ABN 11 127 171 877
annual report 2013
CORPORATE DIRECTORY
DIRECTORS
Mr Phillip Harman BSc (Hons), MAusIMM, MAICD (Chairman)
Mr Paul Roberts BSc, MSc, FAIG, MGSA
Mr Philip Henty BA Acc, Dip SIA, F Fin
Mr Tim Markwell BSc (Hons), GradDipAppFin, MAusIMM – (appointed 11 September 2013)
Dr Thomas Whiting BSc (Hons), PhD, Grad Dip Fin, MASDEG, MAICD – (resigned 21 May 2013)
Dr Robert Danchin BSc, BSc (Hons), MSc, PhD, FAusIMM – (resigned 21 May 2013)
COMPANY SECRETARY
Mr Ian Hobson BBus, FCA, ACIS
REGISTERED OFFICE
Level 2, 9 Colin Street
WEST PERTH WA 6005
Postal Address:
PO Box 1710
WEST PERTH WA 6872
T: +61 8 9216 1000
E: info@predictivediscovery.com
W: www.predictivediscovery.com
AUDITORS
Nexia ASR
Level 14, 440 Collins Street
MELBOURNE VIC 3000
SHARE REGISTER
Link Market Services Limited
Ground Floor, 178 St Georges Terrace
PERTH WA 6000
T: +61 8 9211 6670
E: info@linkmarketservices.com.au
SOLICITORS
Corrs Chambers Westgarth
240 St George’s Terrace
PERTH WA 6000
BANKERS
Australian and New Zealand Banking Group Limited
1275 Hay Street
WEST PERTH WA 6005
HOME EXCHANGE
Australian Securities Exchange, Perth
2 The Esplanade
PERTH WA 6000
ASX Code: PDI
PREDICTIVE DISCOVERY LIMITED
TABLE OF CONTENTS
CHAIRMAN’S REPORT
REVIEW OF OPERATIONS
DIRECTORS’ REPORT
CORPORATE GOVERNANCE STATEMENT
AUDITOR’S INDEPENDENCE DECLARATION
FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
CONSOLIDATED STATEMENT OF CASH FLOWS
NOTES TO THE FINANCIAL STATEMENTS
DIRECTORS’ DECLARATION
INDEPENDENT AUDITOR’S REPORT
ADDITIONAL SHAREHOLDER INFORMATION
INTERESTS IN MINING TENEMENTS
1
2 ‐ 20
21 ‐ 30
31 ‐3 4
35
36
37
38
39
40 ‐ 80
81
82 ‐ 84
85 ‐ 86
87
PREDICTIVE DISCOVERY LIMITED
30 JUNE 2013
Dear Fellow Shareholder,
CHAIRMAN’S REPORT
Predictive Discovery Limited (‘PDI’) has had a very successful year. Our work in Burkina Faso is bearing fruit
with the exciting new discovery at the Bongou prospect in our Bonsiega tenements. Following the early
discovery holes in 2012, further drilling has given us some of the highest grades and widths seen anywhere
in Eastern Burkina Faso with intersections such as:
• 48m at 4.3g/t from 34m including 16m at 9.7g/t,
• 26m at 6.9g/t including 16m at 8.9 g/t and
• 10m at 7.4 g/t.
Bongou was highlighted as a high priority target by the company’s unique structural analysis technology,
even though sampling of the artisanal workings returned low grades. The mineralisation at Bongou is hosted
in an altered microgranite, a different setting to most other orogenic gold systems. The controls and limits
on the system are yet to be defined and will form the basis of the next drilling campaign. In addition several
new targets have been discovered under shallow cover within a few hundred metres of Bongou.
The Bongou discovery has additional significance for PDI. It occurs on a major north east trending structure
that persists along the length of our Bonsiega tenements. Further similar settings along this structure
provide a focus for future exploration, in my view considerably upgrading the potential of the whole
package.
Other highlights for the year have included further encouraging results from the Bangaba permit, both at
Tambiri and Solna, and the acquisition of the Bira prospect in the north of the Bonsiega tenements where
past exploration has defined coherent gold mineralisation over more than 500m. I have also been
encouraged by the results we received from preliminary metallurgical test work on samples from a number
our prospects which showed that in all likelihood none of our high grade prospects contain refractory gold.
More recently the exploration team has acquired new tenements in Cote D’Ivoire. Over the past few years
PDI has identified a number of high priority prospects and targets. These applications are in response to the
considerable improvement in the political and working environment in Cote D’Ivoire following years of
unrest.
During the year PDI has taken steps to curtail its costs in response to the current market environment. Our
exploration program has become more focused and the number of staff in Burkina Faso and Australia has
been reduced. Two of our founding directors, Dr Bobby Danchin and Dr Tom Whiting have retired from the
board. Their involvement with PDI goes back to before the very beginning of the company and I thank them
for their contribution over a long period of time. Both Bobby and Tom remain keenly interested in PDI’s
progress.
On behalf of all of the shareholders thank you to Paul and the exploration team in Burkina Faso and Australia
for a great year in the face of challenging market conditions. To me their success demonstrates the
substance of our programs and our approach.
Finally a big thank you to you, the shareholders, for your support over the last year. PDI has an excellent
portfolio of projects led by Bongou and I look forward to an exciting year ahead.
Phillip Harman
CHAIRMAN
‐ 1 ‐
PREDICTIVE DISCOVERY LIMITED
REVIEW OF OPERATIONS…..
30 JUNE 2013
REVIEW OF OPERATIONS
HIGHLIGHTS
Predictive Discovery Limited (PDI) carried out a substantial and successful exploration program in 2012‐
2013.
Significant achievements included:
• High grade drill intercepts from the Bongou, Solna, Tambiri and Madyabari Prospects in Burkina
Faso, including:
o Bongou:
(cid:131) 48m at 4.3g/t Au from 34m including 16m at 9.7g/t Au
(cid:131) 26m at 6.9g/t Au from 111m including 16m at 8.9g/t Au
(cid:131) 10m at 7.4g/t Au from 47m
o Solna:
(cid:131) 2m at 26g/t Au from 70m
(cid:131) 2m at 12g/t Au from 12m
o Tambiri:
(cid:131) 4m at 6.1g/t Au from 83m
o Madyabari:
(cid:131) 3m at 8.3g/t Au from 23m including 1m at 23g/t Au
•
•
Completion of a large exploration program in Burkina Faso involving 4,700m of reverse circulation
(RC) and 4,400m of power auger drilling, 242 line km of ground magnetics and induced polarization
geophysical surveys and 129 km2 of geological mapping.
Excellent gold recoveries from preliminary metallurgical testwork on four prospects in Burkina
Faso, including Bongou.
• Grant of the Bira exploration permit within the Bonsiega Project, including a prospect drilled by
Anglo American in the late 1990’s with excellent drill results.
• Grant of two exploration permits in Cote D’Ivoire with three permit applications pending. These
include the well mineralised Kokumbo permit, near the Bonikro Gold Mine. If PDI obtains all three
of the applications, it will hold 1,700km2 of highly prospective exploration ground in Cote D’Ivoire.
‐ 2 ‐
PREDICTIV
VE DISCOVER
D
RY LIMITED
REVIEW
OF OPERAT
TIONS…..
30 JU
UNE 2013
INTRODU
PDI is ex
deposits i
focus is
Burkina F
of 1,533k
concentra
the count
UCTION
xploring for
in West Afric
on 12 gold
aso, West A
km2. With
ated its drilli
try on a serie
r large, hig
ca. The Com
d exploratio
frica, coverin
in those ar
ng programs
es of prospec
gh value go
mpany’s proje
on permits
ng a total ar
reas, PDI h
s in the east
cts.
old
ect
in
rea
has
of
The Com
position i
held in
further 92
mpany also
n Cote D’Ivo
granted exp
20 km2 is und
has a gro
oire; at prese
ploration p
der applicati
owing grou
ent 790 km2
ermits and
on.
nd
2 is
a
PD
explo
DI’s
dentification
id
w
well mineral
co
ountry‐scale
m
mineral depos
nvolves exte
in
ge
eological ma
nd drilling.
an
ration
stra
of high pr
ised terrain
geophysic
sit data. Gro
ensive geop
apping, follo
ategy beg
riority regio
ns using an
cal, geolog
ound‐based
physical sur
owed by geo
ins with
ons within
nalyses of
gical and
work then
rveys and
ochemistry
DI’s Predicto
PD
n identifying
in
fr
om country
rioritisation.
pr
ore® technolo
high priority
scale area s
ogy plays a c
y targets at
selection to d
critical role
all scales ‐
drill target
BU
URKINA F
ASO GOLD
D PROJEC
TS
BACKGRO
OUND
PDI’s Bur
within th
These bel
(Figure 1)
rkina Faso
e Birimian g
ts contain nu
, many of wh
projects ar
gold belts in
umerous gol
hich are in p
re all locat
n West Afric
ld ore depos
roduction.
ed
ca.
sits
Bu
is a landlock
urkina Faso
by Ghana, Co
o the south b
to
west by Ma
enin, to the
Be
1). Gold m
N
iger (Figure
to
co
onfined
artisanal
mining opera
su
ubstantial m
country w
west of the
w
ked country,
ote D’Ivoire,
ali and to th
ining in the
mining
ation at Pou
hich closed
, bounded
, Togo and
he east by
e past was
and one
ura in the
in 1999.
Figure 1: Ma
ap of the Birim
mian Gold Belt
t showing maj
jor mines and
PDI project lo
ocation areas.
‐ 3 ‐
PREDICTIV
VE DISCOVER
D
RY LIMITED
REVIEW
OF OPERAT
TIONS…..
30 JU
UNE 2013
st nine years
In the pas
resurgence
a strong
ment, stimu
developm
f new mining
release of
Mana, Kalsa
Taparko,
ga gold mine
and Youg
, the larges
Of these,
d Essakane.
Mana an
announced
results a
u and Nab
(Natougo
(Batie West
Limited (
, Roxgold
(Banfora),
Rim Reso
Golden
(Kia
s
Resources
and Orez
(Karma)
e) suggest th
(Bombore
d in future y
developed
s, however, t
in explorat
lated espec
g regulations
aka, Inata, E
es are now
st known de
. In additio
by Orbis
banga), Am
), Gryphon
Resources
ources
(Ne
aka), True
zone Gold
at more gold
ears.
there has be
tion and mi
cially by t
s in 2003. T
ssakane, Bis
in productio
eposits are
n, explorati
Gold Limit
mpella Mini
Minerals L
(Yaramoko
tiana), Vo
Gold Mini
Corporatio
d mines will
en
ne
he
he
ssa
on.
at
on
ed
ng
Ltd
o),
lta
ng
on
be
Inc.
Some of t
above th
Yaramoko
indicating
potential
supports
these prospe
he West A
o, Nabanga,
g that Burk
for high gra
PDI’s own s
ects have go
African ave
Natougou
kina Faso h
de, low cost
sharp focus
old grades w
rage, notab
and Netian
has significa
t ounces whi
on high gra
well
bly
na,
ant
ich
de
old targets.
go
In
n common w
he Governm
th
arried intere
ca
br
rought into p
ange from 3
ra
rice. The ra
pr
ompanies is
co
G
overnment
po
ossible chan
axation code
ta
ear but no de
ye
with other W
ent has the
st of 10% in
production.
3% to 5% de
ate of corp
17.5%. Dis
and the m
nges to the
e have been
ecisions have
West African
e right to ta
any ore dep
Gold mining
epending on
orate tax f
cussions bet
mining indus
Mining Act
ongoing fo
e yet been m
countries,
ake a free
osit that is
g royalties
n the gold
or mining
tween the
stry about
t and the
r the past
made.
In
n Burkina Fas
ranted explo
gr
rea of 1,533
ar
co
overing an a
he bulk of t
Th
ine permits
ni
roup in the S
gr
). A second
2)
is
the Bangab
o the north (
to
so, PDI hold
oration perm
km2. A thirte
dditional 74
he tenemen
known as
Samira Hill g
important f
a permit in t
Figure 2).
ds rights to e
mits coverin
eenth permi
4km2, is close
nt area is co
the Bonsie
reenstone b
ocus for the
the Sebba B
explore 12
ng a total
t, Bassieri,
e to grant.
ntained in
ga permit
elt (Figure
e Company
elt nearby
Figure 2: Lo
Note that the
N
ocation of PDI
nearby opera
product
I’s Burkina Fas
ating Samira H
tion of 2.5 mill
so permits, hig
Hill gold mine
lion ounces (so
ghlighting pro
in Niger conta
ource: www.s
ospects tested
ains resources
semafo.com).
d in 2012‐13.
s, reserves and
d past
‐ 4 ‐
PREDICTIV
VE DISCOVER
D
RY LIMITED
REVIEW
OF OPERAT
TIONS…..
30 JU
UNE 2013
The Comp
pany’s objec
discover
a
large re
average gr
with an
of supportin
capable o
n.
operation
ctive in Burk
esource/rese
rade exceed
ng a major
kina Faso is
invento
rve
ding 2g/t A
r gold mini
to
ory
Au
ng
High grad
from dri
including
The Com
higher gra
de gold res
illing on a
Bongou, Sol
pany’s imm
ade prospect
sults have b
number
lna and Tam
mediate focu
ts , in particu
been obtain
of prospec
mbiri (Figure
s is on the
ular Bongou.
ed
cts,
2).
ese
BONSIEG
GA PERMIT
T GROUP
BACKGRO
OUND
The Bon
exploratio
with appr
the same
Samira H
permit, B
74km2, is
permits
significant
nsiega Perm
on permits to
roximately 1
e greenston
ill Mine in N
Bassieri, whi
close to be
contain art
t gold geoch
mit Group
otalling 1,04
100km of str
e belt whic
Niger (Figure
ich covers a
ing granted.
tisanal work
emical anom
ne
covers nin
45 km2 in are
ea
rike length i
n
he
ch hosts th
th
e 2). A tent
an additiona
al
he
. Most of th
or
kings and/o
malies.
The Bons
direct ap
four sepa
Four of th
iega permits
plication in
arate agreem
he permits w
s were acqui
PDI’s name
ments with
were acquired
by
ired either b
gh
e or throug
s.
third parties
he
d through th
Venture by w
Dore Joint V
El
and then incr
60% stake a
a
hrough add
th
o 72%
to
In 2012‐
xpenditure.
ex
with Stratos
ag
greement w
rmerly ElDore
ASX: SAT; for
(A
purchase t
mited) to
Li
ansaction in
hrough a tra
th
partial re‐pa
$3
300,000 in p
13 million P
an
nd received
ments are op
hree agreem
th
in which PD
usinessmen
bu
equity throu
5% or 100%
95
ayments.
pa
which PDI firs
reased its pe
ditional ex
‐13, PDI si
s Resources
e Mining Cor
the remain
which SAT
ayment of c
PDI shares. T
ption deals w
DI is earning
ugh a series
st earned
ercentage
xploration
gned an
Limited
rporation
ing 28%
provided
cash calls
The other
with local
g either a
of option
n earlier exp
In
of
laterally
f
ge
eochemical
ested with
te
rilling progra
dr
di
iscovered co
go
old intercept
Fo
ouli, Laterite
n 2012‐13, P
In
n the high
on
ongou. Seve
Bo
du
uring the y
ampling and/
sa
nlarge the pr
en
loration, PD
extensive
anomalies, s
large reve
ams. A serie
ontaining or
ts. These in
e Hill, Tambo
PDI focused
er grade p
eral other ar
year with R
/or ground g
rospect pipe
DI discovered
power aug
some of wh
rse circulat
es of prospe
re grade an
clude Bongo
oana and Pro
most of its
prospects, e
eas were als
RC drilling,
geophysics in
line.
d a series
ger gold
hich were
tion (RC)
ects were
nd width
ou, Dave,
ospect 71.
attention
especially
so tested
bedrock
n order to
Fig
gure 3: Prospe
ect locations a
and geology of
f the Laterite
Hill Gold Field
d, South‐West
Bonsiega pro
oject
‐ 5 ‐
PREDICTIV
VE DISCOVER
D
RY LIMITED
REVIEW
OF OPERAT
TIONS…..
30 JU
UNE 2013
BONGOU
U PROSPEC
CT (PDI 100
0%)
The Bong
Laterite H
(Figure 3)
form of a
150m lon
PDI includ
one RC dr
54m at 2
4.8g/t Au
commenc
Novembe
gou Prospec
Hill Gold Field
). It covers a
an irregular
g and 50m w
ded rock chip
rill hole in 20
.1g/t Au fro
u. A large
ced on the
er 2012.
ct is located
d in Eastern
artisanal wo
open pit a
wide. Past e
p sampling, t
011‐12 whic
m 36m inclu
program of
e Bongou
he
d within th
so
Burkina Fas
he
orkings in th
ly
approximatel
by
xploration b
trenching an
d
ed
ch intersecte
at
uding 20m a
on
f exploratio
i
Prospect
n
ograms at Bo
structural t
consisted o
wer auger
2,477m, 8
cal surveys
on), 224 so
ongou itself a
trend (Figur
f 3,149m o
geochemica
line km
81
(magnetics
il samples a
he
and along th
ng
re 3) durin
f RC drilling
g,
es
l drill hole
of groun
d
ed
and induce
of
and 182m o
Work pro
Bongou
2012‐13
528 pow
totalling
geophysic
polarisatio
trenches.
eological m
G
tr
renching and
ed to a re
le
howing that
sh
within an inte
w
yritic microg
py
ro
ock chip s
mapping,
of the initial
d re‐logging o
ogical
inter
evised geolo
alisation is c
gold minera
ed, quartz ve
ensely silicifie
sion (Figure 4
ranite intrus
sampling,
drill hole
pretation
contained
eined and
4).
Bo
ongou RC D
Drilling
RC
C drilling at
eries of exce
se
t Bongou in
llent gold int
2011‐12 p
tercepts incl
roduced a
uding:
•
•
•
•
•
BNGRC01
10: 48m at 4
4.3g/t Au fro
BNGRC01
14: 26m at 6
6.9g/t Au fro
BNGRC00
04: 10m at 7
7.4g/t Au fro
m 34m
m 111m
m 47m
BNGRC00
03: 102m at
1.1g/t Au fr
om 4m
BNGRC00
(stopped
02: 70m at
in mineralis
sation)
1.2g/t Au
from 62m
Figure 4: S
Silicified, quar
in Bongou o
rtz‐veined, gol
open pit. Mr S
ld‐mineralised
Seye Kote, PDI
d microgranite
’s Chief Geolo
e in contact w
ogist in Burkin
with foliated g
a Faso, in the
abbro or mafi
e foreground.
fic volcanics
‐ 6 ‐
PREDICTIV
VE DISCOVER
D
RY LIMITED
REVIEW
OF OPERAT
TIONS…..
30 JU
UNE 2013
Fig
(b) Ri
gure 5a and 5b
ight ‐ through
b: Bongou Cro
h RC drill hole B
oss Sections (a
BNGRC010. N
a) Left ‐ throug
No vertical exa
gh RC drill hol
aggeration. Se
les BNGRC002
ee Figure 6 for
2 and BNGRC0
r drill hole loca
014,
ations.
Nearly all
altered
located c
(Figure 5a
of the gold
microgranite
lose its nort
a and 5b).
mineralisat
e, with h
thern contac
tion consists
higher grad
ct with gabb
of
des
bro
•
•
•
BNGRC01
14: 16m at 8
8.9 g/t Au
BNGRC00
04: 7m at 10
0.1g/t Au
BNGRC00
01: 6m at 11
1.8g/t Au
Au cut‐off,
ercepts, all lo
and appare
there are n
ocated in thi
ntly correlat
now four, hi
is near‐conta
ting with ea
igh
act
ach
At a 3g/t
grade inte
position,
other:
•
BNG
RC010: 16m
u
at 9.7g/t Au
ower grade
Lo
verage grad
av
lo
ocated adjace
gr
rade zone (F
width of the g
w
e gold min
de of appro
ent to and to
Figures 5a a
gold minerali
neralisation
oximately 1
o the south o
nd 5b). The
ised zone is u
with an
1g/t Au is
of the high
total true
up to 50m.
Figu
ure 6: Plan vie
ew of drilling,
Bongou Prosp
pect.
‐ 7 ‐
PREDICTIV
VE DISCOVER
D
RY LIMITED
REVIEW
OF OPERAT
TIONS…..
