clark 2
Peter Armitage 2
2
2
2
2
2
2
2
2
2
Corporations Act 2001 for
under
person
applied
Proceedings on behalf of Company
the Court
to
has
No
section 237 of the
leave to bring proceedings on behalf of the
Company, or to intervene in any proceedings to
which the Company is a party, for the purpose of
taking responsibility on behalf of the Company
for all or part of those proceedings.
Corporate Governance Statement
A corporate governance statement reporting on
Peako’s governance framework, principles and
practices
www.peako.com.au
on the Peako
is provided
website
Remuneration Report
This report is audited.
Directors /
Executives
Position Held
Geoffrey Albers
Non-Executive Chairman
Raewyn Clark
Executive Director
Peter Armitage
Non-Executive Director
to
During the year there were no employees or
consultants
the
meet
the
definition of key management personnel, other
than the directors.
company
that
Remuneration levels for company officers are
competitively
and
set
experienced directors.
attract
to
retain
8
PEAKO LIMITED
ABN 79 131 843 868
REMUNERATION REPORT (Continued)
The remuneration structure explained below is
designed to attract suitably qualified candidates,
reward the achievement of strategic objectives
and achieve the broader outcome of creation of
value for shareholders.
included
non-
which
executive remuneration of $Nil (2017: $6,949).
shareholder-approved
This remuneration is non-cash and made up
entirely in the form of granted options.
There is no performance related remuneration
for directors.
The remuneration structure takes into account:
the
and
capability
directors; and
experience
of
the
the ability of directors to control the
entity’s performance.
levels
are
Remuneration
a
through
process
of individual
performance
overall performance of the entity.
reviewed
that
directors and
annually
considers
the
the
Director Remuneration
During the year under review, directors were
remunerated a total of $Nil (2017: $33,744)
may include the
The directors do not receive employee benefits,
including annual leave and long service leave,
but remuneration
of
grant
options (share based payments) over shares of
the company to align directors’ interests with
that of the shareholders. The company aims to
reward
mix
level
with
remuneration commensurate with their position
and responsibilities within the company.
directors
and
a
is
no
direct
There
relationship
remuneration of directors and the company’s
performance for the last five years.
of
between
Components of directors’ compensation are disclosed below.
Year ended 30 June 2018
Directors
Geoffrey Albers
Raewyn Clark
Peter Armitage
Year ended 30 June 2017
Directors
Geoffrey Albers
Raewyn Clark
Peter Armitage
Primary benefits paid / payable
Salary and/or
consulting fees
$
-
-
-
-
-
-
-
-
Directors’
fees
$
Super-
annuation
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Equity Settled
Equity
option issues
$
TOTAL
$
-
-
-
-
-
-
-
-
-
-
26,995 26,995
6,949
33,744
6,949
33,744
Loans to key management personnel
No loans were made to key management personnel during the current or previous financial year.
Other transactions with key management personnel
In the year ended 30 June 2018, the Company incurred consulting fees of $33,412 (2017: $25,211)
with Samika Pty Ltd, a director-related entity of Raewyn Clark. The fees were provided under normal
commercial terms and conditions with $3,037 remaining unpaid at 30 June 2018 (2017 $nil).
9
PEAKO LIMITED
ABN 79 131 843 868
REMUNERATION REPORT (Continued)
Key management personnel interest in equity holdings
Fully paid ordinary shares
30 June 2018
Geoffrey Albers
Raewyn Clark
Peter Armitage
30 June 2017
Geoffrey Albers
Raewyn Clark
Peter Armitage
* via right issue participation
Number of shares at
start of year
Other Change
Number of shares at
end of year
1 July 2017
22,962,089
-
-
22,962,089
1 July 2016
22,962,089
-
-
22,962,089
30 June 2018
18,369,974*
-
-
-
-
18,369,974
41,331,763
41,331,763
-
-
-
30 June 2017
22,962,089
-
-
22,962,089
-
Unlisted options (exercisable at $0.04 on or before 24 November 2019)
Number of options at
start of year
Number of options
at end of year
Numbers of options
vested and
exercisable
30 June 2018
Geoffrey Albers
Raewyn Clark
Peter Armitage
30 June 2017
Geoffrey Albers
Raewyn Clark
Peter Armitage
* via right issue participation
1 July 2017
30 June 2018
30 June 2018
-
4,000,000
1,000,000
-
4,000,000
1,000,000
-
4,000,000
1,000,000
5,000,000
1 July 2016
30 June 2017
30 June 2017
5,000,000
5,000,000
-
4,000,000
1,000,000
5,000,000
-
4,000,000
1,000,000
-
4,000,000
1,000,000
5,000,000
5,000,000
Listed options (exerciseable at $0.025 on or before 30 June 2019)
30 June 2018
Geoffrey Albers
Raewyn Clark
Peter Armitage
Options
acquired during
year
Number of
options at start of
year
1 July 2017
Number of
options at end
of year
Numbers of
options vested
and exercisable
30 June 2018
30 June 2018
-
18,369,974*
18,369,974
18,369,974
-
-
-
-
-
-
-
-
-
18,369,974
18,369,974
18,369,974
* acquired via pro-rata non renounceable rights issue
End of remuneration report
10
PEAKO LIMITED
ABN 79 131 843 868
Auditor independence
Corporations Act 2001 requires our auditors, Grant Thornton Audit Pty Ltd, to
Section 307C of the
provide the directors of the Company with an Independence Declaration in relation to the audit of the
annual report. This Independence Declaration is set out on page 12 and forms part of this directors’
report for the year ended 30 June 2018.
Non-audit services
The Company may decide to employ the auditor on assignments additional to their statutory audit
duties where the auditor’s expertise and experience with the Company and/or the Group are
important. The Company has considered the position and is satisfied that the provision of the non-
audit services is compatible with the general standard of independence for auditors imposed by the
Corporations Act 2001. The auditor has not provided any non-audit services and as such auditor
independence was not compromised.
This report is made in accordance with a resolution of the directors.
E.G. Albers
Director
27 September 2018
11
Collins Square, Tower 1
727 Collins Street
Melbourne VIC 3008
Correspondence to:
GPO Box 4736
Melbourne VIC 3001
T +61 3 8320 2222
F +61 3 8320 2200
E info.vic@au.gt.com
W www.grantthornton.com.au
Auditor’s Independence Declaration
To the Directors of Peako Limited
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Peako
Limited for the year ended 30 June 2018, I declare that, to the best of my knowledge and belief, there have been:
a
b
no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the audit.
Grant Thornton Audit Pty Ltd
Chartered Accountants
B L Taylor
Partner – Audit & Assurance
Melbourne, 27 September 2018
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
www.grantthornton.com.au
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients
and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International
Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are
delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one
another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to
Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to
Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation.
