LIMITED LIMITED 2022 Annual Report For the Year Ended 30 June 2022 ABN 79 131 843 868 ASX:PKO peako.com.au ASX:PKO peako.com.au Level 1, 10 Yarra Street, South Yarra, Victoria 3141 T: +61 (3) 8610 4723 E: info@peako.com.au Corporate Directory DIRECTORS Geoffrey Albers (Non-Executive Chairman) Raewyn Clark (Executive Director) Paul Kitto (Non-Executive Technical Director) Appointed 20 September 2021 COMPANY SECRETARY Robert Wright REGISTERED OFFICE Level 1, 10 Yarra Street, South Yarra Victoria, 3141 Australia W: www.peako.com.au E: info@peako.com.au T: F: (03) 8610 4723 (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 T: T: 1300 288 664 (within Australia) +61 (2) 9698 5414 (outside Australia) W: www.automic.com.au SECURITIES EXCHANGE LISTING ASX Limited Level 4, North Tower, Rialto, 525 Collins Street Melbourne Victoria 3000 W: www.asx.com.au Contents Chairman’s Letter Operations Review 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 04 06 18 19 21 30 32 33 34 35 36 54 55 58 Corporate Directory DIRECTORS Geoffrey Albers (Non-Executive Chairman) Raewyn Clark (Executive Director) Paul Kitto (Non-Executive Technical Director) Appointed 20 September 2021 COMPANY SECRETARY Robert Wright REGISTERED OFFICE Level 1, 10 Yarra Street, South Yarra Victoria, 3141 Australia W: www.peako.com.au E: info@peako.com.au T: F: (03) 8610 4723 (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 T: T: 1300 288 664 (within Australia) +61 (2) 9698 5414 (outside Australia) W: www.automic.com.au SECURITIES EXCHANGE LISTING ASX Limited Level 4, North Tower, Rialto, 525 Collins Street Melbourne Victoria 3000 W: www.asx.com.au Chairman’s Letter Peako has made important breakthroughs in its understanding of the geology and potential of our Eastman PGE Project in the East Kimberley region of Western Australia. We are seeking platinum and palladium, the two major Platinum Group Elements (PGEs). Platinum and palladium are essential for green energy technologies, including current usage in catalytic converters in combustion engines. However, major growth is expected to unfold in applications with green energy technologies and low carbon energy solutions. Peako’s exploration team completed an initial prospectivity review of the Eastman Project and identified ultramafic intrusions that we considered to have the potential to host a large PGE mineralised system. Subsequently, several phases of exploration were completed, aimed at delivering the highest priority prospects as well as improving our understanding of the controls on mineralisation. Importantly, these programs indicated that previous PGE exploration, which had focused on the discontinuous strataform chromite lenses, may not be the optimal exploration target. In parallel with exploration undertaken by the other explorers in the region, we now believe that PGE mineralisation is not limited to the chromite lenses but, importantly, that our targets should also include the stratabound mineralisation within the entire suit of ultramafic units. This understanding became an important focus for the exploration effort, with the drill program that recently commenced, focusing on the ultramafic units. The results are expected to be released soon. 4 Geochemical surface sampling has also confirmed the presence of PGEs, with targeted samples taken at Louisa, The Gap and Grand Central prospects returning excellent PGE + Au indications. Further details are included in the Operations Review in this Annual Report. All this work is a testament to the dedication and focus of our management and exploration team. Led by Executive Director, Rae Clark, and Technical Director, Dr Paul Kitto, the Peako team has significantly increased the understanding of the Eastman PGE Project over the past year. I thank them and the entire Peako team for their hard work. The coming year looks exciting for the Company. With geology becoming better understood and RC drill results due shortly, we are excited for what we may be able to achieve over the next 12 months. On behalf of the Board, I thank our shareholders for their support and financial contribution and to our team, consultants and my fellow directors for their efforts. E.G. Albers Chairman, Peako Limited 29th September 2022 PEAKO LIMITED Platinum and palladium are essential for green energy technologies, including current usage in catalytic converters in combustion engines. However, major growth is expected to unfold in applications with green energy technologies and low carbon energy solutions. 5 2022 ANNUAL REPORT Operations Review Peako’s focus during FY2022 was its East Kimberley Project with intensive field campaigns conducted across each of the 2021 and 2022 field seasons. Peako’s tenure in the region totals 4,029 km2 (Figure 1). Activities in 2021 were directed towards assessment of the potential for gold and base metal mineralisation and this incorporated surface mapping, an initial phase of aircore geochemistry drilling across target areas defined from surface geochemistry, geology, geophysics and satellite imagery and a follow up phase of RC drilling. In 2022, Peako focused its exploration efforts on Platinum Group Elements (PGEs). Encouraged by reporting of wide intercepts of PGEs at Pantoro Limited’s nearby Halls Creek Project and Future Metals NL’s Panton Project, Peako completed a prospectivity review of the ultramafic intrusions within its Eastman tenement and identified potential for a large PGE mineralised system at the Eastman Intrusive Complex. Field activities during 2022 included a tectonic- stratigraphic architecture study, mapping and rock chip traverses as well as reconnaissance soil sampling. A 4,500m RC drilling program commenced shortly after the end of the financial year, designed to test PGE endowment across the 16.5km strike of the layered Eastman Intrusive Complex. In 2022, Peako focused its exploration efforts on Platinum Group Elements (PGEs). 6 PEAKO LIMITED Figure 1: Peako’s East Kimberley Tenement Package (in red) 7 11DerbyFitzroy CrossingHalls CreekPort of WyndhamKununurraHALLS CREEK OROGENBroome50100kmSavannah Ni-CuPanton PGM Project(ASX:FME)5.0 Moz 3E ResourceLamboo PGE Project(ASX:PNR)Resource DrillingCopernicusNi-CuEastman PGE Project2022 ANNUAL REPORT Eastman PGE Project Peako’s Eastman Intrusion is a large relatively underexplored intrusive complex that Peako considers prospective for a major PGE mineral resource. The Eastman Intrusion is located within the Central Zone of the Halls Creek Oregon, where an array of mineralised layered mafic-ultramafic intrusive complexes are defined with an established mineral endowment (refer Figure 1). Known endowment from layered intrusions in the Halls Creek Oregon include: • Savannah - 15Mt @ 1.40% Ni, 0.62% Cu • Copernicus - 0.825 Mt @1.24% Ni, 0.81% Cu • Panton – 5.0 Moz 3E PGE resource Recent drilling by Pantoro at the Lamboo Intrusion (Figure 1) has also defined wide PGE intercepts, with mineral resource drilling currently in progress. Eastman Intrusion The Eastman Intrusion is interpreted to extend along strike for approximately 16.5km; divided into an Eastern and Western zone by a granite intrusion. The Eastern Zone extends for ~9.4km with 2.5km under cover, and the Western zone for 7.1km, mostly under cover. The Eastman Intrusion is a layered mafic to ultramafic intrusive complex comprised predominately of pyroxenite, anorthosite and gabbro. The pyroxenite forms the basal unit with the gabbro and anorthosite overlaying it. The sequence has been variously folded and faulted in places resulting in structural repetition of the sequence. Having multiple layers of the sequence adds considerably to the prospectivity of the intrusive complex. Widespread anomalous PGE intercepts from sparse, wide-spaced historical drilling over the 16.5km extent of the Eastman Intrusion indicate an extensive PGE mineralised system (refer Figure 2). Historical exploration was focused on the eastern most outcropping ~6.9 km length of the intrusive complex, targeting short discontinuous chromite lenses within the sequence. PGE mineralisation, however, is shown to be stratabound within the ultramafic intrusives. Figure 2: Eastman Intrusion with interpreted geology and location of historical drillholes and selected assay highlights for 3E mineralisation 8 PEAKO LIMITED Analogue Intrusions The Eastman Intrusion appears geologically similar to the nearby Panton and Lamboo Intrusions. The three intrusive complexes each have the same ultramafic-mafic rock types and similar intrusion sequencing (refer Figure 3). 