30 JU
UNE 2013
Bongou R
Regional Ex
xploration
PDI’s pro
geophysic
sampling
approxim
artisanal
Au. The a
ogram of ge
cs and po
generate
ately 400m
workings, w
anomaly cov
pping, grou
ological ma
geochemic
wer auger
n
targe
new
ed
a
of the Bong
north‐west
value of 4.8g
with a peak v
area than t
vers a larger
nd
cal
et,
ou
g/t
he
ongou miner
Bo
by
y drilling (F
argets along
ta
ault Zone (
Fa
be
ecause of th
an
nd/or rugge
argets will be
ta
ralised zone
Figure 7). T
g strike alon
(Figure 8) i
he presence
ed terrain. R
e required in
and remains
Testing of t
ng the majo
is largely in
of thick, we
RAB testing
the next fie
s untested
two other
or Bongou
ncomplete
et alluvium
of these
ld season.
Figure 7: Pow
zone for com
collected
wer auger gol
mparison with
at the interfa
analys
ld geochemist
h size of the di
ace between th
sed by for gol
try contour pla
iscovered gold
he overlying c
ld by AAS at S
an. Note size o
d anomalies. P
cover and the
GS in Ouagad
dougou.
of Bongou gol
Power auger s
weathered be
d
ld mineralised
samples were
edrock and
Figure 8: Reg
zones (red da
gional geolog
ashed line ellip
gical map of th
pses) 4km and
he area near B
d 10km north‐
Bongou showi
‐east of the Bo
ing location of
ongou artisan
f two target
nal workings.
‐ 8 ‐
PREDICTIVE DISCOVERY LIMITED
REVIEW OF OPERATIONS…..
30 JUNE 2013
Bongou Metallurgical Test Work
A program of preliminary metallurgical test
work was carried out with the aim of providing
an indication of potential gold recovery by
standard CIL treatment. One sample was
submitted for metallurgical test work, weighing
20kg, obtained from seven RC drill holes. The
test work was carried out at SGS’s Perth
laboratories under the supervision of Coffey
Mining. A mineralogical study was also carried
out by Roger Townend and Associates.
All of the sampled intervals in the Bongou
composite sample were of primary
(not
oxidised) mineralisation. A 500g screen fire
assay of the composite sample at SGS in Perth
gave a head grade of 2.92g/t (per tonne of ore)
Au and a multi‐element ICP analysis indicated
low levels of potentially deleterious elements
(e.g. arsenic and antimony).
The sample was ground to 75 microns and
subjected to a standard cyanide leach test over
72 hours. Gold recovery was 94% at the end of
the test with 90% recovered in the first four
hours (Figure 9). Cyanide and lime consumption
were 2.0kg/t and 0.3kg/t respectively. Cyanide
consumption was not optimised and is expected
to decrease considerably in future testing when
oxygen
levels
expected in a commercial CIP plant.
increased to the
levels are
OTHER DRILLING PROGRAMS
LATERITE HILL GOLD FIELD (PDI 100%)
PDI completed two RC drilling programs,
totalling 1,590m, at Prospect 71 and the
Madyabari artisanal site during the 2012‐13
year.
PROSPECT 71
Prospect 71 covers a laterally extensive bedrock
geochemical anomaly within the Laterite Hill
Gold Field (Figure 2). Four holes totalling 320m
were drilled to follow up drilling results
obtained previously by PDI and a former
explorer, Emerging African Gold, including 4m
at 15g/t Au and 4m at 7.5g/t Au. One
significant intersection was obtained – 3m at
6.1g/t Au including 1m at 14g/t Au.
Figure 9: Graph of gold recovery vs. time – Bongou Prospect composite sample.
‐ 9 ‐
PREDICTIVE DISCOVERY LIMITED
REVIEW OF OPERATIONS…..
MADYABARI PROSPECT
Madyabari is the site of an artisanal miner gold
rush which was first reported in November
2012. At least 2,000 artisanal shafts have been
excavated there, most of them since July 2012.
Seventeen vertical RC holes, totalling 1,590m,
were drilled at Madyabari on an 80 x 80m grid.
About half of the drill holes intersected gold
anomalous quartz veins in weathered volcanics
at shallow depths. Based on the drilling results
and the artisanal miners’ own descriptions,
these veins appear
to be approximately
horizontal. The best drill intercepts were 3m at
8.3g/t Au from 23m, including 1m at 23g/t Au
and 2m at 8.3g/t Au from 34m including 1m at
14g/t Au.
In several holes, voids were
intersected suggesting that possible high grade
quartz vein material had already been removed
by the artisanal miners.
While there is no doubt that artisanal miners
have been recovering a significant amount of
gold from the site and that the flat dipping
quartz vein system extends over an area of
more than five hectares, it appears that the
high grade distribution is very “nuggetty” and
therefore difficult to drill test effectively. No
further drilling is planned in the short term.
DAVE PROSPECT (PDI 100%)
Geological Assessment
The Dave Prospect is known to consist of
multiple gold mineralised zones extending for
at least 5.5km along strike and several hundred
metres across strike (Figures 1 and 8). Artisanal
workings extend for approximately 600m of
strike. But the gold mineralisation is much more
extensive than these workings; it is buried
under a thin ferricrete
layer east of the
workings, and under alluvium derived from the
Sirba River west of the workings. The gold
mineralised system may extend for up to 10km
further to the west, concealed beneath the
Sirba River which bedrock power auger drilling
is unable to penetrate.
Gold mineralisation is hosted in intermediate
volcanic rocks with lesser amounts of mafic to
intrusive rocks. PDI’s analysis
intermediate
30 JUNE 2013
suggests that gold mineralisation has been
deposited in a broad ENE oriented shear zone
largely on the margins of small mafic layers or
in small shears. Weathering extends to an
average depth of approximately 50m.
In
general, gold grades are moderate, with many
assays recorded in the 1 to 2g/t Au range,
however significantly higher grade intercepts
are also present (e.g. 26m at 5.0g/t Au).
Re‐logging of the Dave Prospect RC drill chips by
an MSc student from the Camborne School of
Mines in the United Kingdom commenced in
June 2013. This work forms part of a larger
geological study designed to integrate all of the
past work on this large gold mineralised system.
Apart from the extensive drilling programs, the
past work has included geological mapping,
airborne magnetics, bedrock geochemical
drilling, whole rock analysis using a hand‐held
XRF machine,
in‐hole
trenching
photographic imaging. The result of this study
will be a 3D interpretation of the geology and
mineralisation. If possible, this may then be
used to undertake a JORC Resource estimate.
and
Metallurgical Testwork
A program of preliminary metallurgical test
work was carried out with the aim of gaining a
preliminary understanding of the potential for
gold recovery by heap leaching the oxidised
Dave gold mineralisation. The test work was
carried out at SGS’s Perth laboratories under
the
of Coffey Mining. A
mineralogical study was also carried out by
Roger Townend and Associates.
supervision
One composite sample from seven RC drill
holes weighing 20kg was submitted
for
metallurgical test work. A 500g screen fire
assay of the composite sample at SGS in Perth
gave a head grade of 1.45g/t Au and a multi‐
element ICP analysis indicated low levels of
potentially deleterious elements apart from
minor arsenic (580ppm).
The sample was
largely composed of fine
material as a result of the RC drilling process. It
further
was therefore taken without any
grinding and subjected to an intermittent bottle
roll in a weak cyanide solution for a period of
ten days.
‐ 10 ‐
PREDICTIVE DISCOVERY LIMITED
REVIEW OF OPERATIONS…..
30 JUNE 2013
Most gold was extracted very quickly with 70%
gold recovery achieved after just 4 hours and
81% after one day. At the end of the test 89%
of the gold had been recovered. Had the
material been ground to 75 microns, a slightly
higher recovery may well have been achieved.
Cyanide consumption was low at just 0.3kg/t
with lime consumption at 2.9kg/t.
BIRA PERMIT (PDI 100%)
This new permit covers an area of 21km2 in the
north‐eastern portion of the Bonsiega block of
tenements (Figure 2) and was granted
in
February 2013.
PDI has been interested in this area since 2010
the
it commenced exploration on
when
adjacent permit. Until late last year, the area
was unavailable for application because it was
covered by a uranium exploration reserve. PDI
applied for the ground after this reserve was
removed.
The area was explored by Anglo American
through its subsidiary Anmercosa in the late
1990’s. PDI holds a database of Anmercosa
information including soil geochemistry and RC
drill data from the Bira permit.
The RC drill data includes a series of very
encouraging gold intersections (Figures 10 and
11). While PDI does not have access to the
quality control data and the original laboratory
assay files, it has verified the location of some
of the drill holes on the ground.
Figure 10: Plan view of historic drill results from the Bira permit, Burkina Faso.
‐ 11 ‐
PREDICTIVE DISCOVERY LIMITED
REVIEW OF OPERATIONS…..
30 JUNE 2013
Gold mineralisation was intersected in a series
of holes extending over more than 1km of
strike. Some of the best intercepts (e.g. 14.5m
at 3.1g/t Au and 13m at 2.5g/t Au) were
obtained in a series of shallow angled holes in
two lines in the HL10 series of holes (Figure 10)
which were drilled to depths of 15 to 30m.
The consistency of reported intercepts from
section to section and down‐dip from hole to
hole (Figure 11) in the southern part of the
drilled area suggests good continuity, which, if
confirmed by PDI’s drilling, will be important for
the delineation of a JORC resource in the future.
During 2012‐13, PDI carried out a ground
magnetic survey, totalling 161 line km, and a
power auger bedrock drilling program totalling
77 holes and 936m. Power auger drill samples
were collected at the interface between the
overlying cover and the weathered bedrock and
analysed by for gold by AAS at SGS
in
Ouagadougou.
The ground magnetic survey revealed a new
structure, parallel to the Bira trend, under
alluvial cover 2km west of the known Bira
Prospect. The power auger drilling, designed to
test this structure, was not completed because
of wet, thick alluvial cover. As a result, the
highest priority interpreted structure was only
intersected by
lines, one of which
encountered a 50m wide anomalous zone
peaking at 104ppb Au.
two
Figure 11: Cross section through the Bira gold mineralisation. No vertical exaggeration.
‐ 12 ‐
PREDICTIV
VE DISCOVER
D
RY LIMITED
REVIEW
OF OPERAT
TIONS…..
30 JU
UNE 2013
BANGA
ABA PERM
IT (PDI ea
%)
arning 95%
BACKGRO
OUND
The Bang
(Figure 2
mining. P
km2 Bang
series of
PDI’s equ
gaba project
) covers are
DI is earning
gaba explora
staged paym
ity now stan
t in Eastern
eas of exte
g a 95% inte
ation permit
ments in ca
ds at 84%.
n Burkina Fa
nsive artisa
rest in the 1
t by making
sh and shar
aso
nal
128
g a
res.
PDI estim
produced
over the
located o
and sout
diorite bo
site is loca
t artisanal
mates that
several to
nnes of go
rs. Artisana
past 30 yea
ctures on t
on two stru
ntacts of a
th‐east con
12). A large a
ody (Figure 1
a.
ated at Solna
miners ha
ld at Banga
al workings a
the north‐w
granodiori
rtisanal min
ave
aba
are
est
ite‐
ing
C and diamo
RC
m
major sites
ambiri, have
Ta
interc
rade
gr
in
ncluding: 6m
t 17g/t Au, 7
at
u. No superg
A
ear surface s
ne
rades may pe
gr
ond drilling
of artisana
e encounter
in pr
epts
at 20g/t Au
7m at 13g/t
gene enrichm
so it is possi
ersist to con
programs a
l mining, S
red a serie
rimary mine
u, 2m at 56g
Au and 5.6m
ment is evid
ible that the
siderable de
at the two
Solna and
s of high
eralisation
g/t Au, 5m
m at 16g/t
dent in the
e high gold
epths.
RC DRILLIN
R
G PROGRA
AM
n the 2012‐1
In
rilling prog
dr
Ba
angaba per
esting the Ta
te
Figure 12).
(F
13 year, PD
ram, totalli
mit. The d
ambiri South
DI carried ou
ing 1,225m
rilling was
h and Solna
ut one RC
m on the
aimed at
Prospects
.
Figure 12: Ba
ngaba Permit
location of be
t showing loca
edrock geoche
ation of Tamb
emical anoma
biri South and
alies is outlined
Solna Prospec
d in pink ellips
cts. Approxim
ses.
ate
‐ 13 ‐
PREDICTIV
VE DISCOVER
D
RY LIMITED
REVIEW
OF OPERAT
TIONS…..
30 JU
UNE 2013
Tambiri S
South Drilli
ng
is
mbiri South
ately 1.5km
mbiri Prospe
ineralised s
00m apart
d in an area
to have enc
t
locat
h Prospect
the previou
m south of t
12) and on t
ect (Figure 1
ive RC hol
tructure. Fi
g 530m, we
and totallin
toric drilling
a where hist
p to 6m at 5
countered up
ted
sly
the
es,
ere
g is
5.2
The Tam
approxim
drilled Ta
same mi
spaced 1
complete
reported
g/t Au.
All five ho
quartz‐ve
intercept
including
Tambiri p
vein zone
continuou
oles intersec
ined mafic
being 4m
1m at 14g
prospect, th
e is steeply d
us.
cted gold mi
volcanics w
at 6.1g/t A
g/t Au. As
e gold‐mine
dipping and
ineralisation
with the be
Au from 83
at the ma
eralised qua
appears to
in
est
3m
ain
rtz
be
Interpreta
Tambiri P
shoot has
that there
shoot at
depths be
ation of the
Prospect show
s a sub‐horiz
e is potentia
Tambiri S
elow the 4m
e drill result
ws that the
zontal plunge
l to discover
South at sl
m at 6.1 g/t
ts at the ma
high grade o
e. PDI believ
r a comparab
ightly great
t Au interce
ain
ore
ves
ble
ter
pt.
Ad
dditional de
o test this tar
to
eper drilling
rget.
g is therefore
e required
olna Prospe
So
ect Drilling
Si
x RC holes,
So
olna to test
hoots. Gold m
sh
f the six hole
of
m at 26g/t A
2m
u. Several
A
reviously un
pr
mineralised q
m
11
1.7g/t Au fro
Figure 13).
(F
, totalling 6
for high gra
mineralisatio
es. The highe
Au from 70m
intercepts
recognised
quartz veins,
om 12 m inc
688m, were
ade sub‐hori
on was obtai
est grade inte
m including 1m
were obtai
and/or unm
the best be
cluding 1m a
drilled at
izontal ore
ned in five
ercept was
m at 51g/t
ined from
mined gold‐
eing 2m at
t 21g/t Au
lthough drill
Al
go
interse
old
mineralisation
m
otential still
Po
mount of
am
ho
owever PDI’s
argets with
ta
ongou.
Bo
ling at Solna
ctions, geo
n are no
l exists to
high grade
s immediate
better co
a has gener
ological con
t well un
discover a
gold mine
focus is on
ntinuity, su
ated good
ntrols on
nderstood.
significant
eralisation,
high grade
uch as at
igure 13: Soln
Fi
a drill results
– plan view
‐ 14 ‐
PREDICTIVE DISCOVERY LIMITED
REVIEW OF OPERATIONS…..
30 JUNE 2013
METALLURGICAL TESTWORK
initial
A program of preliminary metallurgical test
work was carried out with the aim of obtaining
an
indication of gold recoveries by
standard CIL treatment of gold mineralisation
from the Solna and Tambiri Prospects. Two
samples were submitted for metallurgical test
work, one from each prospect, each weighing
20kg. All samples were obtained from RC drill
holes.
The test work was carried out at SGS’s Perth
laboratories under the supervision of Coffey
Mining. A mineralogical study was also carried
out by Roger Townend and Associates.
Solna Metallurgy
The composite sample consisted of primary
mineralisation containing minor sulphides. A
500g screen fire assay of the composite sample
at SGS in Perth gave a head grade of 7.65g/t Au
and a multi‐element ICP analysis indicated low
levels of potentially deleterious elements. The
sample was ground to 75 microns and subjected
to a standard cyanide leach test over 72 hours.
Gold recovery was 96% at the end of the test
with 91% recovered in the first four hours.
Cyanide and lime consumption were 1.9kg/t
and 0.3kg/t respectively. Cyanide consumption
was not optimised and is expected to decrease
considerably in future test work.
Tambiri Metallurgy
low
indicated
Again,
the sample consisted of primary
mineralisation. A 500g screen fire assay of the
composite sample at SGS in Perth gave a head
grade of 3.55g/t Au and a multi‐element ICP
analysis
levels of potentially
deleterious elements. The sample was ground
to 75 microns and subjected to a standard
cyanide
Gold
leach test over 72 hours.
recovery was 93% at the end of the test with
85% recovered in the first four hours. Cyanide
and lime consumption were 2.0kg/t and 0.3kg/t
respectively. Again, cyanide consumption was
not optimised and is expected to decrease in
future test work.
Figure 14: Polished section of RC chips from the Solna Prospect at high magnification showing a composite
grain of pyrite (grey) and gold (yellow).
‐ 15 ‐
PREDICTIV
VE DISCOVER
D
RY LIMITED
REVIEW
OF OPERAT
TIONS…..
30 JU
UNE 2013
TYEKAN
YEBI PROJ
JECT (PDI 1
100%)
B
OUSSOUM
MA PERMIT
(PDI earni
ing 95%)
This whol
Decembe
western e
hosts the
Niger, re
mining sit
ermit was gra
ly owned pe
is located o
r 2010. It
f a greensto
extension of
ngou artisan
e Koma Ban
e
largest a
eputedly th
untry.
te in that cou
anted to PDI
on the sout
one belt whi
nal working
artisanal go
in
th‐
ich
in
old
the
Work du
consisted
power a
samples w
holes wer
uring
of geologic
uger geoch
were collect
re drilled, tot
f
financial ye
2012‐13
g and soil a
cal mapping
ling. 305 s
hemical dril
8 power aug
ted and 108
.
talling 301m
ear
nd
soil
ger
The soil
gold value
a closer
drilling pr
north‐eas
Prospect
Golden R
2013, GM
intersecti
• GRC0
• GRC0
Power au
interface
weathere
AAS at SG
drilling id
with a pe
to the nor
sampling re
es and was t
spaced po
rogram. Both
st of and alo
on the G
Rim Resourc
MR reporte
ons, includin
01 – 6m at 6
05 – 6m at 5
ger drill sam
between th
ed bedrock a
GS in Ouaga
dentified a
eak value of
rth‐east (Figu
evealed som
therefore fol
ower auger
h surveys we
ong strike fr
andhi perm
ces (ASX: G
ed a series
ng:
6.9g/t Au fro
5.1g/t Au fro
mples were co
e overlying
nd analysed
dougou. The
1km long g
210ppb Au,
ure 15).
me anomalo
llowed up w
r geochemi
ere carried o
rom the Tye
mit owned
MR). In Ap
s of RC d
ous
ith
cal
out
ena
by
pril,
drill
m 59m
m 103m
ollected at t
cover and t
by for gold
e power aug
gold anoma
which is op
he
he
by
ger
aly
en
in
Bo
oussouma
mineralised B
m
aso (Figure 2
Fa
of
f artisanal go
reas covered
ar
f the Bousso
of
ption paym
op
xcellent as it
ex
om Ouagado
fr
f Dori in nort
of
is
located
Boromo Bel
2). The perm
old workings
d by thin cov
ouma permi
ents. Acces
t is crossed
ougou to the
th‐east Burki
the v
lt in centra
mit contains
s and large u
er. PDI is ea
it through a
s into the
by the bitu
e large regio
ina Faso.
very well
al Burkina
a number
unexplored
arning 95%
a series of
permit is
umen road
onal centre
work prog
he 2012‐13
Th
drill holes, t
po
ower auger
This work
oil samples.
so
ide
targets
t
tructural
st
c surveys an
ae
eromagnetic
w up on enc
nd to follow
an
r drill resu
ower auger
po
season.
revious field
pr
ted of 97
gram consist
totalling 674
m, and 21
ed to test
was designe
earlier
y
by
entified
nd geologica
l mapping
ouraging wi
de spaced
in the
ed
ults obtaine
samples w
Po
ower auger
ween the ov
in
nterface betw
edrock and a
weathered be
w
in Ouaga
S
AS at SGS
AA
ouraging re
btained enc
ob
two lines 70
pp
pb Au, on t
ery widely sp
nomalous ve
an
ed trend 3
WNW orient
W
drilling is re
po
ower auger
etermine wh
re
esults and de
part of the s
re
esults form p
one.
zo
were collecte
verlying cove
nalysed by f
adougou. T
sults, peaki
00m apart.
paced results
long.
3km
equired to i
hether the a
same gold m
ed at the
er and the
for gold by
This work
ng at 519
Additional
s suggest a
Additional
nfill these
anomalous
mineralised
Figure 15: Co
magery backg
im
of the boun
ontoured Tyek
ground. Repor
ndary (thick bl
kanyebi powe
rted locations
ack line) betw
r auger bedro
of Golden Rim
ween PDI’s Tye
ock geochemis
m Resources’ r
ekanyebi Perm
stry results sh
recent RC drill
mit and GMR’s
lite
own on satell
l collars are so
outh
it.
s Gandi Permi
‐ 16 ‐
PREDICTIV
VE DISCOVER
D
RY LIMITED
REVIEW
OF OPERAT
TIONS…..