PEAKO LIMITED
ABN 79 131 843 868
Consolidated Statement of Profit or Loss and Other Comprehensive Income
for the year ended 30 June 2018
Financial income
Expenses
Audit fees
Professional and consultancy fees
Office costs
Other costs
Share based payment
Stock exchange and share registry costs
Loss before income tax expense
Income tax expense
Note
2018
$
2017
$
518
518
3,767
3,767
17
(25,117)
(25,126)
(34,813)
(26,318)
(33,504)
(41,685)
(33,929)
(38,915)
10
-
(33,743)
(21,821)
(23,781)
2
(156,940)
(156,422)
-
(156,422)
(181,812))
(178,045)
-
(178,045)
Net loss for the year
(156,422)
(178,045)
Other comprehensive income
Items that may be reclassified to profit or loss
Foreign exchange loss on translation of subsidiary financial
statements
Other comprehensive income net of tax
Total comprehensive income for the year
(9)
(9)
(156,431)
(207)
(207)
(178,252)
Cents
Cents
Basic loss per share
Diluted loss per share
3
3
(0.25)
(0.35)
(0.25)
(0.35)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes .
13
PEAKO LIMITED
ABN 79 131 843 868
Consolidated Statement of Financial
Position
as at 30 June 2018
Current Assets
Cash and cash equivalents
Trade and other receivables
Total Current Assets
Non-Current Assets
Trade and other receivables
Mineral exploration costs
Total Non -Current Assets
Total Assets
Current Liabilities
Trade and other payables
Total Current Liabilities
Total Liabilities
Net Assets
Equity
Issued capital
Reserves
Accumulated losses
Total Equity
Note
4
4
6
7
8
9
2018
$
2017
$
191,419
5,182
196,601
112,685
1,788
114,473
6,012
86,204
92,216
5,777
8,322
14,099
288,817
128,572
49,534
49,534
30,924
30,924
49,534
30,924
239,283
97,648
37,106,549
33,990
(36,901,256)
36,808,483
33,999
(36,744,834)
239,283
97,648
The above statement of financial position should be read in conjunction with the accompanying notes
.
14
PEAKO LIMITED
ABN 79 131 843 868
Consolidated Statement of Changes in Equity
for the year ended 30 June 2018
Issued
capital
Share
Foreign currency
Accumulated
Total equity
compensation
reserve
translation
reserve
losses
$
$
$
$
$
Balance at 1 July 2017
36,808,483
33,744
255 (36,744,834)
97,648
Loss for the year
Other comprehensive loss
Total comprehensive loss
for the year
-
-
-
-
-
-
-
(9)
(156,422)
(156,422)
-
(9)
(9)
(156,422)
(156,431)
Issue of Shares
Costs of issue
Balance at 30 June 2018
315,023
-
(16,957)
37,106,549
-
33,744
-
-
315,023
-
-
246 (36,901,256)
(16,957)
239,283
Balance at 1 July 2016
36,808,483
1,895,127
462 (38,461,916)
242,156
Loss for the year
Other comprehensive loss
Total comprehensive loss
for the year
Expiry of options
Issue of options
Balance at 30 June 2017
-
-
-
-
-
(207)
(178,045)
-
(178,045)
(207)
-
-
-
-
(207)
(178,045)
(178,252)
(1,895,127)
33,744
-
1,895,127
-
33,744
-
-
36,808,483
33,744
255 (36,744,834)
97,648
The above statement of changes in equity should be read in conjunction with the accompanying notes
.
15
PEAKO LIMITED
ABN 79 131 843 868
Consolidated Statement of Cash Flows
for the year ended 30 June 2018
Cash flows from operating activities
Payments to suppliers and employees
Financial income
Net cash outflows from operating activities
Cash flows from investing activities
Payments to suppliers - exploration
Net cash outflows from investing activities
Cash flows from financing activities
Proceeds from the issue of shares
Share issue costs
Net cash inflows from financing activities
Net increase / (decrease) in cash held
Cash at the beginning of reporting period
Effect of exchange rate fluctuations on cash held
Cash at the end of the reporting period
Note
2018
$
2017
$
(147,368)
(153,988)
550
3,860
16
(146,818)
(150,128)
(72,528)
(72,528)
(8,322)
(8,322)
315,023
(16,957)
298,066
-
-
-
78,720
(158,450)
112,685
14
191,419
271,158
(23)
112,685
The above statement of cash flows should be read in conjunction with the accompanying notes
.
16
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2018
Note 1: Statement of significant accounting policies
(a) Basis of preparation
The financial report is a general-purpose financial report, which has been prepared in
accordance with the requirements of the
Interpretations and other requirements of the law. The financial report has also been prepared
on a historical cost basis. The Parent Entity is registered and domiciled in Australia.
The financial statements comprise the consolidated financial statements for the Group. For the
purposes of preparing the consolidated financial statements, the Company is a for-profit entity.
The financial statements are presented in Australian dollars, unless otherwise stated.
Corporations Act 2001, Accounting Standards and
Going concern
For the year ended 30 June 2018 the Group incurred a net cash outflow from operating and
investing activities of $223,523 (2017: $158,450) and a net loss after tax of $156,422 (2017:
$178,045). As at 30 June 2018, the Group has working capital of $147,067 (2017: $83,549).
The financial report has been prepared on a going concern basis. Directors expect that the
Group will be able to successfully raise sufficient funding to enable it to continue as a going
concern for at least 12 months from the signing of the annual financial report.
(b)
Adoption of new and revised standards
Changes in accounting policies on initial application of Accounting Standards
The Group has adopted all of the new and revised Accounting Standards issued by the
Australian Accounting Standards Board (AASB) that are relevant to its operations and effective
for annual reporting periods beginning on 1 July 2017.
The Directors do not believe that new and revised standards issued by AASB (that are not as
yet effective), AASB 15 Revenue from Contracts with Customers and AASB 16 Leases, will have
any material financial impact on the financial statements as the Group has no revenue or
leases.
17
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2018
Note 1: Statement of significant accounting policies continued
(b) Adoption of new and revised standards (continued)
AASB 9 Financial Instruments
This standard is applicable to annual reporting periods beginning on or after 1 January 2018.
The standard replaces all previous versions of AASB 9 and completes the project to replace
AASB139 'Financial Instruments: Recognition and Measurement'. AASB 9 introduces new
classification and measurement models for financial assets. A financial asset shall be measured
at amortised cost, if it is held within a business model whose objective is to hold assets in order
to collect contractual cash flows, which arise on specified dates and solely principal and
interest. All other financial instrument assets are to be classified and measured at fair value
through profit or loss unless the entity makes an irrevocable election on initial recognition to
present gains and losses on equity instruments (that are not held-for-trading) in other
comprehensive income ('OCI'). For financial liabilities, the standard requires the portion of the
change in fair value that relates to the entity's own credit risk to be presented in OCI (unless it
would create an accounting mismatch). New simpler hedge accounting requirements are
intended to more closely align the accounting treatment with the risk management activities of
the entity. New impairment requirements will use an 'expected credit loss' ('ECL') model to
recognise an allowance. Impairment will be measured under a 12-month ECL method unless
the credit risk on a financial instrument has increased significantly since initial recognition in
which case the lifetime ECL method is adopted. The standard introduces additional new
disclosures. There will be no material impact on the carrying values. Changes in fair value are
expected to continue being recorded through OCI, with the one-time election to record equity
investments as such expected to be undertaken by the directors. Under AASB 9 the fair value
gains/losses in relation to equity are not recycled to the Statement of Profit and Loss (even on
disposal of the investment) and are not subject to impairment testing. The balance affected is
not material to the financial statements.
