PEAKO LIMITED
ABN 79 131 843 868
Corporate Directory
Directors
Geoffrey Albers
Raewyn Clark
Darryl Clark
Company Secretary
Robert Wright
Non-Executive Chairman
Executive Director
Non-Executive Director
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 5
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 Codes: PKO – Ordinary Shares
PKOOA - Options expiring 30 April 2020
Incorporated in Western Australia 25 June 2008
TABLE OF CONTENTS
2
3
5
9
12
16
17
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 20
21
Notes to the Financial Statements
42
Directors’ Declaration
43
Independent Auditor’s Report to the
Members
Additional Shareholder Information
(unaudited)
18
46
19
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PEAKO LIMITED
ABN 79 131 843 868
Chairman’s Letter
Dear Shareholders
During 2018/19 we strengthened our exploration activities at our East Kimberley Copper-
Gold Project in Western Australia, taking up new acreage and, as a result, building a large
ground-holding in a contiguous area where systematic exploration has lagged behind that of
most of Australia’s Proterozoic provinces. Historic exploration in the East Kimberley has been
sparse and sporadic, primarily guided by surface gossans and geochemical anomalies. Past
exploration in our tenement areas has been inhibited by superficial cover, deep weathering
and structural complexity. Prior use of geophysical methods, including VTEM survey, had
been ineffective at identifying mineralisation, including even that identified by drilling.
We determined that modern geophysical methods offered renewed potential for our areas. As
a result, Peako conducted an IP survey program during the year consisting of both Gradient
Array IP (GAIP) and Dipole-Dipole IP (DDIP) at the Eastman and Landrigan prospects, both
which had been identified by prior explorers based on outcropping mineralisation. The IP
surveys successfully detected the known mineralisation at each prospect and, significantly,
indicated the presence of multiple targets along strike of known mineralisation that were
completely untested by historic drilling.
With this encouragement, we designed a drilling program to test geophysical targets
identified by the IP survey, as well as geochemical anomalies. Supported by an Exploration
Incentive Scheme drilling grant from the Western Australian government, we undertook
2,398m of RC drilling at both prospects, which completed earlier this month. Assays results
are expected to be received progressively over the coming weeks and we look forward to
providing an update and results in due course.
While awaiting the assay results and interpretations from our Eastman and Landrigan
prospects, we are continuing to build our exploration pipeline, refining a dataset of historic
exploration activities, gossans and anomalous areas across our tenements to identify
numerous targets. As well as prospectivity for copper/gold mineralization, sections of our
Eastman tenement are interpreted to be attractive for targets for nickel, cobalt and PGEs. We
note the interest of major companies in the nickel/copper potential of tenements to the west
3
PEAKO LIMITED
ABN 79 131 843 868
of our ground. We see substantial scope for long-term exploration of our East Kimberley
acreage.
As the Eastman tenement is presently the central focus of our East Kimberley Copper-Gold
project, we are delighted to have been able to secure a Stage 2 farm-in option by which we
may to elect to earn a further 25% interest in the Eastman tenement, so as to increase our
total interest in the Eastman tenement to 85%.
In March, we welcomed Dr Darryl Clark to the board as an independent non-executive
director, bringing technical exploration expertise at the highest levels, as well as experience in
strategy and exploration portfolio development. Mr Peter Armitage resigned from the board
at this time and is thanked for his service.
I thank shareholders for their support of the Company over the past year and particularly for
the support of our recent capital raising. Just after the close of the year we made a non-
renounceable rights offer to shareholders resulting in the issue of 38,489,359 new shares at
$0.02 each with attaching options with a short expiry date (exercisable at $0.025 on or before
30 April 2020). A total of $756,945 was raised (before costs) with funds directed towards our
East Kimberley exploration activities including the recent drilling program. I have been
sufficiently encouraged by the Company’s outlook to have recently exercised 11,300,000
options held by myself and my family companies, providing further working capital of
$282,500 for Peako.
I thank my co-directors for their services to the Company over the past year.
EG Albers – Chairman
Peako Limited
18 October 2019
4
PEAKO LIMITED
ABN 79 131 843 868
Operations Report
Minerals Exploration
East Kimberley Project
Peako’s East Kimberley exploration strategy focusses on VHMS (volcanic hosted massive sulphide)
deposits in order to leverage from the potential for rapid discovery-development timelines and high
returns offered by this deposit style.
Peako has built a large ground-holding in the East Kimberley, an area where systematic exploration
has lagged behind that of most of Australia’s Proterozoic provinces. Peako’s East Kimberley tenement
package is considered prospective for VHMS deposits and is underexplored. The tenements are largely
located on Louisa Downs Station, 120 km to the southwest of Halls Creek. Access to the tenements is
via the Great Northern Highway and station tracks
Figure 1 Peako's East Kimberley Tenement Package
Peako’s East Kimberley tenements have historically been sparsely and sporadically explored for a
wide range of mineralisation styles and commodities over a large area. Historical exploration was
primarily guided by surface gossans and geochemical anomalies, with only the more significant
geochemical anomalies tested by limited shallow drilling. Prior use of geophysical methods including
VTEM survey, were ineffective at identifying mineralisation, including even that identified by drilling.
5
PEAKO LIMITED
ABN 79 131 843 868
The Eastman project tenement (E80/4990) is the central focus of Peako’s East Kimberley VHMS
focussed copper-gold exploration strategy. Since entering a Farm-in and Joint Venture agreement with
Sandrib Pty Ltd in November 2017, Peako has successfully progressed exploration in the Eastman
tenement, resulting in the identification of geophysical targets which are presently being drilled.