2022 Field Campaign Peako’s 2022 field campaign focussed predominantly on the PGE exploration Eastman Intrusion Study A tectono-stratigraphic architectural study completed by Dr David Selley was directed to defining a framework for emplacement of the Eastman Intrusion, and PGE mineralisation contained within it to assist drillhole targeting. Field work involved numerous mapping traverses across the intrusion to evaluate structural controls on emplacement and deformation history. A collection of rock samples at regular intervals for pXRF analysis assisted the definition of magmatic units making up the intrusion as well as Koongie Park Formation host rocks to the intrusion. The study highlighted associations between carbonate units within the Koongie Park Formation and emplacement of the PGE-bearing ultramafic complex. In addition, the stratigraphic framework identified the occurrence of multiple ultramafic horizons, many having open to isoclinal fold forms associated with thickness variations across the ultramafic intrusions. Rock Chip Analyses Geochemistry Geochemistry results from rock chip samples collected during mapping traverses across three prospects: The Gap, Grand Central and Louisa were returned, with 3E PGE grades up to 2.9g/t. Twelve of the 54 submitted rock chips returned 3E values greater than 0.5 g/t. Nine of those rock chip samples were subsequently analysed using the nickel sulphide (NiS) fire assay method with total Platinum Group Element (PGE) values for those samples significantly increased. The NiS fire assay method allows for the analysis of all PGEs (Platinum, Palladium, Rhodium, Iridium, Ruthenium and Osmium) as well as gold. The samples were initially analysed using Aqua Regia and lead collection fire assay methods to provide values for a large suite of elements (53 elements), however this method was unable to analyse for the less abundant PGEs (Rhodium, Iridium, Osmium and Ruthenium). The best rock-chip NiS fire assay method results were returned from the Louisa Prospect where all five samples returned PGE+Au results greater than 1g/t. Highest assay results from each of the prospects were 3.49g/t PGE+Au at Grand Central, 2.17g/t PGE+Au at Louisa, and 1.17g/t PGE+Au at The Gap (Figure 4). QEMSCAN and laser petrography study A preliminary petrography study on 10 weathered surface samples was completed using QEMSCAN microscopy and LA-ICP-MS laser ablation imaging. The results defined alteration assemblages and identified positive correlations between Pd and Cu–Ni that could serve as a potential guide for Pd mineralisation in the field. An association between Pt and the weathered rock types were observed, with Pt associated with both chromite and silicate minerals. Chromite samples were also observed to have slightly higher levels of Pt together with occasional PGE nuggets. Laser results also highlighted the presence of Ruthenium (Ru), Rhodium (Rh), Iridium (Ir), and Osmium (Os), which positively correlated with chromite. In addition, gold (Au) also correlated with the occurrence of chromite. QEMSCAN (Quantitative Evaluation of Materials by Scanning Electron Microscopy) is an integrated automated mineralogy and petrography solution providing quantitative analysis of minerals and rocks. It is configured to measure mineralogical variability based on chemistry at the micrometre-scale. LA-ICP-MS (Laser Ablation – Inductively Coupled Plasma – Mass Spectrometry) is an analytical technique for determining the chemical and isotopic composition of solid samples. 9 2022 ANNUAL REPORT Figure 3: Panton, Lamboo and Eastman Intrusions Figure 4: Location of rock chip NiS fire assay method results at the Eastman PGE project 10 PEAKO LIMITED Reconnaissance Soil Sampling at Eastman South Area Reconnaissance soil sampling along 400m spaced lines at 50m intervals was completed at the newly identified Eastman South area, with assay results revealing a number of areas that are anomalous in PGE elements. The Eastman South area is an interpreted ultramafic sequence with no record of prior exploration. Ultramafic outcrop was identified in the area during fieldwork, confirming the area’s potential prospectivity. A total of 1,216 samples were submitted for geochemical analysis of 53 elements including platinum, palladium and gold. Assay results from the soil geochemistry revealed a number of anomalous PGE trends (Figure 5), which aid mapping the location of ultramafic units, particularly in areas of shallow cover. Subsequent work will focus on these trends and will include infill soil sampling, geological mapping and rock chip sampling to identify potential mineralisation for follow-up drill programs. Figure 5: Eastman South Ultramafic Soil Sampling Results 11 2022 ANNUAL REPORT RC drilling During the reporting period, Peako completed groundwork preparations for a planned 4,500m reverse circulation (RC) drill program, which commenced in July 2022. The RC drill program was designed to complete first pass wide spaced testing across the Eastman Intrusion’s 16.5km strike length to define zones with higher-grade PGE-rich mineralisation within the ultramafics. As well as incorporating wide-spaced drill fences to test PGE endowment of the complete ultramafic stratigraphy, the drilling program was designed to also include targeted drill sections defined from new and historical data (refer Figure 6). These drill targets incorporated testing of structural repetition and folding of chromite-rich ultramafic layers within the intrusive sequence, untested soil and rock anomalies as well as VTEM anomalies. Figure 6: Location of RC drillholes completed at the Eastman PGE Project (shown on simplified geology) 12 PEAKO LIMITED In 2022, Peako focused its exploration efforts on Platinum Group Elements (PGEs). Encouraged by reporting of wide intercepts of PGEs at Pantoro Limited’s nearby Halls Creek Project and Future Metals NL’s Panton Project.” 13 2022 ANNUAL REPORT 2021 Field Campaign – Gold Exploration Peako’s 2021 field campaign was directed at evaluating a widely identified but often overlooked latent gold potential recorded in historical exploration data. Aircore Geochemistry An aircore geochemistry drilling program was completed in 2021 that incorporated 473 holes for a total of 3,017 metres across target areas defined from surface geochemistry, geology, geophysics and satellite imagery. Assay results defined two anomalous base metal corridors at Eastman East and Eastman No.2 (refer Figure 7). ‘Scout’ Drilling A total of 30 holes for 1,249 metres were completed across six prospects (refer Figure 8), supported by an Exploration Incentive Scheme drilling grant from the Western Australian Government. While predominantly aimed at testing gold- bearing vein systems, all targets were affiliated with polymetallic sulphide halo zones with potential for copper, lead, silver and zinc. Unfortunately, at a number of prospects, highly fractured ground conditions and excessive water hindered the program, resulting in a number of targets not being tested due to rig limitations. Best drill results were from the Landrigan Prospect where eight reverse circulation (RC) drillholes, totalling 449m were drilled to test the near surface continuation of gold and base metal mineralisation intersected in previous Peako and historic BHP drilling (Figure 9). This zone was attractive as it was located in a fold hinge with coincident surface geochemistry. Best results at Landrigan included: • 4m @ 6.2 g/t Au from 11m, inc 1m @ 11.6 g/t Au from 12m (PRC0030) • 13m @ 40.7 g/t Ag from 11m (PRC0030) • 15m @ 2.3% Pb from 9m (PRC0030) • 14m @ 0.4% Cu from 11m (PRC0030) • 4m @ 1.08 g/t Au from 4m (PRC028 • 12m @ 0.55% Pb from 0m (PRC028) • 7m @ 1.04% Cu from 64m (PRC0028) • 4m @ 1.6% Cu from 40m (PRC0029) • 16m @ 0.7% Pb from 24m to EOH (PRC0025) The Landrigan Prospect was originally identified by BHP as a base metal prospect with Peako recognising the prospect’s gold potential from results of its 2019 RC drill program. That program intersected Cu-Au mineralisation with results that included 15m @ 1.04% Cu from 184m in PLRC011 and 7m @ 1.1 g/t Au from 133m in PLRC001. The intercepts from drillhole PRC0030 extend known mineralisation at Landrigan to the north- east by 80m, resulting in a total mineralised strike length of approximately 300m. The mineralisation intersected in hole PRC0030 includes a gold-rich central zone with a polymetallic envelope of Ag-Pb-Cu, with the mineralised trend remaining open to the north-east. 14 PEAKO LIMITED 15 2022 ANNUAL REPORT Figure 7: Aircore Geochemical Sampling Program Locations from 2021 field program 16 PEAKO LIMITED Figure 8: Scout drilling locations at Peako’s East Kimberley Project in 2021 Figure 9: Plan location of new 2021 and historical drillholes at the Landrigan Prospect on simplified interpreted geology 17 2022 ANNUAL REPORT Tenement Schedule As at 28 September 2022 Tenement Peako interest Tenement status Western Australia (East Kimberley Region) 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Granted Granted Application Application Application Application Application Application Application Application Application Application Application The sum of Palladium (Pd) and Platinum (Pt) and Gold (Au) Platinum Group Elements; the six platinum group elements are Platinum (Pt), Palladium (Pd), Rhodium (Rh), Ruthenium (Ru), Osmium (Os) and Iridium (Ir) The sum of Platinum (Pt), Palladium (Pd), Rhodium (Rh), Ruthenium (Ru), Osmium (Os), Iridium (Ir) and Gold (Au) E80/4990 E80/5182 E80/5346 E80/5472 E80/5520 E80/5623 E80/5624 E80/5658 E80/5703 E80/5704 E80/5706 E80/5758 E80/5779 Glossary 3E PGE PGE+Au 18 PEAKO LIMITED References The information in this report that relates to Exploration Results previously reported in ASX announcements are listed below. The Company is not aware of any new information or data that materially affects the information included in each relevant market announcement. Further details can be found in the following Peako ASX announcements: • • • • • • 13 September 2022 Eastman PGE Rock Chips Assay up to 3.49 g/t PGE and Au 31 August 2022 Eastman PGE Drilling Program Completed 1 August 2022 Eastman PGE Drilling Program Update 31 January 2022 PGE Potential of the Lamboo Ultramafic Complex 14 January 2022 Scout Drilling Intersects Gold and Base Metals 13 December 2021 Gold and Base Metal Potential Highlighted in East Kimberley Competent Person Declaration The information in this report that relates to Exploration Results is based on information compiled or reviewed by Dr Paul Kitto who is a member of the Australian Institute of Geoscientists. Dr Kitto is Technical Director of and a consultant to Peako Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Kitto consents to the inclusion in this report of the matters based on information provided by him and in the form and context in which it appears. 