(c) Statement of compliance
The financial report was authorised by the board of directors for issue on 27 September
The financial report complies with Australian Accounting Standards, which include Australian
equivalents to International Financial Reporting Standards (AIFRS). Compliance with AIFRS
ensures that the financial report, comprising the financial statements and notes thereto,
complies with International Financial Reporting Standards (IFRS).
(d) Basis of consolidation
The consolidated financial statements consolidate those of the parent company and all of its
subsidiaries as of 30 June 2018 (“Group”). The Parent controls a subsidiary if it is exposed, or
has rights, to variable returns from its involvement with the subsidiary and has the ability to
affect those returns through its power over the subsidiary. All subsidiaries have a reporting
date of 30 June.
All transactions and balances between Group companies are eliminated on consolidation,
including unrealised gains and losses on transactions between Group companies. Where
unrealised losses on intra-group asset sales are reversed on consolidation, the underlying
asset is also tested for impairment from a group perspective.
2018.
18
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2018
Note 1: Statement of significant accounting policies continued
(d)
Basis of consolidation (continued)
Amounts reported in the financial statements of subsidiaries have been adjusted where
necessary to ensure consistency with the accounting policies adopted by the Group.
Profit or loss and other comprehensive income of subsidiaries acquired or disposed of
during the year are recognised from the effective date of acquisition, or up to the effective
date of disposal, as applicable.
of
part
presented
interests,
Non-controlling
portion
as
subsidiary’s profit or loss and net assets that is not held by the Group. The Group attributes
total comprehensive income or loss of subsidiaries between the owners of the parent and
the non-controlling interests based on their respective ownership interests.
equity,
represent
the
of
a
(e)
Exploration and evaluation expenditure
and
the
including
assets,
evaluation
Exploration
capitalised as exploration and evaluation assets on an area of interest basis. Exploration and
evaluation assets are only recognised if the rights to tenure of the area of interest are
current and either:
tenements,
acquiring
costs
of
are
(i) the expenditures are expected to be recouped through successful development and
exploitation of the area of interest, or alternatively, by its sale or partial sale: or
(ii) activities in the area of interest have not at the reporting date, reached a stage which
permits a reasonable assessment of the existence or otherwise of economically
recoverable reserves and active and significant operations in, or in relation to, the
area of interest are continuing.
The tests contained in AASB6.20 are applied to determine whether exploration and
evaluation assets are assessed for impairment:
(i) the exploration and evaluation tenure right has expired or are expected to expire in
the near future, and is not expected to be renewed.
(ii) substantive expenditure on further exploration for and evaluation of mineral
resources in the specific area is neither budgeted nor planned.
(iii) exploration for and evaluation of mineral resources in the specific area have not led
to the discovery of commercially viable quantities of mineral resources and the
entity has decided to discontinue such activities in the specific area.
(iv) sufficient data exist to indicate that, although a development in the specific area is
likely to proceed, the carrying amount of the exploration and evaluation asset is
unlikely to be recovered in full from successful development or by sale
Proceeds from the sale of exploration tenements or recoupment of exploration costs from
farming arrangements are credited against exploration costs previously capitalised. Any
excess of the proceeds overs costs recouped are accounted for as a gain on disposal.
19
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2018
Note 1: Statement of significant accounting policies continued
highly liquid
hin borrowings in current liabilities in
(f)
Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to
the Group and the revenue can be reliably measured. The following specific recognition
criteria must also be met before revenue is recognised:
(i) Interest income
Interest revenue is recognised on a time proportionate basis that takes into account the
effective yield on the financial asset.
(g)
Cash and cash equivalents
Cash comprises cash at bank and in hand. Cash equivalents are short term,
investments that are readily convertible to known amounts of cash and which are subject to an
insignificant risk of changes in value. Temporary bank overdrafts are included in cash at bank
and in hand. Permanent bank overdrafts are shown wit
the statement of financial position.
For the purposes of the statement of cash flows, cash and cash equivalents consist of cash and
cash equivalents as defined above, net of outstanding bank overdrafts.
(h)
Income tax
Current tax assets and liabilities are measured at the amount expected to be recovered from or
paid to the taxation authorities. The tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted by the balance date.
Deferred income tax is provided on all temporary differences at the balance date between the
tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences except:
when the deferred income tax liability arises from the initial recognition of goodwill or of
an asset or liability in a transaction that is not a business combination and that, at the
time of the transaction, affects neither the accounting profit nor taxable profit or loss; or
when the taxable temporary difference is associated with investments in controlled
entities, associates or interests in joint ventures, and the timing of the reversal of the
temporary difference
will not reverse in the foreseeable future.
can be controlled and it is probable that the temporary difference
Deferred income tax assets are recognised for all deductible temporary differences, carry-
forward of unused tax assets and unused tax losses,
taxable profit will be available against which the deductible temporary differences and the
carry-forward of unused tax credits and unused tax losses can be utilised, except:
to the extent that it is probable that
when the deferred income tax asset relatin
g to the deductible temporary difference
arises from the initial recognition of an asset or liability in a transaction that is not a
business combination and, at the time of the transaction, affects neither the accounting
profit nor taxable profit or loss; or
20
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2018
Note 1: Statement of significant accounting policies continues
(h)
Income tax (continued)
when
is
the
with
temporary
deductible
associated
in
investments
difference
controlled entities, associates or interests in joint ventures, in which case a deferred
tax asset is only recognised to the extent that it is probable that the temporary
difference will reverse in the foreseeable future and taxable profit will be available
against which the temporary difference can be utilised.
The carrying amount of deferred income tax assets is reviewed at each balance date and
reduced to the extent that it is no longer probable that sufficient taxable profit will be
available to allow all or part of the deferred income tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed at each balance date and are
recognised to the extent that it has become probable that future taxable profit will allow the
deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to
apply to the financial period when the asset is realised or the liability is settled, based on tax
rates (and tax laws) that have been enacted or substantively enacted at the balance date.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right
exists to set off current tax assets against current tax liabilities and the deferred tax assets
and liabilities relate to the same taxable entity and the same taxation authority.
(i)
Other taxes
Revenues, expenses and assets are recognised net of the amount of GST except:
when the GST incurred on a purchase of goods and services is not recoverable from the
taxation authority, in which case the GST is recognised as part of the cost of acquisition
of the asset or as part of the expense item as applicable; and
receivables and payables, which are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as
part of receivables or payables in the statement of financial position.