Having determined that modern geophysical methods offered new potential, Peako conducted an
Induced Polarisation (IP) survey program in late 2018 consisting of both Gradient Array IP (GAIP) and
Dipole-Dipole IP (DDIP) at the Eastman and Landrigan VHMS prospects, identified by prior explorers
based on outcropping mineralisation:
Eastman : 12m @ 3.2% Cu, 5.7% Zn, 1.86% Pb, 26.5 g/t Ag & 0.41g/t Au
Landrigan : 9.6m @ 2.7% Cu, 1.5% Zn, 0.3% Pb, 12.6 g/t Ag and 1.5 g/t Au
The IP surveys successfully detected the known mineralisation at each prospect, thus validating the IP
method, and significantly, identified blind geophysical targets at each prospect along strike of known
mineralisation (see Figure 2 and Figure 3).
Figure 2 Eastman Prospect Geophysical Targets
6
PEAKO LIMITED
ABN 79 131 843 868
Interpreted fault zone
A
B
New target
offset by
interpreted
structure
Open
9.6m @ 2.7% Cu, 1.5% Zn, 0.3%
Pb, 12.6 g/t Ag and 1.5 g/t Au
B
A
Potential
north
dipping
sulphide
sources
Landrigan DDIP cross-section chargeability anomaly zone
Open
DDIP chargeability
inversion model cross
section anomaly zone
(see inset)
GAIP chargeability
anomaly coincident
with EYD020
Response indicates
northerly dipping source
not tested by prior
drilling (oriented to N)
Landrigan GAIP survey with anomalies and existing drilling
Figure 3 Landrigan Prospect Geophysical Targets
A drilling program has been designed to test these geophysical targets at each of the Eastman and
Landrigan prospects and is supported by a $150,000 Environment Incentive Scheme drilling grant
from the Western Australian government.
Having established the effectiveness of modern IP techniques at detecting mineralisation in this
geological setting, Peako plans to use IP methods to develop its VHMS exploration pipeline. Peako has
compiled a dataset of historic exploration across its two existing East Kimberley tenements and
identified numerous targets.
7
PEAKO LIMITED
ABN 79 131 843 868
Paterson Province Project
investigation at
Peako is seeking to identify base metal
target zones for
it’s
Broadhurst Project tenement, located in
the Rudall River area of the Paterson
Province of Western Australia (Figure 4).
long standing
Peako also has three
licences
applications
located close to its Broadhurst Project
tenement.
for exploration
Historically, the Broadhurst Project has
mainly been explored
for uranium
mineralisation in the eastern part of the
project area, with
little exploration
carried out for base metal mineralisation.
to
historical
According
geological
mapping, the bedrock geology of the
project area
is entirely made up of
carbonaceous shales and siltstones of the
quartz
Formation,
Broadhurst
sandstones
the
and
underlying Coolbro Sandstone Formation.
siltstones
and
of
Figure 4 Broadhurst Project tenement location
The location of Broadhurst Formation shales are shown 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 (Figure 5).
Figure 5 Broadhurst Formation (blue) with Peako tenement and a tenement application outlines (green)
and key mineral prospects and mines
8
PEAKO LIMITED
ABN 79 131 843 868
Other Exploration Project
During the year Peako also undertook exploration activities in relation to the Runton Project
(E45/3736) and the Durack Ranges Project (E80/5080) prior to withdrawing from its arrangements
in relation to these projects.
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 2019. 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
Dr Darryl Clark
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 35
years’ experience as a director and administrator in corporate law, resource exploration and resource
sector investment.
Mr Albers has interests in a number of 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.
His companies are active resource sector investors.
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
sector. Her experience includes business development, financial modelling and analysis, capital raising
and mergers and acquisitions, as well as managing joint venture partners, government, regulator and
investor relations.
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.
Dr Darryl Clark BSc (Hons), PhD and FAusIMM
Dr Clark is an exploration geologist whose career has taken him throughout Australia, Central Asia and
South East Asia for over 26 years. His responsibilities over the last 16 years have involved him in a
diverse range of technological, political and cultural environments with unique challenges. During
previous corporate roles with both Vale and BHP Billiton, and in consulting roles including SRK, he has
been responsible for business development strategies, designing multi-commodity exploration
programs and the co-ordination of exploration teams to deliver discovery events. Dr Clark was
appointed to the Board on 20 March 2019. Dr Clark is also a director of the ASX listed company Xanadu
Mines Ltd.
9
PEAKO LIMITED
ABN 79 131 843 868
Peter Armitage FCA FAICD
Appointed 18 August 2015 – resigned 20 March 2019.
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 professional with over 30 years 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 of the ASX listed companies Octanex Limited and Enegex Limited. Mr
Wright is a member of CPA Australia.
Ordinary shares
During the year, the Company raised $105,197 before costs, via exercise of options and issue of shares.
The number of shares on issue at 30 June 2019 was 76,978,545 fully paid ordinary shares (2018:
72,020,678).
On the 16 August 2019 the company completed a pro-rata non renounceable rights issue. A total of
38,489,359 new shares and 38,489,359 free attaching new options were subscribed for, raising gross
proceeds of $756,945.
Options
During the year 1,207,867 options (exerciseable at $0.025 (2.5 cents) on or before 30 June 2019) were
exercised. The balance of 19,793,674 expired at 30 June 2019. As at 30 June 2019 there were nil listed
options (2018: 21,001,541 listed options).
On the 16 August 2019 the company completed a pro-rata non renounceable rights issue. A total of
38,489,359 free attaching new listed options exercisable at $0.025 at any time up to 30 April 2020
were granted.
At 30 June 2019 6,000,000 unlisted options were on issue (30 June 2018: 5,000,000 unlisted options).
During the year, but prior to him becoming a director, 1,000,000 unlisted options were from a granted
to Darryl Clark.
Dividends
No dividend has been paid or declared since the start of the financial year and the directors do 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 4-7 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 of activities and operations, and elsewhere in this
Report.
10
PEAKO LIMITED
ABN 79 131 843 868
Matters subsequent to balance date
In July 2019 the Company executed an Amended and Restated Farmin and Joint Venture Agreement
with Sandrib Pty Ltd to effect a Stage 2 farm-in option by which it may earn an additional joint venture
interest to increase its total interest in the Eastman project tenement (E80/4990) to 85%.
