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PEAKO LIMITED
ABN 79 131 843 868
Operations Report
Minerals Exploration
East Kimberley Project
Peako’s primary focus is its large consolidated ground-holding across four contiguous exploration
tenements over a 1,350 km2 area in the East Kimberley region of Western Australia (refer Figure 1)
comprising two granted tenements (E80/4990 and E80/5182) and two further areas under
application (E80/5346 and E80/5472). Peako’s East Kimberley tenement package is considered
prospective for a wide range of minerals including gold, base metals and PGEs. 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
Systematic exploration across this southern part of the East Kimberley region has lagged behind that
of most of Australia’s Proterozoic provinces and has been characterised by sporadic campaigns by
numerous explorers over more than 50 years. Historical exploration was primarily guided by
occurrences of surface gossan and geochemical anomalies that provided encouragement of the area’s
economic potential, but was hindered by cover sequences, deep weathering, complex stratigraphy and
structure, and non-contiguous tenements. Despite favourable host rock, structure and known
mineralisation, the district’s poorly constrained geological framework and lack of understanding of
key controls on mineralisation defocussed historical exploration efforts. Peako’s exploration strategy
is underpinned by the application of data-driven science to define and prioritise robust quality targets
for efficient and economic field testing programs.
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PEAKO LIMITED
ABN 79 131 843 868
Peako’s Eastman (E80/4990) tenement area has been the subject of very little gold exploration
historically. Gold exploration has largely been peripheral to the focus of exploration for base metal
sulphides including copper-lead-zinc and copper-nickel-PGE styles of mineralisation. Previous
explorers executed disjointed and sporadic exploration campaigns across fragmented tenement
holdings targeting a wide range of mineralisation styles and commodities over a large area, yet very
few explorers analysed their soil, rock or drill samples for gold.
The Eastman tenement’s potential prospectivity for gold is validated by a known gold signature as
demonstrated by Peako’s 2019 RC drilling results as well as historical rock chip results (refer Figure
2) that include a rock sample with up to 11.7g/t Au. In 2019, RC drilling results identified gold
potential such as PLRC004 with 6m at 1.16g/t Au and 27.27g/t Ag and PLRC001 with 7m at 1.1 g/t Au
and 7.51 g/t Ag. In addition, petrology results from RC chip samples have also identified the
occurrence of gold as free gold grains hosted by deformed quartz veins at Landrigan (refer Figure 3).
PLRC004: 6m @ 1.16 g/t Au & 27.27 g/t Ag
PLRC001: 7m @ 1.1 g/t Au & 7.51 g/t Ag
EYD020: 9.6m @ 1.5 g/t Au & 12.6 g/t Ag
Gossan rockchip:
11.7 g/t Au
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ca(cid:393)(cid:410)(cid:437)(cid:396)e (cid:381)f (cid:410)he (cid:1005)(cid:1013)(cid:1012)(cid:1007) BHP RAB bed(cid:396)(cid:381)ck ge(cid:381)che(cid:373)i(cid:400)(cid:410)(cid:396)(cid:455) (cid:393)(cid:396)(cid:381)g(cid:396)a(cid:373) (cid:894)(cid:1008)(cid:1012)(cid:1006) d(cid:396)ill h(cid:381)le(cid:400) f(cid:381)(cid:396) (cid:1010)(cid:853)(cid:1012)(cid:1013)(cid:1013)(cid:373)(cid:895) a(cid:400) (cid:449)ell a(cid:400) (cid:396)e(cid:448)ie(cid:449)
a(cid:374)d i(cid:374)(cid:410)eg(cid:396)a(cid:410)i(cid:381)(cid:374) (cid:381)f ge(cid:381)l(cid:381)gical (cid:373)a(cid:393)(cid:393)i(cid:374)g b(cid:455) BHP (cid:894)(cid:1005)(cid:1013)(cid:1012)(cid:1007)(cid:895) a(cid:374)d Mag(cid:373)a (cid:894)(cid:1006)(cid:1004)(cid:1004)(cid:1010) (cid:884) (cid:1006)(cid:1004)(cid:1004)(cid:1011)(cid:895)(cid:856) The(cid:400)e da(cid:410)a (cid:400)e(cid:410)(cid:400) (cid:393)(cid:396)(cid:381)(cid:448)ide
c(cid:396)i(cid:410)ical ge(cid:381)l(cid:381)gical c(cid:381)(cid:374)(cid:400)(cid:410)(cid:396)ai(cid:374)(cid:410)(cid:400) (cid:410)(cid:381) ad(cid:448)a(cid:374)ce ge(cid:381)l(cid:381)gical i(cid:374)(cid:410)e(cid:396)(cid:393)(cid:396)e(cid:410)a(cid:410)i(cid:381)(cid:374)(cid:856)
ERC075: 1m @ 0.6g/t Au
ERC056: 5m @ 5.76 g/t Au & 45.7 g/t Ag
including 2m 13.5 g/t Au & 99.5 g/t Ag
ERC057: 7m @ 0.58g/t Au and 35.2 g/t Ag
including 1m @ 3.07 g/t Au & 8.5 g/t Ag
including 1m @ 2.48 g/t Au & 87.0 g/t Ag