Cash flows are included in the statement of cash flows on a gross basis and the GST
component of cash flows arising from investing and financing activities, which is recoverable
from, or payable to, the taxation authority, are classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or
payable to, the taxation authority.
21
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2018
Note 1: Statement of significant accounting policies continued
(j)
Impairment of assets
The carrying amounts of the company’s assets are reviewed at each statement of financial
position date to determine whether there are indicators of impairment. At each reporting
date the company assesses whether there is any indication that individual assets are
impaired. Where impairment indicators exist, recoverable amount is determined and
impairment losses are recognised in profit or loss where the asset's carrying value exceeds
its recoverable amount. Recoverable amount is the higher of an asset's fair value less costs
to sell and value in use. For the purpose of assessing value in use, the estimated future cash
flows are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset.
Due to the uncertainty surrounding each of the interests that Group holds in relation to the
Cadlao development project, the directors have, as a matter of caution, decided to continue
to impair all of the interests associated with Cadlao. As a result, no value is attributed to
those interests, with the assets therefore not included on the Statement of Financial
Position.
(k)
Trade and other payables
Trade payables and other payables are carried at amortised cost and represent liabilities for
goods and services provided to the Group prior to the end of the financial period that are
unpaid and arise when the Group becomes obliged to make future payments in respect of the
purchase of these goods and services.
(l)
Provisions
Where applicable, provisions are recognised when the Group has a present obligation (legal
or constructive) as a result of a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation and a reliable estimate
can be made of the amount of the obligation.
When the Group expects some or all of a provision to be reimbursed, for example under an
insurance contract, the reimbursement is recognised as a separate asset but only when the
reimbursement is virtually certain. The expense relating to any provision is presented in the
statement of profit or loss and other comprehensive income net of any reimbursement.
If the effect of the time value of money is material, provisions are discounted using a current
pre-tax rate that reflects the risks specific to the liability.
When discounting is used, the increase in the provision due to the passage of time is
recognised as a borrowing cost.
(m)
Share-based payment transactions
Equity settled transactions
The fair value of options granted are recognised as an expense with a corresponding increase
in equity. The fair value is measured at grant date and recognised over the period during
which the grantee become unconditionally entitled to the options.
22
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2018
Note 1: Statement of significant accounting policies continued
(n)
Issued capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of
new shares or options are shown in equity as a deduction, net of tax, from the proceeds.
(o)
Earnings per share
Basic earnings per share is calculated as net profit attributable to members of the parent,
adjusted to exclude any costs of servicing equity (other than dividends) and preference share
dividends, divided by the weighted average number of ordinary shares.
(p)
Foreign currency translation
and
the
functional
presentation
of Peako Limited
Both
currency
subsidiaries is Australian dollars. Each entity in the Group determines its own functional
currency and items included in the financial statements of each entity are measured using
that functional currency.
and
its Australian
Transactions in foreign currencies are initially recorded in the functional currency by
applying the exchange rates ruling at the date of the transaction. Monetary assets and
liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at
the balance date.
All exchange differences in the consolidated financial report are taken to profit or loss with
the exception of differences on foreign currency borrowings that provide a hedge against a
net investment in a foreign entity. These are taken directly to equity until the disposal of the
net investment, at which time they are recognised in profit or loss.
Tax charges and credits attributable to exchange differences on those borrowings are also
recognised in equity.
Non-monetary items that are measured in terms of historical cost in a foreign currency are
translated using the exchange rate as at the date of the initial transaction. Non-monetary
items measured at fair value in a foreign currency are translated using the exchange rates at
the date when the fair value was determined.
The functional currencies of the foreign operations are not nominated in Australian Dollars.
As at the balance date the assets and liabilities of these subsidiaries are translated into the
presentation currency of Peako Limited at the rate of exchange ruling at the balance date and
their income statements are translated at the weighted average exchange rate for the year.
The exchange differences arising on the translations are taken directly to a separate
component of recognised in the foreign currency translation reserve in equity.
On disposal of a foreign entity, the deferred cumulative amount recognised in equity relating
to that particular foreign operation is recognised in profit or loss.
23
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2018
Note 1: Statement of significant accounting policies continued
(q) Trade and other receivables
Trade receivables are initially valued at fair value and then subsequently measured at
amortised cost. Trade receivables on oil and gas sales are due for settlement within 30 days
from the date of the sale. Collectability of trade debtors is reviewed on an on-going
basis. Debts which are known to be uncollectible are written off. A provision for impairment
of trade receivables is established when there is objective evidence that the Group will not be
able to collect all amounts due according to the original terms of the receivable.
(r) Segment Reporting
Operating segments are reported in a manner that is consistent with the internal reporting
provided to the chief operating decision maker, which has been identified as the Board of Directors
of Peako Limited.
(s) Parent entity financial information
The financial information for the parent entity, Peako Limited, disclosed in Note 14 has been
prepared on the same basis as the consolidated financial statements, except as set out below.
(i) Investments in subsidiaries, associates and joint venture entities
Investments in subsidiaries, associates and joint venture entities are accounted for at cost in the
parent entity’s financial statements. Dividends received from associates are recognised in the
parent entity’s profit or loss, rather than being deduct
investments.
(t) Critical accounting estimates and judgements
ed from the carrying amount of these
Management determine the development, selection and disclosure of the company’s critical
accounting policies and estimates and the application of these policies and estimates. There are no
estimates and judgements that are considered to have a significant
adjustment to the carrying amounts of assets and liabilities within the next financial year
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions are
recognised in the period in which the estimate
period of the revision and future periods if the revision affects both current and future periods
risk of causing a material
is revised if it affects only that period, or in the
judgement as to the recoverability of exploration expenditure. Any
Management exercise
judgement may ch
exploration and evaluation expenditure, management concludes that the capitalised expenditure is
unlikely to be recovered by future sale or exploitation, then the relevant capitalised
written off through profit or loss and other comprehensive income.
ange as new information becomes available. If, after having capitalised
Recovery of deferred tax assets
Significant management judgement is required to determine the amount of deferred tax assets
that can be recognised, based upon the likely timing and the level of future taxable profits.
Currently the Group has not recognised any deferred tax assets in the Statement of Financial
Position.
amount will be
24
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2018
Note 1: Statement of significant accounting policies continued
(u) Financial assets
Financial assets in the scope of AASB 139 Financial Instruments: Recognition and Measurement
are classified as either financial assets at fair value through profit or loss, loans and receivables,
held-to-maturity investments, or available-for-sale investments, as appropriate. When financial
assets are recognised initially, they are measured at fair value plus, in the case of investments
not at fair value through profit or loss, directly attributable transaction costs. The Group
determines the classification of its financial assets after initial recognition and, when allowed
and appropriate, re-evaluates this designation at each financial year-end. All regular way
purchases and sales of financial assets are recognised on the trade date i.e. the date that the
Group commits to purchase the asset. Regular way purchases or sales are purchases or sales of
financial assets under contracts that require delivery of the assets within the period established
generally by regulation or convention in the marketplace.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments
that are not quoted in an active market. Such assets are carried at amortised cost using the
effective interest method. Gains and losses are recognised in profit or loss when the loans and
receivables are derecognised or impaired, as well as through the amortisation process.