30 JU
UNE 2013
COT
TE D’IVO
IRE
BACKGRO
OUND
work on Co
Detailed w
two to thr
the past
a series of h
identify a
i
targets
n Cote D’
has been w
Company
oration perm
five explo
ea of 1,700 k
a total are
and Ferkess
Kokumbo
3 and a f
July 2013
on (Figure
applicatio
ons to PDI is
applicatio
te D’Ivoire d
ree years h
igh priority
Ivoire. As
working on s
its in the cou
km2. Of these
sedougou, w
further thre
16). Grant
not guarante
data sets ov
as led PDI
prospects a
a result, t
securing up
untry, coveri
e, two permi
were granted
ee are und
of the thr
eed.
ver
to
nd
the
to
ing
its,
d in
der
ree
KOKUM
BO (PDI e
earning 90%
%)
The perm
Negoce a
southern
Located
administr
about 40
Bonikro G
bitumen
covered b
lateritic co
company Iv
by local c
mit is held
f 400 km2
an area o
and covers
s 16 and 1
oire (Figures
Cote D’Ivo
countr
t
uth of
so
30km
he
ssoukro, a
tal, Yamou
rative capit
st’s operati
0km north
of Newcre
s serviced by
he permit is
Gold Mine, t
e. The area
a power line
road and a
rolling hills
by forested
and extens
over.
oir
in
7).
ry’s
nd
ing
y a
is
ive
‐ 17 ‐
Th
he town of
ermit, servi
pe
rtisanal mine
ar
pr
rospects thro
onsist of bot
co
rocessing of
pr
Kokumbo, n
ces a subs
ers who are
oughout the
h quartz vei
gold minera
near the cen
tantial pop
working on
area. These
n mine oper
lised laterite
ntre of the
ulation of
numerous
e prospects
rations and
e.
in
es within the
he permit lie
Th
o belt
O
ume‐Fetekro
ure 17). The
eology (Figu
ge
n
the per
rospects on
pr
ouadia and K
okumbo, Ao
Ko
s contain qu
ll three sites
Al
in multip
n
mineralisation
m
clude mafic
H
ost rocks in
Currently, th
an
nd granite. C
kings is at Ao
rtisanal work
ar
e volcano‐se
an area of
e three prin
rmit are k
Kpolessou (F
uartz vein‐ho
ple vein or
volcanics, b
he most acti
ouadia.
edimentary
f complex
ncipal gold
known as
Figure 17).
osted gold
ientations.
black shale
ve area of
Ko
okumbo has
da
ating back to
9th century.
19
arried out b
ca
th
he twentieth
m
mining in the
rtisanal mine
ar
s a long histo
o before col
Commerc
y various pa
century unt
e area has
ers.
ory of artisa
onial times
cial scale m
arties in fro
til 1953. Sinc
been carrie
nal mining
in the late
mining was
m early in
ce then, all
ed out by
ocality map of
sts in Cote
reas signify
d sedimentary
mits that have
ed are in brown
s
mit applications
Figure 16: Lo
PDI’s interes
D’Ivoire.
Notes:
(1) Green ar
volcanic and
rocks,
(2) PDI perm
been grante
and the perm
are in blue,
ares are
(3) Red squa
old mines and
operating go
ots are plus 1
magenta do
s
ce gold deposits
million ounc
u and
(e.g. Agbaou
f which one,
Sissingue) of
currently under
Agbaou, is c
n,
construction
li is along strike
(4) Boundial
ute’s Syama
from Resolu
mine and
operating m
roposed
Perseus’s pr
peration.
Sissingue op
PREDICTIV
VE DISCOVER
D
RY LIMITED
REVIEW
OF OPERAT
TIONS…..
30 JU
UNE 2013
In the
geologica
sampling,
drilling.
compliant
gold depo
reported t
1980’s Cote
l agency,
pitting,
resourc
A
t) was made
osits at Koku
to exceed 3g
s governme
e D’Ivoire’s
carried o
SODEMI,
ophysics a
ground ge
JO
(not
e
e estimate
l and colluv
e on alluvia
average grad
umbo with a
g/t Au.
ent
out
nd
RC
vial
des
Between
soil samp
and RC dr
Published
that gold
gold drill
one of 12
2002 and 20
pling, aerom
rilling over p
d Equigold q
soil geochem
intercepts
2m at 2.5g/t
007 Equigold
magnetic surv
parts of the c
quarterly re
mical anoma
were obta
t Au from su
NL carried o
veys, and R
current perm
eports indica
alies and som
ined includi
urface. At t
out
AB
mit.
ate
me
ing
the
me, most o
tim
he
eld separate
co
overed with
eophysical su
ge
f the Aouad
ely and has
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urvey.
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therefore
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, PDI reache
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nt with the
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nt were as
In
n June 2013,
ocal owner
lo
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ollows:
fo
•
PDI can
US$2 mil
Minimum
withdraw
earn 90% th
lion within 4
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re commitm
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enditure of
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•
Figure 17:
Geology and
Note: geo
location of re
ology obtained
eported and/o
d from a Gove
or observed go
ernment geolo
old artisanal m
ogical map.
mining sites.
Figure
18: Surface a
artisanal work
ings on the Ao
ouadia Prospe
ect, Kokumbo
Permit.
‐ 18 ‐
PREDICTIVE DISCOVERY LIMITED
REVIEW OF OPERATIONS…..
30 JUNE 2013
•
•
PDI to make cash payments over three
years totalling US$375,000 as follows:
o US$25,000 on receipt of the signed
the
Presidential Decree awarding
permit,
o US$50,000 on the first anniversary,
o US$100,000 on the second anniversary,
o US$200,000 on the third anniversary.
In addition, PDI will issue to Ivoir Negoce
US$25,000 worth of PDI shares on receipt
first
of the Presidential Decree. The
payment and share issue were made in
August 2013.
PDI to carry Ivoir Negoce’s 10% share of
expenditure until the decision to mine at
which time
Ivoir Negoce must decide
whether it will pay back its 10% share of
expenditure after earn‐in or convert to a
3.5% NSR. PDI can purchase up to 2% of
the above NSR (leaving Ivoir Negoce with
1.5%), at any time at a price of US$1
million for each 1%.
FERKESSEDOUGOU (PDI earning 100%)
16)
and
(Figure
The Ferkessedougou permit is located in northern
covers
Cote D’Ivoire
approximately 390km2. It was among the highest
priority areas highlighted by PDI’s Predictore®
analysis of the country and is reported to contain
a series of gold occurrences. This permit was
granted in July 2013.
OTHER PERMIT APPLICATIONS
Three other exploration permit applications
covering approximately 920km2 are currently
being considered by the Cote d’Ivoire Ministry
of Mines (Figure 16). Of these, two ‐ Boundiali
and Kounahiri – are PDI applications. The third,
Komboro, is an application made by a third
party with which PDI negotiated an agreement
in 2011‐12. Should all these permits be granted,
the Company would then hold 1,710 km2 of
highly prospective gold exploration ground in
Cote D’Ivoire.
The Boundiali exploration permit application is
of particular interest. It is located within the
same greenstone belt as the Syama, Sissingue
and Tongon gold deposits (Figure 16). The
permit application lies directly along strike from
Syama and Sissingue. Syama is a large gold
mine in Mali owned by Resolute Mining Limited
(ASX: RSG) and Sissingue is an undeveloped
gold deposit in northern Cote D’Ivoire owned
by Perseus Mining Limited (ASX:PRU).
Favourable geology in the Boundiali permit
includes a mixture of granite, schist, gabbro and
sedimentary rocks. Numerous gold occurrences
are recorded on geological maps and other
databases. A major shear zone is also mapped
through the permit, which has the potential to
host gold mineralization.
VICTORIA
AUSTRALIAN GOLD PROJECT
August 2013.
PDI has only one project remaining in Australia
– in Victoria, west of Ballarat. The Company’s
objective there is the discovery of a large gold
deposit on the margins of one of more
concealed volcanic domes beneath basalt cover
(cf. the 5 million ounce Stawell gold deposit in
Western Victoria).
Work done on the project in 2012‐13 consisted
of limited amount of geological mapping and
geophysical data interpretation. PDI surrendered
the Skipton Exploration Licence during 2012‐13
and has since surrendered the Woady Creek
Exploration Licence. A new Exploration Licence,
EL5434, covering 150 km2 was granted to PDI in
Figure 19: EL5434 outline on a satellite image,
located south‐west of Ballarat, Victoria
‐ 19 ‐
PREDICTIVE DISCOVERY LIMITED
REVIEW OF OPERATIONS…..
30 JUNE 2013
CORPORATE
PDI listed on 1st December 2010, following a
IPO. The Company
heavily oversubscribed
raised $4.2 million during 2012‐2013 via a rights
issue in July 2012 and a placement in November
2012.
The Company took a number of steps to reduce
its overhead costs during 2012‐2013. The
Australia‐based Exploration Manager was
retrenched and the Burkina Faso team was
reduced in size significantly, leaving PDI with a
core group of four experienced geologists in the
country. Office costs were also reduced by sub‐
letting office space. PDI’s Board was also
reduced from five to three members during the
year in the interest of reducing overhead costs.
OUTLOOK
BURKINA FASO
PDI’s immediate focus continues to be on high
grade gold targets with strong evidence of good
gold mineralisation continuity. The first priority
in the 2013‐2014 field season is therefore to
drill additional holes at Bongou, where drilling
revealed high grade gold
in 2012‐2013
mineralisation
continuity.
Exploration will also be carried out on the
Laterite Hill Gold Field, especially along the
good
with
42km strike length of the Bongou structure to
identify more high grade gold targets.
Limited exploration of other areas will be
carried out to ensure that the entire tenement
holding remains in good standing, focused on
testing prospects with potential for high gold
grades and good ore continuity.
The Company’s key objective is to build an
inventory of high grade resources as a nucleus
for a future mining operation and then return
grade
to
already been
mineralisation which has
identified
in the
Laterite Hill Gold Field.
in reconnaissance drilling
the more moderate
testing
COTE D’IVOIRE
PDI will commence low key exploration on its
two granted permits in October 2013. Work will
commence with compilation of past data,
geological mapping, ground magnetic surveys
and geochemical sampling. The initial aim of
the 2013‐2014 work program will be to identify
targets for reconnaissance RAB drilling.
VICTORIA
The Company will carry out a
limited
geophysical and geological mapping program
aimed at identifying a Stawell type drilling
target on EL5434.
Competent Persons Statement
The exploration results reported herein, insofar as they relate to mineralisation, are based on information compiled by Mr Paul
Roberts (Fellow of the Australian Institute of Geoscientists). Mr Roberts is a full time employee of the company and has
sufficient experience relevant to the style of mineralisation and type of deposits being considered to qualify as a Competent
Person as defined by the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves (the JORC Code, 2004 Edition). Mr Roberts consents to the inclusion in the report of the matters based on his
information in the form and context in which it appears.
‐ 20 ‐
PREDICTIVE DISCOVERY LIMITED
30 JUNE 2013
DIRECTORS’ REPORT
Your directors present their report for the financial year ended 30 June 2013.
The names of the directors in office at any time during, or since the end of the year are:
NAMES
Mr Phillip Harman
Mr Paul Roberts
Mr Philip Henty
Dr Thomas Whiting
Dr Robert Danchin
POSITION
Non‐Executive Chairman
Managing Director
Non‐Executive Director
Non‐Executive Director
Non‐Executive Director
(resigned 21 May 2013)
(resigned 21 May 2013)
The Directors have been in office since the start of the financial year to the date of this report unless
otherwise stated.
COMPANY SECRETARY
Mr Ian Hobson holds a bachelor of business degree and is a Chartered Accountant and Chartered
Secretary. Mr Hobson provides company secretarial and corporate, management and accounting
advice to a number of listed public companies involved in the resource, mining services and oil and gas
industries. He was appointed on 17 September 2010.
PRINCIPAL ACTIVITIES
During the financial year, the principal activity of The Group was mineral exploration with the objective
of identifying and developing economic reserves in West Africa and Australia.
OPERATING RESULTS FOR THE PERIOD
The consolidated loss of The Group for the financial year after providing for income tax amounted to
$1,057,479 (2012: $2,706,350). This was largely from the costs of administering The Group to 30 June
2013, impairment of exploration and exploration costs.
REVIEW OF OPERATIONS
In the year to June 2013, Predictive Discovery Limited (PDI) undertook a substantial and successful work
program. Capital raisings during the year totaled $4,177,969 million via a rights issue in July 2012 and a
placement in November 2012. Staff numbers were reduced in both Australia and Burkina Faso
reflecting the difficult capital raising environment during the year. One permit was granted in Burkina
Faso, covering 21 km2 and a second permit, covering 74 km2 was close to grant at June 2013; both areas
form part of the Bonsiega Permit Group.
Exploration programs in Burkina Faso were focused especially on the Madyabari, Sirba, Bangaba,
Tyekanyebi and Boussouma exploration permits. 9,100m of drilling was completed, consisting of
4,700m of reverse circulation and 4,400m of power auger drilling. 129 km2 of tenement area was
geologically mapped and 242 line km surveyed with ground magnetics and induced polarization
surveys.
‐ 21 ‐
PREDICTIVE DISCOVERY LIMITED
DIRECTORS’ REPORT….
30 JUNE 2013
Very promising drill results were obtained on the Laterite Hill Gold Field and the Bangaba permit
including 48m at 4.3 g/t Au, 26m at 6.9g/t Au and 10m at 7.4g/t Au at the Bongou Prospect (Madyabari
permit) and 2m at 26/t Au at the Solna Prospect (Bangaba permit). This work highlighted the potential
of the 43km long Bongou Fault Zone.
Preliminary metallurgical testwork results on the Bongou, Tambiri, Solna and Dave Prospects in Eastern
Burkina Faso resulted in excellent gold recoveries from all four prospects.
Project generation activities in West Africa, using the Predictore® technology, continued during the
year. This led to application for three permits in Cote D’Ivoire, covering a total area of 1,140km2 and
successful negotiations with an Ivoirian company to acquire a fourth permit, Kokumbo, covering
400km2. At the end of June, both Kokumbo and one of the three PDI applications, Ferkessedougou, had
been approved by the Council of Ministers, the final step before receipt of the Presidential Decrees
granting the two permits.
The Company surrendered its Skipton Exploration Licence in Victoria, reducing the Company’s holdings
there to one 2 km2 granted Exploration Licence.
DIVIDENDS PAID OR RECOMMENDED
No dividends were paid or declared since the start of the financial year. No recommendation for
payment of dividends has been made.
FINANCIAL POSITION
The net assets of The Group have increased by $5,069,619 from 30 June 2012 to 30 June 2013. This
increase is largely due to the following factors:
• $4,177,969 capital raising;
• Expenditure on exploring and evaluating the assets in Burkina Faso; and
• $787,500 share‐based payment to acquire the balance of El Dore Joint Venture permits.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
No significant changes in The Group’s state of affairs occurred during the financial year.
EVENTS SUBSEQUENT TO BALANCE DATE
In accordance with the purchase agreement for the Cote d’Ivoire Kokumbo permit, the Company has
paid the first instalment of USD$25,000 and issued USD$25,000 worth of shares on 20 August 2013 to
Ivoir Negoce. No other matters or circumstances have arisen for the year which significantly affected or
could significantly affect the operations of the Group, the results of those operations, or the state of
affairs of the Group in future financial years.
FUTURE DEVELOPMENTS
Likely developments in the operations of The Group and the expected results of those operations in
future financial years have not been included in this report, as the inclusion of such information is likely
to result in unreasonable prejudice to The Group.
‐ 22 ‐
PREDICTIVE DISCOVERY LIMITED
30 JUNE 2013
DIRECTORS’ REPORT….
ENVIRONMENTAL ISSUES
The Group’s operations are subject to significant environmental regulations under both Commonwealth
and State legislation. The Board believes that The Group has adequate systems in place for the
management of its environmental regulations and is not aware of a breach of those environmental
requirements as they apply to The Group.
INFORMATION ON DIRECTORS
Mr Phillip Harman
Non‐Executive Chairman
Qualifications
Experience
BSc (Hons), MAusIMM, MAICD
Mr Harman is a professional geophysicist who spent more
than 30 years working for BHP Billiton in minerals exploration
in a broad number of roles both technical and managerial,
both in Australia and overseas. Mr Harman was material in
bringing BHP Billiton’s proprietary FALCON® airborne gravity
gradiometer technology to Gravity Capital Limited in 2001,
which was the precursor to Gravity Diamonds Limited.
Interest in Shares and Options
Shareholding: 3,398,258
Optionholding: 1,095,469
listed
Directorships held
entities during the three years prior to
the current year
in other
Callabonna Uranium Limited and Stellar Resources Limited.
Mr Paul Roberts
Managing Director
Qualifications
Experience
BSc, MSc, FAIG, MGSA
Mr Roberts has a long and successful history in mineral
exploration management and mine geology both in Australia
and overseas. He was responsible for discovery of the Henty
gold deposit and major extensions to the St Dizier tin deposit
both in Tasmania, as well as resource evaluations of the
Kuridala copper gold deposit
in North Queensland, the
Bongara zinc deposit in Peru and a number of gold deposits in
the Cue and Meekatharra districts in Western Australia.
In addition, Mr Roberts led the Predictive Mineral Discovery
CRC’s research effort from 2002 to 2007, and therefore has a
deep understanding of the practical application of the
Predictore® technology to mineral exploration.
Interest in Shares and Options
Shareholding: 3,702,079
Optionholding: 1,825,000
listed
Directorships held
entities during the three years prior to
the current year
in other
None
‐ 23 ‐
PREDICTIVE DISCOVERY LIMITED
DIRECTORS’ REPORT….
30 JUNE 2013
Dr Thomas Whiting
Non‐Executive Director – (resigned 21 May 2013)
Qualifications
Experience
BSc (Hons), PhD, MAppFin, MASEG, MAICD
Dr Whiting is currently a consultant, having retired from BHP
Billiton in 2008, after a distinguished career covering 30 years.
He is a widely respected explorer with profound insights on
the need for innovation in the mineral exploration sector. Dr
Whiting was Vice President of Minerals Exploration for BHP
Billiton from 2000 to 2004.
led the use of
in his career, he
Earlier
innovative
reconnaissance airborne geophysical techniques which led to
the discovery of the Cannington lead zinc silver mine in North
Queensland and the development and deployment of the
FALCON®
first airborne gravity
gradiometer.
the world’s
system,
Interest in Shares and Options
Shareholding: 1,791,942
Optionholding: 705,469
Directorships held
listed
entities during the three years prior to
the current year
in other
Stellar Resources, EXCO Resources Ltd, Mineral Deposits
Limited.
Dr Robert Danchin
Non‐Executive Director – (resigned 21 May 2013)
Qualifications
Experience
BSc, BSc (Hons), MSc, PhD, FAusIMM
Dr Danchin has over 40 years’ experience in the exploration
industry. He was Chief Executive Officer of Anglo American
PLC’s Exploration and Acquisition Division and the Anglo
American Group’s Deputy Technical Director (Geology). From
1997 to 2002, he was an executive director of Anglo American
Corporation of South Africa Limited.
In 1980, he
joined Stockdale Prospecting Limited, (an
Australian subsidiary of De Beers) as Chief Geologist based in
Australia. He remained with that company for 15 years,
eventually becoming Exploration Manager heading up its
Australian‐based diamond exploration programme.
Interest in Shares and Options
Shareholding: Nil
Optionholding: 600,000
Directorships held
listed
entities during the three years prior to
the current year
in other
Mineral Deposits Limited
‐ 24 ‐
PREDICTIVE DISCOVERY LIMITED
DIRECTORS’ REPORT….
30 JUNE 2013
Mr Philip Henty
Qualifications
Experience
Non‐Executive Director
BA Acc, Dip SIA, F Fin
Mr Henty has extensive experience in the Australian securities
markets.
He has worked for nearly 30 years in stockbroking and
investments markets. His experience covers the equities,
derivatives and fixed interest markets and most aspects of the
securities
industry from dealing and advice through to
management, capital raising, investment management and
private investment.
Interest in Shares and Options
Shareholding: 10,929,688
Optionholding: 1,226,563
Directorships held
listed
entities during the three years prior to
the current year
in other
None
MEETINGS OF DIRECTORS
During the financial year, 10 meetings of directors (including committees of directors) were held.
