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 Timothy Markwell BSc (Hons), GradDipAppFin, MAusIMM (appointed 11 September 2013)
SECRETARY
Mr Ian Hobson BBus, FCA, ACIS, MAICD
REGISTERED OFFICE
Suite 5, 95 Hay Street
SUBIACO WA 6008
Postal Address:
PO Box 226
SUBIACO WA 6904
T: +61 8 9388 8290
E: info@predictivediscovery.com
W: www.predictivediscovery.com
AUDITORS
Nexia ASR
Level 18, 530 Collins Street
MELBOURNE VIC 3000
SHARE REGISTER
Link Market Services Limited
Level 4, 152 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
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WEST PERTH WA 6005
HOME EXCHANGE
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ASX Code: PDI
PREDICTIVE DISCOVERY LIMITED
TABLE OF CONTENTS
CHAIRMAN’S LETTER
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
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2
15
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26
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PREDICTIVE DISCOVERY LIMITED
30 JUNE 2014
CHAIRMAN’S LETTER
Dear Fellow Shareholder,
Once again Predictive Discovery Limited (‘PDI’) has had a very successful year. We followed up our
exciting results at Bongou with a targeted drilling program and defined a simple, high grade gold
deposit.
The shape and shallow depth of Bongou, along with the excellent preliminary metallurgical results give
us some cause for optimism. Furthermore, the depth extension of the deposit remains to be tested.
Importantly we have gained insight into the geological controls on the deposit which will help us focus
our future exploration on the Bonsiega tenements.
Our follow-up exploration work has highlighted a number of lookalike targets within 2km of Bongou
and our geological analysis also highlighted other targets within 20km, a number of which are in the
Laterite Hill goldfield just 10km to the south.
The discovery of Bongou is the result of four years of hard and diligent work by our exploration team. It
is testimony to the company’s strategy from its inception, to generate targets with the use of advanced
geological analysis in prospective terrains. Using this approach we have prioritised ground and
developed a portfolio of prospective ground holdings in Burkina Faso and Cote d’Ivoire.
With the discovery of Bongou our focus is now on our key Bonsiega tenement package. As already
announced, plans are in place to maximise the value of our other Burkina Faso and Cote D’Ivoire
tenements in a way that we believe will provide value to shareholders.
This year we welcomed a major new shareholder, Aurora Minerals Limited. Aurora shares our optimism
for the potential of Bongou and the Bonsiega project as a whole.
Thank you to our Managing Director, Paul Roberts, and our staff in Australia and Burkina Faso. This has
been a particularly difficult year all around with the market conditions necessitating substantial
reductions to our Burkina Faso staff. Nevertheless we have still managed to define a resource at
Bongou that could form a cornerstone for future discoveries in the area. I thank everyone for their
dedication to our company.
I would also like to thank my fellow directors for their support during a difficult year. I can reassure
everyone that the decisions we take are all very carefully considered and to the best of our ability in the
best interests of the company.
Finally, I thank all of our shareholders for your support during a time when junior companies are relatively
unloved. I look forward to seeing our patience and efforts rewarded in the upcoming year.
Phillip Harman
CHAIRMAN
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PREDICTIVE DISCOVERY LIMITED
JUNE 2014
REVIEW OF OPERATIONS
HIGHLIGHTS
Predictive Discovery Limited (PDI) carried out a successful exploration program in 2013-14. Significant
achievements included:
Excellent drill intercepts from the Bongou Prospect in Burkina Faso, building on the earlier drill
results reported in 2011-12 including1:
o 68m (52m true width) at 3.2g/t Au from 99m including 7.8m at 10.2g/t Au
o 55m (47m true width) at 3.2g/t Au from 215m including 24.5m at 4.9g/t Au
o 49m (41m true width) at 2.8g/t Au from 144m including 6m at 7.8g/t Au and 8m at 4.5g/t Au
o 64m (58m true width) at 2.0g/t Au from 14m including 5m at 7.3g/t Au
o 36.2m (33m true width) at 2.2 g/t Au from 181.8m including 5m at 7.3g/t Au
Discovery of four other Bongou-like targets with evidence of gold mineralisation in altered granite
within 2km of Bongou.
Completion of a large exploration program in Burkina Faso, focused on Bongou and the
surrounding area, including 4,134m of RC and diamond drilling, 7,572m of power auger drilling and
800m of trenching.
Grant of two Côte D’Ivoire exploration permits, covering an area of 746km2 bringing the total number of
granted permits in Côte D’Ivoire to four, covering 1,533km2.