(v) Derecognition of financial assets and financial liabilities
Financial assets
A financial asset (or, where applicable, a part of a financial asset or part of a Group of similar
financial assets) is derecognised when:
the rights to receive cash flows from the asset have expired;
the Group retains the right to receive cash flows from the asset, but has assumed an
obligation to pay them in full without material delay to a third party under a ‘pass-
through’ arrangement; or
the Group has transferred its rights to receive cash flows from the asset and either:
o has transferred substantially all the risks and rewards of the asset, or
o has neither transferred nor retained substantially all the risks and rewards of
the asset, but has transferred control of the asset.
When the Group has transferred its rights to receive cash flows from an asset and has neither
transferred nor retained substantially all the risks and rewards of the asset nor transferred
control of the asset, the asset is recognised to the extent of the Group’s continuing involvement
in the asset. Continuing involvement that takes the form of a guarantee over the transferred
asset is measured at the lower of the original carrying amount of the asset and the maximum
amount of consideration received that the Group could be required to repay.
When continuing involvement takes the form of a written and/or purchased option (including a
cash-settled option or similar provision) on the transferred asset, the extent of the Group’s
continuing involvement is the amount of the transferred asset that the Group may repurchase,
except that in the case of a written put option (including a cash-settled option or similar
provision) on an asset measured at fair value, the extent of the Group’s continuing involvement is
limited to the lower of the fair value of the transferred asset and the option exercise price.
25
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2018
Note 1: Statement of significant accounting policies continued
(v)
Derecognition of financial assets and financial liabilities (continued)
Financial liabilities
A financial liability is derecognised when the obligation under the liability is discharged or
cancelled or expires. When an existing financial liability is replaced by another from the same
lender on substantially different terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as a derecognition of the original
liability and the recognition of a new liability, and the difference in the respective carrying
amounts is recognised in profit or loss.
Note 2: Income tax
Income tax expense recognised in statement of
comprehensive income
Current income tax
Current income tax payable
Deferred income tax
Relating to origination and reversal of temporary
differences
Income tax expense
Consolidated
2018
$
-
-
-
2017
$
-
-
-
Reconciliation to income tax expense on accounting profit / (loss)
Accounting loss before tax
Tax benefit at the statutory income tax rate of 30%
Non -deductible expenses
Non-assessable income
Unrealised tax losses not recognised
Temporary differences not recognised
Income tax expense
(156,422)
(178,045)
(46,927)
(53,414)
1,804
13,844
(49)
(32)
80,489
65,676
(35,317)
(26,074)
-
-
Unrecognised deferred tax balances
Deferred tax assets:
Tax revenue losses (Australian)
Tax capital losses (Australian)
Tax revenue losses (Foreign)
Unamortised
Accruals & provisions
Deferred tax liabilities
Exploration expenses
Accrued income
Net unrecognised deferred tax assets
business related costs
:
14,706,812
4,430,516
14,442,926
4,430,516
174,175
169,763
21,182
64,268
17,500
14,300
(86,204)
(8,332)
(13)
19,263,968
(45)
19,113,396
Potential tax benefit @ 30% (2017: 30%)
5,779,190
5,730,019
The deductible temporary differences and tax losses do not expire under current tax legislation.
Deferred tax assets have not been recognised in respect of these items because there is presently no
expectation of future taxable profit against which the Group could utilise such benefits.
26
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2018
Note 3: Earnings per share
l oss and weighted average number of ordinary shares used in the
The
calculation of basic and dilutive loss per share is as follows:
Net loss for the year
The weighted average number of ordinary shares
Total basic
and dilutive loss
per share (cents)
Note 4: Trade and other receivables
Current
GST
Other receivables
Non-current
Security deposit
Note 5: Segment information
Segment information is presented using a 'management approach', i.e. segment information is
provided on the same basis as information used for internal reporting purposes by the directors. At
regular intervals, the board is provided management information at a group level for the company’s
cash position, and a company cash forecast for the next twelve months of operation.
On this basis, no segment information is included in these financial statements.
Note 6: Mineral exploration costs
Areas of interest in the exploration and evaluation phase
Balance at the beginning of the year
Costs for the year
Balance at the end of the year
The recoupment of exploration project acquisition costs carried forward is dependent upon the
recoupment of costs through successful development and commercial exploitation, or alternatively
by sale of the respective areas. Exploration assets relate to the areas of interest in the exploration
phase for minerals exploration licences as shown in the table below:
Consolidated
2018
2017
$
$
(178,045)
51,019,137
(156,422)
62,066,52
3
(0.25)
(0.35)
-
5,182
5,182
1,742
46
1,788
6,012
6,012
5,777
5,777
8,322
77,882
86,204
-
8,322
8,322
30/06/2018
E 45/3278
E 80/4990
Notes
30/06/2017
Granted 30 September 2016
E 45/3278
In November 2017 the company executed an agreement with Sandrib
-
Pty Ltd under which it has the right to earn a 60% interest
Application lodged April 2018
-
E 80/5182
27
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2018
Note 7: Trade and other payables
Consolidated
Current
Trade and other payables*
Director-related entities – other payables (Note 13)
* Trade payables are non-interest bearing and are normally
paid on 30 day terms.
Note 8: Issued Capital
2018
$
2017
$
29,198
20,336
49,534
15,952
14,972
30,924
As at 30 June 2018 there were 72,020,678 fully paid ordinary shares on issue (2017: 51,019,137).
Movement in ordinary share
capital
2018
$
Consolidated
2017
$
2018
#
2017
#
At the beginning of the year
Shares issued during the year
Costs associated with share
issue
Consolidation
At reporting date
36,808,483
315,023
36,808,483
1,020,380,247
51,019,137
21,001,541
(16,957)
-
-
-
-
-
-
-
-
(969,361,110)
37,106,549 36,808,483
72,020,678
51,019,137
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of
the Company in proportion to the number of and amounts paid on the shares.
On a show of hands every shareholder of ordinary shares present at a meeting in person or by proxy
is entitled to one vote and upon a poll each share is entitled to one vote. Ordinary shares have no par
value and the Company does not have a limited amount of authorised capital.
Movement in share options
During the year, via a non-renounceable rights issue, 21,001,541 options (exerciseable at $0.025 (2.5
cents) on or before 30 June 2019) were granted. As at 30 June 2018 there were 21,001,541 listed
options and 5,000,000 unlisted options on issue (30 June 2017: 5,000,000 unlisted options).
28
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2018
Note 9: Reserves
Foreign currency translation reserve (a)
Share compensation reserve (b)
(a)
(b)
Foreign currency translation reserve
The foreign currency translation reserve represents foreign exchange movements on the
translation of financial statements for controlled entities from the functional currency into the
presentation currency of Australian dollars.