19 2022 ANNUAL REPORT Directors’ Report 20 PEAKO LIMITED DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2022 Directors’ Report For the year ended 30 June 2022 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 2022. 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. Ms Clark is also a director of ASX listed companies Octanex Limited and Enegex Limited. 14 21 2022 ANNUAL REPORT DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2022 Directors’ Report For the year ended 30 June 2022 Paul Kitto BSc (Hons), PhD, Dip Ed Non-executive Technical Director Darryl Clark BSc (Hons), PhD Non-Executive Director 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. Resigned 20 September 2021. Mr Wright was appointed as Company Secretary of Peako on 2 May 2017. Mr Wright is a senior financial professional with over 35 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. 22 15 PEAKO LIMITED DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2022 Directors’ Report For the year ended 30 June 2022 Ordinary shares At 30 June 2022 the Company’s share capital consists of 308,454,101 ordinary fully paid shares (2021: 234,911,319). On 21 July 2021, the Share Purchase Plan (“SPP”) announced by the Company on 15 June 2021 concluded. The company issued 59,527,066 shares and granted 29,763,522 unlisted options pursuant to the SPP, raising a $2,074,000; prior to costs. 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. The 30 July 2021 issue raised $500,000 prior to costs. Subsequent to 30 June 2002, on 2 September 2022 a Non Renounceable Rights Issue (Rights Issue) closed .Total ordinary fully paid shares issued from the Rights Issue was 70,727,848. After the Rights Issue. At 6 September 2022 the Company’s share capital consists 379,181,949 ordinary fully paid shares Options Movement in options Unlisted options at 30 June Start of year Granted1 Expired End of the year 2022 2021 57,737,799 65,199,9801 (93,937,779) 29,000,000 13,000,000 46,737,799 (2,000,000) 57,737,799 1 58,199,980 options were granted to shareholders who participated in the placements that occurred during the year ended 30 June 2022. The balance of 7,000,000 options granted for the year ended 30 June 2022 were granted to directors, an employee and consultants (See Accounting Note 12 for details). Subsequent to 30 June 2002, on 2 September 2022 a Non Renounceable Rights Issue (Rights Issue) closed .Total ordinary fully paid shares issued from the Rights Issue was 70,727,848. Attached to each issued share was an unlisted option exercisable at $0.05 with an expiry date of 30 September 2025. At 6 September 2022 the Company’s unlisted options granted is 99,727,848. 16 23 2022 ANNUAL REPORT Likely developments and expected results in likely developments the company’s The 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. DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2022 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 for and development of natural exploration resources. Review of operations A detailed review of the Group's activities and operations is set out on pages 6-19 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 2 September 2022 the company announced that a Non Renounceable Rights Issue (Rights Issue) had closed oversubscribed, raising a total of $1,223,353 before costs. To accommodate excess demand, the Company also agreed to undertake a placement to raise an additional $180,000 on the same terms and conditions as the Rights Issue offer. Total funds realised prior to costs were $1,403,353. Total ordinary fully paid shares issued was 70,727,848. Attached to each issued share was an unlisted option exercisable at $0.05 with an expiry date of 30 September 2025. Total unlisted options granted was 70,727,848. In September 2022 the company relinquished its exploration tenure in the Paterson region of Western Australia which comprised one granted exploration licence as well as three exploration licence applications. 24 17 PEAKO LIMITED DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2022 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 the Company is a party, for the purpose of taking responsibility on behalf of the Company for all or part of those proceedings. in any proceedings to which 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 their position as directors and officers of the company. liabilities arising from 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 relevant committees board of directors and 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. Geoffrey Albers Raewyn Clark Paul Kitto Directors’ Meetings Held 2 Attended 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 2022. 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. levels are Remuneration reviewed annually through a process that considers the performance of individual directors and the overall performance of the entity. 18 25 2022 ANNUAL REPORT DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2022 Directors’ Report For the year ended 30 June 2022 Director Remuneration During the year under review, directors were remunerated a total of $56,816 (2021: $97,806) which included shareholder-approved non-executive remuneration of $56,816 (2021: $48,219). 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. Additional information The earnings of the Consolidated Entity for the five years to 30 June 2022 are summarised below: Loss after income tax -1,010,079 -714,743 -485,918 -285,286 -156,431 Share price at financial year end (cents per share) 1.1 4.1 0.9 1.7 1.5 2022 2021 2020 $ $ $ 2019 $ 2018 $ Components of directors’ compensation are disclosed in the following table. Primary benefits paid / payable Salary Directors’ fees $ $ Super- annuation $ - - 8,750 - 8,750 - - 10,000 10,000 - - - 30,000 30,000 - - - - - - 875 - 875 - - 950 950 Equity Settled Equity option issues(1) TOTAL $ $ - - - 17,191 17,191 - 49,587 37,269 86,856 - - 9,625 47,191 56,816 - 49,587 48,219 97,806 Year ended 30 June 2022 Geoffrey Albers Raewyn Clark Darryl Clark (2) Paul Kitto Year ended 30 June 2021 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. 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 26 19 PEAKO LIMITED Directors’ Report For the year ended 30 June 2022 Director Remuneration During the year under review, directors were remunerated a total of $56,816 (2021: $97,806) which included shareholder-approved non-executive remuneration of $56,816 (2021: $48,219). 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. Additional information The earnings of the Consolidated Entity for the five years to 30 June 2022 are summarised below: Loss after income tax -1,010,079 -714,743 -485,918 -285,286 -156,431 Share price at financial year end (cents per share) 1.1 4.1 0.9 1.7 1.5 2022 2021 2020 $ $ $ 2019 $ 2018 $ Components of directors’ compensation are disclosed in the following table. Primary benefits paid / payable Directors’ Super- Salary fees annuation issues(1) Year ended 30 June 2022 Geoffrey Albers Raewyn Clark Darryl Clark (2) Paul Kitto Year ended 30 June 2021 Geoffrey Albers Raewyn Clark Darryl Clark (2) $ - - - - - 8,750 8,750 10,000 10,000 30,000 30,000 $ - - - - - - - Equity Settled Equity option TOTAL $ - - - 17,191 17,191 - 49,587 37,269 86,856 $ - - 9,625 47,191 56,816 - 49,587 48,219 97,806 $ - - - - - 875 875 950 950 (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. Loans to key management personnel DIRECTORS’ REPORT No loans were made to key management personnel during the current or previous financial year. FOR THE YEAR ENDED 30 JUNE 2022 Other transactions with key management personnel In the year ended 30 June 2022, the Company incurred consulting fees of $92,400 (2021: $68,415) with Samika Pty Ltd, a director-related entity of Raewyn Clark. The fees were provided under normal commercial terms and 19 conditions with $Nil remaining unpaid at 30 June 2022 (2021: $nil). In the year ended 30 June 2022, the Company incurred consulting fees of $49,200 (2021: $Nil) with Paul Kitto. The fees were provided under normal commercial terms and conditions with $Nil remaining unpaid at 30 June 2022 (2021: $nil). Key management personnel interest in equity holdings Fully paid ordinary shares 30 June 2022 Geoffrey Albers1 Darryl Clark2 Number of shares at start of year 1 July 2021 Other Change Number of shares at end of year 30 June 2022 89,465,962 1,200,000 90,665,962 11,714,282 (1,200,000) 10,514,282 101,180,244 - 101,180,244 1 Other Change in shares – on market purchases and share placement and purchase plan participation. 