ERC058: 9m @ 0.51g/t Au and 15.0 g/t Ag
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g(cid:396)ade(cid:856) H(cid:381)(cid:449)e(cid:448)e(cid:396)(cid:853) (cid:393)e(cid:410)(cid:396)(cid:381)l(cid:381)g(cid:455) (cid:396)e(cid:400)(cid:437)l(cid:410)(cid:400) (cid:449)e(cid:396)e (cid:437)(cid:374)able (cid:410)(cid:381) de(cid:410)e(cid:396)(cid:373)i(cid:374)e if ca(cid:396)b(cid:381)(cid:374)a(cid:410)e h(cid:381)(cid:396)i(cid:460)(cid:381)(cid:374)(cid:400) a(cid:396)e (cid:393)(cid:396)i(cid:373)a(cid:396)(cid:455) (cid:381)(cid:396)
(cid:396)e(cid:393)lace(cid:373)e(cid:374)(cid:410) i(cid:374) (cid:381)(cid:396)igi(cid:374)(cid:856) H(cid:381)(cid:400)(cid:410) (cid:396)(cid:381)ck al(cid:410)e(cid:396)a(cid:410)i(cid:381)(cid:374) a(cid:400)(cid:400)(cid:381)cia(cid:410)ed (cid:449)i(cid:410)h (cid:400)(cid:437)l(cid:393)hide (cid:373)i(cid:374)e(cid:396)ali(cid:400)a(cid:410)i(cid:381)(cid:374) i(cid:374)c(cid:381)(cid:396)(cid:393)(cid:381)(cid:396)a(cid:410)e(cid:400) (cid:410)alc a(cid:374)d
Mg(cid:882)(cid:396)ich chl(cid:381)(cid:396)i(cid:410)e (cid:400)(cid:437)(cid:393)(cid:393)(cid:381)(cid:396)(cid:410)i(cid:374)g a Mg(cid:882)(cid:373)e(cid:410)a(cid:400)(cid:381)(cid:373)a(cid:410)i(cid:400)(cid:373) acc(cid:381)(cid:373)(cid:393)a(cid:374)(cid:455)i(cid:374)g (cid:373)i(cid:374)e(cid:396)ali(cid:400)a(cid:410)i(cid:381)(cid:374) (cid:449)he(cid:396)eb(cid:455) (cid:410)alc(cid:882)al(cid:410)e(cid:396)a(cid:410)i(cid:381)(cid:374)
(cid:396)e(cid:393)(cid:396)e(cid:400)e(cid:374)(cid:410)(cid:400) a ke(cid:455) (cid:393)a(cid:410)hfi(cid:374)de(cid:396) a(cid:374)d (cid:410)a(cid:396)ge(cid:410)i(cid:374)g (cid:448)ec(cid:410)(cid:381)(cid:396) (cid:410)(cid:381) (cid:400)(cid:437)l(cid:393)hide (cid:373)i(cid:374)e(cid:396)ali(cid:400)a(cid:410)i(cid:381)(cid:374)(cid:856)
ERC060: 1m @ 0.797 g/t Au & 5.0 g/t Ag
ERC067: 1m @ 2.75g/t Au
Pe(cid:410)(cid:396)(cid:381)l(cid:381)g(cid:455) (cid:396)e(cid:400)(cid:437)l(cid:410)(cid:400) al(cid:400)(cid:381) ide(cid:374)(cid:410)ified (cid:410)he (cid:381)cc(cid:437)(cid:396)(cid:396)e(cid:374)ce (cid:381)f f(cid:396)ee g(cid:381)ld g(cid:396)ai(cid:374)(cid:400) h(cid:381)(cid:400)(cid:410)ed b(cid:455) def(cid:381)(cid:396)(cid:373)ed (cid:395)(cid:437)a(cid:396)(cid:410)(cid:460) (cid:448)ei(cid:374)(cid:400) a(cid:410)
La(cid:374)d(cid:396)iga(cid:374) (cid:894)(cid:396)efe(cid:396) (cid:410)(cid:381) Figure (cid:1009)(cid:895)(cid:856) Whil(cid:400)(cid:410) (cid:410)he di(cid:400)(cid:410)(cid:396)ib(cid:437)(cid:410)i(cid:381)(cid:374) (cid:381)f A(cid:437)(cid:882)bea(cid:396)i(cid:374)g (cid:395)(cid:437)a(cid:396)(cid:410)(cid:460) (cid:448)ei(cid:374)(cid:400) a(cid:374)d (cid:410)he (cid:410)i(cid:373)i(cid:374)g (cid:381)f A(cid:437) (cid:449)i(cid:410)hi(cid:374)
(cid:410)he (cid:395)(cid:437)a(cid:396)(cid:410)(cid:460) (cid:448)ei(cid:374)(cid:400) i(cid:400) (cid:374)(cid:381)(cid:410) (cid:449)ell (cid:437)(cid:374)de(cid:396)(cid:400)(cid:410)(cid:381)(cid:381)d c(cid:437)(cid:396)(cid:396)e(cid:374)(cid:410)l(cid:455)(cid:853) (cid:410)he (cid:381)cc(cid:437)(cid:396)(cid:396)e(cid:374)ce (cid:381)f def(cid:381)(cid:396)(cid:373)a(cid:410)i(cid:381)(cid:374)(cid:882)(cid:396)ela(cid:410)ed A(cid:437) c(cid:381)(cid:437)ld (cid:396)eflec(cid:410) a
Gold in PLRC001
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Figure 2 Eastman Tenement Gold Signature – Historic Data Compilation Ongoing
(cid:381)(cid:396)(cid:381)ge(cid:374)ic (cid:381)(cid:396) i(cid:374)(cid:410)(cid:396)(cid:437)(cid:400)i(cid:381)(cid:374)(cid:882)(cid:396)ela(cid:410)ed (cid:373)i(cid:374)e(cid:396)ali(cid:400)a(cid:410)i(cid:381)(cid:374) (cid:400)(cid:410)(cid:455)le i(cid:400) (cid:381)(cid:374)g(cid:381)i(cid:374)g(cid:856)
A
B
Figure 3 Two grains of gold up to 50μm residual within goethite boxwork after pyrite hosted within vein quartz meshwork
Figure (cid:1009)(cid:856) A(cid:895) Two grains of gold up to (cid:1009)(cid:1004)(cid:1106)m residual within goethite boxwork after p(cid:455)rite hosted within vein quart(cid:460) meshwork
Two grains of gold up to 50μm residual within goethite boxwork after pyrite hosted within vein quartz meshwork (Reflected
(Reflected light X200). B) Gold grain 15μm x 30μm in fractured quartz vein within mica schist with green malachite
(cid:894)Reflected light X(cid:1006)(cid:1004)(cid:1004)(cid:895)(cid:856) B(cid:895) Gold grain (cid:1005)(cid:1009)(cid:1106)m x (cid:1007)(cid:1004)(cid:1106)m in fractured quart(cid:460) vein within mica schist with green malachite between