Share compensation reserve
The share compensation reserve is used to record the value of equity benefits provided to
employees, consultants and directors as part of their remuneration.
Consolidated
2018
$
2017
$
255
33,744
33,999
246
33,744
33,990
Note 10: Share based payments
Share options to directors
No options were granted to directors in the year ended 30 June 2018. (2017: 5,000,000 options)
Note 11: Financial instruments
(a) Capital risk management
Prudent capital risk management implies maintaining sufficient cash and marketable securities to
ensure continuity of tenure to exploration assets and to be able to conduct the Group’s business in
an orderly and professional manner. The Board monitors its future capital requirements on a regular
basis and will when appropriate consider the need for raising additional equity capital, debt funding
or to farm-out exploration projects as a means of preserving capital.
(b) Categories of financial instruments
The Group’s principal financial instruments comprise of cash and short-term deposits and short
term borrowings. The main purpose of these financial instruments is to raise finance for the Group’s
operations. The Group has various other financial assets and liabilities such as receivables and trade
payables, which arise directly from its operations. It is, and has been throughout the period under
review, the Group’s policy that no trading in financial instruments shall be undertaken.
(c) Financial risk management objectives
The Group is exposed to market risk (including, interest rate risk and equity
and liquidity risk.
The main risks arising from the Group’s financial instruments are interest rate risk and credit risk.
The Board reviews and agrees policies for managing each of these risks and they are summarised
below.
(d) Market risk
There has been no change to the Group’s exposure to market risks or the manner in which it
manages and measures the risk from the previous period.
Interest rate risk management
All cash balances attract a floating rate of interest. Excess funds that are not required in the short
term are placed on deposit for a period of no more than 6 months. The Group’s exposure to interest
rate risk and the effective interest rate by maturity periods is set out below.
price risk), credit risk
29
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2018
Note 11: Financial instruments (continued)
(d) Market risk (continued)
Interest rate sensitivity analysis
At 30 June 2018, if interest rates had changed on cash and cash equivalent by 100 basis points (1%)
and all other variables were held constant, the Group’s after tax profit would have been $1,911
(2017: $1,126) lower/higher as a result of higher/lower interest income on cash and cash
equivalents.
(e) Credit risk management
Credit risk relates to the risk that counterparties will default on their contractual obligations
resulting in financial loss to the Group. The Group has adopted a policy of only dealing with credit
worthy counterparties and obtaining sufficient collateral or other security where appropriate, as a
means of mitigating the risk of financial loss from any defaults.
(f) Liquidity risk management
Liquidity risk is the risk that the group will not be able to meet its financial obligations as they fall
due. Liquidity risk is monitored to ensure sufficient monies are available to meet contractual
obligations as and when they fall due.
The following are the contractual maturities of the financial liabilities, including interest payments.
Contractual amounts have not been discounted.
Carrying
Amount
Contractual
cash flows
$
$
0-12
month
s
$
1-2
years
2-10
years
$
$
30 June 2018 Consolidated:
Non-derivative Financial
Liabilities
Trade and other payables
49,534
49,534
49,534 49,534
49,534 49,534
30,924 30,924
30,924 30,924
30 June 2017 Consolidated:
Non-derivative Financial
Liabilities
Trade and other payables
Current payables
30,924
30,924
(g) Foreign currency risk
The Group is exposed to foreign currency risk on sales, purchases and borrowings that are
denominated in a currency other than the respective functional currency. The functional currency of
the group is denominated is Australian dollars.
The Group’s policy is to maintain and hold the sufficient foreign currency to meet its liabilities when
due. Surplus financial assets are transferred and held within Australian dollar currency based
financial products.
-
-
-
-
-
-
-
-
30
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2018
Note 11: Financial instruments (continued)
(g) Foreign currency risk (continued)
Unhedged amounts in respect of cash, receivable and payable in foreign
currency
Cash
Receivables - current
Receivables
Payables
-current
– non
The only foreign currency the Group is currently exposed to is the US dollar. At 30 June 2018 if
AUD:USD rates had changed by +/- 10% and all other variables were held constant, the Group’s after
tax loss would have been $601 (2017: $(578)) higher/ (lower) as a result of lower/higher foreign
exchange translations on cash, receivables and payables.
Note 12: Commitments for expenditure
Not longer than 1 year
Longer than 1 year and not longer than 5
years
Expenditure commitments (minerals)
The Group has a commitment in minerals tenements E45 /3278 which has a current year
commitment of $20,000. The permit year ends 29 September each year and currently expires 29
September 2021.
In November 2017 the Group signed a farmin agreement in relation to the tenement E80/4990.
Following the expenditure of $68,000 in the first permit year (ending 3 October 2018) Peako may
spend $600,000 to earn a 60% interest in the tenement with the right to exit the arrangement after
spending the initial $68,000 and after spending an aggregate $193,000.
Note 13: Related party disclosure
The ultimate parent entity in the wholly-owned group and the ultimate Australian parent entity is
Peako Limited. The consolidated financial statements include the financial statements of Peako
Limited and the controlled entities listed in the following table:
Consolidated
2017
$
-
-
2018
$
-
-
6,012 5,777
-
6,012
-
5,777
88,000
20,000
40,000 60,000
128,000 80,000
Name of entity
Peak Oil & Gas (Australia) Pty Ltd
Peak Oil & Gas (Singapore) Pte Ltd
Peak Royalties Ltd
Peak Oil & Gas Philippines Ltd
Energy Best Limited
SA Drilling Pty Ltd
Samarai Pty Ltd
Country of
incorporation
Australia
Class of shares
Ordinary
Singapore
Ordinary
British Virgin Islands Ordinary
100
100
British Virgin Islands Ordinary
100
British Virgin Islands Ordinary
100
100
100
Equity holding %
2017
2018
100
100
100
100
Australia
Australia
Ordinary
Ordinary
100
100
100
100
31
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2018
Note 13: Related party disclosure (continued)
The transactions between Peako Limited and its controlled entities during this financial year
consisted of loans between Peako Limited and its controlled entities.
Related Parties
The following table provides details of advances to related parties and outstanding balances at
balance date.