Attendances by each director during the year were as follows:
DIRECTORS' MEETINGS
AUDIT COMMITTEE MEETINGS
NUMBER ELIGIBLE TO ATTEND
NUMBER ATTENDED
NUMBER ELIGIBLE TO ATTEND
NUMBER ATTENDED
Mr Phillip Harman
Mr Paul Roberts
Dr Thomas Whiting
Dr Robert Danchin
Mr Philip Henty
8
8
6
6
8
INDEMNIFYING OFFICERS OR AUDITORS
7
7
5
5
8
‐
‐
2
2
2
‐
‐
2
2
2
The Group has paid premiums to insure directors against liabilities for costs and expenses incurred by
them in defending legal proceedings arising from their conduct while acting in the capacity of director
of The Group, other than conduct involving a wilful breach of duty in relation to The Group. The terms
and conditions of the insurance are confidential and cannot be disclosed.
‐ 25 ‐
PREDICTIVE DISCOVERY LIMITED
DIRECTORS’ REPORT….
30 JUNE 2013
OPTIONS
At the date of this report, the unissued ordinary shares of Predictive Discovery Limited under option,
including those options issued during the year and since 30 June 2012 to the date of this report are as
follows:
GRANT DATE
20 August 2010
21 July 2011
26 July 2012
8 August 2012
10 October 2012
5 December 2012
5 December 2012
DATE OF EXPIRY
EXERCISE PRICE
NUMBER UNDER OPTION
20 August 2015
21 July 2015
30 June 2015
30 June 2015
30 June 2015
$0.25
$0.31
$0.10 to $0.20
$0.10 to $0.20
$0.10 to $0.20
30 October 2015
$0.15
11 July 2015
$0.10 to $0.20 *
TOTAL
6,000,000
500,000
3,756,075
1,000,000
875,000
2,000,000
3,500,000
17,631,025
* 3,500,000 unlisted options with an exercise price of 10 cents to 30 June 2013, 15 cents from 1 July
2013 to 30 June 2014 and 20 cents from 1 July 2014 to the expiry date on 30 June 2015.
During the year ended 30 June 2013, no ordinary shares of Predictive Discovery Limited were issued on
the exercise of options granted.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied for leave of Court to bring proceeding on behalf of The Group or intervene in any
proceedings to which The Group is a party for the purpose of taking responsibility on behalf of The
Group for all or any part of those proceedings.
The Group was not a party to any such proceeding during the year.
NON AUDIT SERVICES
The Board of Directors in accordance with the advice from the audit committee is satisfied that no
provision of non‐audit services was provided by the auditors during the year.
AUDITOR’S INDEPENDENCE DECLARATION
The auditors’ independence declaration for the year ended 30 June 2013 has been received and can be
found on page 35 of the financial report.
‐ 26 ‐
PREDICTIVE DISCOVERY LIMITED
DIRECTORS’ REPORT….
30 JUNE 2013
REMUNERATION REPORT (AUDITED)
REMUNERATION POLICY
It is the policy of the Company that, except in special circumstances, non executive directors normally
be remunerated by way of fixed fees, should not receive a bonus or options and should not be provided
with retirement benefits other than statutory superannuation.
The Board, within the limit pre‐approved by shareholders, determines fees payable to individual non
executive directors. The remuneration level of any executive director or other senior executive is
determined by the Board after taking into consideration levels that apply to similar positions in
comparable companies in Australia and taking account of the individual’s possible participation in any
equity based remuneration scheme. The Board may use industry wide data gathered by independent
remuneration experts annually as its point of reference. Options or shares issued to any director
pursuant to any equity based remuneration scheme require approval by shareholders prior to their
issue. Options or shares granted to senior executives who are not directors are issued by resolution of
the Board.
It is the policy of the Company that persons to whom options have been issued should not enter into
any transaction in any associated product which is designed to limit the economic risk of participating in
unvested entitlements under an equity based remuneration scheme.
There are no schemes for retirement benefits, other than the payment of the statutory superannuation
contribution for non executive and executive directors.
All executives receive a base salary (which is based on factors such as qualifications, expertise,
experience etc.), superannuation and fringe benefits and are eligible for the grant of options under the
Employee Option Plan.
The Board policy is to remunerate non executive directors at market rates for comparable companies
for the time, commitment and responsibilities.
The fees payable to individual non executive directors must be determined by the Board within the
aggregate sum of $500,000 per annum provided for under clause 21.1 of the constitution. That
aggregate sum can only be increased with the prior approval of the shareholders of the Company at a
general meeting. A non executive director is entitled to a refund of approved expenditure and may also
receive payments for consultancy work contracted for and performed separately on the Company’s
behalf.
The Company’s policy for determining the nature and amount of emoluments of Board members and
senior executives of the Company is as follows:
The remuneration structure for executive officers, including executive directors, is based on a number
of factors, including length of service, particular experience of the individual concerned, and overall
performance of the Company. The contracts for service between the Company, Directors and
executives are on a continuing basis the terms of which are not expected to change in the immediate
future.
‐ 27 ‐
PREDICTIVE DISCOVERY LIMITED
DIRECTORS’ REPORT….
30 JUNE 2013
REMUNERATION REPORT (continued
PERFORMANCE‐BASED REMUNERATION
Performance based remuneration for key management personnel is limited to granting of options.
RELATIONSHIP BETWEEN REMUNERATION POLICY AND COMPANY PERFORMANCE
The remuneration policy has been tailored to increase goal congruence between shareholders,
directors and executives. The issue of options in past years to the majority of directors and executives
is to encourage the alignment of personal and shareholder interests. The company believes this policy
will be effective in increasing shareholder wealth.
PERFORMANCE CONDITIONS LINKED TO REMUNERATION
The Group’s remuneration of key management personnel does not include any performance
conditions.
EMPLOYMENT DETAILS OF MEMBERS OF KEY MANAGEMENT PERSONNEL AND OTHER EXECUTIVES
The following table provides employment details of persons who were, during the financial year,
members of key management personnel of The Group, and to the extent different, among the five
Group executives or company executives receiving the highest remuneration. The table also illustrates
the proportion of remuneration that was performance and non‐performance‐based and the proportion
of remuneration received in the form of options.
Key Management
Personnel
Mr Phillip Harman
Mr Paul Roberts
Dr Thomas Whiting
Dr Robert Danchin
Mr Philip Henty
Mr Ian Hobson
Mr David Pascoe
POSITION HELD DURING THE
YEAR ENDED 30 JUNE 2013
Non‐Executive Chairman
Managing Director
Non‐Executive Director
Non‐Executive Director
Non‐Executive Director
‐
‐
‐
‐
‐
Company Secretary
Head Geologist
100
‐
NON‐SALARY
CASH‐BASED
INCENTIVES
%
OPTIONS/
RIGHTS
%
FIXED
SALARY/FEES
%
TOTAL
%
‐
‐
‐
‐
‐
‐
‐
100
100
100
100
100
‐
100
100
100
100
100
100
100
100
The employment terms and conditions of key management personnel and group executives are
formalised upon each Director's appointment. All non‐executive directors are remunerated on a
monthly basis with no fixed term or termination benefits.
Paul Roberts, Managing Director, has entered into a contract of employment that requires 12 months’
notice of voluntary termination of employment that entitles Mr Roberts to $180,000 as a termination
benefit.
‐ 28 ‐
PREDICTIVE DISCOVERY LIMITED
DIRECTORS’ REPORT….
30 JUNE 2013
REMUNERATION DETAILS FOR THE PERIOD ENDED 30 JUNE 2013
The following table of benefits and payment details, in respect to the financial year, the components of
remuneration for each member of the key management personnel of The Group and, to the extent
different, the five Group executives and five company executives receiving the highest remuneration:
Table of Benefits and Payments for the Period Ended 30 June 2013
KEY MANAGEMENT
PERSONNEL
SALARY,
FEES AND
LEAVE
OTHER
PENSION
AND SUPER‐
ANNUATION
OTHER
SHARES/
UNITS
OPTIONS/
RIGHTS
TOTAL
$
$
$
$
$
$
$
Mr Phillip Harman
2013
22,936
Mr Paul Roberts
2013
169,742
2012
45,873
Dr Thomas Whiting
2012
203,928
2013
2012
5,686
750
Dr Robert Danchin
2013
12,556
Mr Philip Henty
Mr Ian Hobson
2012
32,110
2013
2012
17,500
‐
2013
111,705
2012
165,016
Mr David Pascoe
2013
92,220
Total Key Management
Personnel
2012
194,072
2013
432,345
2012
641,749
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
2,064
4,128
15,642
44,918
8,000
34,250
1,130
2,890
1,130
35,000
‐
‐
6,498
17,466
34,464
138,652
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
SECURITIES RECEIVED THAT ARE NOT PERFORMANCE‐BASED
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
25,000
50,001
185,384
248,846
13,686
35,000
13,686
35,000
18,630
35,000
111,705
165,016
‐
98,718
50,253 261,791
‐
466,809
50,253
830,654
No members of key management personnel received securities during the period which were not
dependent upon the performance of The Group’s share price as part of their remuneration package.
CASH BONUSES, PERFORMANCE‐RELATED BONUSES AND SHARE‐BASED PAYMENTS
No options or bonuses were granted as remuneration during the year to key management personnel
and other executives.
END OF THE REMUNERATION REPORT
‐ 29 ‐
PREDICTIVE DISCOVERY LIMITED
DIRECTORS’ REPORT….
30 JUNE 2013
Signed in accordance with a resolution of the Board of Directors:
Paul Roberts
Managing Director
5 September 2013
‐ 30 ‐
PREDICTIVE DISCOVERY LIMITED
CORPORATE GOVERNANCE STATEMENT
30 JUNE 2013
BOARD COMPOSITION
The skills, experience and expertise relevant to the position of each director, and board committee
member, who is in office at the date of the annual report and their term of office are detailed in the
Director’s report.
The independent directors of the Company are Phil Harman and Phil Henty. Tom Whiting and Bobby
Danchin resigned in May 2013.
When determining the independent status of a Director the Board used the Guidelines detailed in the
ASX Corporate Governance Council’s Principles of Good Corporate Governance and Best Practice
Recommendations.
The Board sets out below its “if not why not” report in relation to those matters of corporate
governance where the Company’s practices depart from the Recommendations.
Recommendation
Current Practice
1.1
Companies should establish the functions reserved for
the board and those delegated to senior executives
and disclose those functions.
Satisfied. The functions reserved for the Board and
delegated to senior executives have been
established.
The Board Charter is available at
www.predictivediscovery.com.au in the Corporate
Governance policy.
1.2
Companies should disclose the process for evaluating
the performance of senior executives.
Satisfied. Formal evaluation process has been
adopted.
The Performance Evaluation Policy is available at
www.predictivediscovery.com.au in the Corporate
Governance policy.
1.3
Companies should provide the information indicated in
the Guide for reporting on Principle 1
Satisfied
The Board Charter is available at
www.predictivediscovery.com.au in the Corporate
Governance policy.
No formal appraisal of management was conducted.
2.1
A majority of the board should be independent
directors.
Satisfied.
Phil Harman and Phil Henty are Non-Executive
independent directors as defined in ASX guidelines.
‐ 31 ‐
PREDICTIVE DISCOVERY LIMITED
CORPORATE GOVERNANCE STATEMENT
30 JUNE 2013
Recommendation
Current Practice
2.2
The chair should be an independent director.
Satisfied.
Mr Phil Harman is an independent director.
2.3
The roles of chair and Chief Executive Officer should
not be exercised by the same individual.
Satisfied.
2.4
The board should establish a nomination committee.
Not Satisfied.
2.5
Companies should disclose the process for evaluating
the performance of the board, its committees and
individual directors.
Given the current size of the Board (3) this function
is undertaken by the Board.
Satisfied.
Board Performance Evaluation Policy is available at
www.predictivediscovery.com.au in the Corporate
Governance policy.
2.6
Companies should provide the information indicated in
the guide to reporting on Principle 2
Satisfied
Formal board appraisals were not conducted for the
2013 financial year.
Satisfied.
The Code of Conduct is available at
www.predictivediscovery.com.au in the Corporate
Governance policy.
3.1
Companies should disclose a code of conduct and
disclose the code or a summary of the code as to:
-
The practices necessary to maintain confidence in
the company’s integrity
The practices necessary to take into account their
legal obligations and the reasonable expectations
of their stakeholders
The responsibility and accountability of individuals
for reporting and investigating reports of unethical
practices.
-
-
3.2
Companies should establish a policy concerning
diversity and disclose the policy or a summary of that
policy. The policy should include requirements for the
board to establish measurable objectives for achieving
gender diversity for the board to assess annually both
the objectives and progress in achieving them.
Satisfied.
The Diversity Policy is available at
www.predictivediscovery.com.au in the Corporate
Governance policy.
3.3
Companies should disclose in each annual report the
measurable objectives for achieving gender diversity
and progress towards achieving them.
Not Satisfied. The measurable objectives have yet
to be established.
3.4
Companies should disclose in each annual report the
proportion of women employees in the whole
organisation, women in senor executive positions and
women on the board.
Proportion of women employees in the whole
organisation is 15%. There is one women (33%) in a
senior executive position and none on the board.
‐ 32 ‐
PREDICTIVE DISCOVERY LIMITED
CORPORATE GOVERNANCE STATEMENT
30 JUNE 2013
Recommendation
Current Practice
3.5 Companies should provide the information indicated in
Satisfied
the Guide to reporting on Principle 3
4.1
The board should establish an audit committee.
4.2
The audit committee should be structured so that it:
- Consists only of non-executive directors
- Consists of a majority of independent directors
Is chaired by an independent chair, who is not
-
chair of the board
- Has at least three members
Not satisfied. The audit committee was disbanded
during the year when the board was reduced from 5
to 3 directors.
Not satisfied. The role of the committee is
undertaken by the board.
4.3
The audit committee should have a formal charter.
Satisfied.
4.4 Companies should provide the information indicated in
Satisfied.
the Guide to reporting on Principle 4
The audit committee charter is available at
www.predictivediscovery.com.au in the Corporate
Governance policy.
5.1
Companies should establish written policies designed
to ensure compliance with ASX Listing Rule disclosure
requirements and to ensure accountability at senior
executive level for that compliance and disclose those
policies or a summary of those policies.
Satisfied.
Continuous disclosure policy is available at
www.predictivediscovery.com.au in the Corporate
Governance policy.
5.2 Companies should provide the information indicated in
Satisfied
the Guide to reporting on Principle 5
6.1
Companies should design a communications policy for
promoting effective communication with shareholders
and encouraging their participation at general
meetings and disclose their policy or a summary of
their policy.
Satisfied.
Shareholders communication strategy is available at
www.predictivediscovery.com.au in the Corporate
Governance policy.
6.2 Companies should provide the information indicated in
Satisfied
the Guide to reporting on Principle 6
7.1
Companies should establish policies for the oversight
and management of material business risks and
disclose a summary of those policies.
Satisfied.
The company has established policies for the
oversight and management of material business
risks.
Risk management program is available at
www.predictivediscovery.com.au in the Corporate
Governance policy.
‐ 33 ‐
PREDICTIVE DISCOVERY LIMITED
CORPORATE GOVERNANCE STATEMENT
30 JUNE 2013
Recommendation
Current Practice
7.2
7.3
The board should require management to design and
implement the risk management and internal control
system to manage the company’s material business
risks and report to it on whether those risks are being
managed effectively. The board should disclose that
management has reported to it as to the effectiveness
of the company’s management of its material business
risks.
Satisfied.
Management consist of the managing director, who
has designed and implemented a risk management
and internal control system to manage material
business risks. Management have reported to the
Board that those risks are being managed
effectively.
The board should disclose whether it has received
assurance from the chief executive officer (or
equivalent) and the chief financial officer (or
equivalent) that the declaration provided in
accordance with section 295A of the Corporations Act
is founded on a sound system of risk management
and internal control and that the system is operating
effectively in all material respects in relation to
financial reporting risks.
Satisfied.
The Board has received a section 295A declaration
pursuant to the 2013 financial period.
7.4 Companies should provide the information indicated in
Satisfied
the Guide to reporting on Principle 7
The board has received the reports and assurances
in 7.2 and 7.3. The policies are available on the
company’s website.
8.1
The board should establish a remuneration committee.
Not Satisfied.
The function of this committee is performed by the
full board given the current size of the Board is 3
directors.
8.2 The remuneration committee should be structured so
Not satisfied.
that is:
• Consists of a majority of independent
directors
Is chaired by an independent director
•
• Has at least three members
8.3
Companies should clearly distinguish the structure of
non-executive directors’ remuneration from that of
executive directors and senior executives.
The structure of Directors’ remuneration is disclosed
in the remuneration report of the annual report.
8.4 Companies should provide the information indicated in
the Guide to reporting on Principle 8
The remuneration committee charter is available at
www.predictivediscovery.com.au in the Corporate
Governance policy.
Further information about the Company’s corporate governance practices is set out on the Company’s website at
www.predictivediscovery.com.au.
‐ 34 ‐
AUDITOR’S INDEPENDENCE DECLARATION
UNDER S 307C OF THE CORPORATIONS ACT 2001
TO THE DIRECTORS OF PREDICTIVE DISCOVERY LIMITED & CONTROLLED ENTITIES
I declare that, to the best of my knowledge and belief, during the year ended 30 June 2013, there
have been:
i.
no contraventions of the auditor independence requirements as set out in the Corporations Act
2001 in relation to the audit; and
ii.
no contraventions of any applicable code of professional conduct in relation to the audit.
NEXIA MELBOURNE
ABN 16 847 721 257
ANDREW JOHNSON
Partner
Audit & Assurance Services
Melbourne
5 September 2013
PREDICTIVE DISCOVERY LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30 June 2013
Finance income
Share based payments
Administrative expenses
Foreign exchange expense
Impairment of exploration
Consolidated
2013
$
2012
$
Note
38,533
(14,498)
191,196
(50,253)
(868,496)
(1,366,305)
176,854
(602,487)
(299,575)
(731,847)
Exploration expenditure pre-right to tenure
(90,297)
(146,654)
Profit (loss) before income taxes
(1,057,479)
(2,706,350)
Income tax expense
2
-
-
Profit (loss) from continuing operations
(1,057,479)
(2,706,350)
Other comprehensive income
1,383,801
(198)
Total comprehensive income for the year
326,322
(2,706,548)
Profit attibutable to:
Members of the parent entity
326,322
(2,706,548)
326,322
(2,706,548)
Basic (loss) per share (cents per share)
Diluted (loss) per share (cents per share)
12
12
(0.002 )
(0.002 )
(0.023 )
(0.023 )
These financial statements should be read in conjunction w ith the accompanying notes
‐ 36 ‐
PREDICTIVE DISCOVERY LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 June 2013
ASSETS
CURRENT ASSETS
Cas h and cas h equivalents
Trade and other receivables
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Property, plant and equipm ent
Exploration expenditure
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
LIABILITIES
CURRENT LIABILITIES
Trade and other payables
Provis ions
TOTAL CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Is s ued capital
Res erves
Accum ulated los s es
TOTAL EQUITY
Consolidated
Note
2013
$
2012
$
3
4
5
6
7
9
1,352,410
129,071
1,063,472
179,608
1,481,481
1,243,080
364,969
526,742
14,604,406
10,235,139
14,969,375
10,761,881
16,450,856
12,004,961
229,658
20,626
734,901
139,107
250,284
874,008
250,284
874,008
16,200,572
11,130,953
10
11
19,942,017
15,264,189
1,668,042
218,772
(5,409,486)
(4,352,008)
16,200,573
11,130,953
These f inancial statements should be read in conjunction w ith the accompanying notes
‐ 37 ‐
PREDICTIVE DISCOVERY LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 30 June 2013
2013
FOREIGN
SHARE BASED CURRENCY
ORDINARY ACCUMULATED PAYMENT
TRANSLATION
SHARES
$
LOSSES
$
RESERVE
$
RESERVE
$
TOTAL
$
Balance at 1 July 2012
15,264,188
(4,352,007)
311,995
(93,223)
11,130,953
Profit/(loss) attributable to members of
the parent entity
Other comprehensive income
Total comprehensive income for
the year
Shares issued during the year
Transaction costs
Share-based payments
(1,057,479)
(1,057,479)
1,383,801
1,383,801
4,979,967
(302,138)
4,979,967
(302,138)
65,469
65,469
Sub-total
4,677,828
(1,057,479)
65,469
1,383,801
5,069,620
Balance at 30 June 2013
19,942,017
(5,409,486)
377,464
1,290,578
16,200,573
2012
FOREIGN
SHARE BASED CURRENCY
ORDINARY ACCUMULATED PAYMENT
TRANSLATION
SHARES
$
LOSSES
$
RESERVE
$
RESERVE
$
TOTAL
$
Balance at 1 July 2011
10,349,630
(1,645,659)
261,742
(93,025)
8,872,688
Profit/(loss) attributable to members of
the parent entity
Other comprehensive income
Total comprehensive income for
the year
Shares issued during the year
Transaction costs
Share-based payments
(2,706,348)
(2,706,348)
(198)
(198)
(2,706,348)
(198)
(2,706,546)
5,275,213
(360,655)
5,275,213
(360,655)
50,253
50,253
Sub-total
4,914,558
(2,706,348)
50,253
(198)
2,258,265
Balance at 30 June 2012
15,264,188
(4,352,007)
311,995
(93,223)
11,130,953
These financial statements should be read in conjuction w ith the accompanying notes
‐ 38 ‐
PREDICTIVE DISCOVERY LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 30 June 2013
Note
2013
$
2012
$
CASH FROM OPERATING ACTIVITIES:
GST receipts
20,110
10,066
Payments to suppliers and employees
(716,682)
(1,731,254)
Net cash provided by (used in) operating activities
21
(696,572)
(1,721,188)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received
Purchase of property, plant and equipment
38,533
(2,175)
191,196
(546,851)
Payments for exploration expenditure
(2,751,532)
(6,973,426)
Net cash provided by (used in) investing activities
(2,715,174)
(7,329,081)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issue of shares
Payment of share issue costs
4,177,969
5,275,213
(236,669)
(360,655)
Net cash from financing activities
3,941,300
4,914,558
OTHER ACTIVITIES:
Foreign exchange differences
(240,616)
(9,041)
Net cash used by other activities
(240,616)
(9,041)
Net increase (decrease) in cash held
529,554
(4,135,711)
Cash and cash equivalents at beginning of period
1,063,472
5,208,224
Cash and cash equivalents at end of financial period
3
1,352,410
1,063,472
These financial statements should be read in conjunction w ith the accompanying notes
‐ 39 ‐
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
This financial report includes the consolidated financial statements and notes of Predictive Discovery
Limited and controlled entities (The Group).