2 Darryl Clark resigned 20 September 2021 and Paul Kitto was appointed. Unlisted options The Company granted 3,000,000 options over ordinary shares to the director Paul Kitto during the financial year (2021: 7,000,000). All 3,000,000 options have an employment condition and so vest over that service condition. The options granted during the year ended 30 June 2022 have been valued using the Black Scholes Option Valuation The fair value of these share-based payment (for accounting) at grant date was $17,191 (2021: $86,856). A share based payment expense of $6,949 has been recognised for the year ended 30 June 2022 (2021: $53,295). This includes the release from prior year grants. Number of options at start of year 1 July 2021 Options granted during year Options exercised / expired during year Number of options at end of year 30 June 2022 30 June 2022 Options exercisable at $0.055 on or before 30 June 2022 Geoffrey Albers Darryl Clark1 3,125,000 100,000 3,225,000 1 Darryl Clark resigned 20 September 2021 and Paul Kitto was appointed Options exercisable at $0.04 on or before 28 November 2022 Geoffrey Albers Raewyn Clark Darryl Clark1 - 2,000,000 1,000,000 3,000,000 - - - - - - - (3,125,000) (100,000) (3,225,000) - - - - - (1,000,000) (1,000,000) - 2,000,000 - 2,000,000 27 20 2022 ANNUAL REPORT DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2022 Directors’ Report For the year ended 30 June 2022 30 June 2022 Options exercisable at $0.05 on or before 28 November 2023 Raewyn Clark Number of options at start of year 1 July 2021 2,000,000 2,000,000 Options exercisable at $0.044 on or before 5 November 2023 Raewyn Clark Darryl Clark1 3,000,000 2,000,000 5,000,000 1 Darryl Clark resigned 20 September 2021 and Paul Kitto was appointed Options exercisable at $0.06 on or before 21 June 2023 Raewyn Clark Darryl Clark1 1,000,000 1,000,000 2,000,000 1 Darryl Clark resigned 20 September 2021 and Paul Kitto was appointed Options exercisable at $0.06 on or before 29 March 2024 Options granted during year Options exercised / expired during year Number of options at end of year 30 June 2022 - - - - - - - - - - 2,000,000 2,000,000 - (2,000,000) (2,000,000) 3,000,000 - 3,000,000 - (1,000,000) (1,000,000) 1,000,000 - 1,000,000 Paul Kitto - - 1,000,000 1,000,000 Options exercisable at $0.10 on or before 25 November 2024 Paul Kitto - - 1,000,000 1,000,000 Options exercisable at $0.20 on or before 25 November 2025 Paul Kitto - - 1,000,000 1,000,000 - - - - - - 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 End of remuneration report 28 21 PEAKO LIMITED DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2022 Auditor independence Section 307C of the Corporations Act 2001 requires our auditors, Grant Thornton Audit Pty Ltd, to provide the directors of the Company with an Independence Declaration in relation to the audit of the annual report. This Independence Declaration is set out on page 30 and forms part of this directors’ report for the year ended 30 June 2022. 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 29 September 2022 22 29 2022 ANNUAL REPORT AUDITOR’S INDEPENDENCE DECLARATION FOR THE YEAR ENDED 30 JUNE 2022 Auditor’s Independence Declaration Grant Thornton Audit Pty Ltd Level 22 Tower 5 Collins Square 727 Collins Street Melbourne VIC 3008 GPO Box 4736 Melbourne VIC 3001 T +61 3 8320 2222 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 2022, 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, 29 September 2022 www.grantthornton.com.au ACN-130 913 594 Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389. ‘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 Limited 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 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards Legislation. #8024565v2w 30 23 PEAKO LIMITED Financial Reports 31 2022 ANNUAL REPORT CONSOLIDATED STATEMENT OF PROFIT Consolidated Statement of Profit or Loss and Other Comprehensive OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2022 Income For the year ended 30 June 2022 Government grants - Covid Sundry income Expenses Accounting fees Audit fees Conferences and travel Depreciation Director Fees Heritage Protection – Community and Management fees Impairment of exploration asset Insurance Professional and consultancy fees Office costs Other costs Salary and wages Share based payment Stock exchange and share registry costs Tenement management 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 8,17 2 3 3 2022 $ - 1,863 1,863 (169,529) (50,303) (29,982) (33,347) (30,000) (82,202) (94,039) (19,320) (229,084) (114,292) (120,870) (3,443) (43,543) (47,185) (38,842) (1,105,981) (1,104,118) - (1,104,118) 2021 $ 20,000 350 20,350 (147,045) (52,876) (1,370) (12,680) - (49,600) - (6,202) (128,407) (87,612) (63,021) (6,596) (144,505) (29,524) (5,655) (735,093) (714,743) - (714,743) (1,104,118) (714,743) - - (1,104,118) - - (714,743) Cents (0.36) (0.36) Cents (0.40) (0.40) 32 PEAKO LIMITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2022 Consolidated Statement of Financial Position As at 30 June 2022 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 Provisions Total Current Liabilities Total Liabilities Net Assets Equity Issued capital Reserves Accumulated losses Total Equity Note 4 5 6 7 8 9 10 11 2022 $ 1,510,559 92,754 176,569 1,779,882 71,551 41,002 3,401,043 3,513,596 2021 $ 1,419,805 107,749 107,657 1,635,211 94,736 48,977 2,154,834 2,298,547 5,293,478 3,933,758 343,608 13,229 356,837 480,954 - 480,954 356,837 480,954 4,936,641 3,452,804 44,186,207 206,401 (39,455,967) 41,641,845 165,684 (38,354,725) 4,936,641 3,452,804 The above statement of financial position should be read in conjunction with the accompanying notes. 25 33 2022 ANNUAL REPORT CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2022 Consolidated Statement of Changes in Equity For the year ended 30 June 2022 Issued capital Share compensation reserve $ $ Foreign currency translation reserve $ Accumulated losses Total equity $ $ Balance at 1 July 2021 41,641,845 164,172 1,512 (38,354,725) 3,452,804 Loss for the year Other comprehensive loss Total comprehensive loss for the year Issue of Shares Costs of issue Grant of options Reclassification of foreign currency translation reserve Reclassification of expired options Balance at 30 June 2022 - - - - - - 2,574,000 (29,638) - - - 43,593 - - - - - - (1,104,118) - (1,104,118) - (1,104,118) (1,104,118) - - - 2,574,000 (29,638) 43,593 - - (1,512) 1,512 - - 44,186,207 (1,364) 206,401 - - 1,364 (39,455,967) - 4,936,641 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 - - - - - - (714,743) - (714,743) - (714,743) (714,743) - - - 3,451,671 (93,965) 144,505 - 1,512 33,744 (38,354,725) - 3,452,804 The above statement of changes in equity should be read in conjunction with the accompanying notes. 34 26 PEAKO LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2022 Consolidated Statement of Cash Flows For the year ended 30 June 2022 Cash flows from operating activities Administration fees received 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 the issue of shares Share issue costs Net cash inflows from financing activities Net increase in cash held Cash at the beginning of reporting period Cash at the end of the reporting period The above statement of cash flows should be read in conjunction with the accompanying notes. Note 18 2022 $ 2021 $ 9,808 (1,074,943) - (1,065,135) - (730,384) 20,000 (710,384) (1,409,191) (2,188) 110,906 (1,221,259) (149,915) - (1,300,473) (1,371,174) 2,574,000 (117,638) 2,456,362 3,449,671 (93,965) 3,355,706 90,754 1,274,148 1,419,805 1,510,559 145,657 1,419,805 27 35 2022 ANNUAL REPORT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 Notes to the Financial Statements For the Year Ended 30 June 2022 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. permits be ultimately surrendered or cancelled. Having assessed the potential uncertainties relating to the Group’s ability to effectively fund exploration activities and operating expenditures, the Directors believe that the Group will continue to operate as a going concern for the foreseeable future. Therefore, it appropriate to prepare the financial statements on a going concern basis the Directors consider (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 2021. (c) Statement of compliance The financial report was authorised by the board of directors for issue on 29 September 2022. The consolidated financial report is a general purpose financial report which has been prepared in accordance with Australian Accounting Standards, Accounting the Australian Interpretations, 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 including issued the by (d) Basis of consolidation The consolidated financial statements consolidate those of the parent company and all of its subsidiaries as of 30 June 2022 (“Group”). The Parent controls a subsidiary if it is exposed, or has rights, to variable returns from its involvement with the subsidiary and has the ability to affect those returns through its power over the subsidiary. All subsidiaries have a reporting date of 30 June. 