Parent entity
2018
$
2017
$
Peak Oil & Gas (Australia) Pty Ltd
SA Drilling Pty Ltd
Samarai Pty Ltd
Impairment of loans to controlled entities
10,957,811
206,356
255,884
10,420,932
206,356
255,884
(11,420,051)
(10,883,172)
-
-
Director-related entities
During the year services and/or facilities were provided under normal commercial terms and
conditions by director-related entities as disclosed below:
Entity
Related
director
Service
Samika Pty Ltd
Exoil Pty Ltd
Octanex Limited
RL Clark
Consulting
EG Albers Office services
EG Albers Accounting and
33,412
33,698
administrative support
Amounts paid
2017 $
Payable at
30/06/18
$
Payable at
30/06/17
$
Amounts
paid 2018
$
25,211
33,929
18,615
14,590
3,037
8,840
-
7,800
8,459
7,172
Note 14: Parent Entity Disclosures
Parent Entity
85,725
73,730
20,336
14,972
Financial position
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net Assets
Issued capital
Accumulated losses
Options r
Total Equity
eserve
Financial performance
Loss for the year
Other comprehensive income
Total comprehensive loss
2018
$
191,419
86,204
277,623
44,877
-
44,877
237,927
59,023,421
(58,819,238)
33,744
237,927
2017
$
114,472
8,322
122,794
30,922
-
30,922
91,872
58,725,355
(58,667,227)
33,744
91,872
(152,011)
(178,045)
-
(152,011)
-
(178,045)
32
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2018
Note 15: Matters Subsequent to Balance Date
Following the end of the financial year, Peako entered into terms sheets providing it with potential
exposure to early stage exploration activities. The term sheets relate to two Western Australian
tenements, one granted, and one in the application process.
Note 16: Reconciliation of loss after income tax to net cash outflow from operating activities
Reconciliation of loss from ordinary activities after income tax to net cash outflow from operating
activities
loss
Net
for the year
Foreign exchange (loss) gain
Grant of options
Decrease in
Decrease in trade and other payables
trade and other receivables
(156,422)
(258)
-
(3,394)
13,256
(178,045)
23
33,744
4,568
(10,418)
Net cash outflow from operating activities
(146,818)
(150,128)
Note 17: Auditor’s remuneration
The auditors of the Group are Grant Thornton Audit Pty
Ltd.
Assurance services
Grant Thornton Audit Pty Ltd
Non-Audit services
Grant Thornton Audit Pty Ltd
Total auditors’ remuneration
25,117
25,126
-
-
-
25,117
25,126
33
PEAKO LIMITED
ABN 79 131 843 868
Directors’ Declaration
The directors of the company declare that:
The
financial
comprising
statements,
profit
1.
comprehensive income, statement of financial position, statement of cash flows, statement of
changes in equity, and accompanying notes, are in accordance with the Corporations Act 2001
and:
statement
loss
the
or
of
and
other
(a)
(b)
(c)
comply with Accounting Standards and the Corporations Regulations 2001;
give a true and fair view of the consolidated entity’s financial position as at 30 June
2018 and of its performance for the year ended on that date; and
the financial statements and notes also comply with International Financial
Reporting Standards as disclosed in Note 1(a).
In the directors’ opinion, there are reasonable grounds to believe that the company will be
2.
able to pay its debts as and when they become due and payable.
The remuneration disclosures included in pages 8 to 10 of the directors’ report, (as part of
3.
audited Remuneration Report), for the year ended 30 June 2018, comply with section 300A of the
Corporations Act 2001.
The directors have been given the declarations by the chief executive officer and chief
4.
financial officer required by section 295A.
This declaration is made in accordance with a resolution of the Board of Directors and is signed for
and on behalf of the directors by:
E.G. Albers
Director
27 September 2018
34
Independent Auditor’s Report
To the Members of Peako Limited
Report on the audit of the financial report
Collins Square, Tower 1
727 Collins Street
Melbourne VIC 3008
Correspondence to:
GPO Box 4736
Melbourne VIC 3001
T +61 3 8320 2222
F +61 3 8320 2200
E info.vic@au.gt.com
W www.grantthornton.com.au
Opinion
We have audited the financial report of Peako Limited (the Company) and its subsidiaries (the Group), which comprises
the consolidated statement of financial position as at 30 June 2018, the consolidated statement of profit or loss and other
comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the
year then ended, and notes to the consolidated financial statements, including a summary of significant accounting
policies, and the Directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including:
a giving a true and fair view of the Group’s financial position as at 30 June 2018 and of its performance for the year
ended on that date; and
b complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are
independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and
the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled
our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Material uncertainty related to going concern
We draw attention to Note 1(a) in the financial statements, which indicates that the Group incurred a net loss of $156,422
during the year ended 30 June 2018, and as of that date, the Group’s remaining cash balance was $191,149 with current
liabilities of $49,534 and net assets of $239,283. As stated in Note 1(a), these events or conditions, along with other matters
as set forth in Note 1(a), indicate that a material uncertainty exists that may cast doubt on the Group’s ability to continue as a
going concern. Our opinion is not modified in respect of this matter.
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
www.grantthornton.com.au
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients
and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International
Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are
delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one
another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to
Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to
Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
In addition to the matter described in the Material uncertainty related to going concern section, we have determined the
matters described below to be the key audit matters to be communicated in our report.
Key audit matter
How our audit addressed the key audit matter
Exploration and Evaluation Assets Valuation
The tenements held by Peako Limited and its subsidiaries are
in the exploration stage and exploration expenditure is
capitalised in accordance with Australian Accounting Standard
AASB 6 Exploration for and Evaluation of Mineral Resources.
The group is required to assess at each reporting date if there
are any triggers for impairment which may suggest the
carrying value is in excess of the recoverable value. Any
impairment losses are then measured in accordance with
AASB 136 Impairment of Assets.
AASB 6 Exploration for and Evaluation of Mineral Resources
requires exploration and evaluation asset to be assessed for
impairment when facts and circumstances suggest that the
carrying amount of an exploration and evaluation asset may
exceed its recoverable amount. AASB 6 provides a list of 4
indicators, however that list is not exhaustive and therefore
subjectivity is involved in the assessment.
This area is a key audit matter as significant judgement is
required in determining whether the facts and circumstances
suggest that the carrying amount of an exploration and
evaluation asset may exceed its recoverable amount, and
then consequently in measuring any impairment loss.
Our procedures included, amongst others:
• Obtaining the management prepared reconciliation of
capitalised exploration and evaluation expenditure and
agreeing to the general ledger;
• Selecting a sample of capitalised exploration and
evaluation expenditure and obtain documentation to
support the amount capitalised in line with AASB 6;
• Critically reviewing management's assessment of
impairment indicators for the Group's capitalised
exploration assets under AASB 6 by:
Assessing the period for the right to explore the
areas of interest had not expired or will not expire in
the near future without an expectation of renewal;
Enquiring of management regarding their intentions
to carry out exploration and evaluation activity in the
relevant exploration area, including review of
managements’ budgeted expenditure;
Understanding whether any data exists that indicates
the carrying value of these exploration and evaluation
assets are unlikely to be recovered from successful
development or by sale; and
Considering any other available evidence of
impairment.
• Assessing management's consequent determination of
impairment loss (if any).
• Reviewing related financial statement disclosures.
Information other than the financial report and auditor’s report thereon
The Directors are responsible for the other information. The other information comprises the information included in the
Group’s annual report for the year ended 30 June 2018, but does not include the financial report and our auditor’s report
thereon.
Our opinion on the financial report does not cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or
otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors’ for the financial report
The Directors of the Group are responsible for the preparation of the financial report that gives a true and fair view in
accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the Directors
determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material
misstatement, whether due to fraud or error.