1 SUMMARY OF SINGIFICANT ACCOUNTING POLICIES
Predictive Discovery Limited is a company limited by shares, incorporated and domiciled in Australia.
The financial report is a general purpose financial statement that has been prepared in accordance with
Interpretations, other authoritative
Australian Accounting Standards, Australian Accounting
pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.
Australian Accounting Standards set out accounting policies that the AASB has concluded would result in
a financial report containing relevant and reliable information about transactions, events and
conditions. Compliance with Australian Accounting Standards ensures that the financial statements and
notes also comply with International Financial Reporting Standards. Material accounting policies
adopted in the preparation of this financial report are presented below and have been consistently
applied unless otherwise stated.
The financial report has been prepared on an accruals basis and is based on historical costs, modified,
where applicable, by the measurement at fair value of selected financial assets and financial liabilities.
These financial statements are presented in Australian dollars, rounded to the nearest dollar.
(A)
PRINCIPLES OF CONSOLIDATION
The consolidated financial statements incorporate the assets, liabilities and results of entities
controlled by Predictive Discovery Limited at the end of the reporting period. A controlled
entity is any entity over which Predictive Discovery Limited has the power to govern the
financial and operating policies so as to obtain benefits from the entity's activities. Control will
generally exist when the parent owns, directly or indirectly through subsidiaries, more than half
of the voting power of an entity. In assessing the power to govern, the existence and effect of
holdings of actual and potential voting rights are also considered.
Where controlled entities have entered or left The Group during the year, the financial
performance of those entities are included only for the period of the year that they were
controlled. A list of controlled entities is contained in Note 18 to the financial statements.
As at reporting date, the assets and liabilities of all controlled entities have been incorporated
into the consolidated financial statements as well as their results for the year then ended.
Where controlled entities have entered (left) The Group during the year, their operating results
have been included (excluded) from the date control was obtained (ceased).
In preparing the consolidated financial statements, all inter‐group balances and transactions
between entities in The Group have been eliminated on consolidation. Accounting policies of
subsidiaries have been changed where necessary to ensure consistency with those adopted by
the parent entity.
‐ 40 ‐
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES …..
(A)
PRINCIPLES OF CONSOLIDATION (continued)
Non‐controlling interests, being the equity in a subsidiary not attributable, directly or indirectly,
to a parent, are shown separately within the Equity section of the consolidated statement of
financial position and consolidated statement of comprehensive income. The non‐controlling
interests in the net assets comprise their interests at the date of the original business
combination and their share of changes in equity since that date.
Subsidiaries are accounted for in the parent entity at cost.
Business Combinations
Business combinations occur where an acquirer obtains control over one or more businesses
and results in the consolidation of its assets and liabilities.
A business combination is accounted for by applying the acquisition method, unless it is a
combination involving entities or businesses under common control. The acquisition method
requires that for each business combination one of the combining entities must be identified as
the acquirer (i.e. parent entity). The business combination will be accounted for as at the
acquisition date, which is the dale that control over the acquiree is obtained by the parent
entity. At this date, the parent shall recognise, in the consolidated accounts, and subject to
certain limited exceptions, the fair value of the identifiable assets acquired and liabilities
assumed. In addition, contingent liabilities of the acquiree will be recognised where a present
obligation has been incurred and its fair value can be reliably measured.
The acquisition may result in the recognition of goodwill or a gain from a bargain purchase. The
method adopted for the measurement of goodwill will impact on the measurement of any non‐
controlling interest to be recognised in the acquiree where less than 100% ownership interest is
held in the acquiree.
The acquisition date fair value of the consideration transferred for a business combination plus
the acquisition date fair value of any previously held equity interest shall form the cost of the
investment in the separate financial statements. Consideration may comprise the sum of the
assets transferred by the acquirer, liabilities incurred by the acquirer to the former owners of
the acquiree and the equity interests issued by the acquirer.
Fair value uplifts in the value of pre‐existing equity holdings are taken to the statement of
comprehensive income. Where changes in the value of such equity holdings had previously
been recognised in other comprehensive income, such amounts are recycled to profit or loss.
Included in the measurement of consideration transferred is any asset or liability resulting from
a contingent consideration arrangement. Any obligation incurred relating to contingent
consideration is classified as either a financial liability or equity instrument, depending upon the
nature of the arrangement. Rights to refunds of consideration previously paid are recognised as
a receivable. Subsequent to initial recognition, contingent consideration classified as equity is
not remeasured and its subsequent settlement is accounted for within equity. Contingent
consideration classified as an asset or a liability is remeasured each reporting period to fair value
‐ 41 ‐
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES …..
(A)
PRINCIPLES OF CONSOLIDATION (continued)
Business Combinations (continued)
through the statement of comprehensive income unless the change in value can be identified as
existing at acquisition date.
All transaction costs incurred in relation to the business combination are expensed to the
statement of comprehensive income.
(B)
REVENUE AND OTHER INCOME
Revenue is measured at the fair value of the consideration received or receivable after taking
into account any trade discounts and volume rebates allowed. Any consideration deferred is
treated as the provision of finance and is discounted at a rate of interest that is generally
accepted in the market for similar arrangements. The difference between the amount initially
recognised and the amount ultimately received is interest revenue.
Interest revenue is recognised using the effective interest rate method. The effective interest
rate method uses the effective interest rate which is the rate that exactly discounts the
estimated future cash receipts over the expected life of the financial assets.
All revenue is stated net of the amount of goods and services tax (GST).
(C)
BOROWING COSTS
Borrowing costs directly attributable to the acquisition, construction or production of assets
that necessarily take a substantial period of time to prepare for their intended use or sale, are
added to the cost of those assets, until such time as the assets are substantially ready for their
intended use or sale.
All other borrowing costs are recognised in income in the period in which they are incurred.
(D)
INCOME TAX
The income tax expense (revenue) for the year comprises current income tax expense (income)
and deferred tax expense (income).
Current income tax expense charged to the profit or loss is the tax payable on taxable income
calculated using applicable income tax rates enacted, or substantially enacted, as at the end of
the reporting period. Current tax liabilities (assets) are therefore measured at the amounts
expected to be paid to (recovered from) the relevant taxation authority.
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability
balances during the year as well as unused tax losses.
Current and deferred tax expense (income) is charged or credited directly to equity instead of
the profit or loss when the tax relates to items that are credited or charged directly to equity.
‐ 42 ‐
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES…..
(D)
INCOME TAX (continued)
Deferred tax assets and liabilities are ascertained based on temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the financial
statements. Deferred tax assets also result where amounts have been fully expensed but future
tax deductions are available. No deferred income tax will be recognised from the initial
recognition of an asset or liability, excluding a business combination, where there is no effect on
accounting or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to
the period when the asset is realised or the liability is settled, based on tax rates enacted or
substantively enacted at the end of the reporting period. Their measurement also reflects the
manner in which management expects to recover or settle the carrying amount of the related
asset or liability.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only
to the extent that it is probable that future taxable profit will be available against which the
benefits of the deferred tax asset can be utilised.
Where temporary differences exist in relation to investments in subsidiaries, branches,
associates, and joint ventures, deferred tax assets and liabilities are not recognised where the
timing of the reversal of the temporary difference can be controlled and it is not probable that
the reversal will occur in the foreseeable future.
Current assets and liabilities are offset where a legally enforceable right of set‐off exists and it is
intended that net settlement or simultaneous realisation and settlement of the respective asset
and liability will occur. Deferred tax assets and liabilities are offset where a legally enforceable
right of set‐off exists, the deferred tax assets and liabilities relate to income taxes levied by the
same taxation authority on either the same taxable entity or different taxable entities where it is
intended that net settlement or simultaneous realisation and settlement of the respective asset
and liability will occur in future periods in which significant amounts of deferred tax assets or
liabilities are expected to be recovered or settled.
(E)
EMPLOYEE BENEFITS
Provision is made for the company's liability for employee benefits arising from services
rendered by employees to the end of the reporting period. Employee benefits that are expected
to be settled within one year have been measured at the amounts expected to be paid when the
liability is settled. Employee benefits payable later than one year have been measured at
present value of the estimated future cash outflows to be made for those benefits. In
determining the liability, consideration is given to employee wage increases and the probability
that the employee may satisfy vesting requirements. Those cashflows are discounted using
market yields on national government bonds with terms to maturity that match the expected
timing of cashflows.
‐ 43 ‐
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES …..
(E)
EMPLOYEE BENEFITS (continued)
Liabilities recognised in respect of employee benefits which are not expected to be settled
within 12 months are measured at the present value of the estimated future cash outflows to
be made by The Group in respect of services provided by employees up to reporting date.
(F)
PROVISIONS
Provisions are recognised when The Group has a legal or constructive obligation, as a result of
past events, for which it is probable that an outflow of economic benefits will result and that
outflow can be reliably measured.
The liability for long service leave is recognised in current and non‐current liabilities, depending
on the unconditional right to defer settlement of the liability for at least 12 months after the
reporting date.
(G)
FOREIGN CURRENCY TRANSACTIONS AND BALANCES
The functional currency of each of The Group's entities is measured using the currency of the
primary economic environment in which that entity operates. The consolidated financial
statements are presented in Australian dollars which is the parent entity's functional and
presentation currency. All other companies within The Group have Australian dollars as their
functional currency.
Foreign currency transactions are translated into functional currency using the exchange rates
prevailing at the date of the transaction. Foreign currency monetary items are translated at the
year‐end exchange rate. Non‐monetary items measured at historical cost continue to be carried
at the exchange rate at the date of the transaction. Non‐monetary items measured at fair value
are reported at the exchange rate at the date when fair values were determined.
Exchange differences arising on the translation of monetary items are recognised in the
consolidated statement of comprehensive income, except where deferred in equity as a
qualifying cash flow or net investment hedge.
Exchange differences arising on the translation of non‐monetary items are recognised directly in
equity to the extent that the gain or loss is directly recognised in equity, otherwise the exchange
difference is recognised in the consolidated statement of comprehensive income.
The financial results and position of foreign operations whose functional currency is different
from The Group's presentation currency are translated as follows:
•
assets and liabilities are translated at year‐end exchange rates prevailing at that reporting
date;
income and expenses are translated at average exchange rates for the period; and
retained earnings are translated at the exchange rates prevailing at the date of the
transaction.
•
•
‐ 44 ‐
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES …..
(G)
FOREIGN CURRENCY TRANSACTIONS AND BALANCES (continued)
Exchange differences arising on translation of foreign operations are transferred directly to The
Group's foreign currency translation reserve in the consolidated statement of financial position.
These differences are recognised in the consolidated statement of comprehensive income in the
period in which the operation is disposed.
(H)
CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short
term highly liquid investments with original maturities of three months or less, and bank
overdrafts. Bank overdrafts are shown within short term borrowings in current liabilities in the
statement of financial position.
(I)
FINANCIAL INSTRUMENTS
Initial recognition and measurement
Financial assets and financial liabilities are recognised when the entity becomes a party to the
contractual provisions to the instrument. For financial assets, this is the equivalent to the date
that The Group commits itself to either the purchase or sale of the asset (i.e. trade date
accounting
initially measured at fair value plus
transactions costs, except where the instrument is classified 'at fair value through profit or loss',
in which case transaction costs are expensed to profit or loss immediately.
is adopted).Financial
instruments are
Classification and subsequent measurement
Financial instruments are subsequently measured at either of fair value, amortised cost using
the effective interest rate method, or cost. Fair value represents the amount for which an asset
could be exchanged or a liability settled, between knowledgeable, willing parties. Where
available, quoted prices in an active market are used to determine fair value. In other
circumstances, valuation techniques are adopted.
Amortised cost is calculated as:
(a) the amount at which the financial asset or financial liability is measured at initial
recognition;
(b)
less principal repayments;
(c) plus or minus the cumulative amortisation of the difference, if any, between the amount
initially recognised and the maturity amount calculated using the effective interest method;
and
(d)
less any reduction for impairment.
‐ 45 ‐
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES …..
(I)
FINANCIAL INSTRUMENTS (continued)
Classification and subsequent measurement ……
The effective interest method is used to allocate interest income or interest expense over the
relevant period and is equivalent to the rate that exactly discounts estimated future cash
payments or receipts (including fees, transaction costs and other premiums or discounts)
through the expected life (or when this cannot be reliably predicted, the contractual term) of
the financial instrument to the net carrying amount of the financial asset or financial liability.
Revisions to expected future net cash flows will necessitate an adjustment to the carrying value
with a consequential recognition of an income or expense in profit or loss.
The Group does not designate any interests in subsidiaries, associates or joint venture entities as
being subject to the requirements of accounting standards specifically applicable to financial
instruments.
(i)
Financial assets at fair value through profit or loss
Financial assets are classified at ‘fair value through profit or loss’ when they are either held for
trading for the purpose of short term profit taking, derivatives not held for hedging purposes, or
when they are designated as such to avoid an accounting mismatch or to enable performance
evaluation where a group of financial assets is managed by key management personnel on a fair
value basis in accordance with a documented risk management or investment strategy. Such
assets are subsequently measured at fair value with changes in carrying value being included in
profit or loss.
(ii)
Loans and receivables
Loans and receivables are non‐derivative financial assets with fixed or determinable payments
that are not quoted in an active market and are subsequently measured at amortised cost.
Loans and receivables are included in current assets, except for those which are not expected to
mature within 12 months after the end of the reporting period. (All other loans and receivables
are classified as non‐current assets).
(iii)
Held‐to‐maturity investments
Held‐to‐maturity investments are non‐derivative financial assets that have fixed maturities and
fixed or determinable payments, and it is The Group's intention to hold these investments to
maturity. They are subsequently measured at amortised cost.
Held‐to‐maturity investments are included in non‐current assets, except for those which are
expected to mature within 12 months are the end of the reporting period. (All other
investments are classified as current assets).
‐ 46 ‐
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES …..
(I)
FINANCIAL INSTRUMENTS (continued)
Classification and subsequent measurement ……
If during the period The Group sold or reclassified more than an insignificant amount of the held
to maturity investments before maturity, the entire held‐to‐maturity investments category
would be tainted and reclassified as available for sale.
(iv)
Available for sale financial assets
Available for sale financial assets are non‐derivative financial assets that are either not suitable
to be classified into other categories of financial assets due to their nature, or they are
designated as such by management. They comprise investments in the equity of other entities
where there is neither a fixed maturity nor fixed or determinable payments.
Available for sale financial assets are included in non‐current assets, except for those which are
expected to mature within 12 months after the end of the reporting period. (All other financial
assets are classified as current assets).
(v)
Financial liabilities
Non‐derivative financial liabilities (excluding financial guarantees) are subsequently measured at
amortised cost.
Derecognition
Financial assets are derecognised where the contractual rights to receipt of cash flows expires or
the asset is transferred to another party whereby the entity no longer has any significant
continuing involvement in the risks and benefits associated with the asset. Financial liabilities
are derecognised where the related obligations are either discharged, cancelled or expired. The
difference between the carrying value of the financial liability extinguished or transferred to
another party and the fair value of consideration paid, including the transfer of non‐cash assets
or liabilities assumed is recognised in profit or loss.
(J)
PROPERTY, PLANT AND EQUIPMENT
Each class of property, plant and equipment is carried at cost or fair value as indicated, less,
where applicable, any accumulated depreciation and impairment losses.
Plant and Equipment
Plant and equipment are measured on the cost basis.
Depreciation
The depreciable amount of all fixed assets is depreciated on a straight line basis over the asset's
useful life to The Group commencing from the time the asset is held ready for use.
‐ 47 ‐
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES …..
(J)
PROPERTY, PLANT AND EQUIPMENT (continued)
Depreciation …..
Leasehold improvements are depreciated over the shorter of either the unexpired period of the
lease or the estimated useful lives of the improvements.
The estimated useful lives used for each class of depreciable assets are:
CLASS OF FIXED ASSET
Camp under construction
USEFUL LIFE
7 ‐ 20 years
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end
of each reporting period.
An asset's carrying amount is written down immediately to its recoverable amount if the asset's
carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount.
These gains and losses are included in the consolidated statement of comprehensive income.
Property, plant and equipment is derecognised and removed from the consolidated statement
of financial position on disposal or when no future economic benefits are expected. Gains and
losses from derecognition are measured as the difference between the net disposal proceeds, if
any, and the carrying amount and are recognised in profit or loss.
Subsequent costs are included in the property, plant and equipment's carrying value or
recognised as a separate asset when it is probable that future economic benefits associated with
the item will be realised and the cost of the item can be measured reliably. All other repairs and
maintenance are recognised in profit or loss.
(K)
EXPLORATION AND DEVELOPMENT EXPENDITURE
Costs Carried Forward
Costs arising from exploration and evaluation activities are carried forward where the rights to
tenure for the area of interest are current and such costs are expected to be recouped through
successful development, or by sale, or where exploration and evaluation activities have not, at
reporting date, reached a stage to allow a reasonable assessment regarding the existence of
economically recoverable reserves.
Costs carried forward in respect of an area of interest that is abandoned are written off in the
period in which the decision to abandon is made.
Contributions received from third parties in exchange for participating interests in exploration
and evaluation tenements (e.g. as part of farm out arrangements) are netted off against the
costs carried forward in respect of those tenements in which the third party acquires a
participating interest.
‐ 48 ‐
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES …..
(L)
IMPAIRMENT OF ASSETS
At each reporting date, The Group assesses whether there is any indication that an asset may be
impaired. The assessment will include considering external sources of information including,
dividends received from subsidiaries, associates or jointly controlled entities deemed to be out
of pre‐acquisition profits. If such an indication exists, an impairment test is carried out on the
asset by comparing the recoverable amount of the asset, being the higher of the asset's fair
value less costs to sell and value in use to the asset's carrying value. Any excess of the asset's
carrying value over its recoverable amount is expensed to the consolidated statement of
comprehensive income.
Impairment testing is performed annually for goodwill and intangible assets with indefinite lives.
Where an impairment loss on a revalued asset is identified, this is debited against the
revaluation surplus in respect of the same class of asset to the extent that the impairment loss
does not exceed the amount in the revaluation surplus for that same class of asset.
Non‐financial assets, other than inventories, deferred tax assets, assets from employee benefits,
investment properties and deferred acquisition costs, are assessed for any indication of
impairment at the end of each reporting period. Any indication of impairment requires formal
testing of impairment by comparing the carrying amount of the asset to an estimate of the
recoverable amount of the asset. An impairment loss is calculated as the amount by which the
carrying amount of the asset exceeds the recoverable amount of the asset.
Intangible assets with an indefinite useful life and intangible assets not yet available for use are
tested for impairment annually regardless of whether there is any indication of impairment.
The recoverable amount is the greater of the asset's fair value less costs to sell and its value in
use. The asset's value in use is calculated as the estimated future cash flows discounted to their
present value using a pre‐tax rate that reflects current market assessments of the time value of
money and the risks associated with the asset. Assets that cannot be tested individually for
impairment are grouped together into the smallest group of assets that generates cash inflows
(the asset's cash generating unit).
