ANNUAL REPORT
PEAKO LIMITED
2021
A S X : P K O
Corporate Directory
Directors
Non-Executive Chairman
Executive Director
Non-Executive Director
Geoffrey Albers
Raewyn Clark
Paul Kitto
Appointed 20 September 2021
Darryl Clark
Resigned 20 September 2021
Non-Executive Director
Company Secretary
Robert Wright
Registered Office
Level 1, 10 Yarra Street, South Yarra
Victoria, 3141 Australia
Website: www.peako.com.au
Email: info@peako.com.au
Ph: (03) 8610 4702
Fax: (03) 8610 4799
Auditor
Grant Thornton Audit Pty Ltd
Collins Square, Tower 5
727 Collins Street
Melbourne, Victoria 3008
Australia
Share Registry
Automic Pty Ltd
Level 3
50 Holt Street
Surry Hills, NSW 2010, Australia
Telephone: 1300 288 664 (within Australia)
Telephone: +61 (2) 9698 5414 (outside
Australia)
Website: www.automic.com.au
Securities Exchange Listing
ASX Limited
Level 4, North Tower, Rialto
525 Collins Street
Melbourne Victoria 3000
Website: www.asx.com.au
ASX Codes: PKO – Ordinary Shares
Incorporated in Western Australia 25 June 2008
Contents
Corporate Directory
Chairman’s Letter
Operations Report
Tenement Schedule
Competent Person Statement
Directors’ Report
Auditor’s Independence Declaration
Statement of Profit or Loss and Other
Comprehensive Income
Statement of Financial Position
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Audit Report
ASX Additional Information
1
2
3
13
13
14
22
23
24
25
26
27
45
46
49
1
Chairman’s Letter
The past 12 months have seen the continued
evolution to the strategic future that we envisaged
for the Company as a result of the corporate
reorganisation of Peako Limited (some years ago
now), with a focus of exploration activities in
Western Australia. The Company originally centred
its interest on the Broadhurst project in the Paterson
region, but in the recent years, we have focussed on
our Eastman tenement in the East Kimberley.
We saw a future for Peako in base metals,
predicated on our positive perception of
the
attractiveness of emerging concepts for innovative
forms of energy generation, storage, transmission
and usage. We have since expanded the original
vision that we saw for the East Kimberley to also
encompass the search for gold and rare earths in
the region.
WorldView-3 data, integrated with historical data,
was used to generate a suite of targets and to plan
an intensive field campaign which commenced in
April 2021, as soon as the wet season ended, and
is now in the process of concluding.
A key outcome of our data compilation work during
the first half of the year was the recognition of a
latent gold potential across the Eastman E80/4990
tenement which we consider to have been widely
overlooked by past explorers. This led us to apply
for additional
to
tenements during
encompass areas identified as having prospectivity
for gold. The Operations Review in this Annual
Report includes a map showing our East Kimberley
tenement holdings and gives an indication of the
strength and extent of our conviction in regard to
these new application areas.
the year
Our Operations Review in this Annual Report
contains a summary of the activities in each of our
project areas, including our original tenements in the
Paterson region, which were part of the Company’s
portfolio on its formation and at its subsequent listing
on the ASX.
Our activities in the past year were substantially
focused on our tenements in the East Kimberley,
albeit with some limitations in respect to field work
during the first half as a result of travel and border
the COVID-19
restrictions brought about by
this
pandemic. However, we did not allow
impediment to unduly restrict our exploration efforts,
as during this period we used other exploration tools
not affected by border restrictions. We embraced a
phase of digital capture of historical data from
exploration undertaken by many explorers over
more than 40 years in the Eastman area in order to
maximise our knowledge of geology and to develop
to define and
potential mineralisation models
prioritise targets. We invested in a SQL database
that empowers streamlined workflows for data
capture and will maximise data integration to drive
our geological understanding across our tenement
areas.
We acquired new data across our granted East
Kimberley
tenements via Worldview-3 Satellite
imagery, with specialist geo-scientific spectral
processing undertaken by Exploration Mapping
Group, Inc. in the United States. Interpretation of the
For the foreseeable future, our strategy is one of
exploration
to discover, prove and develop
resources in our own right. There was a time when
this was impractical and unworkable because of the
lack of depth of funding for junior companies in
Australia. At least for the foreseeable future this is
no longer the case. I am confident that our Company
can carry a discovery on to proof of resource,
through to development and into production. Our
challenge is to make the discovery!
I have pleasure in welcoming to our Board, Dr Paul
Kitto. Dr Kitto has a wealth of experience within the
mining industry in Australia and internationally and
brings both technical exploration expertise at the
highest levels, as well as corporate experience in
portfolio
and
strategy,
development. I thank Dr Darryl Clark, who has
recently resigned, for his valued contributions as a
board member including in guiding our strategies
and targets over the past two years and introducing
valued members of our exploration team.
resource
finance
On behalf of the Board, I thank our shareholders for
their support and financial contribution and to our
team and consultants and my fellow directors for
their efforts.
E.G. Albers
Chairman, Peako Limited
30 September 2021
2
Operations Report
Over the past 12 months, Peako has focused on advancing its East Kimberley project, culminating in an
intensive field program that commenced in April 2021.
East Kimberley Project
Peako’s East Kimberley Project covers an area of 3,335 km2. It is made up of two granted tenements
(E80/4990 and E80/5182) and five areas under application (E80/5346, E80/5472, E80/5220, E80/5623 and
E80/5624) (Figure 1).
Figure 1 Peako’s East Kimberley Tenement Package
Historically, systematic exploration across the East Kimberley has lagged behind many of Australia’s other
Proterozoic provinces. Past exploration programs across the Project area have generally been sporadic
campaigns, incorporating numerous explorers across multiple commodities and fragmented, non-
contiguous tenement holdings.
Historical exploration was primarily guided by occurrences of surface gossan and geochemical anomalies.
It has provided consistent encouragement of the area’s economic potential. At the same time, discovery
efforts have been hindered by a mix of cover, subcrop, poorly understood regolith, deep weathering and
complex stratigraphy/structure, despite highly favourable host rocks, structure and known mineralisation
across the area.
3
4
Geological Setting
The Eastman (E80/4990) and Wirana (E80/5182) tenements host a diverse Paleoproterozoic succession
that is widely intruded by multiple granitoid phases and deformed by multiple orogenic episodes. The area
represents the western-most window of the Halls Creek Orogen where volcanic successions of the bimodal
Koongie Park Formation (KPF) volcanic belt (c. 1845 Ma) and the Lamboo Ultramafic (LUM) intrusive belt
(c. 1850-1835 Ma) are well developed.
Recently acquired satellite imagery together with rock geochemistry define an array of multistage, poorly
constrained granitoid intrusions across the tenements, with compositions that include granite, granodiorite,
diorite, monzogranite and granophyre.
The geological diversity within the tenement package has driven the search for a wide range of commodities
by present and past explorers. The Koongie Park Formation has demonstrated prospectivity for base (Cu-
Pb-Zn) and precious (Ag, Au) metals with postulated mineralisation styles varying from VHMS to SVAL-
hybrid styles, to epithermal and skarnoid mineralisation associated with widespread carbonate facies in the
KPF stratigraphy. In addition, mafic to ultramafic intrusions of the Lamboo Ultramafic Complex (LUM) have
demonstrated prospectivity for base metal (Ni, Cu) and precious (Au, PGE) metals with potential
mineralisation styles varying across magmatic, cumulate to intrusion or orogenic-related gold associated
with deep crustal-tapping fertile structures.
Tenement application E80/5520 is located 35km west of Halls Creek (Figure 1) in an area that has
undergone minimal historical exploration due to widespread Cenozoic cover sequences. Interpreted
geology identifies fertile LUM rock types with known gold, nickel and base metal prospects in exposed areas
adjacent to the tenement.
A major 500km long NE-SW trending fault system (Springvale-Billabong Fault) is interpreted in central
portions of the E80/5520 tenement and could provide a splayed structural setting prospective for structurally
localised gold systems, similar to those observed at Nicholsons gold mine some 20 kms to south (Figure
1).