light X200). B) Gold grain 15μm x 30μm in fractured quartz vein within mica schist with green malachite between quartz
between quartz fragments after chalcopyrite (Reflect Light, X200
quart(cid:460) fragments after chalcop(cid:455)rite (cid:894)Reflect Light(cid:853) X(cid:1006)(cid:1004)(cid:1004)(cid:895)(cid:856)
fragments after chalcopyrite (Reflect Light, X200
ASX:PKO | peako.com.au
Da(cid:410)a c(cid:381)(cid:374)(cid:410)i(cid:374)(cid:437)e(cid:400) (cid:410)(cid:381) (cid:400)(cid:437)(cid:393)(cid:393)(cid:381)(cid:396)(cid:410) a (cid:449)ell(cid:882)de(cid:448)el(cid:381)(cid:393)ed C(cid:437)(cid:882)Ag(cid:882)A(cid:437) (cid:894)(cid:1085)(cid:876)(cid:882) Pb(cid:853) (cid:1085)(cid:876)(cid:882) Z(cid:374)(cid:895) (cid:373)i(cid:374)e(cid:396)ali(cid:400)ed (cid:400)(cid:455)(cid:400)(cid:410)e(cid:373) a(cid:410) La(cid:374)d(cid:396)iga(cid:374) (cid:410)ha(cid:410)
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affilia(cid:410)i(cid:381)(cid:374) be(cid:410)(cid:449)ee(cid:374) ca(cid:396)b(cid:381)(cid:374)a(cid:410)e h(cid:381)(cid:400)(cid:410) (cid:396)(cid:381)ck(cid:400) a(cid:374)d (cid:400)(cid:437)l(cid:393)hide (cid:373)i(cid:374)e(cid:396)ali(cid:400)a(cid:410)i(cid:381)(cid:374) alig(cid:374) (cid:449)i(cid:410)h a (cid:396)e(cid:393)lace(cid:373)e(cid:374)(cid:410) (cid:862)SVAL(cid:863)
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a(cid:374)d (cid:400)hale(cid:400)(cid:856)
(cid:26)
PEAKO LIMITED
ABN 79 131 843 868
EIS co-funding support
Peako’s activities continue to be supported by the Western Australian government’s Exploration
Incentive Scheme. Peako’s RC drilling undertaken during the financial year was supported by Round-
19 co-funding which resulted in reimbursement to Peako of $83,458 during the financial year.
During the year Peako was successful in its application for EIS co-funding in both Rounds 20 and
Round 21. A round 20 grant was awarded for $131,161 towards drilling completed in the twelve
months to 31 December 2020 and a round 21 grant was awarded for $150,000 towards drilling
completed in the twelve months ending 30 June 2021.
Covid-19 Impact
In view of the risks posed by the COVID-19 pandemic and to protect the health and welfare of the
Kimberley community, Peako decided to postpone field activities it had planned to carry out in the
June 2020 quarter. Peako instead directed its efforts to desktop compilation to further define and
prioritise a pipeline of targets for field checking and drill testing that will underpin the next stage of
field activities. Travel restrictions specific to the Kimberley were subsequently announced by the
Western Australian and Commonwealth Governments on 26 March 2020 which further limited
Peako’s ability to undertake field activities during the remainder of the financial year.
2019 RC drilling
Peako’s early focus was on the Landrigan and Eastman prospects within E80/4990. Induced
Polarisation (IP) surveys in 2018 identified targets considered to represent potential strike extensions
to VHMS-style mineralisation coincident with anomalous surface geochemistry and outcropping
ironstone. Peako’s maiden RC drill program in 2019 (supported by a Round 19 Exploration Incentive
Scheme co-funded drilling grant from the Western Australian government) tested targets at Landrigan
and Eastman with a total of 15 holes for 2,398m. VHMS-style mineralisation was confirmed by drilling
at Landrigan with assay intercepts including: 6m at 6.52% Cu 27.27g/t Ag and 1.16g/t Au (PLRC004),
and 15m at 1.04% Cu, 8.88g/t Ag and 0.38 g/t Au including 6m at 1.61% Cu, 7.23g/t Ag and 0.62g/t Au
(PLRC011).
Integration of 2019 drilling program multi-element geochemistry, petrology, XRD datasets, in
conjunction with relogging and reclassification of historical geological logging by different explorers
over more than five decades to a single framework, was completed during the year and underpins a
simplified consistent stratigraphic framework for Landrigan and Eastman. The new stratigraphic
framework identifies favourable prospective marker horizons in the stratigraphy that hosts targeted
mineralisation. The framework is anticipated to provide a fundamental targeting tool with potential to
unlock the mineral potential across the wider tenement package.
Additional Farm-in Option
During the year Peako 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%. The
Company intends to exercise this option.