Impairment losses are recognised in profit or loss. Impairment losses are allocated first, to
reduce the carrying amount of any goodwill allocated to cash generating units, and then to
other assets of the group on a pro rata basis.
Assets other than goodwill are assessed at the end of each reporting period to determine
whether previously recognised impairment losses may no longer exist or may have decreased.
Impairment losses recognised in prior periods for assets other than goodwill are reversed up to
the carrying amounts that would have been determined had no impairment loss been
recognised in prior periods.
‐ 49 ‐
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES …..
(M)
TRADE AND OTHER PAYABLES
Trade and other payables represent the liability outstanding at the end of the reporting period
for goods and services received by The Group during the reporting period which remain unpaid.
The balance is recognised as a current liability with the amounts normally paid within 30 days of
recognition of the liability.
(N)
GOODS AND SERVICES TAX (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the
amount of GST incurred is not recoverable from the Tax Office. In these circumstances the GST
is recognised as part of the cost of acquisition of the asset or as part of an item of the expense.
Receivables and payables in the consolidated statement of financial position are shown inclusive
of GST.
(O)
LEASES
Leases of fixed assets where substantially all the risks and benefits incidental to the ownership
of the asset, but not the legal ownership that are transferred to entities in The Group, are
classified as finance leases.
Finance leases are capitalised by recording an asset and a liability at the lower of the amounts
equal to the fair value of the leased property or the present value of the minimum lease
payments, including any guaranteed residual values. Lease payments are allocated between the
reduction of the lease liability and the lease interest expense for the period.
Lease payments for operating leases, where substantially all of the risks and benefits remain
with the lessor, are charged as expenses in the periods in which they are incurred.
(P)
EARNINGS PER SHARE
Basic loss per share is calculated as net loss attributable to members of The Group divided by
the weighted average number of ordinary shares. Diluted loss per share is calculated by
adjusting the net loss attributable to members of The Group and the number of shares
outstanding for the effects of all dilutive potential ordinary shares, which include shares
options.
(Q)
CONTRIBUTED EQUITY
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of
new shares or options are shown as a deduction, net of tax, from the proceeds.
(R)
SHARE‐BASED PAYMENT TRANSACTIONS
Employees of The Group receive remuneration in the form of share based payment transactions,
whereby employees render services in exchange for equity instruments ("equity settled
transactions").
‐ 50 ‐
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES …..
(R)
SHARE‐BASED PAYMENT TRANSACTIONS (continued)
When the goods or services acquired in a share based payment transaction do not qualify for
recognition as assets, they are recognised as expenses.
The cost of equity settled transactions and the corresponding increase in equity is measured at
the fair value of the goods or services acquired. Where the fair value of the goods or services
received cannot be reliably estimated, the fair value is determined indirectly by the fair value of
the equity instruments using the Black Scholes option valuation technique.
Equity‐settled transactions that vest after employees complete a specified period of service are
recognised as services are received during the vesting period with a corresponding increase in
equity.
(S)
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The directors evaluate estimates and judgments incorporated into the financial statements
based on historical knowledge and best available current information. Estimates assume a
reasonable expectation of future events and are based on current trends and economic data,
obtained both externally and within The Group.
Key estimates – Impairment
The Group assesses impairment at the end of each reporting period by evaluating conditions
specific to The Group that may be indicative of impairment triggers. Recoverable amounts of
relevant assets are reassessed using fair value less cost to sell or value‐in‐use calculations which
incorporate various key assumptions.
Key judgements – Exploration and Evaluation Expenditure
The Group capitalises expenditure relating to exploration and evaluation where it is considered
likely to be recoverable or where the activities have not reached a stage which permits a
reasonable assessment of the existence of reserves. $14,604,406 has been capitalised as at 30
June 2013 (see note 6). While there are certain areas of interest from which no reserves have
been extracted, the directors are of the continued belief that such expenditure should not be
written off since feasibility studies in such areas have not yet concluded and there are no facts
of circumstances that suggest the carrying amounts of the exploration and evaluation assets
recognised exceed their recoverable amount.
Key Judgements – Share‐based payment transactions
The Group measures the cost of equity settled transactions with employees by reference to the
fair value of the equity instruments at the date at which they are granted. The fair value is
determined using the Black Scholes method. The related assumptions are detailed in note 22.
The accounting estimates and assumptions relating to equity‐settled share‐based payments
would have no impact on the carrying amounts of assets and liabilities within the next annual
reporting period but may impact expenses and equity.
‐ 51 ‐
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES …..
(S)
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (continued)
Key Judgements ‐ Going Concern
The financial report has been prepared using the going concern basis. The Directors have
determined that as with similar companies, future capital raisings will be required in order to
continue the exploration and development of the company's mining tenements (some subject
to an option payment) to achieve a position where they can prove exploration reserves. The
ability of the company to continue as a going concern is dependent upon the company raising
additional capital sufficient to meet the company's exploration commitments. Should there be
no funding available, exploration of the areas of interest may be put on hold. The recoverability
of the exploration asset is dependent upon the continued exploration of each area of interest.
The Directors have prepared a cash flow forecast for the foreseeable future reflecting this
expectation and their effect upon the company. The achievement of the forecast is dependent
upon the future capital raising, the outcome of which is uncertain.
Key Judgements ‐ Recoverability of Intercompany Loan
Within Non‐current assets of the parent entity (see note 20) there is a loan due from the 100%
subsidiary of $12,013,493 which is considered fully recoverable. The recoverability of this loan
is dependent upon the successful development or sale of exploration assets in Burkina Faso.
(T)
ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS
During the current year the Group adopted all of the new and revised Australian Accounting
Standards and Interpretations applicable to its operations which became mandatory.
The adoption of these standards has impacted the recognition, measurement and disclosure of
certain transactions. The following is an explanation of the impact the adoption of these
standards and interpretations has had on the financial statements of Predictive Discovery
Limited.
Application date of
standard
Periods beginning on or
after 1 January 2015
Reference
Title
Nature of Change
AASB 9 (issued
December 2009
and amended
December 2010)
Financial
Instruments
Amends the requirements for
classification and
measurement of financial
assets. The available‐for‐sale
and held‐to‐maturity
categories of financial assets
in AASB 139 have been
eliminated.
‐ 52 ‐
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES …..
(T)
ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS (continued)
Reference
Title
Nature of Change
Application date of
standard
AASB 10 (issued
August 2011)
Consolidated
Financial
Statements
Annual reporting
periods commencing on
or after 1 January 2013
AASB 9 requires that gains or
losses on financial liabilities
measured at fair value are
recognised in profit or loss,
except that the effects of
changes in the liability’s credit
risk are recognised in other
comprehensive income.
Introduces a single ‘control
model’ for all entities,
including special purpose
entities (SPEs), whereby all of
the following conditions must
be present:
• Power over investee
(whether or not power used
in practice)
• Exposure, or rights, to
variable returns from
investee
• Ability to use power over
investee to affect the
[Entity]’s returns from
investee.
• Introduces the concept of
‘defacto’ control for entities
with less than 50%
ownership interest in an
entity, but which have a
large shareholding
compared to other
shareholders. This could
result in more instances of
control and more entities
being consolidated.
AASB 11 (issued
August 2011)
Joint
Arrangements
Joint arrangements will be
classified as either ‘joint
operations’ (where parties
with joint control have rights
Annual reporting
periods commencing on
or after 1 January 2013
‐ 53 ‐
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES …..
(T)
ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS (continued)
Reference
Title
Nature of Change
Application date of
standard
AASB 12 (issued
August 2011)
Disclosure of
Interests in
Other Entities
AASB 13 (issued
September 2011)
Fair Value
Measurement
Annual reporting
periods commencing on
or after 1 January 2013
Annual reporting
periods commencing on
or after 1 January 2013
to assets and obligations for
liabilities) or ‘joint ventures’
(where parties with joint
control have rights to the net
assets of the arrangement).
Combines existing disclosures
from AASB 127 Consolidated
and Separate Financial
Statements, AASB 128
Investments in Associates and
AASB 131 Interests in Joint
Ventures. Introduces new
disclosure requirements for
interests in associates and
joint arrangements, as well as
new requirements for
unconsolidated structured
entities.
AASB 13 establishes a single
framework for measuring fair
value of financial and non‐
financial items recognised at
fair value in the statement of
financial position or disclosed
in the notes in the financial
statements.
Additional disclosures
required for items measured
at fair value in the statement
of financial position, as well as
items merely disclosed at fair
value in the notes to the
financial statements.
Extensive additional disclosure
requirements for items
measured at fair value that
are ‘level 3’ valuations in the
fair value hierarchy that are
not financial instruments.
‐ 54 ‐
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES …..
(T)
ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS (continued)
Application date of
standard
Annual periods
commencing on or after
1 January 2013
Annual periods
commencing on or after
1 July 2013
Annual periods
commencing on or after
1 January 2013
Reference
Title
Nature of Change
AASB 119
(reissued
September 2011)
Employee
Benefits
AASB 2011‐4
(issued July 2011)
Interpretation 20
(issued November
2011)
Amendments to
Australian
Accounting
Standards to
Remove
Individual Key
Management
Personnel
Disclosure
Requirements
Stripping Costs
in the
Production
Phase of a
Surface Mine
Employee benefits expected
to be settled (as opposed to
due to settled under current
standard) wholly within 12
months after the end of the
reporting period are short‐
term benefits, and therefore
not discounted when
calculating leave liabilities.
Annual leave not expected to
be used wholly within 12
months of end of reporting
period will in future be
discounted when calculating
leave liability.
Amendments to remove
individual key management
personnel (KMP) disclosure
requirements from AASB 124
to eliminate duplicated
information required under
the Corporation Act 2001
Clarifies that costs of
removing mine waste
materials (overburden) to gain
access to mineral ore deposits
during the production phase
of a mine must be capitalised
as inventories under AASB 102
Inventories if the benefits
from stripping activity is
realised in the form of
inventory produced.
‐ 55 ‐
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES …..
(T)
ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS (continued)
Reference
Title
Nature of Change
Application date of
standard
AASB 2012‐5
(issued June
2012)
Annual
Improvements
to Australian
Accounting
Standards 2009‐
2011 Cycle
Otherwise, if stripping activity
provides improved access to
the ore, stripping costs must
be capitalised as a non‐
current, stripping activity asset
if certain recognition criteria
are met.
Non‐urgent but necessary
changes to IFRSs (IAS1, IAS 16
& IAS 32)
e.g: AASB 116 clarifies that
items such as spare parts,
stand‐by or service
equipment are required to be
classified as property, plant
and equipment and not
inventory
Periods commencing on
or after 1 January 2013
IFRS (issued
December 2011)
Mandatory
Effective Date of
IFRS 9 and
Transition
Disclosures
Entities are no longer required
to restate comparatives on
first time adoption. Instead,
additional disclosures on the
effects of transition are
required.
Annual reporting
periods commencing on
or after 1 January 2015
Annual reporting
periods beginning on or
after 1 January 2013
AASB 2012‐9
(issued December
2012)
Amendment to
AASB 1048
arising from the
Withdrawal of
Australian
Interpretation
1039
Deletes Australian
Interpretation 1039
Substantive Enactment of
Major Tax Bills In Australia
from the list of mandatory
Australian Interpretations to
be applied by entities
preparing financial
statements under the
Corporations Act 2001 or
other general purpose
financial statements.
‐ 56 ‐
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES …..
(U)
NEW ACCOUNTING STANDARDS FOR APPLICATION IN FUTURE PERIODS
The AASB has issued new and amended accounting standards and interpretations that have
mandatory application dates for future reporting periods. The Group has decided against early
adoption of these standards. A discussion of those future requirements and their impact on the
Group follows:
AASB 9 ‐ Financial Instruments
Application Date of the standard 1 January 2013
Application Date for the Group 1 July 2013
AASB 9 includes requirements for the classification and measurement of financial assets
resulting from the first part of Phase 1 of the IASB’s project to replace IAS 39 Financial
Instruments: Recognition and Measurement (AASB 139 Financial Instruments: Recognition and
Measurement).
These requirements improve and simplify the approach for classification and measurement of
financial assets compared with the requirements of AASB 139. The main changes from AASB
139 are described below.
(a)
Financial assets are classified based on (1) the objective of the entity’s business model
for managing the financial assets; (2) the characteristics of the contractual cash flows.
This replaces the numerous categories of financial assets in AASB 139, each of which had
its own classification criteria.
(b)
(c)
investments
AASB 9 allows an irrevocable election on initial recognition to present gains and losses
in other
on
comprehensive income. Dividends in respect of these investments that are a return on
investment can be recognised in profit or loss and there is no impairment or recycling on
disposal of the instrument.
instruments that are not held for trading
in equity
Financial assets can be designated and measured at fair value through profit or loss at
initial recognition if doing so eliminates or significantly reduces a measurement or
recognition inconsistency that would arise from measuring assets or liabilities, or
recognising the gains and losses on them, on different bases.
AASB 10 ‐ Consolidated Financial Statements
Application Date of the standard 1 January 2013
Application Date for the Group 1 July 2013
AASB 10 establishes a new control model that applies to all entities. It replaces parts of AASB
127 Consolidated and Separate Financial Statements dealing with the accounting for
consolidated financial statements and Interpretation 112 Consolidation – Special Purpose
Entities.
The new control model broadens the situations when an entity is considered to be controlled
by another entity and includes new guidance for applying the model to specific situations,
including when acting as a manager may give control, the impact of potential voting rights and
when holding less than a majority voting rights may give control. This is likely to lead to more
entities being consolidated into the group.
‐ 57 ‐
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES …..
(U)
NEW ACCOUNTING STANDARDS FOR APPLICATION IN FUTURE PERIODS (continued)
AASB 11 ‐ Joint Arrangements
Application Date of the standard 1 January 2013
Application Date for the Group 1 July 2013
AASB 11 replaces AASB 131 Interests in Joint Ventures and Interpretation 113 Jointly‐
controlled Entities – Non‐monetary Contributions by Ventures. AASB 11 uses the principle of
control in AASB 10 to define joint control, and therefore the determination of whether joint
control exists may change. In addition AASB 11 removes the option to account for jointly
controlled entities (JCEs) using proportionate consolidation. Instead, accounting for a joint
arrangement is dependent on the nature of the rights and obligations arising from the
arrangement. Joint operations that give the venturers a right to the underlying assets and
obligations themselves is accounted for by recognising the share of those assets and
obligations. Joint ventures that give the venturers a right to the net assets is accounted for
using the equity method. This may result in a change in the accounting for the joint
arrangements held by the group.
AASB 12 ‐ Disclosure of Interests in Other Entities
Application Date of the standard 1 January 2013
Application Date for the Group 1 July 2013
AASB 12 includes all disclosures relating to an entity’s interests in subsidiaries, joint
arrangements, associates and structures entities.
New disclosures have been introduced about the judgements made by management to
determine whether control exists, and to require summarised information about joint
arrangements, associates and structured entities and subsidiaries with non‐controlling
interests.
AASB 13 – Fair Value Measurement
Application Date of the standard 1 January 2013
Application Date for the Group 1 July 2013
AASB 13 establishes a single source of guidance under Australian Accounting Standards for
determining the fair value of assets and liabilities. AASB 13 does not change when an entity is
required to use fair value, but rather, provides guidance on how to determine fair value under
Australian Accounting Standards when fair value is required or permitted by Australian
Accounting Standards. Application of this definition may result in different fair values being
determined for the relevant assets.
AASB 13 also expands the disclosure requirements for all assets or liabilities carried at fair
value. This includes information about the assumptions made and the qualitative impact of
those assumptions on the fair value determined.
‐ 58 ‐
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES …..
(U)
NEW ACCOUNTING STANDARDS FOR APPLICATION IN FUTURE PERIODS (continued)
AASB 119 ‐ Employee Benefits
Application Date of the standard 1 January 2013
Application Date for the Group 1 July 2013
The main changes to accounting for defined benefit plans are:
‐
‐
‐
to eliminate the option to defer the recognition of gains and losses (the ‘corridor
method’);
requiring remeasurements to be presented in other comprehensive income; and
enhancing the disclosure requirements relating to defined benefit plans for Tier 1
entities. The AASB has provided relief from certain disclosure requirements for entities
that adopt Tier 2 Reduced Disclosure Requirements.
Interpretation 20 ‐ Stripping the Costs in the Production Phase of a Surface Mine
Application Date of the standard 1 January 2013
Application Date for the Group 1 July 2013
This interpretation applies to stripping costs incurred during the production phase of a surface
mine.
Production stripping costs are to be capitalised as part of an asset, if an entity can demonstrate
that it is probable future economic benefits will be realised, the costs can be reliably measured
and the entity can identify the component of an ore body for which access has been improved.
This asset is to be called the “stripping activity asset”.
The stripping activity asset shall be depreciated or amortised on a systematic basis, over the
expected useful life of the identified component of the ore body that becomes more accessible
as a result of the stripping activity. The units of production method shall be applied unless
another method is more appropriate.
Consequential amendments were also made to other standards via AASB 2011‐12.
Annual Improvements 2009‐2011 Cycle
Application Date of the standard 1 January 2013
Application Date for the Group 1 July 2013
This standard sets out amendments to International Financial Reporting
Standards (IFRSs) and the related bases for conclusions and guidance made during the
International Accounting Standards Board’s Annual Improvements process. These amendments
have not yet been adopted by the AASB.
The following items are addressed by this standard:
IFRS 1 First‐time Adoption of International Financial Reporting Standards
•
•
Repeated application of IFRS 1
Borrowing costs
‐ 59 ‐
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES …..
(U)
NEW ACCOUNTING STANDARDS FOR APPLICATION IN FUTURE PERIODS (continued)
Annual Improvements 2009‐2011 Cycle…..
IAS 1 Presentation of Financial Statements
•
Clarification of the requirements for comparative information
IAS 16 Property, Plant and Equipment
•
Classification of servicing equipment
IAS 32 Financial Instruments: Presentation
•
Tax effect of distribution to holders of equity instruments
IAS 34 Interim Financial Reporting
•
Interim financial reporting and segment information for total assets and liabilities
AASB 2011‐4 Amendments to Australian Accounting Standards to Remove Individual Key
Management Personnel Disclosure Requirements
Application Date of the standard 1 July 2013
Application Date for the Group 1 July 2013
This Amendment deletes from AASB 124 individual key management personnel disclosure
requirements for disclosing entities that are not companies.
AASB 1053 Application of Tiers of Australian Accounting Standards
Application Date of the standard 1 July 2013
Application Date for the Group 1 July 2013
This Standard establishes a differential financial reporting framework consisting of two Tiers of
reporting requirements for preparing general purpose financial statements:
(a)
(b)
Tier 1: Australian Accounting Standards
Tier 2: Australian Accounting Standards – Reduced Disclosure Requirements
Tier 2 comprises the recognition, measurement and presentation requirements of Tier 1 and
substantially reduced disclosures corresponding to those requirements.
The following entities apply Tier 1 requirements in preparing general purpose financial
statements:
(a)
For‐profit entities in the private sector that have public accountability (as defined in this
Standard)
The Australian Government and State, Territory and Local Governments
(b)
The following entities apply either Tier 2 or Tier 1 requirements in preparing general purpose
financial statements:
(a)
(b)
For‐profit private sector entities that do not have public accountability
All not‐for‐profit private sector entities.
Public sector entities other than the Australian Government and State, Territory and Local
Governments
The Group does not anticipate early adoption of any of the above accounting standards.
‐ 60 ‐
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
2
INCOME TAX EXPENSE
(A)
THE COMPONENTS OF TAX EXPENSE COMPRISE:
Current tax
Deferred tax
(a) Income tax recognised in profit or loss
Tax expense / (revenue) comprises:
Current tax expense / (revenue)
Deferred tax expense / (revenue) relating to the origination and
reversal of temporary differences
Tax Losses Not Recognised
Total tax expense / (revenue)
The prima facie income tax expense on pre‐tax accounting
profit from operations reconciles to the income tax expense in
the financial statements as follows:
Profit / (loss) from operations
Income tax expense (revenue) calculated at 30% (2010: 30%)
Tax Effect of Employee Options
Tax effect of FX Loss
Tax Effect of Capital Raising Costs Not Recognised
Non‐deductable expenses
Tax Losses Not Recognised
Income tax rate
2013
$
2012
$
‐
‐
‐
‐
‐
‐
2013
$
2012
$
(1,362,791)
(2,670,783)
912,584
1,892,950
450,207
777,833
‐
‐
326,322
(2,706,548)
97,897
4,349
(468,196)
(84,393)
136
450,207
‐
(811,964)
15,076
‐
18,996
777,892
‐
The tax rate used in the above reconciliation is the corporate tax rate of 30% payable by the Australian
corporate entities on taxable profits under the Australian tax law. There has been no change in the
corporate tax rate when compared with the previous year.