Tenement applications E80/5623 and E80/5624 cover the regional extensions of the NE trending structures
observed in field mapping across the E80/4990 tenement.
WorldView-3 Imagery
Between July and August 2020 high-resolution WorldView-3 satellite survey was collected and processed
across E80/4990 and E80/5182.
Interpretation of the WorldView-3 imagery, integrated with historical map and data constraints, has assisted
the definition of the complex geology and structure that characterise this part of the Halls Creek Orogen.
Importantly, the imagery has provided constraints from shortwave infra-red (SWIR) bands to identify areas
with clay, propylitic, silica and iron related alteration to assist target generation.
Collectively, some 60 target areas were defined at Eastman for ground follow-up, with around 25 of the
highest priority target areas having potential for gold, copper, zinc, nickel and PGE mineralisation.
5
2020 Field Program
Field activities during 2020 were restricted to a narrow time window in September due to COVID-19 border
restrictions. The delay of the 2020 field program provided an opportunity to integrate WorldView-3 data and
captured historical datasets to define and implement a strategic and focused field campaign targeting a
subset of priority targets, prior to the onset of the wet season.
First pass reconnaissance field validation of priority target areas across the Eastman tenement commenced
in mid-September and ran smoothly in response to the short time window available before the onset of the
wet season.
Samples of country rock, quartz vein and vein stockwork material collected across the target areas were
submitted for assay. Sampling results were highly encouraging and confirmed both the gold and base metal
potential at several target areas.
2021 Field Program
Peako commenced field activities in April 2021 following conclusion of the wet season. The strategy was to
evaluate the widely identified but often overlooked latent gold potential recorded in historical exploration
data. For many past explorers, gold was peripheral to their base metal and PGE exploration focus at a time
when many explorers did not analyse soil, rock or drill samples for gold.
6
New Vein Systems
Two new mineralised vein systems were discovered early in the field season during ground truthing
reconnaissance work following-up on a gold surface sample recorded in the historical data. Located in the
east of the E80/4990 Eastman tenement, Peako has named these vein systems Appaloosa and Gypsy.
Rock chip assay results confirm the systems to be mineralised with assays up to 12.7g/t Au at Appaloosa
and 1.2g/t Au at Gypsy.
An additional new vein system has been identified south of the Appaloosa area Peako has named “Shire”
(refer Figure 2) which is also confirmed as mineralised by assays from rock chip samples.
Figure 2 New Mineralised Vein System Discoveries
7
Appaloosa Mapping
A campaign of detailed mapping at 1:2,500 scale was completed at Appaloosa (Figure 4) in conjunction
with 1:10,000 scale interpretation of the easternmost parts of the E80/4990 tenement. The resulting maps
defined a structurally complex mafic-ultramafic host rock sequence with multistage intrusions as a broad
host rock framework for potential mineralisation.
Figure 3 Geological map of the Appaloosa area and location of quartz-carbonate and gossanous veins
that contain gold grades up to 12.7g/t
At Appaloosa, outcropping mineralised gossanous quartz veins were mapped over an approximate 400m
strike length. Importantly, Peako’s recent rock chip results not only confirm the presence of high-grade gold
veins but also demonstrate the occurrence of multiple to stacked outcropping mineralised gossanous veins.
Rock chip results from Appaloosa currently define the veins as outcropping over a 200m strike, with veins
having gold grades that vary from 0.39g/t Au up to 12.7g/t Au.
The outcropping mineralised veins at Appaloosa occur as narrow (up to 20cm) discontinuous veins within
propylitic epidote altered massive gabbro. The veins can be continuous in strike over 15m but are mostly
poorly exposed. Mineralised veins typically strike north to northeast with an east to southeast dip between
45° to 70°. The mineralised veins are composed of grey quartz intermixed with goethitic boxwork likely after
pyrite and arsenopyrite-rich sulphides.
The current geological configuration, together with assay results, potentially indicate a NE-trending
mineralised corridor of over a 200-400m strike.
8
Aircore Drilling
A suite of priority target areas were defined on the Eastman tenement for follow-up and drill testing during
the 2021 field season.
Peako’s aircore program was designed to test for geochemical anomalies in 10 targets across 7 separate
areas that were defined from an array of prospective geological features including anomalous base metal
and gold geochemistry (soil, rock, drilling), geophysics (VTEM, magnetics), prospective structure, as well
as encouraging satellite imagery spectral indicators. Mineralisation styles tested by aircore geochemistry
vary between the target areas from structural to intrusion-related gold-copper targets to extensions of
ultramafic rocks below cover sequences with potential for Cu-Ni-PGE mineralisation. In addition, a number
of areas tested by our 2021 aircore program were designed to confirm and/or extend target areas where
historical soil geochemistry programs had previously identified base metal anomalism but where previous
explorers did not analyse for gold.
The drilling was carried out at Eastman between April and July 2021. A total of 473 aircore holes were
completed for 3,014m. The total meterage was lower than anticipated due to shallow cover and more
extensive subcrop than previously recognised.
Figure 4 Summary of 2021 Field Season Activities to 30 June 2021
EIS Funding
Peako’s 2021 aircore drilling activities were supported by two Western Australian Government Exploration
Incentive Scheme (“EIS”) co-funded drilling grants totalling $320,000. The Round 21 EIS grant is for an
amount of $150,000 for 50% of direct drilling costs incurred prior to 30 June 2021. The Round 22 grant is
for a further $150,000 amount for 50% of direct drilling costs incurred prior to 31 December 2021, as well
as up to $20,000 towards mobilisation costs.
9
10
Exploration Pipeline – Wirana E80/5182
The Wirana (E80/5182) tenement incorporates an area of 421.9 km2 contiguous to Peako’s Eastman
(E80/4990) tenement (Figure 1). Regional geology and recently completed WorldView-3 imagery over the
tenement confirm the area to contain prospective host rock sequences including LUM, Marboo Formation
and numerous granitoid intrusions of undefined affiliation. The tenement has a widespread suite of historical
base and precious metal prospects (Figure 5) and has only undergone precursory work by historical
explorers.
First pass access and logistics field review was completed over the Wirana tenement during June 2021 to
develop a reconnaissance rock sampling program over key prospects planned for later in the field season.
The review established the presence of reasonable vehicular access to the eastern and northern parts of
the tenement and also upgraded the existing track to the central southern parts of the tenement including
the historical BHP Gossan 15 prospect.
Figure 5 Wirana E80/5182 Tenement Area and Key Historical Prospects
11
Paterson Province, Western Australia
Peako’s Broadhurst (Sunday Creek) Project tenement is located in the Rudall River area of the Paterson
province of Western Australia (Figure 6). Peako also has three long standing applications for exploration
licences located close to its Broadhurst Project tenement. Historical geological mapping indicates bedrock
geology of the project area is largely carbonaceous shales and siltstones of the Broadhurst Formation, and
lesser quartz sandstone and siltstone of the underlying Coolbro Sandstone Formation.
Figure 6 The Sunday Creek - Broadhurst Tenement Area in the Paterson Province, Western Australia.
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. Historic exploration has
been minimal and fragmented, comprising 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, with base metal mineralisation targets in the
Broadhurst Formation remaining untested.
A program of field mapping, reconnaissance and rock chip and soil sampling was planned across the
tenement during the year. The program was delayed due to Native Title consultation and is now scheduled
to occur in early 2022.
12
Tenement Schedule
As at 28 September 2021
Tenement
Peako interest
Tenement status
Western Australia (East Kimberley Region)
E80/4990
E80/5182
E80/5346
E80/5472
E80/5520
E80/5623
E80/5624
E80/5658
E80/5703
E80/5704
E80/5706
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Western Australia (Paterson Province)
E 45/3278
E 45/3345
E 45/3477
E 45/3292
100%
100%
100%
100%
Granted
Granted
Application
Application
Application
Application
Application
Application
Application
Application
Application
Granted
Application
Application
Application
Competent Person Declaration
The information in this report that relates to Exploration Results at the East Kimberley Project is extracted
from the ASX announcement titled “East Kimberley Exploration Update” released on 21 July 2021.