7
PEAKO LIMITED
ABN 79 131 843 868
Paterson Province Project
Paterson Province Projects
Peako’s Broadhurst (Sunday Creek) Project tenement is located in the Rudall River area of the
Peak(cid:381)(cid:859)(cid:400) B(cid:396)(cid:381)adh(cid:437)(cid:396)(cid:400)(cid:410) (cid:894)S(cid:437)(cid:374)da(cid:455) C(cid:396)eek(cid:895) P(cid:396)(cid:381)jec(cid:410) (cid:410)e(cid:374)e(cid:373)e(cid:374)(cid:410) i(cid:400) l(cid:381)ca(cid:410)ed i(cid:374) (cid:410)he R(cid:437)dall Ri(cid:448)e(cid:396) a(cid:396)ea (cid:381)f (cid:410)he Pa(cid:410)e(cid:396)(cid:400)(cid:381)(cid:374)
Paterson Province of Western Australia (Figure 4). Peako also has three long standing applications for
P(cid:396)(cid:381)(cid:448)i(cid:374)ce (cid:381)f We(cid:400)(cid:410)e(cid:396)(cid:374) A(cid:437)(cid:400)(cid:410)(cid:396)alia (cid:894)Fig(cid:437)(cid:396)e (cid:1011)(cid:895)(cid:856) Peak(cid:381) al(cid:400)(cid:381) ha(cid:400) (cid:410)h(cid:396)ee l(cid:381)(cid:374)g (cid:400)(cid:410)a(cid:374)di(cid:374)g a(cid:393)(cid:393)lica(cid:410)i(cid:381)(cid:374)(cid:400) f(cid:381)(cid:396) e(cid:454)(cid:393)l(cid:381)(cid:396)a(cid:410)i(cid:381)(cid:374)
exploration licences located close to its Broadhurst Project tenement. According to historical
lice(cid:374)ce(cid:400) l(cid:381)ca(cid:410)ed cl(cid:381)(cid:400)e (cid:410)(cid:381) i(cid:410)(cid:400) B(cid:396)(cid:381)adh(cid:437)(cid:396)(cid:400)(cid:410) P(cid:396)(cid:381)jec(cid:410) (cid:410)e(cid:374)e(cid:373)e(cid:374)(cid:410)(cid:856) Acc(cid:381)(cid:396)di(cid:374)g (cid:410)(cid:381) hi(cid:400)(cid:410)(cid:381)(cid:396)ical ge(cid:381)l(cid:381)gical (cid:373)a(cid:393)(cid:393)i(cid:374)g(cid:853) (cid:410)he
geological mapping, the bedrock geology of the project area is entirely made up of carbonaceous shales
bed(cid:396)(cid:381)ck ge(cid:381)l(cid:381)g(cid:455) (cid:381)f (cid:410)he (cid:393)(cid:396)(cid:381)jec(cid:410) a(cid:396)ea i(cid:400) e(cid:374)(cid:410)i(cid:396)el(cid:455) (cid:373)ade (cid:437)(cid:393) (cid:381)f ca(cid:396)b(cid:381)(cid:374)ace(cid:381)(cid:437)(cid:400) (cid:400)hale(cid:400) a(cid:374)d (cid:400)il(cid:410)(cid:400)(cid:410)(cid:381)(cid:374)e(cid:400) (cid:381)f (cid:410)he
and siltstones of the Broadhurst Formation, and quartz sandstones and siltstones of the underlying
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Coolbro Sandstone.
F(cid:381)(cid:396)(cid:373)a(cid:410)i(cid:381)(cid:374)(cid:856)
Figure 4 Peako’s Sunday Creek - Broadhurst tenement area in the Paterson Province, Western Australia.
Figure (cid:1011) The Sunday Creek (cid:882) Broadhurst tenement area in the Paterson Province, Western Australia(cid:856)
The Broadhurst tenement is under-explored and hosts an array of encouraging features that indicate
the potential of the area for Nifty (Cu) or Maroochydore (Cu-Co) style mineralisation. No dedicated,
consistent exploration evaluation of the tenement has occurred and the tenement has not been drill
tested for base metal mineralisation targets within the Broadhurst Formation. Historic exploration has
been minimal and fragmented, comprised of a ‘revolving door’ of explorers divided in commodity
focus between Base Metals or Uranium. Only very limited, precursory drilling has been completed on
the tenement (a total of 6 holes for 1,243m) all testing for Uranium along the eastern Broadhurst
Formation – Coolbro Sandstone contact adjacent to NW-trending Sunday Creek Fault.
The B(cid:396)(cid:381)adh(cid:437)(cid:396)(cid:400)(cid:410) (cid:410)e(cid:374)e(cid:373)e(cid:374)(cid:410) i(cid:400) (cid:437)(cid:374)de(cid:396)(cid:882)e(cid:454)(cid:393)l(cid:381)(cid:396)ed a(cid:374)d h(cid:381)(cid:400)(cid:410)(cid:400) a(cid:374) a(cid:396)(cid:396)a(cid:455) (cid:381)f e(cid:374)c(cid:381)(cid:437)(cid:396)agi(cid:374)g fea(cid:410)(cid:437)(cid:396)e(cid:400) (cid:410)ha(cid:410) i(cid:374)dica(cid:410)e (cid:410)he
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CORPORATE
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Acc(cid:381)(cid:396)di(cid:374)gl(cid:455)(cid:853) Peak(cid:381) (cid:400)(cid:437)b(cid:373)i(cid:410)(cid:410)ed i(cid:410) EIS R(cid:381)(cid:437)(cid:374)d (cid:1005)(cid:1013) i(cid:374)(cid:410)e(cid:396)i(cid:373) (cid:396)e(cid:393)(cid:381)(cid:396)(cid:410) i(cid:374) (cid:396)e(cid:400)(cid:393)ec(cid:410) (cid:381)f d(cid:396)illi(cid:374)g c(cid:381)(cid:374)d(cid:437)c(cid:410)ed i(cid:374) (cid:410)he (cid:393)e(cid:396)i(cid:381)d (cid:410)(cid:381)
(cid:1007)(cid:1004) J(cid:437)(cid:374)e (cid:1006)(cid:1004)(cid:1006)(cid:1004) a(cid:374)d a(cid:374) i(cid:374)(cid:410)e(cid:396)i(cid:373) (cid:393)a(cid:455)(cid:373)e(cid:374)(cid:410) (cid:381)f (cid:936)(cid:1011)(cid:1007)(cid:853)(cid:1008)(cid:1008)(cid:1007) (cid:449)a(cid:400) (cid:396)ecei(cid:448)ed d(cid:437)(cid:396)i(cid:374)g (cid:410)he (cid:395)(cid:437)a(cid:396)(cid:410)e(cid:396) (cid:894)c(cid:381)(cid:373)(cid:393)(cid:396)i(cid:400)i(cid:374)g (cid:1012)(cid:1004)(cid:1081) (cid:381)f
Peak(cid:381)(cid:859)(cid:400) R(cid:381)(cid:437)(cid:374)d (cid:1005)(cid:1013) EIS clai(cid:373)(cid:895)(cid:856)
(cid:28)
8
PEAKO LIMITED
ABN 79 131 843 868
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 2020. 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. 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 was also a director of the ASX listed company
Xanadu Mines Ltd during the year, from which position he resigned on 28 November 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
9
PEAKO LIMITED
ABN 79 131 843 868
Company Secretary and CFO of the ASX listed companies Octanex Limited and Enegex Limited. Mr
Wright is a member of CPA Australia.