On the 16 August 2019 the company completed a pro-rata non renounceable rights issue. A total of
38,489,359 new shares and 38,489,359 free attaching new options were subscribed for, raising gross
proceeds of $756,945.
At 30 June 2019 the Company had borrowings of $265,000 with Australis Finance Pty Ltd. The
borrowings were repaid in full by September 2019.
In September 2019 the Company commenced a drill program at its Eastman Project to test geophysical
anomalies identified by the IP survey it conducted in 2018.
Likely developments and expected results
The likely developments in the company’s 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.
Environmental legislation
The Group is subject to significant environmental legal regulations in respect to its exploration and
evaluation activities in Australia. There have been no known breaches of these regulations and
principles.
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 their position
of officers or auditor of the company.
The Company has entered into Deeds of Access and Indemnity with each of the Directors referred to in
this report who held office during the year indemnifying each against all liabilities incurred in their
capacity as directors of the Company to the full extent permitted by law
Meetings of directors
The number of formal meetings of the Company’s board of directors and relevant committees attended
by each director are set out in the table below. All other matters that required formal Board
resolutions were dealt with via written circular resolutions. In addition, the directors met and
corresponded at numerous times throughout the financial year to discuss the Group’s affairs.
Directors’
Meetings
Audit Committee
Meetings
Held Attended Held
Attended
Geoffrey Albers
2
2
2
2
Raewyn Clark
2
Peter Armitage
Darryl Clark#
2
-
# appointed 20 March 2019
2
2
2
2
2
2
-
-
-
Proceedings on behalf of Company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a
11
PEAKO LIMITED
ABN 79 131 843 868
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 is provided on the Peako website www.peako.com.au.
Remuneration Report
This report is audited.
Directors /
Executives
Position Held
Geoffrey Albers
Non-Executive Chairman
Raewyn Clark
Executive Director
Darryl Clark
Non-Executive Director
During the year there were no employees or consultants to the company that meet the definition of
key management personnel, other than the directors.
Remuneration levels are reviewed annually through a process that considers the performance of
individual directors and the overall performance of the entity.
Director Remuneration
During the year under review, directors were remunerated a total of $Nil (2018: $Nil) which included
shareholder-approved non-executive remuneration of $Nil (2018: $Nil).
There is no performance related remuneration for directors.
There is no direct relationship between remuneration of directors and the company’s performance for
the last five years.
Components of directors’ compensation are disclosed below.
Primary
benefits paid / payable
Salary and/or
consulting fees
$
Directors’
fees
$
Super-
annuation
$
Equity Settled
Equity
option issues
$
TOTAL
$
Year ended 30 June 2019
Directors
Geoffrey Albers
Raewyn Clark
Peter Armitage
Dr Darryl Clark
Year ended 30 June 2018
Directors
Geoffrey Albers
Raewyn Clark
Peter Armitage
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Loans to key management personnel
No loans were made to key management personnel during the current or previous financial year.
12
PEAKO LIMITED
ABN 79 131 843 868
REMUNERATION REPORT (Continued)
Other transactions with key management personnel
In the year ended 30 June 2019, the Company incurred consulting fees of $31,590 (2018: $33,412)
with Samika Pty Ltd, a director-related entity of Raewyn Clark. The fees were provided under normal
commercial terms and conditions with $1,215 remaining unpaid at 30 June 2019 (2018 $3,037).
Key management personnel interest in equity holdings
Fully paid ordinary shares
30 June 2019
Geoffrey Albers(1)
Raewyn Clark
Darryl Clark
Peter Armitage
(2)
(1)
Number of shares at
start of year
1 July 2018
Other Change
Number of shares at
end of year
30 June 2019
41,331,763
2,688,132
-
-
-
41,331,763
-
300,000
-
44,019,895
-
300,000
-
2,988,132
44,119,895
(1) Other Change in shares – on market
purchases
(2) Peter Armitage resigned 20 March 2019
30 June 2018
Geoffrey Albers
Raewyn Clark
Peter Armitage
1 July 2017
30 June 2018
22,962,089
18,369,974*
41,331,763
-
-
22,962,089
-
-
-
-
18,369,974
41,331,763
* via rights issue participation
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 2019
Geoffrey Albers
Raewyn Clark
Peter Armitage#
# Peter Armitage resigned 20
March 2019
30 June 2018
Geoffrey Albers
Raewyn Clark
Peter Armitage
* via right issue participation
1 July 2018
30 June 2019
30 June 2019
-
4,000,000
1,000,000
5,000,000
-
4,000,000
-
4,000,000
-
4,000,000
-
4,000,000
1 July 2017
-
4,000,000
1,000,000
5,000,000
30 June 2018
30 June 2018
-
4,000,000
1,000,000
-
4,000,000
1,000,000
5,000,000
5,000,000
13
PEAKO LIMITED
ABN 79 131 843 868
REMUNERATION REPORT (Continued)
Unlisted options (exercisable at $0.05 on or before 18 March 2021)
30 June 2019
Geoffrey Albers
Raewyn Clark
Darryl Clark
#
Number of options at
start of year
Number of options
at end of year
Numbers of options
vested and
exercisable
1 July 2018
30 June 2019
30 June 2019
-
-
-
-
-
-
-
-
1,000,000
1,000,000
1,000,000
1,000,000
# Options issued prior to appointment on March 2019.
Listed options (exerciseable at $0.025 on or before 30 June 2019)
30 June 2019
Geoffrey Albers
Raewyn Clark
Peter Armitage
Options
exercised/expired
during year
Number of
options at start of
year
1 July 2018
18,369,974
-
-
Number of
options at
end of year
30 June 2019
(18,369,974)
Numbers of
options vested
and exercisable
30 June 2019
-
-
-
-
-
-
-
-
-
-
18,369,974 (18,369,974)
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
14
PEAKO LIMITED
ABN 79 131 843 868
Auditor independence
Section 307C of the Corporations Act 2001 requires our auditors, Grant Thornton Audit Pty Ltd, to
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 16 and forms part of this directors’
report for the year ended 30 June 2019.
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.