All ASX Announcements are available at www.peako.com.au
The Company confirms that it is not aware of any new information or data that materially affects the
information included in the original market announcement. The company confirms that the form and context
in which the Competent Person’s findings are presented have not been materially modified from the original
market announcement.
13
Directors’ Report
For the year ended 30 June 2021
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 2021. In order to comply with the Corporations Act
2001, the directors report is as follows:
Directors
The names and details of the Company’s directors in office during the financial year and until the date of
this report are as follows. Directors were in office for the entire period unless otherwise stated.
E. Geoffrey (Geoff) Albers
LLB, FAICD
Non-executive Chairman
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 ASX listed
companies Octanex Limited and Enegex Limited.
His companies are active resource sector investors.
Raewyn (Rae) Clark
B.Bus(dist), CA, MAICD, AGIA,
ACIS
Executive Director
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 ASX listed companies Octanex Limited and
Enegex Limited.
14
Directors’ Report
For the year ended 30 June 2021
Paul Kitto
BSc (Hons), PhD, Dip Ed
Non-executive Technical
Director
(appointed 20 September 2021)
Darryl Clark
BSc (Hons), PhD
Non Executive Director
(resigned 20 September 2021)
Company Secretary
Robert Wright
B Bus, CPA
Dr Kitto has over thirty years’ experience working within the mining
industry having served on a number of ASX Boards and holding senior
level management positions around the world.
Most recently Dr Kitto was Exploration Manager, Africa for Newcrest
Mining Ltd and prior to that, was Chief Executive Officer and Managing
Director of ASX listed Ampella Mining Ltd from 2008 until 2014, when
Ampella was acquired by LSE/TSX listed Centamin PLC.
Throughout his career, Dr Kitto has led or been part of exploration
teams that have discovered numerous multi-million ounce gold
deposits in Africa, Australia and Papua New Guinea. Dr Kitto has
extensive experience associated with a wide range of deposit types,
predominantly associated with gold and base metal deposits.
Dr Kitto was appointed to the Board on 20 September 2021. He is
also a director of ASX listed companies Tietto Minerals Limited and
Meteoric Resources NL.
Dr Clark is an exploration geologist whose career has taken him
throughout Australia, Central Asia and South East Asia for over 26
years. During previous corporate roles he has been responsible for
business development strategies, designing multi-commodity
exploration programs and the co-ordination of exploration teams to
deliver discovery events. Dr Clark was appointed to the Board on 20
March 2019. Dr Clark is also a director of ASX listed company Battery
Minerals Limited.
Mr Wright was appointed as Company Secretary of Peako on 2 May
2017. Mr Wright is a senior financial professional with over 30 years
commercial experience in the resource, energy and manufacturing
industries gained at various companies and locations, including 14
years at BHP. As well as carrying out his secretarial duties for Peako,
he is the company’s Chief Financial Officer and the Company Secretary
and CFO of the ASX listed companies Octanex Limited and Enegex
Limited. Mr Wright is a member of CPA Australia.
Ordinary shares
The Company’s share capital consists of 234,911,319 ordinary fully paid shares (2020: 128,931,579).
In September 2020 Peako raised $939,500 (before costs) via an oversubscribed placement of 28,907,690
ordinary fully paid shares at $0.0325 (3.25 cents) per share with attached 1 for 2 unlisted options to be
granted on the basis of one option for every two shares subscribed, exercisable at $0.055 (5.5 cents) on
or before 30 June 2022.
15
Directors’ Report
For the year ended 30 June 2021
In October 2020 Peako completed a pro-rata shareholder entitlement offer on the same terms as the
September placement. Eligible shareholders were invited to subscribe for their pro-rata entitlement
shares on the basis of 1 new share for every 5 shares held and the grant of 1 new option for no additional
consideration on the basis of 1 new option for every 2 shares subscribed for under the entitlement offer.
The offer closed following the end of the quarter. It was fully subscribed and raised $ 1,175,678 (before
costs) with 31,567,848 new shares issued and 15,783,924 options granted.
In November 2020 Peako increased its interest in E80/4990 to 100%. Having earned a 60% interest in
the tenement under a Farmin and Joint Venture Agreement, Peako agreed to buy the remaining 40%
interest in the tenement from Sandrib Pty Ltd for consideration comprising a payment of $90,000, issue
of 2,647,060 shares in Peako and a grant of a 0.10% net smelter royalty capped at $500,000.
In June 2021 Peako announced a placement to raise $2 million at an issue price of $0.035 a share
together with a one for two 30 June 2022 $0.055 unlisted option. This placement comprised:
• 42,857,142 first tranche shares which were issued on 21 June 2021;
• 21,428,571 first tranche unlisted options exercisable at $0.055 on or before 30 June 2022 were
issued on 30 July 2021 following approval from shareholders
• 14,285,716 second tranche shares were issued 30 July 2021 following approval from
shareholders; and
• 7,142,857 second tranche unlisted options exercisable at $0.055 on or before 30 June 2022 were
granted 30 July 2021 following approval from shareholders
Also on 15 June 2021 Peako announced a Share Purchase Plan (SPP) whereby eligible shareholders
were offered the right to participate on the same terms as the Placement. The SPP concluded 21 July
2021 with the Company issuing 59,527,066 shares together with 29,763,522 unlisted options raising a
further $2,074,000.
Options
Movement in options
Listed options
Start of year
Granted
Expired
Exercised
End of the year
Unlisted options
Start of year
Granted1
Expired
Exercised
End of the year
2021
2020
-
-
-
-
-
-
38,489,359
(25,025,684)
(13,463,675)
-
13,000,000
46,737,799
(2,000,000)
-
57,737,799
6,000,000
13,000,00
(6,000,000)
(6,000,000)
13,000,000
1 30,237,799 unlisted options were granted to shareholders who participated in the rights issue and
placements that occurred during the year ended 30 June 2021. The balance of 16,500,000 unlisted
options granted for the year ended 30 June 2021 were granted to directors, an executive and consultants
(See Accounting Note 12 for details).
16
Directors’ Report
For the year ended 30 June 2021
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 3-12 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 30 July 2021 the following shares were issued and options granted following approval of members.
These shares and options formed part of a placement in June 2021:
• 21,428,571 first tranche unlisted options exercisable at $0.055 on or before 30 June 2022
• 14,285,716 second tranche shares
• 7,142,857 second tranche unlisted options exercisable at $0.055 on or before 30 June 2022
On 21 July 2021, the SPP announced by the Company on 15 June 2021 concluded. The company issued
59,527,066 shares and granted with 29,763,522 unlisted options pursuant to the SPP, raising a further
$2,074,000.
On 20 September 2021, Dr Paul Kitto joined the board as Non-Executive Technical Director and Dr Darryl
Clark resigned.
Likely developments and expected results
The likely developments in the company’s operations in future years and the expected result from those
operations are dependent on exploration success in the tenements in which the company holds an
interest.
Environmental legislation
The Group is subject to significant environmental legal regulations in respect to its exploration and
evaluation activities in Australia. There have been no known breaches of these regulations and principles.
17
Directors’ Report
For the year ended 30 June 2021
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.
Indemnification of directors and officers
During the financial year and to the date of this report, the company paid premiums in respect of contracts
insuring directors and officers of the company against liabilities arising from their position as directors
and officers of the company.
The Company has entered into Deeds of Access and Indemnity with each of the Directors referred to in
this report who held office during the year indemnifying each against all liabilities incurred in their capacity
as directors of the Company to the full extent permitted by law
Meetings of directors
The number of formal meetings of the Company’s board of directors and relevant committees attended
by each director are set out in the following table. All other matters that required formal Board resolutions
were dealt with via written circular resolutions. In addition, the directors met and corresponded at
numerous times throughout the financial year to discuss the Company' affairs. The board undertakes all
audit committee functions.
Directors’ Meetings
Held
Attended
Geoffrey Albers
Raewyn Clark
Darryl Clark
2
2
2
2
2
2
Corporate Governance Statement
A corporate governance statement reporting on Peako’s governance framework, principles and practices
is provided on the Peako website www.peako.com.au.