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.The financial statements are presented in Australian dollars, unless otherwise stated. Going concern For the year ended 30 June 2022 the Group incurred a net cash outflow from operating and investing (2021: of $2,081,558) and a net loss after tax of $1,104,118 (2021: $714,743). As at 30 June 2022, the Group has positive working capital of $1,423,045 (2021: $1,154,257). $2,365,608 activities Directors expect that the group will be able to successfully raise sufficient funding to enable it to continue as a going concern for at least 12 months from the signing of annual financial report. The Group raised $1,403,353 (before costs) in a rights issue completed during September 2022. (Note 17). This financial report has been prepared on a going concern basis which contemplates the continuity of normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business. In the event that sufficient funds are not raised to meet all of the Group's commitments, debt and payables, the interest in some or all of the Group's tenements may be affected and all assets and liabilities may not be realised at the amounts disclosed. No adjustments have been made relating to the recoverability and reclassification of recorded asset amounts and classification of liabilities that might be necessary should the Group not continue as a going concern, particularly the write-down of capitalised exploration expenditure should the exploration 36 28 PEAKO LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 Notes to the Financial Statements For the Year Ended 30 June 2022 Note 1: Statement of significant accounting policies (continued) All transactions and balances between Group companies are eliminated on consolidation, losses on including unrealised gains and 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 adjusted where subsidiaries have been 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 indicators: (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 and other income 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 time Interest revenue 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. 29 37 2022 ANNUAL REPORT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 Notes to the Financial Statements For the Year Ended 30 June 2022 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 joint entities, associates or 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 38 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 • 30 PEAKO LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 Notes to the Financial Statements For the Year Ended 30 June 2022 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 The assets' residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at each financial period end. (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 is the insurance contract, 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 net income reimbursement. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects the risks specific to the liability. 31 39 2022 ANNUAL REPORT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 Notes to the Financial Statements For the Year Ended 30 June 2022 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. (m) Share-based payment transactions Equity settled transactions Equity-settled transactions are awards of shares, or options over shares, that are provided to employees or consultants in exchange for the rendering of services or to incentivise the receiver in their future efforts. The cost of equity-settled transactions are measured at fair value on grant date. Fair value determined using a Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option, together with non-vesting conditions that do not determine whether the Consolidated Entity receives the employees to receive payment. No account is taken of any other vesting conditions. the services that entitle as an expense with The cost of equity-settled transactions are a recognised corresponding increase in equity over the vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous periods. Market conditions are taken into consideration in determining fair value. Therefore, any awards subject to market conditions are considered to vest irrespective of whether or not that market condition has been met, provided all other conditions are satisfied. If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made. An additional expense is recognised, over the remaining vesting period, that increases the total fair value of the share- for any modification 40 based compensation benefit as at the date of modification. If the non-vesting condition is within the control of the Consolidated Entity or employee, the failure to satisfy the condition is treated as a cancellation. If the condition is not within the control of the Consolidated Entity or employee and is not satisfied during the vesting period, any remaining expense for the award is recognised over the remaining vesting period, unless the award is forfeited. If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled and new award is treated as if they were a modification. . (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 liabilities transaction. Monetary assets and denominated currencies are foreign retranslated at the rate of exchange ruling at the balance date. in 32 PEAKO LIMITED Notes to the Financial Statements NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 For the Year Ended 30 June 2022 Note 1: Statement of significant accounting policies (continued) it the transaction price initial measurement of (u) Financial Instruments All exchange differences in the consolidated Recognition and derecognition financial report are taken to profit or loss with the exception of differences on foreign currency Financial assets and financial liabilities are borrowings that provide a hedge against a net recognised when the Group becomes a party to investment in a foreign entity. These are taken financial the contractual provisions of directly to equity until the disposal of the net instrument. Financial assets are derecognised investment, at which time they are recognised in when the contractual rights to the cash flows profit or loss. from the financial asset expire, or when the financial asset and substantially all the risks and Tax charges and credits attributable to rewards are transferred. A financial liability is exchange differences on those borrowings are is extinguished, derecognised when also recognised in equity. discharged, cancelled or expires. Non-monetary items that are measured in terms Classification and of historical cost in a foreign currency are financial assets translated using the exchange rate as at the date of the initial transaction. Non-monetary Except for those trade receivables that do not items measured at fair value in a foreign contain a significant financing component and currency are translated using the exchange in the are measured at rates at the date when the fair value was accordance with AASB 15, all financial assets determined. are initially measured at fair value adjusted for transaction costs (where applicable). The foreign the functional currencies of operations are not nominated in Australian Financial assets, other than those designated Dollars. As at the balance date the assets and and effective as hedging instruments, are liabilities of these subsidiaries are translated classified into the following categories: into the presentation currency of Peako Limited • at the rate of exchange ruling at the balance amortised cost date and their income statements are translated • fair value through profit or loss (FVTPL) at the weighted average exchange rate for the • fair value through other comprehensive year. The exchange differences arising on the income (FVOCI). translations are taken directly to a separate component of recognised in the foreign currency In the periods presented the corporation does translation reserve in equity. not have any financial assets categorised as FVOCI. The classification is determined by both: On disposal of a foreign entity, the deferred • the entity’s business model for managing cumulative amount recognised in equity relating to that particular foreign operation is recognised in profit or loss. • the financial asset the contractual cash flow characteristics of the financial asset (q) Trade and other receivables and contract assets All income and expenses relating to financial The company makes uses of a simplified assets that are recognised in profit or loss are approach in accounting for trade and other presented within finance costs, finance income receivables as well as contract assets and or other financial items, except for impairment of records the loss allowance as lifetime expected trade receivables which is presented within credit losses. These are the expected shortfalls other expenses. 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. been identified as the Board of Directors of Peako Subsequent measurement of financial assets Limited. • to the determine Impairment of financial assets Financial assets are measured at amortised cost if the assets meet the following conditions (s) Parent entity financial information (and are not designated as FVTPL): • (t) Critical accounting estimates and judgements 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. 