Encouraging results from geochemical surveys on the Boundiali and Ferkessedougou exploration
permits in Côte D’Ivoire and evidence of a large, strong gold geochemical anomaly on the Kokumbo
permit in southern Côte D’Ivoire2.
INTRODUCTION
PDI is exploring for large, high value gold deposits in West Africa. The Company’s project focus is on 13
gold exploration permits in Burkina Faso, West Africa, covering a total area of 1,605km2, especially the
Bonsiega Project in the well mineralised Samira Hill greenstone belt (Figures 1 and 2). The Company also
has a large ground position in Côte D’Ivoire, covering 1,533km2.
BURKINA FASO GOLD PROJECTS
Background
PDI’s Burkina Faso projects are all located within the Birimian gold belts in West Africa. These belts
contain numerous gold ore deposits (Figure 1), many of which are in production.
1 ASX releases dated 2/12/13 (which included a re-release of all earlier Bongou drill results), 16/12/13 and 20/3/14
2 ASX release dated 10/06/14
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Figure 1: Map of the Birimian Gold Belt showing major mines and PDI project location areas.
Burkina Faso is a landlocked country, bounded to the south by Ghana, Cote D’Ivoire, Togo and Benin, to
the west by Mali and to the east by Niger (Figure 1). Gold mining in the past was confined to artisanal
mining and one substantial mining operation at Poura in the west of the country which closed in 1999. In
the past nine years, however, there has been a strong resurgence in exploration and mine development,
stimulated especially by the release of new mining regulations in 2003. Seven gold mines are now in
production. In addition, exploration results announced by Orbis Gold Limited (Natougou and Nabanga
deposits), Ampella Mining Limited (Batie West), Gryphon Minerals Ltd (Banfora), Roxgold Resources
(Yaramoko), B2Gold Corporation (Kiaka), True Gold Mining (Karma) and West African Resources
(Mankarga) suggest that more gold mines will be developed in future years. Some of these prospects
have gold grades well above the West African average, notably Yaramoko, Nabanga, Natougou and PDI’s
own Bongou deposit, indicating that Burkina Faso has significant potential for high grade, low cost
ounces.
In common with other West African countries, the Government has the right to take a free carried
interest of 10% in any ore deposit that is brought into production. Gold mining royalties range from 3%
to 5% depending on the gold price. The rate of corporate tax for mining companies is 17.5%. Discussions
between the Government and the mining industry about possible changes to the Mining Act and the
taxation code have been ongoing for several years but no decisions have yet been made.
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Figure 2: Location of PDI’s Burkina Faso permits, highlighting the Bongou Prospect. Note that the nearby operating
Samira Hill gold mine in Niger contains resources, reserves and past production of 2.5 million ounces (source:
www.semafo.com).
In Burkina Faso, PDI holds rights to explore 13 granted exploration permits covering a total area of 1,605
km2. One, Bassieri, covering 74km2, was granted during 2013-14. The bulk of the tenement area is
contained in 10 permits known as the Bonsiega permit group in the Samira Hill greenstone belt (Figure
2).
The Company’s objective in Burkina Faso is to discover a large resource/reserve inventory with an
average grade of 2 to 3 g/t Au capable of supporting a major gold mining operation.
High grade gold results have been obtained from drilling on a number of prospects throughout PDI’s large
Burkina Faso ground holdings, including Bongou (Figure 2). The Company’s immediate focus is on Bongou
and the surrounding area.
Bonsiega Permit Group
Background
The Bonsiega Permit Group consists of 10 exploration permits totalling 1,119 km2 covering
approximately 100km of strike length in the same greenstone belt which hosts the Samira Hill Mine in
Niger (Figure 2). One new permit, Bassieri, which covers 74km2, was granted in 2013-14. Most of the
permits contain artisanal workings and/or significant gold geochemical anomalies.
The Bonsiega permits were acquired either by direct application in PDI’s name or through agreements
with third parties. PDI owns 100% of seven of the permits. The other three agreements are option deals
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with local businessmen in which PDI is earning either a 95% or 100% equity through a series of option
payments. Option payments were deferred in 2013-14 on all three permits in order to conserve cash.