Remuneration report (audited)
The Directors present the Remuneration Report for the Company and its controlled entities for the year
ended 30 June 2021. This Remuneration Report for the Group forms part of the Directors’ Report and
has been prepared in accordance with section 300A of the Corporations Act 2001.
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.
18
Directors’ Report
For the year ended 30 June 2021
Director Remuneration
During the year under review, directors were remunerated a total of $97,806 (2020: $60,221) which
included shareholder-approved non-executive remuneration of $48,219 (2020: $20,521).
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 in the following table.
Primary benefits paid / payable
Salary and/or
consulting
fees
$
-
-
10,000
10,000
Directors’
fees
Super-
annuation
$
-
-
-
-
$
-
-
950
950
Equity
Settled
Equity
option
issues(1)
$
-
49,587
37,269
86,856
TOTAL
$
-
49,587
48,219
97,806
Year ended 30 June 2021
Geoffrey Albers
Raewyn Clark
Darryl Clark
Year ended 30 June 2020
Geoffrey Albers
Raewyn Clark
Darryl Clark (2)
-
-
-
-
(1) The whole value of options granted during the year has been disclosed as remuneration rather than the
amount vested.
(2) Darryl Clark resigned 20 September 2021 and Paul Kitto was appointed.
-
39,700
20,521
60,221
-
39,700
9,571
49,271
-
-
10,000
10,000
-
-
950
950
Loans to key management personnel
No loans were made to key management personnel during the current or previous financial year.
Other transactions with key management personnel
In the year ended 30 June 2021, the Company incurred consulting fees of $68,415 (2020: $38,880) 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 2021 (2020: $nil).
Key management personnel interest in equity holdings
Fully paid ordinary shares
30 June 2021
Geoffrey Albers1
Raewyn Clark
Darryl Clark1
Number of shares
at start of year
1 July 2020
Other
Change
Number of shares
at end of year
30 June 2021
80,115,963
-
1,000,000
81,115,963
9,349,999
-
200,000
9,549,999
89,465,962
-
1,200,000
90,665,962
19
1 Other Change in shares – on market purchases and rights issue participation.
Directors’ Report
For the year ended 30 June 2021
30 June 2020
Geoffrey Albers
Raewyn Clark
Darryl Clark
Unlisted options
1 July 2019
44,019,895
-
300,000
44,319,895
36,096,068
-
700,000
36,796,068
30 June 2020
80,115,963
-
1,000,000
81,115,963
The Company granted 7,000,000 options over ordinary shares to directors during the financial year (2020:
5,000,000). Of the options granted in the current financial year 5,000,000 options have an employment
condition and so vest over that service condition. The balance of 2,000,000 options do not have any
service of performance conditions attached and fully vested on grant date.
The options granted during the year ended have been valued using the Black Scholes Option Valuation
The fair value of these share-based payment (for accounting) at grant date was $86,856 (2020: $49,271).
A share based payment expense of $53,295 has been recognised for the year ended 30 June 2021
(2020: $8,656).
Number of
options at start
of year
1 July 2020
Options
granted during
year
Options
exercised /
expired
during year
Number of
options at end
of year
30 June 2021
30 June 2021
Options exercisable at $0.05 on or before 18 March 2021
Geoffrey Albers
Raewyn Clark
Darryl Clark
-
-
1,000,000
1,000,000
-
-
-
-
-
-
(1,000,000)
(1,000,000)
Options exercisable at $0.055 on or before 30 June 2022
Geoffrey Albers1
Raewyn Clark
Darryl Clark1
-
-
-
-
3,125,000
-
100,000
3,225,000
1 acquired via pro-rata non renounceable rights issue
Options exercisable at $0.04 on or before 28 November 2022
Geoffrey Albers
Raewyn Clark2
Darryl Clark2
-
2,000,000
1,000,000
3,000,000
-
-
-
-
2 granted to incentivise directors following approval by members
-
-
-
-
-
-
-
-
-
-
-
-
3,125,000
-
100,000
3,225,000
-
2,000,000
1,000,000
3,000,000
20
Directors’ Report
For the year ended 30 June 2021
Number of
options at start
of year
1 July 2020
Options
granted during
year
Options
exercised /
expired
during year
Number of
options at end
of year
30 June 2021
30 June 2021
Options exercisable at $0.05 on or before 28 November 2023
Geoffrey Albers
Raewyn Clark2
Darryl Clark
-
2,000,000
-
2,000,000
-
-
-
-
Options exercisable at $0.044 on or before 5 November 2023
Geoffrey Albers
Raewyn Clark2
Darryl Clark2
-
-
-
-
-
3,000,000
2,000,000
5,000,000
Options exercisable at $0.06 on or before 21 June 2023
Geoffrey Albers
Raewyn Clark2
Darryl Clark2
-
-
-
-
-
1,000,000
1,000,000
2,000,000
2 granted to incentivise directors following approval by members
End of remuneration report
Auditor independence
-
-
-
-
-
-
-
-
-
-
-
-
-
2,000,000
-
2,000,000
-
3,000,000
2,000,000
5,000,000
-
1,000,000
1,000,000
2,000,000
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 22 and forms part of this directors’ report for
the year ended 30 June 2021.
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
30 September 2021
21
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 2021, 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
T S Jackman
Partner – Audit & Assurance
Melbourne, 30 September 2021
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.
22
Consolidated Statement of Profit or Loss and Other Comprehensive
Income
For the year ended 30 June 2021
Government grants - Covid
Sundry income
Expenses
Accounting fees
Audit fees
Exploration costs
Professional and consultancy fees
Office costs
Other costs
Salary and wages
Share based payment
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
19
2
3
3
2021
$
20,000
350
20,350
(147,045)
(52,876)
(176,755)
(36,811)
(87,612)
(53,369)
(6,596)
(144,505)
(29,524)
(735,093)
(714,743)
-
(714,743)
2020
$
-
-
-
(138,020)
(43,137)
(49,429)
(42,620)
(130,970)
(31,232)
(10,000)
(19,667)
(22,035)
(487,110)
(487,110)
-
(487,110)
(714,743)
(487,110)
-
-
(714,743)
1,192
1,192
(485,918)
Cents
(0.40)
(0.40)
Cents
(0.41)
(0.41)
The above statement of profit or loss and other comprehensive income should be read in conjunction with
the accompanying notes.
23
Consolidated Statement of Financial Position
As at 30 June 2021
Current Assets
Cash and cash equivalents
Trade and other receivables
Prepayments
Total Current Assets
Non-Current Assets
Motor Vehicles
Plant and Equipment
Exploration and evaluation assets
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and other payables
Total Current Liabilities
Total Liabilities
Net Assets
Equity
Issued capital
Reserves
Accumulated losses
Total Equity
Note
4
5
6
7
8
9
10
11
2021
$
1,419,805
107,749
107,657
1,635,211
94,736
48,977
2,154,834
2,298,547
2020
$
145,657
7,922
27,200
180,779
-
-
861,929
861,929
3,933,758
1,042,708
480,954
480,954
377,372
377,372
480,954
377,372
3,452,804
665,336
41,641,845
165,684
(38,354,725)
38,284,139
54,923
(37,673,726)
3,452,804
665,336
The above statement of financial position should be read in conjunction with the accompanying notes.
24
Consolidated Statement of Changes in Equity
For the year ended 30 June 2021
Issued
capital
Share
compensation
reserve
$
$
Foreign
currency
translation
reserve
$
Accumulated
losses
Total
equity
$
$
Balance at 1 July 2020
38,284,139
53,411
1,512
(37,673,726)
665,336
Loss for the year
Other comprehensive loss
Total comprehensive loss
for the year
-
-
-
Issue of Shares
Costs of issue
Grant of options
Reclassification of expired
options
Balance at 30 June 2021
3,451,671
(93,965)
-
-
41,641,845
-
-
-
-
-
144,505
(33,744)
164,172
-
-
-
-
-
-
(614,705)
-
(614,705)
-
(614,705)
(614,705)
-
-
-
3,451,671
(93,965)
144,405
-
1,512
33,744
(38,354,725)
-
3,452,804
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
-
-
-
-
-
-
-
1,192
(487,110)
-
(487,110)
1,192
1,192
(487,110)
(485,918)
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
-
-
-
1,512
-
-
-
(37,673,726)
1,108,306
19,667
(32,426)
665,336
The above statement of changes in equity should be read in conjunction with the accompanying notes.