R.L.Clark
Director
24 September 2019
15
Collins Square, Tower 5
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 Peako Limited
for the year ended 30 June 2019, 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, 24 September 2019
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.
16
PEAKO LIMITED
ABN 79 131 843 868
Consolidated Statement of Profit or Loss and Other Comprehensive Income
for the year ended 30 June 2019
Financial income
Expenses
Audit fees
Impairment of exploration assets
Exploration costs
Professional and consultancy fees
Office costs
Other costs
Stock exchange and share registry costs
Loss before income tax expense
Income tax expense
Note
2019
$
2018
$
73
73
518
518
18
6
2
(29,500)
(59,982)
(10,449)
(39,300)
(30,560)
(93,117)
(22,525)
(285,433)
(285,360)
-
(285,360)
(25,117)
-
-
(34,813)
(33,504)
(41,685)
(21,821)
(156,940)
(156,422)
-
(156,422)
Net loss for the year
(285,360)
(156,422)
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
74
74
(285,286)
(9)
(9)
(156,431)
Basic loss per share
Diluted loss per share
3
3
Cents
(0.39)
(0.39)
Cents
(0.25)
(0.25)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes .
17
PEAKO LIMITED
ABN 79 131 843 868
Consolidated Statement of Financial
Position
as at 30 June 2019
Current Assets
Cash and cash equivalents
Trade and other receivables
Prepayments
Total Current Assets
Note
4
5
Non-Current Assets
Trade and other receivables
4
Exploration and evaluation assets 6
Total Non -Current Assets
Total Assets
Current Liabilities
Trade and other payables
Borrowings
Total Current Liabilities
Total Liabilities
Net Assets
Equity
Issued capital
Reserves
Accumulated losses
Total Equity
7
8
9
10
2019
$
2018
$
30,193
5,410
27,200
62,803
191,419
5,182
-
196,601
6,336
415,556
421,892 92,216
6,012
86,204
484,695
288,817
163,998
265,000
428,988 49,534
49,534
-
428,988
49,534
55,707
239,283
37,208,259
34,064
(37,186,616)
37,106,549
33,990
(36,901,256)
55,707
239,283
The above statement of financial position should be read in conjunction with the accompanying notes
.
18
PEAKO LIMITED
ABN 79 131 843 868
Consolidated Statement of Changes in Equity
for the year ended 30 June 2019
Issued
capital
Share
Foreign currency
Accumulated
Total equity
compensation
reserve
translation
reserve
losses
$
$
$
$
$
Balance at 1 July 2018
37,106,549
33,744
246 (36,901,256)
239,283
Loss for the year
Other comprehensive loss
Total comprehensive loss
for the year
-
-
-
-
-
(285,360)
(285,360)
-
-
74
-
74
74
(285,360)
(285,286)
Issue of Shares
Costs of issue
Balance at 30 June 2019
105,197
-
(3,487)
37,208,259
-
33,744
-
-
(3,487)
55,707
320 (37,186,616)
-
-
105,197
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
-
-
-
-
(156,422)
(156,422)
-
-
-
(9)
-
(9)
(9)
(156,422)
(156,431)
Issue of Shares
Costs of issue
Balance at 30 June 2018
315,023
(16,957)
-
-
-
-
-
315,023
-
(16,957)
37,106,549
33,744
246 (36,901,256)
239,283
The above statement of changes in equity should be read in conjunction with the accompanying notes
.
19
PEAKO LIMITED
ABN 79 131 843 868
Consolidated Statement of Cash Flows
for the year ended 30 June 2019
Cash flows from operating activities
Payments to suppliers and employees
Financial income
(124,255)
73
(147,368)
550
Net cash outflows from operating activities
17
(124,182)
(146,818)
Note
2019
$
2018
$
Cash flows from investing activities
Payments to suppliers - exploration
Net cash outflows from investing activities
(332,253)
(72,528)
(332,253)
(72,528)
Cash flows from financing activities
Proceeds from borrowings
Proceeds from the issue of shares
Share issue costs
Net cash inflows from financing activities
265,000
30,197
-
295,197
-
315,023
(16,957)
298,066
Net increase / (decrease) in cash held
(161,238)
78,720
Cash at the beginning of reporting period
Effect of exchange rate fluctuations on cash held
Cash at the end of the reporting period
191,419
12
112,685
14
30,193
191,419
The above statement of cash flows should be read in conjunction with the accompanying notes
.
20
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2019
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 Corporations Act 2001, Accounting Standards and
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.
Going concern
For the year ended 30 June 2019 the Group incurred a net cash outflow from operating and
investing activities of $456,435 (2018: $219,346) and a net loss after tax of $285,360 (2018:
$156,422). As at 30 June 2019, the Group has negative working capital of $366,185 (2018:
positive $147,067).
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.
Post balance date; on the 16 August 2019, the company completed a pro-rata non
renounceable rights issue raising gross proceeds of $756,945.
(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 2018.
The adoption of the new and revised Australian Accounting Standards and Interpretations, including
AASB 15 Revenue from Contracts with Customers, has had no impact on the company’s accounting
policies or the amounts reported during the current year.
AASB 9 Financial Instruments
AASB 9 Financial Instruments replaces AASB 139 Financial Instruments: Recognition and
Measurement requirements. It makes major changes to the previous guidance on the classification
and measurement of financial assets and introduces an ‘expected credit loss’ model for impairment
of financial assets.
The Group has assessed the classification and measurement of the Group’s financial liabilities and
financial assets.
When adopting AASB 9, the Group has applied transitional relief and elected not to restate prior
periods. Rather, differences arising from the adoption of AASB 9 in relation to classification,
measurement, and impairment are recognised in opening retained earnings as at 1 July 2018.