Ordinary shares
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 38,489,359 listed options (exerciseable at $0.025 (2.5 cents) on or before 30 April
2020) were granted; with 13,463,675 being exercised. The balance of 25,025,684 expired at 30 April
2020. As at 30 June 2020 there were nil listed options (2019: nil listed options).
At 30 June 2020 13,000,000 unlisted options were on issue (30 June 2019: 6,000,000 unlisted
options).
During the year 13,000,000 unlisted options were granted with 6,000,000 options expiring.
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 continued to be 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.
Matters subsequent to balance date
On 17 July 2020 the company announced it has been allocated up to $450,000 in Junior Minerals
Exploration Incentive (JMEI) credits for the 2020/21 financial year which may be distributed to
eligible future subscribing investors as a tax offset.
On 3 September 2020 the company completed a share placement raising $939,500 before costs.
On 10 September 2020 the company announced a 1 for 5 pro-rate non-renounceable rights issue to
raise up to approximately $1,010,171.
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.
10
PEAKO LIMITED
ABN 79 131 843 868
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
There were no formal board and committee meetings held during the year. All matters that required
formal Board resolutions were dealt with via written circular resolutions. The directors met and
corresponded at numerous times throughout the financial year to discuss the Group’s affairs. The
board undertakes all audit committee functions.
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
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.
11
PEAKO LIMITED
ABN 79 131 843 868
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 $60,221 (2019: $Nil) which
included shareholder-approved non-executive remuneration of $20,521 (2019: $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.
Salary and/or
consulting fees
$
Primary benefits paid / payable
Directors’
fees
$
Super-
annuation
$
Year ended 30 June 2020
Directors
Geoffrey Albers
Raewyn Clark
Darryl Clark
Year ended 30 June 2019
Directors
Geoffrey Albers
Raewyn Clark
Darryl Clark
-
-
10,000
10,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
950
950
-
-
-
-
Equity Settled
Equity
option issues
$
-
39,700
9,571
49,271
-
-
-
-
TOTAL
$
-
39,700
20,521
60,221
-
-
-
-
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 2020, the Company incurred consulting fees of $38,880 (2019: $31,590)
with Samika Pty Ltd, a director-related entity of Raewyn Clark. The fees were provided under normal
commercial terms and conditions with $Nil remaining unpaid at 30 June 2020 (2019: $1,215).
Key management personnel interest in equity holdings
Fully paid ordinary shares
30 June 2020
Geoffrey Albers(1)
Raewyn Clark
Darryl Clark(1)
(1) Other Change in shares – on market
purchases, rights issue participation and
exercise of options
30 June 2019
Geoffrey Albers
Raewyn Clark
Darryl Clark
Number of shares at
start of year
Other Change
Number of shares at
end of year
1 July 2019
44,019,895
-
300,000
44,319,895
1 July 2018
41,331,763
-
-
41,331,763
36,096,068
-
700,000
36,796,068
2,688,132
-
300,000
2,988,132
30 June 2020
80,115,963
-
1,000,000
81,115,963
30 June 2019
44,019,895
-
300,000
44,319,895
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
1 July 2019
-
4,000,000
-
4,000,000
1 July 2018
-
4,000,000
1,000,000
5,000,000
30 June 2020
-
-
-
-
30 June 2019
-
4,000,000
-
4,000,000
30 June 2020
-
-
-
-
30 June 2019
-
4,000,000
-
4,000,000
30 June 2020
Geoffrey Albers
Raewyn Clark
Darryl Clark
30 June 2019
Geoffrey Albers
Raewyn Clark
Peter Armitage #
# resigned 20 March 2019
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 2020
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 2019
-
-
1,000,000
1,000,000
30 June 2020
-
-
1,000,000
1,000,000
30 June 2020
-
-
1,000,000
1,000,000
# Options issued prior to appointment on March 2019.
Listed options (exerciseable at $0.025 on or before 30 April 2020)
30 June 2020
Geoffrey Albers
Raewyn Clark
Darryl Clark
Number of
options at start of
year
1 July 2019
-
-
-
-
Options granted
during year
Options
exercised/exp
ired during
year
22,009,948
(22,009,948)
-
-
150,000
(150,000)
22,159,948
(22,159,948)
Number of
options at end of
year
30 June 2020
-
-
-
-
* acquired via pro-rata non renounceable rights issue
End of remuneration report
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 15 and forms part of this directors’
report for the year ended 30 June 2020.
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
25 September 2020
14
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
Auditor’s Independence Declaration
To the Directors of Peako Limited
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Peako
Limited for the year ended 30 June 2020, 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, 25 September 2020
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.
15
PEAKO LIMITED
ABN 79 131 843 868
Consolidated Statement of Profit or Loss and Other Comprehensive Income
for the year ended 30 June 2020
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
Net loss for the year
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
Basic loss per share
Diluted loss per share
Note
18
2
3
3
2020
$
-
-
(43,137)
-
(49,429)
(180,640)
(130,970)
(60,899)
(22,035)
(487,110)
(487,110)
-
(487,110)
2019
$
73
73
(29,500)
(59,982)
(10,449)
(99,165)
(30,560)
(33,252)
(22,525)
(285,433)
(285,360)
-
(285,360)
(487,110)
(285,360)
1,192
1,192
(485,918)
Cents
(0.41)
(0.41)
74
74
(285,286)
Cents
(0.39)
(0.39)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes.