25
Consolidated Statement of Cash Flows
For the year ended 30 June 2021
Cash flows from operating activities
Payments to suppliers and employees
Government Grants – Covid
Net cash outflows from operating activities
Cash flows from investing activities
Payments to suppliers - exploration
Payments for exploration vehicles, plant and equipment
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 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
18
2021
$
2020
$
(730,384)
20,000
(710,384)
(249,049)
-
(249,049)
(1,221,259)
(149,915)
-
(1,371,174)
(538,177)
-
91,804
(446,373)
-
3,449,671
-
(93,965)
3,355,706
1,274,148
145,657
-
1,419,805
46,000
1,108,306
(311,000)
(32,426)
810,880
115,458
30,193
6
145,657
The above statement of cash flows should be read in conjunction with the accompanying notes.
26
Notes to the Financial Statements
For the Year Ended 30 June 2021
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.
financial
comprise
The
the
statements
consolidated financial statements for the Group.
For the purposes of preparing the consolidated
financial statements, the Company is a for-profit
entity.
financial statements are presented
The
Australian dollars, unless otherwise stated.
in
Going concern
For the year ended 30 June 2021 the Group
incurred a net cash outflow from operating and
investing activities of $2,081,558
(2020:
$695,422) and a net loss after tax of $714,743
(2020: $487,110). As at 30 June 2021, the Group
has positive working capital of $1,154,257 (2020:
negative $196,593).
The financial report has been prepared on a
going concern basis. The Group raised
$2,574,000 (before costs) in a share placement
and share placement plan; both completed
during July 2021. Directors expect that the Group
will 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 2020.
Configuration or Customisation Costs in a Cloud
Computing Arrangement
Intangible
Assets)
(IAS 38
the
the
financial year
International
During
Financial Reporting Interpretations Committee
IFRIC
to
customisation and configuration costs for cloud
computing arrangements were utilised by
companies depending on internal policy.
that various approaches
identified
The Agenda Decision requires that management
capitalise those elements of expenditure that
meet the definition of an ‘Intangible Asset’ as
defined by AASB 138 Intangible Assets and
recognise any additional amounts as an expense
as the entity benefits from the expenditure – either
by applying AASB 138 or applying another
accounting standard.
The impact of this decision has not had a material
impact on the group’s financial statements.
(c) Statement of compliance
The financial report was authorised by the board
of directors for issue on 30 September 2021.
including
The consolidated financial report is a general
purpose financial report which has been prepared
in accordance with Australian Accounting
Accounting
Standards,
Interpretations,
the Australian
issued by
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
the
(d) Basis of consolidation
financial
consolidated
The
statements
consolidate those of the parent company and all
of its subsidiaries as of 30 June 2021 (“Group”).
The Parent controls a subsidiary if it is exposed,
or has rights,
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.
to variable returns
from
27
Notes to the Financial Statements
For the Year Ended 30 June 2021
Note 1: Statement of significant accounting policies (continued)
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
from a group
impairment
tested
perspective.
for
Amounts reported in the financial statements of
subsidiaries have been adjusted where
the
to ensure consistency with
necessary
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.
(e) Exploration and evaluation
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
successful
through
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
(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:
Interest income
Interest revenue
time
proportionate basis that takes into account the
effective yield on the financial asset.
is recognised on a
(g) Cash and cash equivalents
term, highly
Cash comprises cash at bank and in hand. Cash
equivalents are short
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.
28
Notes to the Financial Statements
For the Year Ended 30 June 2021
Note 1: Statement of significant accounting policies (continued)
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
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.
interests
in
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
interests
• when the deductible temporary difference is
associated with investments in controlled
entities, associates or
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.
in
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
29
Notes to the Financial Statements
For the Year Ended 30 June 2021
Note 1: Statement of significant accounting policies (continued)
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.
(j) Motor Vehicles, plant and equipment
Motor Vehicles Plant and equipment are stated
at cost less accumulated depreciation and
impairment. Costs include expenditure that is
directly attributable to the acquisition of the item.
In the event that settlement of all or part of the
purchase consideration is deferred, costs are
determined by discounting the amounts payable
in the future to their present value as at the date
of acquisition. Subsequent costs are included in
the asset’s carrying amount or recognised as a
separate asset, as appropriate, only when it is
probable that the future economic benefits
associated with the item will flow to the Group
and the cost of the item can be measured
reliably.
All other repairs and maintenance are charged to
profit or loss during the financial period in which
they incurred.
All tangible assets have limited useful lives and
are depreciated using the straight-line method
over their existing useful lives.
Depreciation is calculated as follows:
Motor Vehicles, plant
and equipment
10% - 33% on a
straight line basis
(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.
(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.
reimbursement
When the Group expects some or all of a
provision to be reimbursed, for example under an
insurance contract,
is
the
recognised as a separate asset but only when the
reimbursement is virtually certain. The expense
relating to any provision is presented in the
loss and other
statement of profit or
comprehensive
any
of
income
reimbursement.
net
The assets' residual values, useful lives and
amortisation methods are reviewed, and adjusted
if appropriate, at each financial period end.
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.
30
Notes to the Financial Statements
For the Year Ended 30 June 2021
Note 1: Statement of significant accounting policies (continued)
When discounting is used, the increase in the
provision due to the passage of time is
recognised as a borrowing cost.
directly to equity until the disposal of the net
investment, at which time they are recognised in
profit or loss.
(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.
(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
currencies are
foreign
denominated
retranslated at the rate of exchange ruling at the
balance date.
in
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
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.
(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.
31
Notes to the Financial Statements
For the Year Ended 30 June 2021
Note 1: Statement of significant accounting policies (continued)
(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 16 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
financial statements.
the parent entity’s
from associates are
received
Dividends
recognised in the parent entity’s profit or loss,
rather than being deducted from the carrying
amount of these investments.
(t) Critical accounting estimates and
judgements
the
determine
development,
Management
selection and disclosure of the company’s critical
accounting policies and estimates and
the
application of these policies and estimates. There
that are
are no estimates and
considered to have a significant risk of causing a
material adjustment to the carrying amounts of
assets and liabilities within the next financial year
judgements
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
is
assessed
expenditure
Management exercise judgement as to whether
exploration
for
impairment. Any judgement may change as new
information becomes available. If, after having
capitalised exploration and evaluation expenditure,
management concludes
the capitalised
expenditure is unlikely to be recovered by future
sale or exploitation, then the relevant capitalised
that
amount will be written off through profit or loss and
other comprehensive income.
Recovery of deferred tax assets
Significant management judgement is required to
determine the amount of deferred tax assets that
can be recognised, based upon the likely timing
and the level of future taxable profits. Currently
the Group has not recognised any deferred tax
assets in the Statement of Financial Position.
(u) Financial Instruments
Recognition and derecognition
the
Financial assets and financial liabilities are
recognised when the Group becomes a party to
the contractual provisions of
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
is extinguished,
discharged, cancelled or expires.
it
Classification and
financial assets
initial measurement of
Except for those trade receivables that do not
contain a significant financing component and
are measured at
in
accordance with IFRS 15, all financial assets
are initially measured at fair value adjusted for
transaction costs (where applicable).
transaction price
the
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.
•
32
Notes to the Financial Statements
For the Year Ended 30 June 2021
Note 1: Statement of significant accounting policies (continued)
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
to
IFRS 9’s impairment requirements use more
forward-looking
recognise
information
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.
events,
including
reasonable
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
current
losses,
past
supportable
conditions,
forecasts that affect the expected collectability
of the future cash flows of the instrument. In
applying
forward-looking approach, a
distinction is made between:
•
that have not
financial
deteriorated significantly in credit quality
since initial recognition or that have low
credit risk (‘Stage 1’) and
instruments
and
this
•
financial instruments that have deteriorated
significantly in credit quality since initial
recognition and whose credit risk is not low
(‘Stage 2’).
impairment at
‘lifetime expected credit
‘Stage 3’ would cover financial assets that have
objective evidence of
the
‘12-month expected credit
reporting date.
losses’ are recognised for the first category
while
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
financial
liabilities
include
The Group’s
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
that are
derivative
designated
hedging
instruments).
instruments
as
financial
and
effective
All interest-related charges and, if applicable,
changes in an instrument’s fair value that are
reported in profit or loss are included within
finance costs or finance income.