Figure 3: Geology of the SE Bonsiega Permit, including the Bongou Prospect and the Laterite Hill Gold Field
In earlier exploration, PDI discovered a series of very laterally extensive power auger gold geochemical
anomalies, some of which were tested with large reverse circulation (RC) drilling programs. A series of
prospects were discovered containing encouraging gold intercepts3. These included Bongou and the
Dave, Laterite Hill and Prospect 71 prospects in the Laterite Hill Gold Field (Figure 3). Following the
intersection of broad, high grade gold mineralisation in multiple holes at Bongou in 2012-134, PDI
focused most of its attention on Bongou and the surrounding area in 2013-14.
Bongou Prospect (PDI 100%)
The Bongou Prospect is located within PDI’s Bonsiega Project in Eastern Burkina Faso (Figures 2 and 3).
It covers artisanal workings in the form of an irregular open pit approximately 150m long and 50m wide.
Past exploration by PDI has included RC and power auger drilling, trenching ground geophysical surveys
(magnetics and induced polarisation), rock chip sampling and geological mapping.
3 Drill results reported to the ASX in Quarterly Reports of December 2010, March 2011, September 2011, March 2012, June
2012 and September 2012. This information was prepared and first disclosed under the JORC Code 2004. It has not been
updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last
reported.
4 ASX release dated 2/12/13 which included a re-release of all earlier Bongou drill results.
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Figure 4: Cross Section through drill holes BNGRC010, BNGRD001, BNGRD003 and BNGRD005. Results
reported to the ASX on 2/12/13, 16/12/13, 20/03/14 and 1/05/14.
Gold mineralisation at Bongou is contained within an intensely altered, quartz veined and pyrite-bearing
microgranite intrusion. The mineralisation is up to 60m thick and continuity is good. Higher gold grades
are mostly found close to the northern “hangingwall” contact (as seen in Figure 4).
Preliminary metallurgical testwork in 2012-13 obtained an excellent (94%) gold recovery in a 72 hour
cyanidation test using a standard 75 micron grind5.
Bongou Drilling Program
Two combined RC and diamond drilling programs, totalling 4,134m, were carried out at and near Bongou
in 2013-14. Drilling into the Bongou deposit produced a series of excellent gold intercepts, including6:
68m (52m true width) at 3.2g/t Au from 99m including 7.8m at 10.2g/t Au
55m (47m true width) at 3.2g/t Au from 215m including 24.5m at 4.9g/t Au
5 ASX release dated 14/05/14
6 ASX releases dated 2/12/13, 16/12/13 and 20/3/14
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49m (41m true width) at 2.8g/t Au from 144m including 6m at 7.8g/t Au and 8m at 4.5g/t Au
64m (58m true width) at 2.0g/t Au from 14m including 5m at 7.3g/t Au
36.2m (33m true width) at 2.2 g/t Au from 181.8m including 5m at 7.3g/t Au
These programs were supplemented by detailed geological mapping, trenching around the edges of the
mineralisation and core re-logging to develop a detailed geological interpretation of the deposit. This
work showed that:
Gold mineralisation is arranged in an “en echelon” arrangement, possibly contained within a north-
east oriented fault corridor (Figure 5). The south-western extension of that possible corridor is
untested by drilling so far.
Figure 5: Plan view of Bongou deposit showing postulated mineralised corridor and possible new lens
There is good hole to hole continuity in the ore deposit, the bulk of which is contained in a single
outcropping lens (figure 5).
The mineralisation is open at depth (Figure 4).
The most north-easterly lens of mineralisation is concealed, suggesting potential for more
concealed mineralised lenses along strike either to the north-east or south-west (Figure 5).
PDI engaged Golder Associates to undertake a maiden Mineral Resource Estimate on the Bongou Deposit
in August 2014. The results of this work were reported to the ASX on 4th September 2014.
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REVIEW OF OPERATIONS
Bongou Area Exploration
The Company completed a large program of power auger drilling, totalling 7,572m, in a 3km radius of the
Bongou deposit during the year (Figure 6).
Figure 6: Map showing geology, prospect and RC and DD drill locations and power auger drill lines.
More than 20 gold anomalies were obtained7 and followed up with infill power auger drilling. Trenching
was undertaken on the best anomalies where possible. Two prospects (W1 and W3) were tested with
reconnaissance drilling. This work identified:
Bongou-style mineralisation in drilling at:
o Prospect W2, which included 12m at 1.44g/t Au from 14m including 2m at 4.3g/t Au
o Prospect W1, which included 5.3m at 1.45g/t Au from 65.9m, including a peak value of
5.3g/t Au over 0.9m. The latter was very similar to the high grade mineralisation at the
Bongou deposit, 250m to the east, but unlike the geology at surface, suggesting the
possibility of a concealed lens of Bongou-like mineralisation.