16
PEAKO LIMITED
ABN 79 131 843 868
Consolidated Statement of Financial Position
as at 30 June 2020
Current Assets
Cash and cash equivalents
Trade and other receivables
Prepayments
Total Current Assets
Non-Current Assets
Trade and other receivables
Exploration and evaluation assets
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
Note
4
5
4
6
7
8
9
10
2020
$
145,657
7,922
27,200
180,779
-
861,929
861,929
2019
$
30,193
5,410
27,200
62,803
6,336
415,556
421,892
1,042,708
484,695
377,372
-
377,372
163,988
265,000
428,988
377,372
428,988
665,336
55,707
38,284,139
54,923
(37,673,726)
37,208,259
34,064
(37,186,616)
665,336
55,707
The above statement of financial position should be read in conjunction with the accompanying notes.
17
PEAKO LIMITED
ABN 79 131 843 868
Consolidated Statement of Changes in Equity
for the year ended 30 June 2020
Issued
capital
$
Share
compensation
reserve
$
Foreign currency
translation
reserve
$
Accumulated
losses
Total equity
$
$
Balance at 1 July 2019
37,208,259
33,744
320
(37,186,616)
55,707
Loss for the year
Other comprehensive loss
Total comprehensive loss
for the year
-
-
-
Issue of Shares
Grant of options
Costs of issue
Balance at 30 June 2020
1,108,306
-
(32,426)
38,284,139
-
-
-
-
19,667
-
53,411
-
1,192
(487,110)
-
(487,110)
1,192
1,192
(487,110)
(485,918)
-
-
-
1,512
-
-
-
(37,673,726)
1,108,306
19,667
(32,426)
665,336
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
-
-
-
-
-
-
Issue of Shares
Costs of issue
Balance at 30 June 2019
105,197
(3,487)
37,208,259
-
-
33,744
-
74
74
-
-
320
(285,360)
-
(285,360)
74
(285,360)
(285,286)
-
-
(37,186,616)
105,197
(3,487)
55,707
The above statement of changes in equity should be read in conjunction with the accompanying notes.
18
PEAKO LIMITED
ABN 79 131 843 868
Consolidated Statement of Cash Flows
for the year ended 30 June 2020
Cash flows from operating activities
Payments to suppliers and employees
Financial income
Net cash outflows from operating activities
Cash flows from investing activities
Payments to suppliers - exploration
Proceeds from exploration grant
Net cash outflows from investing activities
Cash flows from financing activities
Proceeds from borrowings
Proceeds from the issue of shares
Repayment of borrowings
Share issue costs
Net cash inflows from financing activities
Net increase / (decrease) in cash held
Cash at the beginning of reporting period
Effect of exchange rate fluctuations on cash held
Cash at the end of the reporting period
Note
17
2020
$
(249,049)
-
(249,049)
2019
$
(124,255)
73
(124,182)
(538,177)
91,804
(446,373)
(332,253)
-
(332,253)
46,000
1,108,306
(311,000)
(32,426)
810,880
115,458
30,193
6
145,657
265,000
30,197
-
-
295,197
(161,238)
191,419
12
30,193
The above statement of cash flows should be read in conjunction with the accompanying notes.
19
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2020
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 2020 the Group incurred a net cash outflow from operating and
investing activities of $695,422 (2019: $456,435) and a net loss after tax of $487,110 (2019:
$285,360). As at 30 June 2020, the Group has negative working capital of $196,593 (2019:
$366,185).
The financial report has been prepared on a going concern basis. The Group raised $939,500
(before costs) in a share placement completed on 3 September 2020. Directors expect that the Group
will raise approximately $1,010,000 from a rights issue announced 10 September 2020 to enable it
to continue to meet its debts, if and when they fall due, for at least 12 months from the signing of the
annual financial report.
(b) Adoption of new and revised standards
Changes in accounting policies on initial application of Accounting Standards
The Group has adopted all of the new and revised Accounting Standards issued by the
Australian Accounting Standards Board (AASB) that are relevant to its operations and effective
for annual reporting periods beginning on 1 July 2019.
The adoption of the new and revised Australian Accounting Standards and Interpretations, including
AASB 16 Leases, has had no impact on the company’s accounting policies or the amounts reported
during the current year.
20
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2020
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 23 September 2020.
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 2020 (“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.
21
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2020
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)
(ii)
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
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)
(ii)
(iii)
(iv)
the exploration and evaluation tenure right has expired or are expected to expire in
the near future, and is not expected to be renewed.
substantive expenditure on further exploration for and evaluation of mineral
resources in the specific area is neither budgeted nor planned.
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.
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.
22
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2020
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
23
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2020
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.
24
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2020
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.
25
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2020
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.
26
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2020
Note 1: Statement of significant accounting policies continued
(q) Trade and other receivables and contract assets
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.
27
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2020
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
Recovery of exploration expenditure
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.
28
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2020
Note 1: Statement of significant accounting policies continued
(u) Financial Instruments
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.
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.
29
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2020
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.
30
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2020
Note 2: Income tax
Consolidated
Income tax expense recognised in statement of
comprehensive income
2020
$
2019
$
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 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
(487,110)
(146,133)
2,631
(2)
277,603
(134,099)
-
(278,028)
(83,408)
3,337
(6)
193,574
(113,497)
-
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
Net unrecognised deferred tax assets
16,277,403
4,430,516
174,175
(8,726)
25,000
15,352,060
4,430,516
174,175
6,228
18,000
(889,131)
20,009,237
(450,088)
19,530,891
Potential tax benefit @ 30% (2019: 30%)
6,002,771
5,859,267
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.