33
Notes to the Financial Statements
For the Year Ended 30 June 2021
Note 2: Income tax
Income tax expense recognised in statement of comprehensive
income
Current income tax
Current income tax payable
Deferred income tax
Relating to origination and reversal of temporary differences
Income tax expense
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
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
Consolidated
2021
$
2020
$
-
-
-
-
-
-
(714,743)
(214,423)
-
7
598,162
(383,746)
-
(487,110)
(146,133)
2,631
(2)
277,603
(134,099)
-
18,309,724
4,430,516
135,727
(54,003)
26,000
16,277,403
4,430,516
174,175
(8,726)
25,000
(2,262,491)
20,585,473
(889,131)
20,009,237
Potential tax benefit @ 30% (2020: 30%)
6,175,642
6,002,771
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.
Note 3: Earnings per share
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)
(714,743)
177,758,267
(0.40)
(487,110)
119,601,653
(0.41)
Despite having options on issue, basic and dilutive loss per share are the same as there is a loss
position and to include options would be anti-dilutive.
34
Notes to the Financial Statements
For the Year Ended 30 June 2021
Note 4: Trade and other receivables
GST
Trade and other receivables
Consolidated
2021
$
2020
$
75,120
32,629
107,749
7,922
-
7,922
The carrying amount of all receivables is equal to their fair value as they are short term. At 30 June
2021 no receivables are impaired or past due. All receivables are non-interest bearing.
Note 5: Prepayments
Balance at the beginning of the year
Prepaid tenement rent for the year
Balance at the end of the year
27,200
80,457
107,657
-
27,200
27,200
The Company applied for exploration tenements E80/5472, E805520, E80/5623 and E80/5624 during
the year ended 30 June 2021 and E80/5346 in March 2019. If a tenement is granted rent paid on
application will cover rent required on the first year of exploration in the tenement. As at 30 June 2021
and to the date of signing the report the tenement applications have not been granted. If a tenement is
not granted the rent paid on application is fully refundable.
Note 6: Motor Vehicles
Balance at the beginning of the year
Additions
Depreciation
Balance at the end of the year
Note 7: Plant and Equipment
Balance at the beginning of the year
Additions
Depreciation
Balance at the end of the year
-
100,800
(6,064)
94,736
-
49,115
(6138)
48,977
-
-
-
-
-
-
-
-
Note 8: Exploration and evaluation assets
Balance at the beginning of the year
Costs for the year
Recoupment of costs through exploration grant
Balance at the end of the year
861,929
1,292,905
-
2,154,834
415,556
538,177
(91,804)
861,929
The recoupment of exploration 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:
30/06/2021
E 45/3278
E 80/4990
E 80/5182
30/06/2020
E 45/3278
E 80/4990
E 80/5182
Notes
Granted 30 September 2016
Granted 4 October 2017
Granted 28 September 2018
35
Notes to the Financial Statements
For the Year Ended 30 June 2021
Note 9: Trade and other payables
Current
Trade and other payables*
Director-related entities – other payables (Note 15)
Consolidated
2021
$
2020
$
309,370
171,584
480,954
32,332
345,040
377,372
* Trade payables are non-interest bearing and are normally paid on 30 day terms.
Note 10: Issued Capital
As at 30 June 2021 there were 234,911,319 fully paid ordinary shares on issue (2020: 128,931,579).
Movement in ordinary share capital
2021
$
Consolidated
2020
$
2021
#
2020
#
At the beginning of the year
Shares issued during the year
Costs associated with share issue
Issued upon exercise of options
Balance at the end of the year
38,284,139
3,451,671
(93,965)
-
41,641,845
37,208,259
771,713
(32,426)
336,593
38,284,139
128,931,579
105,979,740
-
-
234,911,319
76,978,545
38,489,359
-
13,463,675
128,931,579
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
2021
Listed
2020
Listed
2021
Unlisted
2020
Unlisted
At the beginning of the year
Options granted
Expired
Exercised
Balance at the end of the year
-
-
-
-
-
-
38,489,359
(25,025,684)
(13,463,675)
-
13,000,000
46,737,7991
(2,000,000)
6,000,000
13,000,00
(6,000,000)
57,737,799
13,000,000
130,237,799 options were granted to shareholders who participated in the rights issue and placements that
occurred during the year ended 30 June 2021. The balance of 16,500,000 options granted for the year ended
30 June 2021 were granted to directors, an executive and consultants (Note 12).
Note 11: Reserves
Foreign currency translation reserve (a)
Share compensation reserve (b)
Consolidated
2021
$
1,512
164,172
165,684
2020
$
32,332
345,040
377,372
(a) 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.
(b) The share compensation reserve is used to record the value of equity benefits provided to employees,
consultants and directors as part of their remuneration.
36
Notes to the Financial Statements
For the Year Ended 30 June 2021
Note 12: Share based payments
Shared based payment expense - directors
Share based payment expense – consultants and employees
Consolidated
2021
$
53,295
92,210
144,505
2020
$
8,656
11,011
19,667
Share options to directors
7,000,000 options were granted to directors in the
year ended 30 June 2021. (2020: 5,000,000
options).
On 5 November 2020 3,000,000 options were
granted to Rae Clark and 2,000,000 options to
Darryl Clark. The options have an employment
condition and so vest over that service condition.
The 5,000,000 options granted to directors were
valued using the Black Scholes Option Valuation
model and the following inputs:
4.4 cents
Exercise price
Share price at approval date 2.8 cents
3.0 years
Maximum option life
87%
Expected volatility
0.27%
Risk free interest rate
Expected volatility was based on the average
volatility of a peer group of eleven companies
within the junior minerals exploration industry.
The implied volatility of the eleven companies was
in the range of 67% to 105%. The fair value of this
share based payment (for accounting) at grant
date was $61,590. The options vest over the
service condition so a share based payment
expense with a corresponding increase in equity
of $13,330 has been recognised for the year
ended 30 June 2021.
On 25 June 2021 1,000,000 options were granted
to Rae Clark and 1,000,000 options to Darryl
Clark. The options have no employment
condition and so vest on grant of the option.
The 2,000,000 options granted to directors were
valued using the Black Scholes Option Valuation
model and the following inputs:
6.0 cents
Exercise price
Share price at approval date 3.7 cents
2.0 years
Maximum option life
89%
Expected volatility
0.08%
Risk free interest rate
Expected volatility was based on the average
volatility of a peer group of eleven companies
within the junior minerals exploration industry.
The implied volatility of the eleven companies
was in the range of 70% to 120%. The fair value
of this share based payment (for accounting) at
grant date was $25,266. The options vest on grant
of the option so a share based payment expense
with a corresponding increase in equity of $25,266
has been recognised for the year ended 30 June
2021.
In the prior financial year 4,000,000 options were
granted to Rae Clark and 1,000,000 options to
Darryl Clark. The options have an employment
condition and so vest over the service condition.
The options vest over the service so a share
based payment expense of $14,699 has been
recognised for the year ended 30 June 2021.
Share options to others
Share options to a consultant
The 1,000,000 options granted to a consultant on
26 August 2020 has an employment condition and
so vest over the service condition. They were
valued using the Black Scholes Option Valuation
model and the following inputs:
5.0 cents
Exercise price
Share price at approval date 3.5 cents
4.7 years
Maximum option life
87%
Expected volatility
0.27%
Risk free interest rate
37
Notes to the Financial Statements
For the Year Ended 30 June 2021
Note 12: Share based payments (continued)
Expected volatility was based on the average
volatility of a peer group of eleven companies
within the junior minerals exploration industry.
The implied volatility of the eleven companies was
in the range of 67% to 105%. The fair value of this
share based payment (for accounting) at grant
date was $19,999. The options vest over the life of
the option so a share based payment expense
with a corresponding increase in equity of $3,604
has been recognised for the year ended 30 June
2021.