21
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2019
Note 1: Statement of significant accounting policies continued
Changes in accounting policies on initial application of Accounting Standards
(continued)
The table below outlines the accounting treatment for financial assets and financial liabilities under
AASB 139 as compared to AASB 9
Financial instrument
Security deposits
Trade and other payables
Borrowings
Derivative financial instruments
Previous
AASB 139
Amortised cost
Current
AASB 9
Amortised cost
Amortised cost Amortised cost
Amortised cost
Fair value through profit or loss
Amortised cost
Fair value through profit or loss
The Group’s other receivables do not meet the definition of a financial asset as they include GST
receivable and prepayments. As a result, Group management is satisfied that there is no impact from
the transition from AASB139 to AASB9.
Impairment of financial assets
AASB 9’s new impairment model use more forward looking information to recognise expected
credit losses - the ‘expected credit losses (ECL) model’. The application of the new impairment
model depends on whether there has been a significant increase in credit risk.
The Group considers a broader range of information when assessing credit risk and measuring
expected credit losses, including past events, current conditions, reasonable and supportable
forecasts that affect the expected collectability of the future cash flows of the instrument.
The Directors do not believe that new and revised standards issued by AASB (that are not as
yet effective, will have any material financial impact on the financial statements, including
AASB 16 Leases, which does not apply to leases to explore for or use minerals, oil, natural gas
and similar non-regenerative resources.
22
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2019
Note 1: Statement of significant accounting policies continued
(c)
Statement of compliance
The financial report was authorised by the board of directors for issue on 24 September 2019.
The consolidated financial report is a general purpose financial report which has been
prepared in accordance with Australian Accounting Standards, including the Accounting
Interpretations, issued by the Australian Accounting Standards Board (‘AASB’) and the
Corporations Act 2001. The financial report of the company complies with International
Financial Reporting Standards and interpretations adopted by the International Accounting
Standards Board
(d) Basis of consolidation
The consolidated financial statements consolidate those of the parent company and all of its
subsidiaries as of 30 June 2019 (“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.
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.
Non-controlling interests, presented as part of equity, represent the portion of a 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.
23
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2019
Note 1: Statement of significant accounting policies continued
(e)
Exploration and evaluation expenditure
Exploration and evaluation assets, including the costs of acquiring tenements, are
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:
(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
farmin arrangements are credited against exploration costs previously capitalised. Any
excess of the proceeds overs costs recouped are accounted for as a gain on disposal.
24
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2019
Note 1: Statement of significant accounting policies continued
(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, highly liquid
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 within borrowings in current liabilities in
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 can be controlled and it is probable that the temporary difference
will not reverse in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, carry-
forward of unused tax assets and unused tax losses, to the extent that it is probable that
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:
when the deferred income tax asset relating 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
25
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2019
Note 1: Statement of significant accounting policies continues
(h)
Income tax (continued)
when the deductible temporary difference is associated with investments in 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.
26
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2019
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.
27
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2019
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
Both the functional and presentation currency of Peako Limited and its Australian
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.
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.
28
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2019
Note 1: Statement of significant accounting policies continued
(q)
(i) Trade and other receivables (relates to comparable period ending 30 June 2018 and
earlier)
Trade receivables are recognised at original invoice amounts less an allowance for uncollectible
amounts and have repayment terms between 30 and 90 days. Collectability of trade receivables is
assessed on an ongoing basis. Debts which are known to be uncollectible are written off. An
allowance is made for doubtful debts where there is objective evidence (such as significant
financial difficulties on the part of the counterparty or default or significant delay in payment)
that the company will not be able to collect all amounts due according to the original terms.
(ii) Trade and other receivables and contract assets (relates to current period beginning 1
July 2018)
The company makes uses of a simplified approach in accounting for trade and other receivables
as well as contract assets and records the loss allowance as lifetime expected credit losses. These
are the expected shortfalls in contractual cash flows, considering the potential for default at any
point during the life of the financial instrument. In calculating, the company uses its historical
experience, external indicators and forward-looking information to calculate the expected credit
losses using a provision matrix.
(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 15 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 deducted from the carrying amount of these
investments.
29
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2019
Note 1: Statement of significant accounting policies continued
(t) Critical accounting estimates and judgements
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 risk of causing a material
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 is revised if it affects only that period, or in the
period of the revision and future periods if the revision affects both current and future periods
Management exercise judgement as to the recoverability of exploration expenditure. Any
judgement may change as new information becomes available. If, after having capitalised
exploration and evaluation expenditure, management concludes that the capitalised expenditure is
unlikely to be recovered by future sale or exploitation, then the relevant capitalised amount will be
written off through profit or loss and other comprehensive income.
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.
(u) Financial assets (applicable for comparable period ending 30 June 2018 and earlier)
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.
30
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2019
Note 1: Statement of significant accounting policies continued
(v) Derecognition of financial assets and financial liabilities (applicable for comparable
period ending 30 June 2018 and earlier)
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.
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.
(w) Financial Instruments (applicable for current period beginning on 1 July 2018)
Recognition and derecognition
Financial assets and financial liabilities are recognised when the Group becomes a party to the
contractual provisions of the financial instrument. Financial assets are derecognised when the
contractual rights to the cash flows from the financial asset expire, or when the financial asset
and substantially all the risks and rewards are transferred. A financial liability is derecognised
when it is extinguished, discharged, cancelled or expires.
31
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2019
Note 1: Statement of significant accounting policies continued
Classification and initial measurement of financial assets
Except for those trade receivables that do not contain a significant financing component and are
measured at the transaction price in accordance with IFRS 15, all financial assets are initially
measured at fair value adjusted for transaction costs (where applicable).
Financial assets, other than those designated and effective as hedging instruments, are
classified into the following categories:
• amortised cost
• fair value through profit or loss (FVTPL)
• fair value through other comprehensive income (FVOCI).
In the periods presented the corporation does not have any financial assets categorised as
FVOCI. The classification is determined by both:
• the entity’s business model for managing the financial asset
• the contractual cash flow characteristics of the financial asset.
All income and expenses relating to financial assets that are recognised in profit or loss are
presented within finance costs, finance income or other financial items, except for impairment
of trade receivables which is presented within other expenses.