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 (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 Dividends from associates are received recognised in the parent entity’s profit or loss, impairment rather than being deducted from the carrying amount of these investments. requirements use AASB 9’s forward-looking recognise information expected credit losses – the ‘expected credit loss (ECL) model’. Instruments included loans and other debt-type financial assets measured at amortised cost and FVOCI, trade receivables, contract assets recognised and measured Management development, under AASB 15 and loan commitments and selection and disclosure of the company’s critical some financial guarantee contracts (for the the accounting policies and estimates and issuer) that are not measured at fair value application of these policies and estimates. There through profit or loss. are no estimates and that are considered to have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year The Group considers a range of information when assessing credit risk and measuring expected credit losses, including past events, current conditions, reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument. In applying this approach, a distinction is made between: • 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 that have not financial deteriorated significantly in credit quality since initial recognition or that have low Management exercise judgement as to whether credit risk (‘Stage 1’) and exploration expenditure is assessed for financial instruments that have deteriorated impairment. Any judgement may change as new information becomes available. If, after having significantly in credit quality since initial capitalised exploration and evaluation recognition and whose credit risk is not low expenditure, management concludes that the (‘Stage 2’). capitalised expenditure is unlikely to be recovered by future sale or exploitation, then the relevant capitalised amount will be written off through profit or loss and other comprehensive income. Recovery of exploration expenditure instruments judgements • (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 34 33 41 2022 ANNUAL REPORT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 Notes to the Financial Statements For the Year Ended 30 June 2022 Note 1: Statement of significant accounting policies (continued) (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 AASB 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 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 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 impairment requirements use AASB 9’s recognise information forward-looking expected credit losses – the ‘expected credit loss (ECL) model’. Instruments included loans and other debt-type financial assets measured at amortised cost and FVOCI, trade receivables, contract assets recognised and measured under AASB 15 and loan commitments and some financial guarantee contracts (for the issuer) that are not measured at fair value through profit or loss. The Group considers a range of information when assessing credit risk and measuring expected credit losses, including past events, current conditions, reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument. In applying this approach, a distinction is made between: • instruments financial that have not deteriorated significantly in credit quality since initial recognition or that have low credit risk (‘Stage 1’) and financial instruments that have deteriorated significantly in credit quality since initial recognition and whose credit risk is not low (‘Stage 2’). • 42 34 PEAKO LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 Notes to the Financial Statements For the Year Ended 30 June 2022 Note 1: Statement of significant accounting policies (continued) it impairment at ‘Stage 3’ would cover financial assets that have (u) Financial Instruments objective evidence of the Recognition and derecognition reporting date. ‘12-month expected credit losses’ are recognised for the first category Financial assets and financial liabilities are losses’ are ‘lifetime expected credit while recognised when the Group becomes a party to financial the the contractual provisions of recognised for the second category. instrument. Financial assets are derecognised when the contractual rights to the cash flows Measurement of the expected credit losses is from the financial asset expire, or when the determined by a probability-weighted estimate financial asset and substantially all the risks and of credit losses over the expected life of the rewards are transferred. A financial liability is financial instrument. is extinguished, derecognised when Classification and measurement of financial discharged, cancelled or expires. liabilities initial measurement of Classification and The Group’s include financial assets borrowings, trade and other payables and Except for those trade receivables that do not derivative financial instruments. contain a significant financing component and Subsequently, financial liabilities are measured in the are measured at at amortised cost using the effective interest accordance with AASB 15, all financial assets method except for derivatives and financial are initially measured at fair value adjusted for liabilities designated at FVTPL, which are transaction costs (where applicable). carried subsequently at fair value with gains or losses recognised in profit or loss (other than Financial assets, other than those designated derivative that are and effective as hedging instruments, are designated hedging classified into the following categories: instruments). • amortised cost All interest-related charges and, if applicable, • fair value through profit or loss (FVTPL) changes in an instrument’s fair value that are • fair value through other comprehensive reported in profit or loss are included within income (FVOCI). finance costs or finance income. instruments as financial and transaction price liabilities effective financial In the periods presented the corporation does not have any financial assets categorised as FVOCI. The classification is determined by both: • the entity’s business model for managing • the financial asset the contractual cash flow characteristics of the financial asset All income and expenses relating to financial assets that are recognised in profit or loss are presented within finance costs, finance income or other financial items, except for impairment of trade receivables which is presented within other expenses. Subsequent measurement of financial assets Financial assets 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 impairment requirements use AASB 9’s forward-looking recognise information expected credit losses – the ‘expected credit loss (ECL) model’. Instruments included loans and other debt-type financial assets measured at amortised cost and FVOCI, trade receivables, contract assets recognised and measured under AASB 15 and loan commitments and some financial guarantee contracts (for the issuer) that are not measured at fair value through profit or loss. The Group considers a range of information when assessing credit risk and measuring expected credit losses, including past events, current conditions, reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument. In applying this approach, a distinction is made between: • instruments financial that have not deteriorated significantly in credit quality since initial recognition or that have low credit risk (‘Stage 1’) and financial instruments that have deteriorated significantly in credit quality since initial recognition and whose credit risk is not low (‘Stage 2’). • 43 34 35 2022 ANNUAL REPORT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 Notes to the Financial Statements For the Year Ended 30 June 2022 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 Potential tax benefit @ 30% (2021: 30%) Consolidated 2022 $ 2021 $ - - - (1,104,118) (331,235) 41,289 - 669,762 (379,816) - - - - (714,743) (214,423) - 7 598,162 (383,746) - 20,677,992 4,430,516 - (105,207) 43,229 18,309,724 4,430,516 135,727 (54,003) 26,000 (3,577,613) 21,468,917 (2,262,491) 20,585,473 6,440,675 6,175,642 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) (1,104,118) 304,111,248 (0.36) (714,743) 177,758,267 (0.40) 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. 