Five Bongou-style drill targets within 2km of PDI's high grade Bongou gold prospect8:
o Encouraging trench results at three prospects including values of up to:
13.1g/t Au (W1 prospect)
7.7g/t Au (W2 prospect)
2.2g/t Au (W8 prospect)
Results in the above trenches are within broader zones with average values between 0.3
and 3.7g/t Au.
Bulked gold values above 0.2g/t Au in trenching of Bongou-style mineralisation in granite
are highly significant (e.g. in prospects W2 and W8). Depletion of gold values in surface
7 ASX release dated 8/05/14
8 Reported in PDI’s March 2014 and June 2014 Quarterly Reports
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samples taken above drill intercepts of high grade primary gold mineralisation is a feature
of this type of mineralisation in this area.
o Two power auger gold anomalies which could not be tested with trenching because of
cover thickness and access issues respectively - W6 and W7 (Figure 6).
Other areas
Limited work was undertaken in PDI’s other exploration permits in Burkina Faso during 2013-14,
consisting mainly of data assessments and low key field work. The Company carried out an exploration
target review of the Bonsiega Project in August-September 2014. This work identified numerous targets
in a 20km radius of Bongou with structural geological similarities to Bongou and hence potential for high
grade mineralisation. These targets are located along strike from Bongou on the Bongou Structure and in
the Laterite Hill Gold Field 10km south of Bongou, and will be followed up in the 2014-15 field season
(Figure 3).
COTE D’IVOIRE
Figure 7: Geological Map of Cote D’Ivoire showing location of PDI permits and major gold deposits
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Background
Systematic work on Côte D’Ivoire data sets since 2010 led PDI to identify a series of high priority prospects
and targets in Côte D’Ivoire. As a result, the Company has now secured four exploration permits in the
country, covering a total area of 1,533 km2 (Figure 7). Two of these permits, Kounahiri and Boundiali,
covering a total area of 746km2, were granted to PDI in January 2014.
Kokumbo (PDI earning 90%)
Introduction
PDI is earning a 90% interest in the Kokumbo exploration permit in southern Côte D’Ivoire from an Ivoirian
company, Ivoir Negoce. This region of West Africa has yielded numerous multi-million ounce gold
discoveries in recent years.
The Kokumbo permit covers an area of historic artisanal and French colonial era mining located in a highly
prospective belt of rocks which also includes the Bonikro gold mine, currently in production by Newcrest,
and Agbaou gold mine, where Endeavour Mining commenced commercial production in January 2014
(Figure 7).
Historical Data Compilation9
PDI obtained geochemical data from historical reports and maps prepared by the Côte D’Ivoire
Government Geological Agency, SODEMI, and Skeena Resources Limited, a Canadian Company from 1985
to 1991. It consisted of:
Soil sampling
Geological mapping
Pitting and trenching
Ground magnetic survey
VLF-EM geophysical survey
Drilling.
Compilation of this data by PDI has revealed a large gold in soil geochemical anomaly 1.4km long and up
to 800m wide, most of which is above 0.5 g/t Au (Figure 8). While some of the soil values may represent
contamination from the nearby gold workings, the majority of the gold anomaly appears to predate the
workings as pitting and trenching in the area of the anomaly has confirmed gold values to depths of 1 to
4m. The gold values in pitting and trenching therefore represent a colluvial gold deposit which may also
be underlain, in part, by primary gold mineralisation.
9 Results of this data compilation were reported to the ASX on 10/06/14.
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Figure 8: Gold in soil geochemical anomaly on geological background, Kokumbo permit, Côte D’Ivoire. Note the
extent of plus 500ppb Au (>0.5g/t Au) values.
Some high grade values were obtained from the trench and pit excavations including 64g/t Au in trench
sampling (Figure 8).
Compilation of historic drill results also revealed some encouraging drill results including 3m at 12.4g/t
Au from 87.7m.
Field Program
The Company carried out a program of geological mapping, ground magnetics, rock chip sampling and
stream sediment sampling during 2013-14.
Boundiali, Kounahiri and Ferkessedougou Permits (PDI 100%)
These three permits cover an area 1,133km2 of highly prospective areas in three separate gold
mineralised greenstone belts (Figure 7).