Subsequent measurement of financial assets
Financial assets at amortised cost Financial assets are measured at amortised cost if the assets
meet the following conditions (and are not designated as FVTPL):
• they are held within a business model whose objective is to hold the financial assets and
collect its contractual cash flows
• the contractual terms of the financial assets give rise to cash flows that are solely payments of
principal and interest on the principal amount outstanding
Impairment of financial assets
IFRS 9’s impairment requirements use more forward-looking information to recognise
expected credit losses – the ‘expected credit loss (ECL) model’. This replaced IAS 39’s ‘incurred
loss model’. Instruments within the scope of the new requirements included loans and other
debt-type financial assets measured at amortised cost and FVOCI, trade receivables, contract
assets recognised and measured under IFRS 15 and loan commitments and some financial
guarantee contracts (for the issuer) that are not measured at fair value through profit or loss.
32
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2019
Note 1: Statement of significant accounting policies continued
Recognition of credit losses is no longer dependent on the Group first identifying a credit loss
event. Instead the Group considers a broader range of information when assessing credit risk
and measuring expected credit losses, including past events, current conditions, reasonable and
supportable forecasts that affect the expected collectability of the future cash flows of the
instrument. In applying this forward-looking approach, a distinction is made between:
• financial instruments that have not deteriorated significantly in credit quality since initial
recognition or that have low credit risk (‘Stage 1’) and
• financial instruments that have deteriorated significantly in credit quality since initial
recognition and whose credit risk is not low (‘Stage 2’).
‘Stage 3’ would cover financial assets that have objective evidence of impairment at the
reporting date. ‘12-month expected credit losses’ are recognised for the first category while
‘lifetime expected credit losses’ are recognised for the second category.
Measurement of the expected credit losses is determined by a probability-weighted estimate of
credit losses over the expected life of the financial instrument.
Classification and measurement of financial liabilities
The Group’s financial liabilities include borrowings, trade and other payables and derivative
financial instruments.
Subsequently, financial liabilities are measured at amortised cost using the effective interest
method except for derivatives and financial liabilities designated at FVTPL, which are carried
subsequently at fair value with gains or losses recognised in profit or loss (other than derivative
financial instruments that are designated and effective as hedging instruments).
All interest-related charges and, if applicable, changes in an instrument’s fair value that are
reported in profit or loss are included within finance costs or finance income.
33
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2019
Note 2: Income tax
Consolidated
Income tax expense recognised in statement of
comprehensive income
2019
$
2018
$
Current income tax
Current income tax payable
Deferred income tax
Relating to origination and reversal of temporary
differences
Income tax expense
-
-
-
-
-
-
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
(278,028)
(83,408)
3,337
(6)
193,574
(113,497)
-
(156,422)
(46,927)
1,804
(49)
80,489
(35,317)
-
Unrecognised deferred tax balances
Deferred tax assets:
Tax revenue losses (Australian)
Tax capital losses (Australian)
Tax revenue losses (Foreign)
Unamortised business related costs
Accruals & provisions
Deferred tax liabilities:
Exploration expenses
Accrued income
Net unrecognised deferred tax assets
15,352,060
4,430,516
174,175
6,228
18,000
14,706,812
4,430,516
174,175
21,182
17,500
(450,088)
-
19,530,891
(86,204)
(13)
19,263,968
Potential tax benefit @ 30% (2018: 30%)
5,859,267
5,779,190
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.
34
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2019
Note 3: Earnings per share
Consolidated
2019
2018
$
$
The loss and weighted average number of ordinary shares used in 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)
(278,028)
72,563,243
(0.39)
(156,422)
62,066,523
(0.25)
Note 4: Trade and other receivables
Current
GST
Non-current
Security deposit
Note 5: Prepayments
Prepaid tenement rent
5,410
5,182
6,336
6,012
27,200
-
The Company applied for exploration tenement E80/5346 in March 2019. If the tenement is granted
rent paid on application will cover rent required on the first year of exploration in the tenement. As
at 30 June 2019 and to the date of signing the report the tenement has not been granted. If the
tenement is not granted the rent paid on application is fully refundable.
Note 6: Exploration and evaluation assets
Balance at the beginning of the year
Costs for the year
Exploration Written off (1)
Balance at the end of the year
86,204
389,334
(59,982)
415,556
8,322
77,882
-
86,204
(1) Participating interests in exploration licences E45/3637 and E80/5050 were acquired via farmin
during the year. In June 2019 the company decided to relinquish these interests.
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:
30/06/201
9 30/06/201
E 45/3278
E 80/4990
8
E 45/3278
E 80/4990
Notes
Granted 30 September 2016
In November 2017 the company executed an agreement with Sandrib
Pty Ltd under which it has the right to earn a 60% interest. In July 2019
the company executed a further agreement with Sandrib Pty Ltd under
which it has the right to earn a further 25% for a total 85% interest.
Granted 28 September 2 018
E 80/5182
-
35
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2019
Note 7: Trade and other payables
Current
Trade and other payables*
Director-related entities – other payables (Note 14)
Consolidated
2019
$
2018
$
67,607
96,391
163,998
29,198
20,336
49,534
* Trade payables are non-interest bearing and are normally paid on 30 day terms.
Note 8: Borrowings
Balance at the beginning of the year
Drawdowns
Balance at the end of the year
-
265,000
265,000
-
-
-
The borrowings are a line of credit facility from Australis Finance Pty Ltd which has an interest rate
of 7% p.a. Australis Finance Pty Ltd is a director-related entity (note 14). These borrowing were
repaid in full by September 2019 (note 16).
Note 9: Issued Capital
As at 30 June 2019 there were 76,978,545 fully paid ordinary shares on issue (2018: 72,020,678).