Share options to an executive and a consultant
The 2,000,000 options granted to an executive
and a consultant on 5 November 2020 have an
employment condition and so vest over the
service condition. They were valued using the
Black Scholes Option Valuation model and the
following inputs:
4.4 cents
Exercise price
Share price at approval date 2.8 cents
3.0 years
Maximum option life
87%
Expected volatility
0.27%
Risk free interest rate
Expected volatility was based on the average
volatility of a peer group of eleven companies
within the junior minerals exploration industry.
The implied volatility of the eleven companies was
in the range of 67% to 105%. The fair value of this
share based payment (for accounting) at grant
date was $24,636. The options vest over the
service condition so a share based payment
expense with a corresponding increase in equity
of $5,332 has been recognised for the year ended
30 June 2021.
Share options to consultants
The 2,000,000 options granted to consultants on
31 March 2021 have no employment condition
and so vest on grant date. They were valued using
the Black Scholes Option Valuation model and the
following inputs:
Exercise price
4.0 cents
Share price at approval date 2.6 cents
3.0 years
Maximum option life
89%
Expected volatility
0.10%
Risk free interest rate
Expected volatility was based on the average
volatility of a peer group of eleven companies
within the junior minerals exploration industry.
The implied volatility of the eleven companies was
in the range of 70% to 120%. The fair value of this
share based payment (for accounting) at grant
date was $23,873. The options vest on grant of the
option so a share based payment expense with a
corresponding increase in equity of $23,873 has
been recognised for the year ended 30 June 2021.
The 1,000,000 options granted to consultants on
31 March 2021 have no employment condition
and so vest on grant date. They were valued using
the Black Scholes Option Valuation model and the
following inputs:
Exercise price
4.0 cents
Share price at approval date 2.6 cents
3.0 years
Maximum option life
89%
Expected volatility
0.10%
Risk free interest rate
Expected volatility was based on the average
volatility of a peer group of eleven companies
within the junior minerals exploration industry.
The implied volatility of the eleven companies was
in the range of 70% to 120%. The fair value of this
share based payment (for accounting) at grant
date was $12,359. The options vest on grant of the
option so a share based payment expense with a
corresponding increase in equity of $12,359 has
been recognised for the year ended 30 June 2021.
Share options to an employee
The 500,000 options granted to an employee on
31 March 2021 have an employment condition
and so vest over the life of the option. They were
valued using the Black Scholes Option Valuation
model and the following inputs:
Exercise price
4.0 cents
Share price at approval date 2.6 cents
3.0 years
Maximum option life
89%
Expected volatility
0.10%
Risk free interest rate
Expected volatility was based on the average
volatility of a peer group of eleven companies
within the junior minerals exploration industry.
The implied volatility of the eleven companies was
in the range of 65% to 120%. The fair value of this
share based payment (for accounting at grant was
38
Notes to the Financial Statements
For the Year Ended 30 June 2021
Note 12: Share based payments (continued)
$5,968. The options vest on grant of the option so
a share based payment expense
with a corresponding increase in equity of $496
has been recognised for the year ended 30 June
2021.
Share options to a consultant
The 1,000,000 options granted to a consultant on
14 May 2021 have no employment condition and
so vest on grant of the option. They were valued
using the Black Scholes Option Valuation model
and the following inputs:
Exercise price
6.0 cents
Share price at approval date 3.8 cents
2.0 years
Maximum option life
89%
Expected volatility
0.08%
Risk free interest rate
Expected volatility was based on the average
volatility of a peer group of eleven companies
within the junior minerals exploration industry.
The implied volatility of the eleven companies was
in the range of 65% to 120%. The fair value of this
share based payment (for accounting) at grant
date was $13,268. The options vest on grant of the
option so a share based payment expense with a
corresponding increase in equity of $13,268 has
been recognised for the year ended 30 June 2021.
Note 13: Financial instruments
risk management
Capital risk management
Prudent capital
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
raising
additional equity capital, debt funding or to farm-
out exploration projects as a means of preserving
capital.
the need
for
Categories of financial instruments
instruments
The Group’s principal
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
financial
Share options to consultants
The 2,000,000 options granted consultants on 25
June 2021 have no employment condition and so
vest on grant of the option. They were valued
using the Black Scholes Option Valuation model
and the following inputs:
Exercise price
6.0 cents
Share price at approval date 3.7 cents
2.0 years
Maximum option life
89%
Expected volatility
0.08%
Risk free interest rate
Expected volatility was based on the average
volatility of a peer group of eleven companies
within the junior minerals exploration industry.
The implied volatility of the eleven companies was
in the range of 70% to 120%. The fair value of this
share based payment (for accounting) at grant
date was $25,266. The options vest on grant of the
option so a share based payment expense with a
corresponding increase in equity of $25,266 has
been recognised for the year ended 30 June 2021.
In the prior financial year 2,000,000 options were
granted an employee and a consultant. The
options have an employment condition and so
vest over the service condition. A share based
payment expense of $7,012 has been recognised
for the year ended 30 June 2021 for these prior
year options
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.
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.
39
Notes to the Financial Statements
For the Year Ended 30 June 2021
Note 13: Financial instruments (continued)
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 2021, 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 $9,939 (2020:
$1,457) lower/higher as a result of higher/lower interest income on cash and cash equivalents.
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.
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.
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 2021 Consolidated:
Non-derivative Financial Liabilities
Trade and other payables
Borrowings
30 June 2021 Consolidated:
Non-derivative Financial Liabilities
Trade and other payables
Borrowings
Carrying
Amount
Contractual
cash flows
0-12
months
1-2 years 2-10 years
$
$
$
$
$
480,954
-
480,954
480,954
-
480,954
480,954
-
480,954
377,372
-
377,372
377,372
-
377,372
377,372
-
377,372
-
-
-
-
-
-
-
-
-
-
-
-
40
Notes to the Financial Statements
For the Year Ended 30 June 2021
Note 14: Commitments for expenditure
Not longer than 1 year
Longer than 1 year and not longer than 5 year
Consolidated
2021
$
40,000
492,000
532,000
2020
$
57,000
776,500
833,500
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 and
the Company has applied for extension of its term.
On 4 October 2017 the Group was granted minerals tenement E80/4990. The yearly expenditure
commitment is $102,000. 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
E80/4990 and E80/5182 to be combined.
Note 15: 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
Peako Resources Pty Ltd
Peak Royalties Ltd
Peak Oil & Gas Philippines Ltd
Energy Best Limited
SA Drilling Pty Ltd
Samarai Pty Ltd
Director-related entities
Country of
incorporation
Australia
British Virgin Islands
British Virgin Islands
British Virgin Islands
Australia
Australia
Class of shares Equity holding %
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
2021
100
100
100
100
100
100
2020
100
100
100
100
100
100
During the year services and/or facilities were provided under normal commercial terms and conditions by
director-related entities as disclosed below:
Amounts Paid
Payable at
Entity
Related
director
Service
Samika Pty Ltd RL Clark
Exoil Pty Ltd
EG Albers
Enegex Limited EG Albers
Consulting
Office services
Geological services
2021
$
68,415
87,612
15,950
2020
$
30/06/21
$
38,880
130,970
-
-
55,466
18,271
20,000
30/06/20
$
-
158,898
-
-
Project management
20,000
5,000
EG Albers
Natural
Resources
Group Pty Ltd
Octanex Limited EG Albers
Accounting and
administrative support
147,045
136,020
77,847
186,142
339,022
312,870
171,584
345,040
41
Notes to the Financial Statements
For the Year Ended 30 June 2021
Note 16: Parent entity disclosure
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
Parent Entity
2021
$
2020
$
1,452,434
2,333,866
3,786,300
405,834
-
405,834
3,380,466
145,657
861,930
1,007,587
369,451
-
369,451
638,136
63,558,717
(60,276,129)
97,878
3,380,466
60,201,011
(59,616,286)
53,411
638,136
(659,843)
(218,399)
(659,843)
(218,399)
Note 17 Matters Subsequent to Balance Date
On 30 July 2021 the following shares were issued and options granted following approval of members. These
shares and options formed part of a two-tranche placement announced on 15 June 2021:
•
•
•
21,428,571 first tranche unlisted options exercisable at $0.055 on or before 30 June 2022
14,285,716 second tranche shares
7,142,857 second tranche unlisted options exercisable at $0.055 on or before 30 June 2022
On 21 July 2021, the SPP announced by the Company on 15 June 2021 concluded. The company issued
59,527,066 shares and granted with 29,763,522 unlisted options pursuant to the SPP, raising a further
$2,074,000.