44 36 PEAKO LIMITED NOTES TO THE FINANCIAL STATEMENTS AS AT 30 JUNE 2022 Notes to the Financial Statements For the Year Ended 30 June 2022 Note 4: Trade and other receivables GST Trade and other receivables Consolidated 2022 $ 2021 $ 50,047 42,707 92,754 75,120 32,629 107,749 The carrying amount of all receivables is equal to their fair value as they are short term. At 30 June 2022 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 107,657 68,912 176,569 27,200 80,457 107,657 The Company applied for exploration tenements E80/5658, E805703, E80/5704, E80/5706, E80/5758 and E80/5779 during the year ended 30 June 2022. Prior year applications for exploration tenements are 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 2022 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 Note 8: Exploration and evaluation assets Balance at the beginning of the year Costs for the year Impairment of exploration asset Balance at the end of the year 94,736 - (23,185) 71,551 48,977 2,187 (10,162) 41,002 - 100,800 (6,064) 94,736 - 49,115 (138) 48,977 2,154,834 1,340,248 94,039 3,401,43 861,929 1,292,905 - 2,154,834 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: 30/06/2022 E 45/3278 E 80/4990 E 80/5182 30/06/2021 E 45/3278 E 80/4990 E 80/5182 Notes Granted 30 September 2016. Surrendered 19 September 2022 (Note 17). Granted 4 October 2017 Granted 28 September 2018 Notes to the Financial Statements 37 45 2022 ANNUAL REPORT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 For the Year Ended 30 June 2022 Note 9: Trade and other payables Current Trade and other payables* Director-related entities – other payables (Note 15) Consolidated 2022 $ 2021 $ 212,279 131,329 343,608 309,370 171,584 480,954 * Trade payables are non-interest bearing and are normally paid on 30 day terms. Note 10: Issued Capital As at 30 June 2022 there were 234,911,319 fully paid ordinary shares on issue (2021: 234,911,319). Movement in ordinary share capital 2022 $ Consolidated 2021 $ 2022 # 2021 # At the beginning of the year Shares issued during the year Costs associated with share issue Balance at the end of the year 41,641,845 2,574,000 (29,638) 44,186,207 38,284,139 3,451,671 (93,965) 41,641,845 234,911,319 73,542,782 - 308,454,101 128,931,579 105,979,740 - 234,911,319 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 2022 Listed 2021 Listed 2022 Unlisted 2021 Unlisted At the beginning of the year Options granted Expired Exercised Balance at the end of the year - - - - - - - - - - 57,737,799 65,199,9801 (93,937,779) 13,000,000 46,737,7991 (2,000,000) 29,000,000 57,737,799 158,199,980 options were granted to shareholders who participated in the placements that occurred during the year ended 30 June 2022. The balance of 7,000,000 options granted for the year ended 30 June 2022 were granted to directors, an employee and consultants (Note 12). Note 11: Reserves Foreign currency translation reserve (a) Share compensation reserve (b) Consolidated 2022 $ - 206,401 206,401 2021 $ 1,512 164,172 165,684 (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. 46 38 PEAKO LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 Notes to the Financial Statements For the Year Ended 30 June 2022 Note 12: Share based payments Shared based payment expense - directors Share based payment expense – consultants and employees Consolidated 2022 $ 6,949 36,644 43,593 2021 $ 53,295 92,210 145,505 Share options to directors 3,000,000 options were granted to directors in the year ended 30 June 2022. (2021: 7,000,000 options). On 26 November 2021 3,000,000 options were granted to Pau Kitto. The options have an employment condition and so vest over that service condition. The 3,000,000 options granted to directors were valued using the Black Scholes Option Valuation model and the following inputs: Exercise price Share price at approval date Maximum option life Expected volatility Risk free interest rate 6 -20 cents 2.3 cents 3.0 years 88% 0.93% The fair value of this share based payment (for accounting) at grant date was $17,191. The options vest over the service condition so a share based payment expense with a corresponding increase in equity of $3,448 has been recognised for the year ended 30 June 2022. Options granted to directors in prior years have an employment condition and so vest over the service condition. A share based payment expense of $3,501 has been recognised for the year ended 30 June 2022 for these options. Share options to others Share options to a consultant The 500,000 options granted to consultants on 31 July 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 Share price at approval date Maximum option life Expected volatility Risk free interest rate 6.0 cents 3.2 cents 1.9 years 88% 0.20% The fair value of this share based payment (for accounting) at grant date was $4,657. The options vest on grant of the option so a share based payment expense with a corresponding increase in equity of $4,657 has been recognised for the year ended 30 June 2022. Share options to an executive The 1,000,000 options granted to an executive on 26 November 2021 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: Exercise price Share price at approval date Maximum option life Expected volatility Risk free interest rate 6 cents 2.3 cents 3.0 years 88% 0.93% The fair value of this share based payment (for accounting) at grant date was $3,805. The options vest over the service condition so a share based payment expense with a corresponding increase in equity of $751 has been recognised for the year ended 30 June 2022. Share options to an employee The 3,000,000 options granted to an employee on 1 December 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 Share price at approval date Maximum option life Expected volatility Risk free interest rate 6 -20 cents 2.3 cents 3.0 years 88% 0.93% The fair value of this share based payment (for accounting) at grant date was $13,837. The options vest over the service condition so a share based payment expense with a corresponding increase in equity of $3,945 has been recognised for the year ended 30 June 2022. Options granted to others in prior years have an employment condition and so vest over the service condition. A share based payment expense of $27,091 has been recognised for the year ended 30 June 2022 for these options. 39 47 2022 ANNUAL REPORT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 Notes to the Financial Statements For the Year Ended 30 June 2022 Note 13: Financial instruments Capital risk management Prudent capital risk management implies maintaining sufficient cash and marketable securities to ensure continuity of tenure to exploration assets and to be able to conduct the Group’s business in an orderly and professional manner. The Board monitors its future capital requirements on a regular basis and will when appropriate consider the need for raising additional equity capital, debt funding or to farm- out exploration projects as a means of preserving capital. Categories of financial instruments The Group’s principal financial instruments comprise of cash and short-term deposits and short term borrowings. The main purpose of these financial instruments is to raise finance for the Group’s operations. The Group has various other financial assets and liabilities such as receivables and trade payables, which arise directly from its operations. It is, and has been throughout the period under review, the Group’s policy that no trading in financial instruments shall be undertaken. 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. 48 40 PEAKO LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 Notes to the Financial Statements For the Year Ended 30 June 2022 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 2022, 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 $10,574 (2021: $9,939) 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 2022 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 $ $ $ $ $ 343,608 - 343,608 343,608 - 343,608 343,608 - 343,608 480,954 - 480,954 480,954 - 480,954 480,954 - 480,954 - - - - - - - - - - - - 41 49 2022 ANNUAL REPORT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 Notes to the Financial Statements For the Year Ended 30 June 2022 Note 14: Commitments for expenditure Not longer than 1 year Longer than 1 year and not longer than 5 year Consolidated 2022 $ 74,250 195,000 269,290 2021 $ 40,000 492,000 532,000 Expenditure commitments (minerals) The Group had a commitment in minerals tenement E45/3278 of $50,000. The permit year ended 29 September each year until 2026.The permit was surrendered 19 September 2022 (Note 17). On 4 October 2017 the Group was granted minerals tenement E80/4990. On 28 September 2018 the Group was granted minerals tenement E80/5182. 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. The yearly combined expenditure commitment is $297,000. 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 (1) Peak Oil & Gas Philippines Ltd(1) Energy Best Limited(1) SA Drilling Pty Ltd Samarai Pty Ltd EKEX Pty Ltd Country of incorporation Australia British Virgin Islands British Virgin Islands British Virgin Islands Australia Australia Australia Class of shares Ordinary Ordinary Ordinary Ordinary Ordinary Ordinary Ordinary Equity holding % 2021 100 100 100 100 100 100 - 2022 100 - - - 100 100 100 (1) British Virgin Islands companies have been deregistered. Director-related entities During the year services and/or facilities were provided under normal commercial terms and conditions by director-related entities as disclosed below: Entity Related director Service Samika Pty Ltd RL Clark Exoil Pty Ltd EG Albers Consulting Office services PA Kitto Enegex Limited EG Albers PA Kitto Exploration consulting Geological services EG Albers Natural Resources Group Pty Ltd Octanex Limited EG Albers Project management Accounting and administrative support Amounts Paid 2022 $ 2021 $ Payable at 30/06/22 $ 30/06/21 $ 92,400 114,292 49,200 4,200 20,000 68,415 87,612 - 15,950 20,000 - 44,568 11,400 3,010 20,000 - 55,466 - 18,271 20,000 168,820 147,045 52,351 77,847 448,912 339,022 131,329 171,584 50 42 PEAKO LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 Notes to the Financial Statements For the Year Ended 30 June 2022 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 2022 $ 2021 $ 1,553,133 3627,327 5,180,460 306,790 - 306,790 4,873,670 1,452,434 2,333,866 3,786,300 405,834 - 405,834 3,380,466 66,103,079 (61,266,140) 36,731 4,873,670 63,558,717 (60,276,129) 97,878 3,380,466 (1,095,752) (659,843) (1,095,752) (659,843) Note 17 Matters Subsequent to Balance Date On 2 September 2022 the company announced that a Non Renounceable Rights Issue (Rights Issue) had closed oversubscribed, raising a total of $1,223,353 before costs. To accommodate excess demand, the Company also agreed to undertake a placement to raise an additional $180,000 on the same terms and conditions as the Rights Issue offer. Total funds realised prior to costs were $1,403,353. On 19 September 2022 the company relinquished its exploration tenure in the Paterson region of Western Australia which comprised one granted exploration licence as well as three exploration licence applications. The carrying value of the exploration licence E45/3278, $94,039 was written off at 30 June 2022. Costs associated with the three licence applications had not been capitalised. 