Movement in ordinary share
capital
2019
$
Consolidated
2018
$
2019
#
2018
#
At the beginning of the year
Shares issued during the year
Costs associated with share
issue
Consolidation
37,106,549
105,197
(3,487)
36,808,483
315,023
(16,957)
-
-
72,020,678
4,957,867
51,019,137
21,001,541
-
-
-
-
Balance at the end of the year
37,208,259 37,106,549
76,978,545
72,020,678
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 ordinary share
capital
2019
Listed
2018
Listed
2019
Unlisted
2018
Unlisted
At the beginning of the year
Options granted
Expired/exercised
21,001,541
-
(21,00,541)
-
21,001,541
-
5,000,000
1,000,000
-
5,000,000
-
-
Balance at the end of the year
- 21,001,541
6,000,000
5,000,000
36
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2019
Note 10: Reserves
Foreign currency translation reserve (a)
Share compensation reserve (b)
Consolidated
2019
$
320
33,744
34,064
2018
$
246
33,744
33,990
(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.
Note 11: Share based payments
Share options to directors and consultants
No options were granted to directors in the year ended 30 June 2019. (2018: 5,000,000 options).
1,000,000 options (exerciseable at $0.05 (5.0 cents) on or before 18 March 2021 were granted to
Darryl Clark prior to his appointment as a director. The accounting value of the options granted was
$1,540.
Note 12: 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 price risk), credit risk
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.
37
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2019
Note 12: Financial instruments (continued)
(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.
Interest rate sensitivity analysis
At 30 June 2019, 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 $302 (2018:
$1,911) 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
months
$
1-2
years
$
2-10
years
$
163,998
265,000
428,998
163,998
265,000
428,998
163,998
265,000
428,998
49,534
49,534
49,534
49,534
49,534
49,534
-
-
-
-
-
-
-
-
-
-
30 June 2019 Consolidated:
Non-derivative Financial
Liabilities
Trade and other payables
Borrowings
30 June 2018 Consolidated:
Non-derivative Financial
Liabilities
Trade and other payables
(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.
38
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2019
Note 12: Financial instruments (continued)
(g) Foreign currency risk (continued)
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.
Unhedged amounts in respect of cash, receivable and payable in foreign
currency
Receivables – non-current
Consolidated
2018
$
6,012
2019
$
6,336
The only foreign currency the Group is currently exposed to is the US dollar. At 30 June 2019 if
AUD:USD rates had changed by +/- 10% and all other variables were held constant, the Group’s after
tax loss would have been $634 (2018: $(601)) higher/ (lower) as a result of lower/higher foreign
exchange translations on cash, receivables and payables.
Note 13: Commitments for expenditure
Not longer than 1 year
Longer than 1 year and not longer than 5
years
99,680
88,000
959,500
40,000
1,059,180 128,000
Expenditure commitments (minerals)
The Group has a commitment in minerals tenement 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. The
yearly expenditure commitment is $68,000
On 28 September 2018 the Group was granted minerals tenement E80/5182. The yearly expenditure
commitment is $118,000.
Note 14: 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:
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
Class of shares
incorporation
Ordinary
Australia
Singapore
Ordinary
British Virgin Islands Ordinary
British Virgin Islands Ordinary
British Virgin Islands Ordinary
Ordinary
Australia
Ordinary
Australia
Equity holding %
2018
2019
100
100
100
100
100
100
100
100
100
100
100
100
100
100
39
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2019
Note 14: Related party disclosure (continued)
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
Consulting
RL Clark
EG Albers Office services
EG Albers Accounting and
administrative support
Amounts
paid 2019
$
31,590
30,589
59,850
Amounts paid
2018
$
33,412
33,698
18,615
Payable at
30/06/19
$
1,215
32,461
62,715
Payable at
30/06/18
$
3,037
8,840
8,459
122,029
85,725
96,391
20,336
Director – related borrowings
During the year the Company drew down $265,000 (2018: $nil) (note 8) against a line of credit
facility from Australis Finance Pty Ltd,with interest rate of 7% p.a. Australis Finance Pty Ltd is a
director-related entity of EG Albers.
Note 15: Parent Entity Disclosures
Parent Entity
Financial position
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net Assets
Issued capital
Accumulated losses
Options reserve
Total Equity
Financial performance
Loss for the year
Other comprehensive income
Total comprehensive loss
2019
$
30,193
132,726
162,919
401,931
-
44,877
(239,012)
59,125,131
(59,397,887)
33,744
(239,012)
2018
$
191,419
91,386
282,805
44,878
-
44,878
237,927
59,023,421
(58,819,238)
33,744
237,927
(578,649)
(152,011)
-
-
(578,646)
(152,011)
Note 16: Matters Subsequent to Balance Date
In July 2019 the Company executed an Amended and Restated Farmin and Joint Venture Agreement with
Sandrib Pty Ltd to effect a Stage 2 farm-in option by which it may earn an additional joint venture interest
to increase its total interest in the Eastman project tenement (E80/4990) to 85%.
On the 16 August 2019 the company completed a pro-rata non renounceable rights issue. A total of
38,489,359 new shares and 38,489,359 free attaching new options were subscribed for, raising
gross proceeds of $756,945.
40
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2019
Note 16: Matters Subsequent to Balance Date (continued)
The company had borrowings of $265,000 at 30 June 2019 with Australis Finance Pty Ltd; a director-
related entity (note 14). These borrowing were repaid in full by September 2019 (note 8).
In September 2019 the Company commenced a drill program at its Eastman Project to test geophysical
anomalies identified by the IP survey it conducted in 2018.
Note 17: 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
Net loss for the year
Foreign exchange (loss) gain
Impairment of exploration asset
Exploration expenditure expensed
Decrease in trade and other receivables
Decrease in trade and other payables
Net cash outflow from operating activities
Note 18: 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
Note 19: Segment information
(285,360)
(262)
59,982
7,332
(228)
94,354
(156,422)
(258)
-
-
(3,394)
13,256
(124,182)
(146,818)
29,500
25,117
-
-
29,500
25,117
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.
41
PEAKO LIMITED
ABN 79 131 843 868
Directors’ Declaration
The directors of the company declare that:
The financial statements, comprising the consolidated statement of profit or loss and other
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:
(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
2019 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.
3.