On 20 September 2021, Dr Paul Kitto replaced De Darryl Clark as Non-Executive Technical Director.
42
Notes to the Financial Statements
For the Year Ended 30 June 2021
Note 18: Reconciliation of loss after income tax to net cash outflow from operating
activities
Net loss for the year
Foreign exchange gain (loss)
Depreciation
Recovery of salary/consultant costs
Grant of options
(Increase) decrease in trade and other receivables
Decrease (increase) in trade and other payables
Exploration expensed
Net cash outflow from operating activities
Note 19: 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
Note 20: Segment information
Consolidated
2021
$
2020
$
(714,743)
-
6,202
(89,100)
144,505
(99,828)
(85,642)
128,221
(710,385)
(487,110)
1,186
-
-
19,667
3,825
213,383
-
(249,049)
52,876
-
52,876
43,137
-
43,137
Under AASB 8 Operating Segments, 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 board of directors
At regular intervals the board is provided management information at a group level for the group’s cash
position, the carrying values of exploration permits and a group cash forecast for the next twelve months
of operation. On this basis, no segment information is included in these financial statements.
All interest received has been derived in Australia. All exploration and evaluation assets are held in
Australia.
43
Notes to the Financial Statements
For the Year Ended 30 June 2021
Note 21 Key Management Personnel
Executive Director
RL Clark
Non-Executive Directors
EG Albers
P Kitto
DJ Clark
Individual compensation disclosures
Information regarding individual director’s compensation is provided in the remuneration report section
of the directors’ report. There are no employees who meet the definition of key management personnel
other than the directors of the company. A summary of the remuneration report is shown below.
Short Term
Post Employment
Equity Settled
Total
Directors
Fees
$
-
-
Salary Superannuation
$
10,000
10,000
$
950
950
Retirement
Benefits
$
-
Options
$
86,856
$
97,806
-
49,271
60,221
Total
2021
2020
44
Directors’ Declaration
The directors of the company declare that:
1. The financial statements, comprising the consolidated statement of profit or loss and other
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) comply with Accounting Standards and the Corporations Regulations 2001;
b) give a true and fair view of the consolidated entity’s financial position as at 30 June
c)
2021 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).
2.
In the directors’ opinion, there are reasonable grounds to believe that the company will be able
to pay its debts as and when they become due and payable.
3. The remuneration disclosures included in pages 18 to 21 of the directors’ report, (as part of
audited Remuneration Report), for the year ended 30 June 2021, comply with section 300A of
the Corporations Act 2001.
4. The directors have been given the declarations by the chief executive officer and chief 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.L Clark
Director
30 September 2021
45
Collins Square, Tower 5
727 Collins Street
Melbourne Victoria 3008
Correspondence to:
GPO Box 4736
Melbourne Victoria 3001
T +61 3 8320 2222
F +61 3 8320 2200
E info.vic@au.gt.com
W www.grantthornton.com.au
Independent Auditor’s Report
To the Members of Peako Limited
Report on the audit of the financial report
Opinion
We have audited the financial report of Peako Limited (the Company) and its subsidiaries (the Group), which comprises
the consolidated statement of financial position as at 30 June 2021, 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 2021 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.
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.
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.
46
Key audit matter
How our audit addressed the key audit matter
Exploration and Evaluation Assets Valuation (Note 8)
At 30 June 2021 the carrying value of exploration and
evaluation assets was $2,154,834.
In accordance with 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.
The process undertaken by management to assess whether
there are any impairment triggers in each area of interest
involves an element of management judgement.
This area is a key audit matter due to the significant
judgement involved in determining the existence of impairment
triggers.
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 2021, but does not include the financial report and our auditor’s report
thereon.
Our opinion on the financial report does not cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or
otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the financial report
The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in
accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the Directors
determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material
misstatement, whether due to fraud or error.
In preparing the financial report, the Directors are responsible for assessing the Group’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the
Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.
47
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 18 to 21 of the Directors’ report for the year ended 30 June
2021.
In our opinion, the Remuneration Report of Peako Limited, for the year ended 30 June 2021 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
T S Jackman
Partner – Audit & Assurance
Melbourne, 30 September 2021
48
ASX additional Information (unaudited)
As at 28 September 2021
Additional information required by the ASX Limited Listing Rules and not disclosed elsewhere in this
report is set out below.
Distribution of Ordinary Shares
Ordinary Shares
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total on Issue
No. of Holders
No. of Shares
212
182
48
411
366
1,219
94,195
444,552
365,527
17,803,677
289,746,150
308,454,101
542 holders held less than a marketable parcel of ordinary shares. There is no current on-market buy-
back.
Substantial Shareholders
As disclosed in notices given to the Company.
Name
Albers Group
Interest in Number of Shares % of Shares
94,037,386
31.97
The 20 Largest Holders of Ordinary Shares
Holder Name
Hawkestone Resources Pty Ltd
Southern Energy Pty Ltd
Mr Ernest Geoffrey Albers
Sacrosanct Pty Ltd
500 Custodian Pty Ltd
Great Australia Corporation Pty Ltd
Auralandia Pty Ltd
Australis Finance Pty Ltd
Ms Chunyan Niu
Ms Xiaodan Wu
Mr Michael Leslie Jefferies
Great Missenden Holdings Pty Ltd
Sanperez Pty Ltd
Jimzbal Pty Ltd
Ram Platinum Pty Ltd
Mr Charles Waite Morgan
Westminex Pty Ltd
Mr Christopher Kevin Hurley
Bull Equities Pty Ltd
Albers Custodian Company Pty Ltd
Total
Holding
21,690,502
13,814,177
12,139,978
11,579,999
8,131,428
7,525,671
7,377,543
7,040,398
6,805,994
4,163,754
4,000,000
3,862,236
3,857,142
2,778,021
2,750,000
2,629,736
2,571,428
2,500,000
2,500,000
2,420,000
132,465,813 42.95%
%
7.03%
4.48%
3.94%
3.75%
2.64%
2.44%
2.39%
2.28%
2.21%
1.35%
1.30%
1.25%
1.25%
0.90%
0.89%
0.85%
0.83%
0.81%
0.81%
0.78%
49
Distribution of unlisted Options - exercisable at $0.055 on or before 30 June 2022
Numbers of holders of unlisted options by size of holding and the total number of unlisted options:
Listed Options
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total on Issue
No. of Holders
No. of Unlisted Options
13
23
11
109
185
341
4,903
56,514
84,363
5,214,446
83,077,553
88,437,779
Other Unlisted Options – 28,000,000 at various prices and dates
Two holders hold 1,000,000 unlisted options (exercisable at $0.075 on or before 30 November 2021).
One holder holds 1,000,000 unlisted options (exercisable at $0.03 on or before 1 May 2022).
Four holders hold 5,000,000 unlisted options (exercisable at $0.04 on or before 28 November 2022).
Two holders hold 1,000,000 unlisted options (exercisable at $0.10 on or before 30 November 2022).
One holder hold 1,000,000 unlisted options (exercisable at $0.06 on or before 13 May 2023).
Six holders hold 4,500,000 unlisted options (exercisable at $0.06 on or before 21 May 2023).
Four holders hold 7,000,000 unlisted options (exercisable at $0.044 on or before 5 November 2023).
One holder holds 2,000,000 unlisted options (exercisable at $0.05 on or before 28 November 2023).
Three holders hold 2,500,000 unlisted options (exercisable at $0.040 on or before 29 March 2024).
One holder holds 1,000,000 unlisted options (exercisable at $0.055 on or before 29 March 2025).
One holder holds 2,000,000 unlisted options (exercisable at $0.050 on or before 1 May 2025).
50