In preparing the financial report, the Directors are responsible for assessing the Group’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the
Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing
Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance
Standards Board website at: https://www.auasb.gov.au/auditors_responsibilities/ar1.pdf. This description forms part of our
auditor’s report.
Report on the remuneration report
Opinion on the remuneration report
We have audited the Remuneration Report included in pages 8 to 10 of the Directors’ report for the year ended 30 June
2018.
In our opinion, the Remuneration Report of Peako Limited, for the year ended 30 June 2018 complies with section 300A
of the Corporations Act 2001.
Responsibilities
The Directors of the Group are responsible for the preparation and presentation of the Remuneration Report in accordance
with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report,
based on our audit conducted in accordance with Australian Auditing Standards.
Grant Thornton Audit Pty Ltd
Chartered Accountants
B L Taylor
Partner – Audit & Assurance
Melbourne, 27 September 2018
PEAKO LIMITED
ABN 79 131 843 868
Additional Shareholder Information (unaudited)
The shareholder information set out below was applicable as at 21 September 2018.
A. Distribution of equity securities – ordinary shares
Analysis of numbers of equity security holders by size of holding:
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and above
Total
There were 631 holders of less than a marketable parcel of ordinary shares.
Ordinary shares
236
212
64
147
48
707
B. Equity security holders – ordinary shares
Twenty largest holders
Name
Hawkestone Resources Pty Ltd
Southern Energy Pty Ltd
Sacrosanct Pty Ltd
500 Custodian Pty Ltd
Ram Platinum Pty Ltd
Mr Ernest Geoffrey Albers
Australis Finance Pty Ltd
Sagepark Holdings Pty Ltd
Albers Custodian Company Pty Ltd
Pontia Pty Ltd
Mr Charles Waite Morgan
Auralandia Pty Ltd
Hebei Mining (Australia) Holding Pty Ltd
Great Missenden Holdings Pty Ltd
Mr Issy Lissek
Mr Rohitendra Pathik
Dr Joshua Ehrlich
Noah's Ark Investment Group Pty Ltd
Mr Michael Leslie Jefferies
C.
Substantial holders – ordinary shares
No. of ordinary
shares held
10,240,334
8,609,451
7,020,000
5,040,000
3,500,000
2,730,000
2,695,404
2,139,041
1,980,000
1,886,637
1,753,157
1,645,404
1,387,298
1,371,170
1,345,570
1,175,843
1,000,000
1,000,000
900,000
% of issued
shares
14.22%
11.95%
9.75%
7.00%
4.86%
3.79%
3.74%
2.97%
2.75%
2.62%
2.43%
2.28%
1.93%
1.90%
1.87%
1.63%
1.39%
1.39%
1.25%
60,591,835
84.13%
Substantial shareholders as disclosed in substantial shareholding notices given to the Company are
as follows:
Albers Group
Number
Held
Percentage
41,331,763
57.39%
38
PEAKO LIMITED
ABN 79 131 843 868
D. Distribution of listed Option Holders
exerciseable at $0.025 on or before 30 June 2019
Options Held
19
8
14
10
13
64
No. of Listed
options held
Analysis of numbers of option holders by size of holding:
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001
– 100,000
100,001 and above
Total
E. Equity security holders – listed options
Twenty largest holders
Name
Hawkestone Resources Pty Ltd
Southern Energy Pty Ltd
Sacrosanct Pty Ltd
500 Custodian Pty Ltd
Mr Ernest Geoffrey Albers
Albers Custodian Company Pty Ltd
Mr Charles Waite Morgan
Australis Finance Pty Ltd
Auralandia Pty Ltd
KSLCORP Pty Ltd
Great Missenden Holdings Pty Ltd
Mr Michael Leslie Jefferies
Mrs Julia Grace Parfitt
Mr Peter Scott
Mrs Helen Hardwick
Mr Trevor Tryphon
Wragg Super Pty Ltd
Mrs Florence Lynette Kellet
Mr David John Incher
F. Unlisted Option Holders
(exercisable at $0.04 on or before 24 November 2019)
Two holders hold 5,000,000 unlisted options.
4,551,260
% of issued listed
option
21.67%
18.22%
14.86%
10.67%
8.00%
4.19%
3.71%
3.48%
3.48%
3.05%
2.90%
1.90%
1.90%
0.36%
0.19%
0.19%
0.18%
0.13%
0.11%
3,826,423
3,120,000
2,240,000
1,680,000
880,000
779,181
731,291
731,291
640,000
609,409
400,000
400,000
76,600
40,000
40,000
38,183
28,000
23,360
20,883,702
99.44%
39
PEAKO LIMITED
ABN 79 131 843 868
Minerals Exploration Interests
Mining Tenements held at 30 June 2018 and their location
Western Australia (Paterson Province)
E 45/3278 (100%)
E 45/3345 (100%)
E 45/3477 (100%)
E 45/3292 (100%)
Western Australia (East Kimberley)
E 80/5182 (100%)
Granted
Application
Application
Application
Application
Tenements acquired during the year and their location
Nil.
Tenements disposed of during the year and their location
Nil.
Beneficial percentage interests held in farm-in or farm-out agreements at 30 June 2018:
Farm-out Agreements
Nil.
Farm-in Agreements:
Western Australia (East Kimberley)
E 80/4990
– Peako earning a 60% interest
Granted
via Farmin arrangement with Sandrib Pty
Ltd
40
PEAKO LIMITED
ABN 79 131 843 868
Petroleum Interests
Petroleum Tenements held at 30 June 2018 and their location
The Philippines
SC-6 Cadlao
Granted
Tenements acquired during the year and their location
Nil.
Tenements disposed of during the year and their location
Nil.
Beneficial percentage interests held in farm-in or farm-out agreements at 30 June 2018:
Farm-out Agreements
Nil.
Beneficial percentage interests in farm-in or farm-out agreements acquired or disposed of
Farm-in / Other Agreements
Peako’s interests in relation to the SC6 Cadlao Oilfield re-development project are held via its
subsidiary Peak Oil & Gas (Australia) Pty Ltd (Peak). The interests are all disputed, as follows:
1. A 25% Cadlao joint venture interest (held in trust by Cadlao Development Company Limited (Cadco)) for
Peak or, alternatively, an entitlement to receive $6.7 million as consideration for the buyback of the 25%
interest; and
2. A prospective indirect economic
interest held by way of a 40% shareholding held by our subsidiary, Energy
Best Limited (EBL), in VenturOil Philippines Inc (VenturOil) (itself a 20% interest holder in the Cadlao Joint
Venture) and a 5% interest in the Service Contract SC6 Cadlao held by VenturOil in trust for EBL. The 40%
shareholding and subsequent associated funding obligation was intended to provide EBL with 75% dividend
rights in respect to its 40% shareholding.
3. An aggregate 80% interest in overriding royalty interests relating to 3.3% of production held by Peak
Royalties Limited
4. A loan receivable from VenturOil for US$736,188
41