Stream Sediment Sampling Programs
Background
The Company is using the bulk leach extractable gold (BLEG) method of stream sediment sampling for a
first pass assessment of its ground in Côte D’Ivoire. This method has been employed very successfully for
the discovery of large gold deposits throughout the world. A successful application of this technique was
the discovery of the Perama Hill gold deposit in Greece in 1994 (now owned by Eldorado Gold). This is an
outcropping 2 million ounce gold resource with an average grade of about 3g/t Au10. There were no
10 Source: www.eldoradogold.com/assets/europe/projects/perama-hill
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historical workings on this deposit prior to discovery. It was discovered with a single BLEG sample of 9ppb
Au in a 20km2 catchment area. Follow-up stream sediment sampling in the small tributary directly
draining the deposit obtained a value of 23ppb Au within 500m of the ore body (see index plan - Figure
9).
A total of 311 samples were collected over the three permits and assayed for gold and a suite of other
elements at a Bureau Veritas laboratory in Perth.
Boundiali Stream Sediment Sampling11
Nine samples exceeding 6ppb gold were recorded by the survey. Of these, four were obtained from a
single catchment area covering 30 km2 with a peak value of 24ppb Au. The furthest sample downstream,
covering the whole catchment area, recorded a value of 7ppb Au. As Figure 9 demonstrates, this is a very
similar result to the Perama Hill discovery in Greece.
The 24ppb Au value was collected from a large 15 km2 catchment area downstream of a mapped NNE
trending shear zone. A second 10ppb Au value was obtained from a 10 km2 catchment area and draining
the along strike projection of that same shear zone. It appears that the source of the gold could be several
kilometres long presenting a high priority target for future exploration.
Figure 9: Map showing sample locations and gold values for the BLEG stream sediment survey at Boundiali with an
index plan at the same scale illustrating the BLEG stream sediment sample results which led to the 2Moz Perama
Hill gold discovery in Greece (owned by Eldorado Gold).
Ferkessedougou Stream Sediment Sampling12
Two programs were carried out – a reconnaissance program followed by infill sampling.
11 Results reported to the ASX on 4/08/14
12 Results reported to the ASX on 4/08/14
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This work outlined two consistently gold anomalous catchment areas with anomalous values in the 5-
10ppb Au range. One of these anomalies partly drains several historical artisanal gold mining sites.
VICTORIAN GOLD PROJECT
Cape Clear EL5434 (PDI diluting to 49%)
PDI has only one project remaining in Australia, the Cape Clear Project west of Ballarat in Victoria, west
of Ballarat (Figure 10). The Company’s objective there is to discover a large gold deposit on the margins
of one of more concealed volcanic domes beneath basalt cover, similar to the 5 million ounce Stawell
gold deposit in Western Victoria.
PDI announced the signature of a joint venture agreement on this project with Cape Clear Minerals Pty
Ltd (CCM) on 22/09/14. Key terms of the agreement were:
CCM may earn 51% equity with $250,000 expenditure (Phase 1)
At least 1,000m of RC or diamond drilling included within $250,000 minimum expenditure in the
first year
At CCM’s election, it may increase equity to 75% with an additional $250,000 in expenditure (Phase
2)
PDI may contribute to exploration expenditure or dilute after CCM reaches either 51% or 75%,
depending on whether or not CCM chooses to sole fund Phase 2.
PDI’s interest converts to a 2% NSR (royalty) if its joint venture interest decreases to below 10%
Figure 10: Cape Clear Project Victoria - locality plan
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REVIEW OF OPERATIONS
CORPORATE
Capital raisings during the year totalled $2.6 million via a placement in September 2013 and a placement
and share purchase plan in January-February 2014. Staff numbers were reduced to five in Burkina Faso
and Australian office costs were lowered further, reflecting the ongoing difficult capital raising
environment during the year.
OUTLOOK
The Company undertook a comprehensive review of its West African properties and exploration strategy
in August-September 2014. A clear priority was established to focus on leveraging the economic potential
of the Bongou gold deposit and the geological understanding gained from this discovery to:
Identify extensions to the known deposit
Discover granite-hosted Bongou-style mineralisation within 2km of the Bongou gold deposit,
Target high grade gold mineralisation along the Bongou Fault and in the Laterite Hill Gold Field,
within 20km of the Bongou deposit.
Seek joint venture partners to advance exploration on areas outside of the immediate Bongou area
in Burkina Faso. In this regard PDI has announced the farm-out of its remaining Australian
exploration property, Cape Clear in Victoria, and is in advanced discussions regarding its Côte
D’Ivoire properties.
The Company announced a placement and fully underwritten entitlement issue to raise up to $1.85
million on 1st October 2014. In accordance with the strategic review, proceeds of that capital raising will
be fund exploration for additional high grade gold mineralisation at and close to Bongou during 2014-15.