31
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2020
Note 3: Earnings per share
Consolidated
2020
2019
$
$
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)
(487,110)
119,601,653
(0.41)
(278,028)
72,563,243
(0.39)
Note 4: Trade and other receivables
Current
GST
Non-current
Security deposit
Note 5: Prepayments
Prepaid tenement rent
7,922
5,410
-
6,336
27,200
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 2020 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
Recoupment of costs through exploration grant
Exploration Written off
Balance at the end of the year
415,556
538,177
(91,804)
-
861,929
86,204
389,334
-
(59,982)
415,556
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:
30/06/2019 Notes
30/06/2020
E 45/3278
E 80/4990
E 45/3278
E 80/4990
E 80/5182
E 80/5182
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 2018
32
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2020
Note 7: Trade and other payables
Current
Trade and other payables*
Director-related entities – other payables (Note 14)
Consolidated
2020
$
2019
$
32,332
345,040
377,372
67,597
96,391
163,998
* Trade payables are non-interest bearing and are normally paid on 30 day terms.
Note 8: Borrowings
Balance at the beginning of the year
Repayment of loan
Drawdowns
Balance at the end of the year
265,000
(311,000)
46,000
-
-
-
265,000
265,000
The borrowings were 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).
Note 9: Issued Capital
As at 30 June 2020 there were 128,931,579 fully paid ordinary shares on issue (2019: 76,978,545).
Movement in ordinary share
capital
2020
$
2019
$
2020
#
2019
#
Consolidated
At the beginning of the year
Shares issued during the year
Costs associated with share
issue
Exercise of options
37,208,259
771,713
(32,426)
37,106,549
105,197
(3,487)
76,978,545
38,489,359
-
72,020,678
4,957,867
-
336,593
-
13,463,575
-
Balance at the end of the year
38,284,139 37,208,259 128,931,579
76,978,545
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 options
2020
Listed
2019
Listed
2020
Unlisted
2019
Unlisted
At the beginning of the year
Options granted
Expired/exercised
-
38,489,359
(38,489,359)
21,001,541
-
(21,001,541)
6,000,000
13,000,00
(6,000,000)
5,000,000
1,000,000
-
Balance at the end of the year
-
- 13,000,000
6,000,000
33
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2020
Note 10: Reserves
Foreign currency translation reserve (a)
Share compensation reserve (b)
Consolidated
2020
$
1,512
53,411
54,923
2019
$
320
33,744
34,064
(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
5,000,000 options were granted to directors in the year ended 30 June 2020. (2019: Nil options).
1,000,000 options (exerciseable at $0.04 (4.0 cents) on or before 28 November 2022 were granted to
Darryl Clark on 28/11/19. The accounting value of the options granted was $9,571 with the share
based payment expense for the year $1,878.
2,000,000 options (exerciseable at $0.04 (4.0 cents) on or before 28 November 2022 were granted to
Rae Clark on 28/11/19. 2,000,000 options (exerciseable at $0.05 (4.0 cents) on or before 28 November
2023 were granted to Rae Clark on 28/11/19. The accounting value of the options granted was
$39,700 with the share based payment expense for the year $6,780.
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.
34
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2020
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 2020, if interest rates had changed on cash and cash equivalent by 100 basis points (1%)
and all other variables were held constant, the Group’s after tax profit would have been $1,457 (2019:
$302) 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.
30 June 2020 Consolidated:
Non-derivative Financial
Liabilities
Trade and other payables
Borrowings
30 June 2019 Consolidated:
Non-derivative Financial
Liabilities
Trade and other payables
Borrowings
Carrying
Amount
$
Contractual
cash flows
$
0-12
months
$
1-2
years
$
2-10
years
$
377,372
-
377,372
377,372
-
377,372
377,372
-
377,372
163,988
265,000
428,988
163,988
265,000
428,988
163,988
265,000
428,988
-
-
-
-
-
-
-
-
-
-
-
-
(g) Foreign currency risk
The Group is exposed to foreign currency risk on purchases that are denominated in a currency other
than the respective functional currency. The functional currency of the group is denominated is
Australian dollars.
35
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2020
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
2019
$
6, 336
2020
$
-
The only foreign currency the Group is currently exposed to is the US dollar. At 30 June 2020 if
AUD:USD rates had changed by +/- 10% and all other variables were held constant, the Group’s after
tax loss would have been $0 (2019: $634) 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
year
57,000
776,500
99,680
959,500
833,500 1,059,180
Expenditure commitments (minerals)
The Group has a commitment in minerals tenement E45/3278 which has a current year commitment
of $30,000. The permit year ends 29 September each year. The five year term ends 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 $130,000. Combined expenditure has been granted by the Western Australia
Department of Mines, Industry Regulation and Safety allowing for expenditure obligations for
E80/5182 to be combined.
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 %
2019
2020
100
100
100
-
100
100
100
100
100
100
100
100
100
100
36
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2020
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
Amounts
paid 2020
$
Amounts
paid 2019
$
Payable at
30/06/20
$
Payable at
30/06/19
$
Samika Pty Ltd
RL Clark
Consulting
Exoil Pty Ltd
EG Albers Office services
38,880
130,970
31,590
30,589
-
158,898
Natural Resources
Group Pty Ltd
EG Albers Project management
5,000
-
-
1,215
32,461
-
Octanex Limited
EG Albers Accounting and
administrative support
136,020
59,850
186,142
62,715
Director – related borrowings
During the year the Company repaid $265,000 (2019: $265,000 owed) (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. Interest of $10,767 was also repaid (2019: $nil).
312,870 122,029
345,040
96,391
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
2020
$
145,657
861,930
1,007,587
369,451
-
369,451
638,136
60,201,011
(59,616,286)
53,411
638,136
2019
$
30,193
132,726
162,919
401,931
-
44,877
(239,012)
59,125,131
(59,397,887)
33,744
(239,012)
(218,399)
(578,649)
-
-
(218,399)
(578,649)
Note 16: Matters Subsequent to Balance Date
On 3 September 2020 the company completed a share placement raising $939,500 before costs.
On 10 September 2020 the company announced a 1 for 5 pro-rate non-renounceable rights issue to raise
up to approximately $1,010,171.