The remuneration disclosures included in pages 12 to 14 of the directors’ report, (as part of
audited Remuneration Report), for the year ended 30 June 2019, 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:
R.LClark
Director
24 September 2019
42
Collins Square, Tower 5
727 Collins Street
Melbourne Victoria 3008
Correspondence to:
GPO Box 4736
Melbourne Victoria 3001
T 61 3 8320 2222
F 61 3 8320 2200
E info.vic@au.gt.com
W www.grantthornton.com.au
Independent Auditor’s Report
To the Members of Peako Limited
Report on the audit of the financial report
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 2019, 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 2019 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 $285,360
during the year ended 30 June 2019, and as of that date, the Group had negative working capital of $366,185. 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.
43
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 - Notes 6
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 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:
o
o
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;
o 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
o Considering any other available evidence of
impairment.
Assessing management's consequent determination of
impairment loss.
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 2019, 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.
44
Responsibilities of the Directors’ for the financial report
The Directors of the Company 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: http://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 10 to 12 of the Directors’ report for the year ended 30 June
2019.
In our opinion, the Remuneration Report of Peako Limited, for the year ended 30 June 2019 complies with section 300A
of the Corporations Act 2001.
Responsibilities
The Directors of the Company 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, 24 September 2019
45
PEAKO LIMITED
ABN 79 131 843 868
Additional Shareholder Information (unaudited)
The shareholder information set out below was applicable as at 16 October 2019.
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
Ordinary shares
227
204
61
144
62
698
There were 546 holders of less than a marketable parcel of ordinary shares.
B. Equity security holders – ordinary shares
Twenty largest holders
Name
Southern Energy Pty Pty Ltd
Hawkestone Resources Pty Ltd
Sacrosanct Pty Ltd
Mr Ernest Geoffrey Albers
500 Custodian Pty Ltd
Australis Finance Pty Ltd
Ram Platinum Pty Ltd
Mr Michael Leslie Jefferies
Auralandia Pty td
Albers Custodian Company Pty Ltd
Great Missenden Holdings Pty Ltd
Mr Charles Waite Morgan
Sanperez Pty Ltd
Lotaka Pty Ltd
Sagepark Holdings Pty Ltd
Jimzbal Pty Ltd
Pontia Pty Ltd
Mr Issy Lissek
Christopher William Reindler
Mrs Julia Grace Parfitt
No. of ordinary
shares held
18,418,903
17,990,720
10,530,000
8,436,264
7,560,000
5,390,808
5,169,689
4,000,000
3,290,808
2,970,000
2,742,340
2,629,736
2,500,000
2,500,000
2,139,041
2,000,000
1,886,637
1,595,570
1,400,000
1,400,000
104,550,516
% of issued
shares
14.53%
14.19%
8.31%
6.65%
5.96%
4.25%
4.08%
3.16%
2.60%
2.34%
2.16%
2.07%
1.97%
1.97%
1.69%
1.58%
1.49%
1.26%
1.10%
1.10%
82.47%
Substantial holders – ordinary shares
C.
Substantial shareholders as disclosed in substantial shareholding notices given to the Company are
as follows:
Albers Group
Number
Held
78,115,963
Percentage
61.62%
46
PEAKO LIMITED
ABN 79 131 843 868
D. Distribution of listed Option Holders exerciseable at $0.025 on or before 30 April 2020
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
Options Held
12
10
6
13
23
64
Name
Hawkestone Resources Pty Ltd
Sacrosanct Pty Ltd
Mr Michael Leslie Jefferies
500 Custodian Pty Ltd
Sanperez Pty Ltd
Lotaka Pty Ltd
Jimzbal Pty Ltd
Albers Custodian Company Pty Ltd
Mr Charles Waite Morgan
Ram Platinum Pty Ltd
Dr Joshua A Ehrlich
Mr SG & Mrs SD & Miss MB Jacobs
MR Charles Stephen Mark Fletcher
Mrs Julia Grace Parfitt
Fists Investment Partners Pty Ltd
Anthony Harold Michaels
Mr Issy Lissek
Mrs Kelly Anne Seville
Mrs Jannah Esther Lea Ward
F. Unlisted Option Holders
No. of Listed
options held
3,689,948
3,510,000
3,100,000
2,520,000
2,500,000
2,500,000
2,000,000
990,000
876,579
750,000
500,000
500,000
500,000
500,000
500,000
401,108
250,000
225,000
200,000
26,212,635
% of issued listed
option
13.57%
12.91%
11.40%
9.27%
9.19%
9.19%
7.36%
3.64%
3.22%
2.76%
1.84%
1.84%
1.84%
1.84%
1.84%
1.48%
0.92%
0.83%
0.74%
96.41%
Two holders hold 5,000,000 unlisted options (exercisable at $0.04 on or before 24 November 2019).
One holder holds 1,000,000 unlisted options (exercisable at $0.05 on or before 30 November 2019.
47
PEAKO LIMITED
ABN 79 131 843 868
Minerals Exploration Interests
Mining Tenements held at 30 June 2019 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 80/4990 (60%)
E 80/5182 (100%)
E 80/5346 (100%)
Granted
Application
Application
Application
Granted
Granted
Application
Tenements acquired during the year and their location
Western Australia (East Kimberley)
E 80/4990 (60%)
E 80/5346 (100%)
E 80/5080 (60%)
Western Australia (Pilbara)
E 45/3736 (25%)
Granted
Application
Granted
Granted
Tenements disposed of during the year and their location
Western Australia (Pilbara)
E 45/3736 (25%)
Western Australia (East Kimberley)
E 80/5080 (60%)
Granted
Granted
Beneficial percentage interests held in farm-in or farm-out agreements at 30 June 2019:
Farm-out Agreements
Nil.
Farm-in Agreements:
Western Australia (East Kimberley)
E 80/4990
Granted – Peako earning a 60% interest
via Farmin arrangement with Sandrib Pty
Ltd with stage 2 option to increase interest
to 85%
48
PEAKO LIMITED
ABN 79 131 843 868
Petroleum Interests
Petroleum Tenements held at 30 June 2019 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
49