3
CASH AND CASH EQUIVALENTS
Cash at bank
2013
$
2012
$
1,352,410
1,063,472
1,352,410
1,063,472
Of the cash at bank amount, $10,000 is provided as security to the ANZ Bank for a bank guarantee.
‐ 61 ‐
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
4
TRADE AND OTHER RECEIVABLES
Trade receivables
Other receivables
5
PROPERTY, PLANT AND EQUIPMENT
PLANT AND EQUIPMENT
At cost
Accumulated depreciation
Total plant and equipment
2013
$
2012
$
22,978
106,093
90,152
89,456
129,071
179,608
2013
$
2012
$
531,334
529,159
(166,365)
(103,115)
364,969
426,044
(A) MOVEMENTS IN CARRYING AMOUNTS
Movement in the carrying amounts for each class of property, plant and equipment between the
beginning and the end of the current financial year:
Balance at 30 June 2013
Balance at the beginning of year
Additions
Depreciation expense
Movement in exchange rates
Balance at 30 June 2013
Balance at 30 June 2012
Balance at the beginning of year
Additions
Depreciation expense
Movement in exchange rates
Balance at 30 June 2012
‐ 62 ‐
PLANT AND
EQUIPMENT
$
TOTAL
$
426,044
426,044
2,175
2,175
(109,361)
(109,361)
46,111
46,111
364,969
364,969
287,593
282,107
287,593
282,107
(103,115)
(103,115)
(40,541)
(40,541)
426,044
426,044
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
6
EXPLORATION, EVALUATION AND DEVELOPMENT ASSETS
Exploration and evaluation expenditure
2013
Balance at beginning of the year
Expenditure incurred
Impairment
Balance at end of the year
2012
Balance at beginning of the year
Expenditure incurred
Impairment
Balance at end of the year
2013
$
2012
$
14,604,406
10,235,139
14,604,406
10,235,139
EXPLORATION AND
EVALUATION
$
10,235,139
4,668,842
(299,575)
14,604,406
3,925,307
7,041,679
(731,847)
10,235,139
The recoverability of the carrying amount of the exploration and evaluation assets is dependent on
successful development and commercial exploitation, or alternatively, sale of the respective areas of
interest. It is the Board’s view that PD’s exploration and evaluation assets satisfy AASB6 7.2(b)(ii)
because PD only commenced exploration activities over the past year and those activities have not
reached a stage which permits a reasonable assessment of the existence or otherwise of economically
recoverable reserves.
Active and significant operations have occurred on all permits until the beginning of the wet season
(July) and PD’s budget shows active expenditure on exploration activities in the dry season (November
to June). The budget is split by geographical area and not by area of interest as the allocation of
resources will depend upon findings. However, it is acknowledged that the budget allows for spending
on all areas of interest without exclusion. It is anticipated that all expenditure required by agreement
or permit will be met.
In assessing the recoverability of the carrying amounts, reference is made to Note 1 (S) ‐ Key
Judgements ‐ Exploration and Evaluation Expenditure and Going Concern. The Directors have
determined that as with similar companies, future capital raisings will be required in order to continue
the exploration and development of the company's mining tenements (some subject to an option
payment) to achieve a position where they can prove exploration reserves. Should there be no funding
available, exploration of the areas of interest may be put on hold. The recoverability of the exploration
asset is dependent upon the continued exploration of each area of interest.
‐ 63 ‐
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
7
TRADE AND OTHER PAYABLES
CURRENT
Trade payables
Other payables
8 TAX ASSETS AND LIABILITES
(a) Assets
Current
Income tax refundable
Non‐current
Deferred tax asset comprises:
Employee Entitlements
Accruals and payables
ASX Listing Costs
Tax Losses
Amount Not Recognised
(b) Liabilities
Current
Income tax liabilities
Less: PAYG instalments paid
Income tax payable
Non‐current
Deferred tax liability comprises:
Exploration Expenditure
Amount Not Recognised
Net DTA/DTL
‐ 64 ‐
2013
$
2012
$
229,658
20,626
734,901
139,107
250,284
874,008
2013
$
2012
$
‐
‐
‐
‐
6,188
11,250
909
41,732
‐
‐
4,097,821
4,267,723
(4,116,168)
(4,309,455)
‐
‐
‐
‐
‐
‐
‐
‐
(2,491,965)
(3,070,542)
2,491,965
‐
3,070,542
‐
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
8 TAX ASSETS AND LIABILITES (continued)
2013
$
2012
$
(c) Reconciliations
(i) Gross Movements
The overall movement in the deferred tax balances is as follows:
Opening balance
Underprovision in prior year
Credited / (charge) to the income statement
Amount Not Recognised
Closing balance
(ii) Deferred tax assets
The movement in deferred tax assets for each temporary
difference during the year is as follows:
Employee Entitlements
Opening balance
Credited / (charge) to the income statement
Amount Not Recognised
Closing balance
Provisions
Opening balance
Credited / (charge) to the income statement
Amount Not Recognised
Closing balance
Accruals and payables
Opening balance
Credited / (charge) to the income statement
Amount Not Recognised
Closing balance
Tax Losses
Opening balance
Credited / (charge) to the income statement
Amount Not Recognised
Closing balance
‐ 65 ‐
1,173,995
455,019
‐
‐
450,208
(1,624,203)
777,833
(1,232,852)
‐
‐
41,732
(35,544)
(6,188)
‐
24,392
‐
(24,392)
‐
‐
‐
‐
‐
‐
‐
‐
‐
9,000
2,250
(11,250)
‐
8,550
‐
(8,550)
‐
2,735,029
1,362,792
(4,097,821)
‐
1,596,940
2,670,783
(4,267,723)
‐
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
8 TAX ASSETS AND LIABILITES (continued)
ASX Listing Costs
Opening balance
Under provision in prior year
Credited / (charge) to the income statement
Amount Not Recognised
Closing balance
(iii) Deferred tax liability
Exploration Expenditure
Opening balance
Credit / (charge) to the income statement
Amount Not Recognised
Closing balance
2013
$
2012
$
1,819
‐
(910)
(909)
‐
2,729
‐
(910)
(1,819)
‐
(1,613,585)
(878,380)
2,491,965
‐
(1,177,592)
‐
1,177,592
‐
The DTL is not recognised as a liability as the future tax benefits are assumed to be available if and
when the deferred tax liability crystalises.
9
PROVISIONS
CURRENT
Employee entitlements
10
ISSUED CAPITAL
234,633,856 (2012: 125,555,405) Ordinary shares
Share issue costs written off against issued capital
‐ 66 ‐
2013
$
2012
$
20,626
139,107
20,626
139,107
2013
$
2012
$
21,348,580
16,368,613
(1,406,563)
(1,104,424)
19,942,017
15,264,189
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
10
ISSUED CAPITAL (continued)
ORDINARY SHARES
At the beginning of the reporting period
125,555,405
16,386,368
97,056,681
11,093,400
2013
NO.
2013
$
2012
NO.
2012
$
Tenement Purchase
Employee share issue
Placements
Rights Issues
OPTIONS
11,250,000
329,500
787,500
14,498
86,236,843
3,277,000
524,590
100,000
‐
‐
‐
‐
11,262,108
900,969
27,974,134
5,192,968
234,633,856
21,348,580
125,555,405 $16,386,368
(i)
For information relating to Predictive Discovery Limited employee option plan, including details
of options issued, exercised and lapsed during the financial year and the options outstanding at
year end, refer to Note 22.
11 RESERVES
FOREIGN CURRENCY TRANSLATION RESERVE
Exchange differences arising on translation of the foreign controlled entity are recognised in other
comprehensive income foreign currency translation reserve. The cumulative amount is reclassified to
profit or loss when the net investment is disposed of.
OPTION RESERVE
The option reserve records items recognised as expenses on valuation of employee share options.
12 EARNINGS PER SHARE
Earnings used to calculate basic EPS
2013
$
2012
$
(1,029,304)
(2,706,350)
Weighted average number of ordinary shares outstanding during the year used in calculating basic EPS.
2013
NO.
2012
NO.
Weighted average number of ordinary shares outstanding during the
period‐ Number used in calculating basic EPS
193,090,138
118,702,116
Weighted average number of ordinary shares outstanding during the
year used in calculating dilutive EPS
193,090,138
118,702,116
Diluted earnings per share is the same as basic earnings per share as The Group incurred a loss for the
period and therefore is not considered dilutive.
‐ 67 ‐
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
12 EARNINGS PER SHARE (continued)
2013
NO.
2012
NO.
Weighted average number of ordinary shares outstanding during the
period‐ Number used in calculating basic EPS
193,090,138
118,702,116
Weighted average number of ordinary shares outstanding during the
year used in calculating dilutive EPS
193,090,138
118,702,116
Diluted earnings per share is the same as basic earnings per share as The Group incurred a loss for the
period and therefore is not considered dilutive.
13 CAPITAL AND LEASING COMMITMENTS
(A)
LEASE COMMITMENTS
Payable ‐ minimum lease payments:
‐ not later than 12 months
‐ between 12 months and 5 years
(B) OPTIONS FEE COMMITMENTS
Payable ‐ minimum lease payments:
‐ not later than 12 months
‐ between 12 months and 5 years
(C) CAPITAL EXPENDITURE COMMITMENTS
Payable:
‐ not later than 12 months
‐ between 12 months and 5 years
‐ 68 ‐
2013
$
2012
$
245,232
‐
220,486
427,873
245,232
648,359
2013
$
2012
$
500,000
‐
430,000
100,000
500,000
530,000
2013
$
2012
$
50,087
146,454
72,352
289,410
196,541
361,762
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
13 CAPITAL AND LEASING COMMITMENTS (continued)
(D) LICENCE FEE COMMITMENTS
Payable:
‐ not later than 12 months
‐ between 12 months and 5 years
2013
$
2012
$
300,000
300,000
1,200,000
1,200,000
1,500,000
1,500,000
14 FINANCIAL RISK MANAGEMENT
The Group's financial instruments consist mainly of deposits with banks, receivables and payables.
The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed
in the accounting policies to these financial statements, are as follows:
Financial Assets
Cash and cash equivalents
Trade and other receivables
Total Financial Assets
Financial Liabilities
Trade and other payables
Total Financial Liabilities
NOTE
2013
$
2012
$
3
4
1,352,410
1,063,261
129,071
179,819
1,481,481
1,243,080
7
250,284
874,008
250,284
874,008
The carrying amounts of these financial instruments approximate their fair values.
FINANCIAL RISK MANAGEMENT POLICIES
Exposure to key financial risks is managed in accordance with the Group’s risk management policy with
the objective to ensure that the financial risks inherent in exploration activities are identified and then
managed or kept as low as reasonably practicable.
The main financial risks that arise in the normal course of business are market risk (including currency
risk, interest rate risk and price risk), credit risk and liquidity risk. Different methods are used to
measure and manage these risk exposures. Liquidity risk is monitored through the ongoing review of
available cash and future commitments for exploration expenditure.
‐ 69 ‐
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
14 FINANCIAL RISK MANAGEMENT (continued)
FINANCIAL RISK MANAGEMENT POLICIES…..
Exposure to liquidity risk is limited by anticipating liquidity shortages and ensures capital can be raise in
advance of shortages. Interest rate risk is managed by limiting the amount interest bearing loans
entered into by The Group. It is the Board's policy that no speculative trading in financial instruments be
undertaken so as to limit expose to price risk.
Primary responsibility for identification and control of financial risks rests with the Company Secretary,
under the authority of the Board. The Board is apprised of these risks from time to time and agrees any
policies that may be undertaken to manage any of the risks identified.
Details of the significant accounting policies and methods adopted, including criteria for recognition,
the basis of measurement and the basis on which income and expenses are recognised, in respect of
each financial instrument are disclosed in Note 1 to the financial statements. The carrying values less
the impairment allowance for receivables and payables are assumed to approximate fair values due to
their short term nature. Cash and cash equivalents are subject to variable interest rates.
SPECIFIC FINANCIAL RISK EXPOSURES AND MANAGEMENT
(A)
CREDIT RISK
Exposure to credit risk relating to financial assets arises from the potential non‐performance by
counter parties of contract obligations that could lead to a financial loss to The Group.
The Group trades only with recognised, creditworthy third parties.
The Group has no customers and consequently no significant exposure to bad debts or other
credit risks.
With respect to credit risk arising from financial assets, which comprise cash and cash
equivalents and receivables, the exposure to credit risk arises from default of the counter party,
with a maximum exposure equal to the carrying amount of these instruments. At balance date
cash and deposits were held with National Australia Bank.
(B)
LIQUIDITY RISK
Liquidity risk arises from the possibility that The Group might encounter difficulty in settling its
debts or otherwise meeting its obligations related to financial liabilities.
Prudent liquidity risk management implies maintaining sufficient cash reserves to meet the
ongoing operational requirements of the business. It is the Group’s policy to maintain sufficient
funds in cash and cash equivalents. Furthermore, the Group monitors its ongoing exploration
cash requirements and raises equity funding as and when appropriate to meet such planned
requirements. The Group has no undrawn financing facilities. Trade and other payables, the
only financial liability of the Group, are due within 3 months.
The tables below reflect an undiscounted contractual maturity analysis for financial liabilities.
‐ 70 ‐
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
14 FINANCIAL RISK MANAGEMENT (continued)
SPECIFIC FINANCIAL RISK EXPOSURES AND MANAGEMENT….
(B)
LIQUIDITY RISK (continued)
Cash flows realised from financial assets reflect management's expectation as to the timing of
realisation. Actual timing may therefore differ from that disclosed. The timing of cash flows
presented in the table to settle financial liabilities reflects the earliest contractual settlement
dates and does not reflect management's expectations that banking facilities will be rolled
forward.
Financial liability and financial asset maturity analysis
WITHIN 1 YEAR
1 TO 5 YEARS
TOTAL CONTRACTUAL CASH
FLOW
2013
$
2012
$
2013
$
2012
$
2013
$
2012
$
Financial liabilities due for
payment
Trade and other payables
250,284 874,008
‐
Total contractual outflows
250,284 874,008
‐
Financial assets ‐ cash flows
realisable
Trade and other receivables
129,071
179,608
Total anticipated inflows
129,071 179,608
‐
‐
The financial assets and liabilities noted above are interest free.
(C)
MARKET RISK
i.
Interest rate risk
‐
‐
‐
‐
250,284 874,008
250,284 874,008
129,071 179,608
129,071
179,608
The Group’s cash flow interest rate risk primarily arises from cash at bank and deposits subject to
market bank rates. At balance date, the Group does not have any borrowings. The Group does not
enter into hedges. An increase/ (decrease) in interest rates by 1% during the whole of the
respective periods would have led to an increase/(decrease) in both equity and losses of less than
$10,000. 1% was thought to be appropriate because it represents four 0.25 basis point rate
rises/falls, which is appropriate in the recent economic climate. The majority of cash held in a cash
management account earns interest income at a rate of 3% p.a.
‐ 71 ‐
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
14 FINANCIAL RISK MANAGEMENT (continued)
SPECIFIC FINANCIAL RISK EXPOSURES AND MANAGEMENT …..
(C) MARKET RISK (continued)
ii. Foreign exchange risk
Exposure to foreign exchange risk may result in the fair value or future cash flows of a financial
instrument fluctuating due to movement in foreign exchange rates of currencies in which The
Group holds foreign currency which are other than the AUD functional currency of The Group.
15 OPERATING SEGMENTS
Identification of Reportable Segments
The Group has identified its operating segments based on the internal reports that are reviewed and
used by the Board of Directors (chief operating decision makers) in assessing performance and
determining the allocation of resources.
The accounting policies applied for internal purposes are consistent with those applied in the
preparation of these financial statements.
a)
The following is an analysis of the Group’s revenue and results from operations by reportable
segment.
2013
Revenue
Interest income
Expenses
Share based payments
Administration expenses
FX Expense
Exploration expenditure written
off
Impairment of Exploration
Corporate
$
‐
38,533
(14,498)
(678,618)
251,095
‐
‐
‐
‐
‐
‐
‐
‐
(299,575)
(62,122)
‐
Loss before tax
(403,488)
(361,697)
Current assets
Exploration expenditure
Plant and Equipment
Current liabilities
Net assets
1,365,866
‐
2,842
(110,511)
1,258,197
‐
‐
‐
‐
‐
‐ 72 ‐
Gold
Aust
$
Uranium
Aust
$
Gold
Burkina
Faso
$
Other
West
Africa
$
Total
$
‐
38,533
‐
‐
‐
‐
‐
‐
‐
‐
(14,498)
(868,494)
176,854
(299,575)
(62,122)
‐
(1,029,302)
‐
1,481,482
‐ 14,632,581
‐
‐
364,969
(250,284)
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
(189,876)
(74,241)
‐
‐
‐
(264,117)
115,616
‐ 14,632,581
‐
‐
362,127
(139,773)
‐ 14,964,783
‐ 16,228,748
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
15 OPERATING SEGMENTS (continued)
Identification of Reportable Segments …..
2012
Revenue
Interest income
Expenses
Share based payments
Administration expenses
FX Expense
Exploration expenditure written
off
Impairment of Exploration
Corporate
$
191,196
(50,253)
(1,121,190)
(602,487)
‐
‐
Gold
Aust
$
Uranium
Aust
$
Gold
Burkina
Faso
$
Other
West
Africa
$
Total
$
‐
‐
‐
‐
(67,911)
‐
‐
‐
‐
‐
‐
‐
(245,115)
‐
‐
‐
‐
‐
191,196
(50,253)
(1,366,305)
(602,487)
(20,497)
(58,246)
(146,654)
‐
(731,847)
‐
‐
(731,847)
Loss before tax
(1,582,734)
(67,911)
(731,847)
(265,612)
(58,246)
(2,706,350)
Current assets
Exploration expenditure
Plant and Equipment
Current liabilities
1,014,634
‐
‐
317,732
5,644
(222,868)
‐
‐
‐
228,446
‐ 9,917,408
‐
‐
420,400
(550,443)
‐
1,243,080
‐ 10,235,140
‐
‐
426,044
(773,311)
Net assets
797,410
317,732
‐ 10,015,811
‐ 11,130,953
The Group operates in three principal geographical areas – Australia (country of domicile), Burkina Faso
and other West African countries.
16
INTERESTS OF KEY MANAGEMENT PERSONNEL
Refer to the Remuneration Report contained in the Directors' Report for details of the remuneration
paid or payable to each member of The Group's key management personnel for the year ended 30 June
2013.