37
PEAKO LIMITED
ABN 79 131 843 868
Notes to the Financial Statements
for the Year Ended 30 June 2020
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 gain (loss)
Impairment of exploration asset
Exploration expenditure expensed
Grant of options
Decrease (increase) in trade and other receivables
Decrease in trade and other payables
(487,110)
1,186
-
-
19,667
3,825
213,383
(285,360)
(262)
59,982
7,332
-
(228)
94,354
Net cash outflow from operating activities
(249,049)
(124,182)
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
43,137
29,500
-
-
43,137
29,500
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.
38
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
2020 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 2020, 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
25 September 2020
39
Collins Square, Tower 5
727 Collins Street
Melbourne Victoria 3000
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 2020, 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 2020 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 $487,110
during the year ended 30 June 2020, and as of that date, the Group had negative working capital of $196,593. 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.
40
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
In addition to the matter described in the Material uncertainty related to going concern section, we have determined the
matters described below to be the key audit matters to be communicated in our report.
Key audit matter
How our audit addressed the key audit matter
Exploration and Evaluation Assets Valuation (Note 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 four 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 reconciliation of capitalised
exploration and evaluation expenditure and agreeing to
the general ledger;
reviewing management’s area of interest
considerations against AASB 6;
conducting a detailed review of management’s
assessment of trigger events prepared in accordance
with AASB 6 including;
o
o
o
tracing projects to statutory registers, exploration
licenses and third party confirmations to
determine whether a right of tenure existed;
enquiry of management regarding their intentions
to carry out exploration and evaluation activity in
the relevant exploration area, including review of
management’s budgeted expenditure;
understanding whether any data exists to
suggest that the carrying value of these
exploration and evaluation assets are unlikely to
be recovered through development or sale;
evaluating the competence, capabilities and objectivity
of management’s experts in the evaluation of potential
impairment triggers; and
assessing the appropriateness of the 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 2020, 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.
41
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 Company’s/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 Company/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_2020.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 12 to 14 of the Directors’ report for the year ended 30 June
2020.
In our opinion, the Remuneration Report of Peako Limited, for the year ended 30 June 2020 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, 25 September 2020
42
PEAKO LIMITED
ABN 79 131 843 868
Additional Shareholder Information (unaudited)
The shareholder information set out below was applicable as at 24 September 2020.
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
226
201
60
309
151
947
There were 529 holders of less than a marketable parcel of ordinary shares.
B. Equity security holders – ordinary shares
Twenty largest holders
Holder Name
HAWKESTONE RESOURCES PTY LTD
SOUTHERN ENERGY PTY LTD
MR ERNEST GEOFFREY ALBERS
SACROSANCT PTY LTD
500 CUSTODIAN PTY LTD
AUSTRALIS FINANCE PTY LTD
RAM PLATINUM PTY LTD
GREAT AUSTRALIA CORPORATION PTY LTD
MR MICHAEL LESLIE JEFFERIES
AURALANDIA PTY LTD
GREAT MISSENDEN HOLDINGS PTY LTD
MR CHARLES WAITE MORGAN
SANPEREZ PTY LTD
ALBERS CUSTODIAN COMPANY PTY LTD
SAGEPARK HOLDINGS PTY LTD
JIMZBAL PTY LTD
PONTIA PTY LTD
7 ENTERPRISES PTY LTD
HEBEI MINING (AUSTRALIA) HOLDING PTY LTD
MR ISSY LISSEK
Total
Total issued capital
Holding
18,990,720
13,814,177
10,116,648
9,580,000
7,560,000
5,390,808
4,708,151
4,604,726
4,000,000
3,290,808
2,742,340
2,629,736
2,500,000
2,420,000
2,139,041
2,076,922
1,886,637
1,700,000
1,387,298
1,245,570
102,783,582
157,839,269
% IC
12.03%
8.75%
6.41%
6.07%
4.79%
3.42%
2.98%
2.92%
2.53%
2.08%
1.74%
1.67%
1.58%
1.53%
1.36%
1.32%
1.20%
1.08%
0.88%
0.79%
65.12%
100.00%
43
PEAKO LIMITED
ABN 79 131 843 868
C. Substantial holders – ordinary shares
Substantial shareholders as disclosed in substantial shareholding notices given to the Company are
as follows:
Albers Group
D. Unlisted Option Holders
14,000,000 unlisted options in total
Number
Held
80,115,963
Percentage
50.76%
Two holders - 1,000,000 unlisted options (exercisable at $0.06 on or before 30 November 2020.
One holder - 1,000,000 unlisted options (exercisable at $0.05 on or before 18 March 2021.
Two holders - 1,000,000 unlisted options (exercisable at $0.075 on or before 30 November 2021
One holder - 1,000,000 unlisted options (exercisable at $0.03 on or before 1 May 2022.
Four holders - 5,000,000 unlisted options (exercisable at $0.04 on or before 28 November 2022
Two holders - 1,000,000 unlisted options (exercisable at $0.010 on or before 30 November 2022
One holder - 2,000,000 unlisted options (exercisable at $0.05 on or before 28 November 2023.
One holder - 2,000,000 unlisted options (exercisable at $0.05 on or before 1 May 2025.
Minerals Exploration Interests
Mining Tenements held at 30 June 2020 and their location
Tenement
Peako interest
Western Australia (East Kimberley Region)
E 80/4990
E 80/5182
E 80/5346
E 80/5472
Western Australia (Paterson Province)
E 45/3278
E 45/3345
E 45/3477
E 45/3292
60%*
100%
100%
100%
100%
100%
100%
100%
Tenement status
Granted
Granted
Application
Application
Granted
Application
Application
Application
* Earning pursuant to farm-in agreements, with potential to increase to 85%
Tenements acquired during the year and their location
Western Australia (East Kimberley)
E80/5472
100%
Tenements disposed of during the year and their location
Nil.
44
PEAKO LIMITED
ABN 79 131 843 868
Beneficial percentage interests held in farm-in or farm-out agreements at 30 June 2020:
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%
45