43 51 2022 ANNUAL REPORT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 Notes to the Financial Statements For the Year Ended 30 June 2022 Note 18: Reconciliation of loss after income tax to net cash outflow from operating activities Net loss for the year Depreciation Capitalisation of salary/consultant costs Grant of options Impairment of exploration asset Employee provisions (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 2022 $ 2021 $ (1,104,118) 33,348 (262,570) 43,593 94,039 13,229 14,995 69,005 33,344 (1,065,135) (714,743) 6,202 (89,100) 144,505 - - (99,828) (85,642) 128,221 (710,385) 50,303 - 50,303 52,876 - 52,876 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. 52 44 PEAKO LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 Notes to the Financial Statements For the Year Ended 30 June 2022 Note 21 Key Management Personnel Executive Director RL Clark Individual compensation disclosures Non-Executive Directors EG Albers P Kitto 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 $ 30,000 - Salary Superannuation $ 8,750 10,000 $ 875 950 Retirement Benefits $ - - Options $ 17,191 86,856 $ 56,816 97,806 Total 2022 2021 45 53 2022 ANNUAL REPORT DIRECTORS’ DECLARATION FOR THE YEAR ENDED 30 JUNE 2022 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) 2022 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 25 to 28 of the directors’ report, (as part of audited Remuneration Report), for the year ended 30 June 2022, 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 29 September 2022 54 46 Grant Thornton Audit Pty Ltd Level 22 Tower 5 Collins Square 727 Collins Street Melbourne VIC 3008 GPO Box 4736 Melbourne VIC 3001 T +61 3 8320 2222 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 2022, 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 2022 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 (including Independence Standards) (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. www.grantthornton.com.au ACN-130 913 594 Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389. ‘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 Limited 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 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards Legislation. w PEAKO LIMITED INDEPENDENT AUDITOR’S REPORT FOR THE YEAR ENDED 30 JUNE 2022 Grant Thornton Audit Pty Ltd Level 22 Tower 5 Collins Square 727 Collins Street Melbourne VIC 3008 GPO Box 4736 Melbourne VIC 3001 T +61 3 8320 2222 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 2022, 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 2022 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 (including Independence Standards) (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. www.grantthornton.com.au ACN-130 913 594 Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389. ‘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 Limited 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 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards Legislation. w 55 2022 ANNUAL REPORT INDEPENDENT AUDITOR’S REPORT FOR THE YEAR ENDED 30 JUNE 2022 Material uncertainty related to going concern We draw attention to Note 1(a) in the financial statements, which indicates that the Group incurred a net loss after tax of $1,104,118 during the year ended 30 June 2022 and a net cash outflow from operating and investing activities of $2,365,608. As stated in Note 1(a), these events or conditions, along with other matters as set forth in Note 1(a), indicate that a material uncertainty exists that may cast doubt on the Group’s ability to continue as a going concern. Our opinion is not modified in respect of this matter. Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matter described in the Material uncertainty related to going concern section, we have determined the matters described below to be the key audit matters to be communicated in our report. Key audit matter How our audit addressed the key audit matter Auditor’s responsibilities for the audit of the financial report Exploration and Evaluation Assets Valuation (Note 8) At 30 June 2022 the carrying value of exploration and evaluation assets was $3,401,043 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; − − − 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 and capabilities of management 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 2022, 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. 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 ended 30 June 2022. We have audited the Remuneration Report included in pages 25 to 28 of the Directors’ report for the year In our opinion, the Remuneration Report of Peako Limited for the year ended 30 June 2022 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, 29 September 2022 Grant Thornton Australia Limited (cid:3) Grant Thornton Australia Limited (cid:3) 56 PEAKO LIMITED INDEPENDENT AUDITOR’S REPORT FOR THE YEAR ENDED 30 JUNE 2022 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. 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 25 to 28 of the Directors’ report for the year ended 30 June 2022. In our opinion, the Remuneration Report of Peako Limited for the year ended 30 June 2022 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, 29 September 2022 Grant Thornton Australia Limited (cid:3) 57 2022 ANNUAL REPORT ASX ADDITIONAL INFORMATION (UNAUDITED) FOR THE YEAR ENDED 30 JUNE 2022 ASX additional Information (unaudited) As at 26 September 2022 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 216 173 45 319 327 1,080 92,875 417,948 345,686 13,205,507 365,119,933 379,181,949 557 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 116,519,096 30.73 The 20 Largest Holders of Ordinary Shares Holder Name Hawkestone Resources Pty Ltd Mr Ernest Geoffrey Albers Sacrosanct Pty Ltd Southern Energy Pty Ltd Jimzbal Pty Ltd Great Australia Corporation Pty Ltd Auralandia Pty Ltd Sanperez Pty Ltd 500 Custodian Pty Ltd Australis Finance Pty Ltd Rydale Holdings Pty Ltd Ram Platinum Pty Ltd Mr Don Cheng Gant Capital Pty Ltd Vivien Enterprises Pte Ltd BNP Paribas Nominees Pty Ltd Calama Holdings Pty Ltd Great Missenden Holdings Pty Ltd Ms Xiaodan Wu Mr Nicholas David Green Total 58 Holding 26,028,603 14,567,974 13,895,999 13,814,177 10,200,000 9,030,806 8,853,052 8,573,740 8,131,428 7,940,398 7,000,000 5,802,359 5,344,064 5,056,096 5,000,000 4,812,990 4,800,000 4,634,684 4,540,421 4,250,000 172,276,791 45.43% % 6.86% 3.84% 3.66% 3.64% 2.69% 2.38% 2.33% 2.26% 2.14% 2.09% 1.85% 1.53% 1.41% 1.33% 1.32% 1.27% 1.27% 1.22% 1.20% 1.12% PEAKO LIMITED DISTRIBUTION OF UNLISTED OPTIONS - EXERCISABLE AT $0.05 ON OR BEFORE 30 SEPTEMBER 2025 Distribution of unlisted Options - exercisable at $0.05 on or before 30 September 2025 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 5 9 6 38 73 131 1,282 22,932 43,988 1,850,800 68,808,846 70,727,848 Other Unlisted Options – 30,000,000 at various prices and dates Three holders hold 4,000,000 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 June 2023). Three holders hold 5,000,000 unlisted options (exercisable at $0.044 on or before 5 November 2023). One holder holds 1,000,000 unlisted options (exercisable at $0.06 on or before 21 November 2023). One holder holds 2,000,000 unlisted options (exercisable at $0.05 on or before 28 November 2023). Three holders hold 3,000,000 unlisted options (exercisable at $0.040 on or before 29 March 2024). One holder holds 1,000,000 unlisted options (exercisable at $0.10 on or before 21 November 2024). One holder holds 500,000 unlisted options (exercisable at $0.06 on or before 25 November 2024). One holder holds 1,000,000 unlisted options (exercisable at $0.05 on or before 25 November 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 $0.05 on or before 1 May 2025). Two holders hold 1,000,000 unlisted options (exercisable at $0.05 on or before 30 September 2025). One holder holds 1,000,000 unlisted options (exercisable at $0.20 on or before 21 November 2025). One holder holds 1,000,000 unlisted options (exercisable at $0.15 on or before 25 November 2025). 59 2022 ANNUAL REPORT LIMITED ASX:PKO peako.com.au Level 1, 10 Yarra Street, South Yarra, Victoria 3141 T: +61 (3) 8610 4723 E: info@peako.com.au
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