The totals of remuneration paid to key management personnel of the company and The Group during
the year are as follows:
‐ 73 ‐
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
16 INTERESTS OF KEY MANAGEMENT PERSONNEL (continued)
KEY MANAGEMENT PERSONNEL OPTIONS AND RIGHTS HOLDINGS
The number of options over ordinary shares held by each key management person of The Group during
the financial year is as follows:
BALANCE AT
BEGINNING
OF PERIOD
GRANTED AS
REMUNERAT‐
ION DURING
THE PERIOD
EXERCISED
DURING THE
PERIOD
OTHER
CHANGES
DURING THE
PERIOD
BALANCE AT
END OF
PERIOD
VESTED
DURING THE
PERIOD
VESTED AND
EXERCISABLE
VESTED AND
UNEXERCIS‐
ABLE
30 JUNE 2013
Mr Phillip Harman
900,000
Mr Paul Roberts
1,700,000
Dr Thomas Whiting
600,000
Dr Robert Danchin
600,000
Mr Philip Henty
600,000
Mr Ian Hobson
‐
David Pascoe
500,000
4,900,000
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
900,000
1,700,000
600,000
600,000
600,000
‐
‐
‐
‐
‐
‐
‐
900,000
1,700,000
600,000
600,000
600,000
‐
500,000
‐
500,000
‐
‐
‐
‐
‐
‐
‐
4,900,000 ‐
4,900,000 ‐
BALANCE AT
BEGINNING
OF PERIOD
GRANTED AS
REMUNERAT‐
ION DURING
THE PERIOD
EXERCISED
DURING THE
PERIOD
OTHER
CHANGES
DURING THE
PERIOD
BALANCE AT
END OF
PERIOD
VESTED
DURING THE
PERIOD
VESTED AND
EXERCISABLE
VESTED AND
UNEXERCIS‐
ABLE
30 JUNE 2012
Mr Phillip Harman
900,000
Mr Paul Roberts
1,700,000
Dr Thomas Whiting
600,000
Dr Robert Danchin
600,000
Mr Philip Henty
600,000
Mr Ian Hobson
‐
‐
‐
‐
‐
‐
‐
David Pascoe
‐
500,000
4,400,000
500,000
‐
‐
‐
‐
‐
‐
‐
900,000
1,700,000
600,000
600,000
600,000
‐
‐
‐
‐
‐
‐
‐
900,000
1,700,000
600,000
600,000
600,000
‐
500,000
500,000
500,000
‐
4,900,000
500,000 4,900,000
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐ 74 ‐
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
16 INTERESTS OF KEY MANAGEMENT PERSONNEL (continued)
KEY MANAGEMENT PERSONNEL SHAREHOLDINGS
The number of ordinary shares in Predictive Discovery Limited held by each key management person of
the Group during the financial year is as follows:
30 June 2013
Mr Phillip Harman
Mr Paul Roberts
Dr Thomas Whiting
Dr Robert Danchin
Mr Philip Henty
Mr Ian Hobson
Mr David Pascoe
30 June 2012
Mr Phillip Harman
Mr Paul Roberts
Dr Thomas Whiting
Dr Robert Danchin
Mr Philip Henty
Mr Ian Hobson
Mr David Pascoe
BALANCE AT
BEGINNING OF
PERIOD
GRANTED AS
REMUNERATION
DURING THE
PERIOD
ISSUED ON
EXERCISE OF
OPTIONS
DURING THE
PERIOD
OTHER
CHANGES
DURING THE
PERIOD
BALANCE AT
END OF PERIOD
1,954,688
3,320,500
1,054,688
‐
5,976,563
50,000
‐
12,355,501
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
1,443,570
3,398,258
381,579
3,702,079
737,254
1,791,942
‐
‐
4,953,125 10,929,688
10,000
60,000
‐
‐
7,525,528 19,881,967
GRANTED AS
REMUNERATION
ISSUED ON
EXERCISE OF
OPTIONS
OTHER
CHANGES
DURING THE
YEAR
DURING THE
YEAR
DURING THE
YEAR
BALANCE AT
END OF YEAR
BALANCE AT
BEGINNING OF
YEAR
1,737,500
3,187,500
937,500
‐
5,312,500
50,000
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
217,188
1,954,688
133,000
3,320,500
117,188
1,054,688
‐
‐
664,063
5,976,563
‐
‐
50,000
‐
11,225,000
‐
‐
1,131,439
12,356,439
‐ 75 ‐
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
16 INTERESTS OF KEY MANAGEMENT PERSONNEL (continued)
OTHER KEY MANAGEMENT PERSONNEL TRANSACTIONS
There have been no other transactions involving equity instruments other than those described in the
tables above. For details of other transactions with key management personnel, refer to Note 20:
Related Party Transactions.
17 AUDITORS’ REMUNERATION
Remuneration of the auditor of the parent entity for:
‐ Audit services
18 CONTROLLED ENTITIES
NAME
COUNTRY OF INCORPORATION
Parent Entity:
Predictive Discovery Limited
Subsidiaries of legal parent entity:
Australia
Predictive Discovery SARL
Burkina Faso
Predictive Discovery Niger SARL
Niger
Predictive Discovery Cote D’Ivoire SARL
Cote D’Ivoire
Birrimian Pty Ltd
British Virgin Islands
Predictive Discovery Cote D’Ivoire Pty Ltd
Australia
* Percentage of voting power is in proportion to ownership
Acquisitions of controlled entities
2013
$
2012
$
51,450
41,000
51,450
41,000
PERCENTAGE
OWNED (%)*
2013
PERCENTAGE
OWNED (%)*
2012
100
100
100
100
100
100
100
100
72.1
‐
During the year, the remaining 17.9% of Birrimian Pty Limited was acquired by Predictive Discovery
Limited as the result of the Group successfully negotiating a transaction in order to obtain 100%.
Predictive Discovery Cote d’Ivoire Pty Ltd, a 100% controlled subsidiary was established in Australia but
did not undertake any activities in the year.
19 CONTINGENT LIABILITIES
There are no material contingent liabilities or contingent assets of The Group at balance date.
‐ 76 ‐
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
20 RELATED PARTY TRANSACTIONS
Transactions between related parties are on normal commercial terms and conditions no more
favourable than those available to other parties unless otherwise stated.
Transactions with related parties:
Intercompany Loans
Predictive Discovery Limited has made loans to its subsidiary in the amount of $12,013,493. The loan is
interest free and payable on demand.
Directors’ Remuneration
For information relating to related party transactions with key management personnel during the
financial year, refer to Note 16.
Other Related Party Transactions
Churchill Services Pty Ltd, an entity associated with Ian Hobson, was paid $111,705 for company
secretarial services during the year.
21 CASH FLOW INFORMATION
RECONCILIATION OF CASH FLOW FROM OPERATIONS WITH LOSS AFTER INCOME TAX
Profit (loss) for the year
Non‐operating items in profit
Exploration expenditure
Interest income
Non‐cash flows in profit
Non‐cash based share issues
Share based payments
Depreciation
Foreign exchange (gains)/losses
Write off of exploration expenditure
Changes in assets and liabilities
(Increase)/decrease in receivables
Increase/(decrease) in payables
Increase/(decrease) in provisions
Increase/(decrease) in FX Reserve
‐ 77 ‐
2013
$
2012
$
(1,029,304)
(2,706,350)
62,122
(38,533)
146,654
(191,195)
14,498
2,802
‐
50,253
2,417
‐
299,575
731,847
30,381
(99,603)
(12,693)
74,183
167,193
66,807
11,186
‐
(696,572)
(1,721,188)
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
22 SHARE BASED PAYMENTS
During the year, the group entered into the following share‐based payments:
1. The issue of 11,250,000 ordinary shares in the Company in consideration for the 27.9% in
Birrimian Pty Limited for a value of $787,500 (7 cents per share); and
2. The issue of 3,500,000 options exercisable at various prices and expiring at various times in part
consideration for capital raising fees.
3. The issue of 329,500 ordinary shares in the company as employee incentives to Burkina Faso
employees.
At 30 June 2013 the Group has the following share‐based payment options on issue to employees:
EXERCISE
PRICE
START OF THE
YEAR
GRANTED
DURING THE
YEAR
EXERCISED
DURING THE
YEAR
FORFEITED
DURING THE YEAR
BALANCE AT
THE END OF THE
YEAR
VESTED AND
EXERCISABLE AT
THE END OF THE
YEAR
2012
GRANT DATE
EXPIRY DATE
20 August
2010
20 August 2
015
11 July
2011
11 July 2
015
0.25 6,000,000
0.31
500,000
‐
‐
‐
‐
‐
‐
‐
6,000,000
6,000,000
‐
‐
500,000
500,000
6,500,000
6,500,000
December 2130
0.56 6,500,000
At 30 June 2013 the Group has the following share‐based payment options on issue in lieu of capital
raising fees:
2012
GRANT DATE
EXPIRY DATE
5 December
2012
5 December
2012
30 October
2015
11 July
2015
$0.15
$0.1 to
$0.2*
30 December
2130
0.56
EXERCISE
PRICE
START OF
THE YEAR
GRANTED
DURING THE
YEAR
EXERCISED
DURING THE
YEAR
FORFEITED
DURING THE
YEAR
BALANCE AT THE
END OF THE YEAR
VESTED AND
EXERCISABLE AT THE
END OF THE YEAR
‐
‐
‐
2,000,000
3,500,000
5,500,000
‐
‐
‐
‐
‐
‐
2,000,000
2,000,000
3,500,000
3,500,000
5,500,000
5,500,000
*3,500,000 unlisted options with an exercise price of 10 cents to 30 June 2013, 15 cents from 1 July 2013
to 30 June 2014 and 20 cents from 1 July 2014 to the expiry date on 30 June 2015.
The weighted average exercise price of options as at 30 June 2013 was $0.19 (30 June 2012: $0.26). The
weighted average remaining contractual life of options outstanding at year end was 2.13 years (30 June
2012: 3.14).
The fair value of the options granted to employees and brokers is deemed to represent the value of
services received over the vesting period.
The fair value of the options granted during the year was $65,469 (30 June 2012: $ 50,253.00).
‐ 78 ‐
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
22 SHARE BASED PAYMENTS (continued)
These values were calculated by using a Black‐Scholes option pricing model applying the following inputs:
Dividend yield (%):
Exercise price (cents):
Life of option (years):
Expected share price volatility (%):
Risk‐free interest rate (%):
‐
Range of 10
to 25 cents
4
77.60
2.94
Historic volatility has been the basis of determining expected share price volatility as it is assumed that
this is indicative of future movements.
The life of the options is based on the historical exercise patterns, which may not eventuate in the
future.
23 EVENTS AFTER THE END OF THE REPORTING PERIOD
In accordance with the purchase agreement for the Cote d’Ivoire Kocoumbo permit, the Company has
paid the first instalment of USD$25,000 and issued USD$25,000 worth of shares on 20 August 2013 to
Ivoir Negoce. No other matters or circumstances have arisen for the year which significantly affected or
could significantly affect the operations of the Group, the results of those operations, or the state of
affairs of the Group in future financial years.
24 PARENT ENTITY
The following information has been extracted from the books and records of the parent, Predictive
Discovery Limited and has been prepared in accordance with Accounting Standards.
The financial information for the parent entity, Predictive Discovery Limited has been prepared on the
same basis as the consolidated financial statements except as disclosed below.
Assets
Current assets
Non‐current assets
Total Assets
Liabilities
Current liabilities
Non‐current liabilities
Total Liabilities
2013
$
2012
$
1,365,866
989,698
15,592,764
10,686,185
16,958,630
11,675,883
110,511
189,408
‐
‐
110,511
189,408
‐ 79 ‐
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
24 PARENT ENTITY (continued)
Equity
Issued capital
Accumulated losses
Reserve
Total Equity
Total loss for the period
Total comprehensive income
CONTINGENT LIABILITIES
2013
$
2012
$
19,942,017
15,264,189
(4,762,648)
(3,997,464)
1,668,750
219,750
16,848,119
11,486,475
(765,184)
(2,488,096)
(765,184)
(2,488,096)
The parent entity has a contingent liability of $300,000 for licence fees and expenditure commitments
as at 30 June 2013. No invoice has been received for these amounts. The directors have been
negotiating a termination of the contract during the year and based on discussions held, believe the
matter will be resolved with no liability to the parent entity.
CONTRACTUAL COMMITMENTS
The parent entity has commitments as at 30 June 2013 that are disclosed in Note 13.
RECOVERABILITY OF INTERCOMPANY LOAN
Within Non‐current assets is a loan due from the 100% subsidiary of $13,397,025 which is considered
fully recoverable. The recoverability of this loan is dependent upon the successful development or sale
of exploration assets in Burkina Faso.
25 COMPANY DETAILS
The registered office and principal place of business of the company is:
Predictive Discovery Limited
Level 2, 9 Colin Street
WEST PERTH WA 6005
‐ 80 ‐
PREDICTIVE DISCOVERY LIMITED
DIRECTORS’ DECLARATION
The directors of the company declare that:
1.
The financial statements and notes, as set out on pages 36 to 80, are in accordance with the
Corporations Act 2001 and:
(a)
comply with Accounting Standards; and
(b)
give a true and fair view of the financial position as at 30 June 2013 and of the
performance for the year ended on that date of the consolidated group;
2.
The Chief Executive Officer and Chief Financial Officer have each declared that:
(a)
(b)
the financial records of the company for the financial year have been properly
maintained in accordance with section 286 of the Corporations Act 2001;
the financial statements and notes for the financial year comply with the Accounting
Standards; and
(c)
the financial statements and notes for the financial year give a true and fair view.
Note 1 confirms that the financial statements also comply with International Financial
Reporting Standards as issued by the International Accounting Standards Board.
3.
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.
This declaration is made in accordance with a resolution of the Board of Directors.
Paul Roberts
Managing Director
5 September 2013
‐ 81 ‐
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS
OF PREDICTIVE DISCOVERY LIMITED & CONTROLLED ENTITIES
Report on the Financial Report
We have audited the accompanying financial report of Predictive Discovery Limited & controlled
entities, which comprises the consolidated statement of financial position as at 30 June 2013, the
consolidated statement of comprehensive income, the consolidated statement of changes in equity
and the consolidated statement of cash flows for the year then ended, notes comprising a summary
of significant accounting policies and other explanatory information and the directors’ declaration of
the consolidated entity comprising the company and the entities it controlled at the year’s end or from
time to time during the financial year.
Directors’ Responsibility 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 is free from material misstatement, whether due to fraud or error. In Note
1, the directors also state, in accordance with Accounting Standard AASB 101: Presentation of
Financial Statements that the financial statements comply with International Financial Reporting
Standards (IFRS).
Auditor’s Responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We conducted
our audit in accordance with Australian Auditing Standards. Those standards require that we comply
with relevant ethical requirements relating to audit engagements and plan and perform the audit to
obtain reasonable assurance whether the financial report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial report. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial report, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the
company’s preparation of the financial report in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
An audit also includes evaluating the appropriateness of accounting policies
entity’s internal control.
used and the reasonableness of accounting estimates made by the directors, as well as evaluating
the overall presentation of the financial report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
Independent Auditor’s Report to the Members
of Predictive Discovery Limited & Controlled Entities
Independence
In conducting our audit, we have complied with the independence requirements of the Corporations
Act 2001. We confirm that the independence declaration required by the Corporations Act 2001,
which has been given to the directors of Predictive Discovery Limited & controlled entities, would be
in the same terms if provided to the directors as at the date of this auditor’s report.
Auditor’s Opinion
In our opinion:
a.
the financial report of Predictive Discovery Limited & controlled entities is in accordance with
the Corporations Act 2001, including:
i.
ii.
giving a true and fair view of the consolidated entity’s financial position as at 30 June
2013 and of its performance for the year ended on that date; and
complying with Australian Accounting Standards and the Corporations Regulations
2001; and
b.
the financial report also complies with International Financial Reporting Standards as disclosed
in Note 1.
Inherent Uncertainty Regarding Continuation as a Going Concern
Without qualification to the conclusion expressed above, attention is drawn to the following matter.
As a result of the matters described in the section entitled “Key Judgement – Going Concern” in Note
1 (S) to the financial statements for the period ended 30 June 2013, the ability to continue the
exploration and development of the company`s mining tenements is dependent upon future capital
raising. Should there be no funding available, explorations of the areas of interest may be put on
hold and the recoverability of exploration assets may be realised below their carrying amounts at
balance date.
Report on the Remuneration Report
We have audited the remuneration report included in page 7 of the directors’ report for the year
ended 30 June 2013. The directors of the company are responsible for the preparation and
presentation of the remuneration report in accordance with s 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.
Independent Auditor’s Report to the Members
of Predictive Discovery Limited & Controlled Entities
Auditor’s Opinion
In our opinion the remuneration report of Predictive Discovery Limited & controlled entities for the
year ended 30 June 2013 complies with s 300A of the Corporations Act 2001.
NEXIA MELBOURNE
ABN 16 847 721 257
ANDREW JOHNSON
Partner
Audit & Assurance Services
Melbourne
5 September 2013
PREDICTIVE DISCOVERY LIMITED
ADDITIONAL SHAREHOLDER INFORMATION
IN COMPLIANCE WITH ASX REQUIREMENTS
The additional ASX information is current as at 12 September 2013.
SUBSTANTIAL SHAREHOLDERS
Substantial shareholders as defined by Section 671B of Australian Corporations Law are:
Shareholder name
AFRICAN LION 3 LIMITED
EQUITY TRUSTEES LIMITED
Number Held
Percentage
20,316,260
17,955,223
7.49%
6.62%
PARTICULARS OF TWENTY LARGEST SHAREHOLDERS
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Name
Units Held
%IC
AFRICAN LION 3 LIMITED
EQUITY TRUSTEES LIMITED
KITARA INVESTMENTS PTY LTD
FINANCE ASSOCIATES PTY LTD
MR NEIL CLIFFORD DUNCAN & MRS LUDMILLA DUNCAN
DYSPO PTY LIMITED
MR PHILIP C. LANGDON & MRS ROBYN M. LANGDON
PRIVATE EQUITY CAPITAL PTY LTD
BUPRESTID PTY LIMITED
PAUL ROBERTS
SISU INTERNATIONAL PTY LTD
MR WILLIAM HENRY HERNSTADT
AFRICAN LION 3 LIMITED
MR SEAGER REX HARBOUR
MERRILL LYNCH (AUSTRALIA) NOMINEES PTY LIMITED
AGGREGATED CAPITAL PTY LTD
EDNA SECURITIES PTY LTD
PAJAL PTY LTD
THE HARBOUR FOUNDATION
MR WILLIAM HENRY HERNSTADT
TOTAL
Balance of Register
20,316,260
17,955,223
10,312,500
8,842,246
8,313,058
6,710,938
5,245,991
4,218,750
4,000,000
3,702,079
3,388,252
3,302,241
3,289,474
3,108,955
2,950,000
2,907,500
2,400,000
2,278,126
2,140,000
2,127,239
117,508,832
153,875,362
7.49%
6.62%
3.80%
3.26%
3.06%
2.47%
1.93%
1.55%
1.47%
1.36%
1.25%
1.22%
1.21%
1.15%
1.09%
1.07%
0.88%
0.84%
0.79%
0.78%
43.30%
56.70%
Grand TOTAL
271,384,194
100.00%
DISTRIBUTION OF EQUITY SECURITIES
Analysis of numbers of shareholders by size of holding:
Range of Holding – Ordinary Shares
1‐1,000
1,001‐5,000
5,001‐10,000
10,001 ‐ 100,000
100,001 and Over
Holders
20
33
46
399
313
811
Shares
1,875
106,895
399,035
18,587,973
252,288,416
271,384,194
‐ 85 ‐
PREDICTIVE DISCOVERY LIMITED
ADDITIONAL SHAREHOLDER INFORMATION
IN COMPLIANCE WITH ASX REQUIREMENTS ……
DISTRIBUTION OF EQUITY SECURITIES (continued)
Unmarketable Parcels
There are 196 holders holding less than a marketable parcel of $500 of ordinary shares at a price of 2
cents per share.
UNQUOTED EQUITY SECURITIES
There are 8 holders of 6,000,000 unlisted options expiring 20 August 2015 and exercisable at 25 cents.
Holders of more than 20%
Holder name
PAUL ROBERTS
Number
1,700,000
%
28.3%
There is 1 holder of 500,000 unlisted options expiring 11 July 2015, exercisable at $0.31
Holders of more than 20%
Holder name
DAVID PASCOE
Number
500,000
%
100%
There are 94 holders of 9,131,075 unlisted options with an exercise price of 10 cents to 30 June 2013,
15 cents from 1 July 2013 to 30 June 2014 and 20 cents from 1 July 2014 to the expiry date on 30 June
2015.
Holders of more than 20%
Holder name
N/A
Number
%
There is 1 holder of 2,000,000 unlisted options expiring 30 October 2015, with an exercise price of 15
cents.
Holders of more than 20%
Holder name
Number
CHALMSBURY NOMINEES PTY LTD
2,000,000
%
100%
USE OF FUNDS
The Company has used the cash and assets in a form readily convertible to cash at the time of re‐
admission in a way consistent with its business objectives.
VOTING RIGHTS
Each fully paid ordinary share carries voting rights of one vote per share.
‐ 86 ‐
PREDICTIVE DISCOVERY LIMITED
INTERESTS IN MINING TENEMENTS
AUSTRALIAN TENEMENTS
Name
Number
Percentage Interest
Location
Woady Creek
EL5314
100%
Victoria, Australia
BURKINA FASO TENEMENTS
Number
Percentage Interest
Location
Name
Fouli
Tantiabongou
Sirba
Madyabari
Tyekanyebi
Tamfoagou
Bira
Tangagari
Aoura
Arrêté 2005‐11‐
351/MCE/SG/DGMGC
Arrêté 2007‐
019/MCE/SG/DGMGC
Arrêté 2005‐11‐
353/MCE/SG/DGMGC
Arrêté 2011‐11‐
352/MCE/SG/DGMGC
Arrêté 2010‐
202/MCE/SG/DGMGC
353 (arrêté 2005‐
061/MCE/SG/DGMGC)
Arrêté 2013‐
33/MCE/SG/DGMGC
100%
100%
100%
100%
100%
100%
100%
Arrêté 2009‐
068/MCE/SG/DGMGC
Option to acquire
95%
Arrêté 2008‐
023/MCE/SG/DGMGC
Option to acquire
95%
Kogodou South
Arrêté 2011‐
299/MCE/SG/DGMGC
Option to acquire
95%
Boussouma
Bangaba
Arrêté 2011‐
059/MCE/SG/DGMGC
Option to acquire
95%
Arrêté 2009‐
100/MCE/SG/DGMGC
Option to acquire
95%
‐ 87 ‐
Burkina Faso
Burkina Faso
Burkina Faso
Burkina Faso
Burkina Faso
Burkina Faso
Burkina Faso
Burkina Faso
Burkina Faso
Burkina Faso
Burkina Faso
Burkina Faso