Elements of the exploration program will include:
Detailed geological mapping and ground geophysical surveys designed to help prioritise drill targets
Staged power auger, RAB and RC drill programs on up to 10 targets on the Bongou Structure and
the Laterite Hill Gold Field (Figure 3).
Possible extensions to the Bongou deposit south-west of the known deposit will also be tested with
RC drilling.
The Company will continue to seek joint venture partners on all other ground, and will minimise all non-
essential expenditure to ensure that the maximum effort is applied to exploring the Bongou area.
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 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.
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.
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PREDICTIVE DISCOVERY LIMITED
DIRECTORS’ REPORT
30 JUNE 2014
Your directors present their report for the financial year ended 30 June 2014.
The names of the directors in office at any during, or since the end of the year are:
NAMES
Mr Phillip Harman
Mr Paul Roberts
Mr Philip Henty
Mr Timothy Markwell
POSITION
Non-Executive Chairman
Managing Director
Non-Executive Director
Non-Executive Director
(appointed 11 September 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 $2,589,882 (2013:
$1,057,479). This was largely from the costs of administering The Group to 30 June 2014, impairment of exploration
and exploration costs.
REVIEW OF OPERATIONS
In the year to June 2014, Predictive Discovery Limited (PDI) undertook a substantial and successful work program.
Capital raisings during the year totaled $2.6 million via a placement in September 2013 and a placement and share
purchase plan in January-February 2014. As in 2012-13, staff numbers were reduced in Burkina Faso and Australian
office costs were lowered further, reflecting the ongoing difficult capital raising environment during the year. The
Bassieri permit, near Bongou, covering 74 km2 was granted in Burkina Faso and four permits covering a total of 1,534
km2 were granted in Cote D'Ivoire. In addition, an application was made to extend Bassieri over vacant ground
covering 12 km2 immediately to the north of Bongou.
Exploration programs in Burkina Faso were focused especially on the Madyabari exploration permit within and around
the Bongou Prospect. 11,703m of drilling was completed, consisting of 4,134m of combined reverse circulation and
diamond and 7,572m of power auger drilling. Geological mapping and data compilation and interpretation were
conducted elsewhere in Burkina Faso. Work in Cote D'Ivoire consisted of BLEG stream sediment geochemical
surveys on all permits, supplemented by geological mapping, a ground magnetics survey and historical data
compilation on the Kokumbo permit. BLEG gold anomalies were obtained on all four permits.
Excellent drill results were obtained at Bongou including 68m at 3.2g/t Au (1) and 55m at 3.2g/t Au (2). Exploration in
a 3km radius of Bongou identified anomalous gold values in altered granite (like Bongou) in five other prospects, which
will be tested with RC drilling in the 2014-15 financial year.
The Company was granted the Cape Clear Exploration Licence, covering 160 km2, in Western Victoria and
surrendered the 2 km2 Woady Creek Exploration Licence in the same area.
(1) ASX announcement 16 December 2013; (2) ASX announcement 2 December 2013.
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PREDICTIVE DISCOVERY LIMITED
DIRECTORS’ REPORT
DIVIDENDS PAID OR RECOMMENDED
30 JUNE 2014
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 $298,135 from 30 June 2013 to 30 June 2014. This increase is largely
due to the following factors:
$2.6m capital raising;
Expenditure on exploring and evaluating the assets in Burkina Faso and Cote d’Ivoire; and
$59,994 share-based payments to acquire 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
There are no matters or circumstances that have arisen since balance date that 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.
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: 5,969,311 Optionholding: 2,095,469
Directorships held in other listed entities
during the three years prior to the current
year
Callabonna Resources Limited and Stellar Resources Limited.
- 16 -
DIRECTORS’ REPORT
Mr Paul Roberts
Qualifications
Experience
PREDICTIVE DISCOVERY LIMITED
30 JUNE 2014
Managing Director
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.
Interest in Shares and Options
Shareholding: 5,165,895 Optionholding: 4,825,000
Directorships held in other listed entities
during the three years prior to the current
year
None
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: 17,212,583 Optionholding: 2,226,563
Directorships held in other listed entities
during the three years prior to the current
year
None
Mr Timothy Markwell
Non-Executive Director – (appointed 11 September 2013)
Qualifications
Experience
BSc (Hons), GradDipAppFin, MAusIMM
Mr Markwell is a geologist and has worked for 20 years in the
resources and finance industries. He is currently African Lion 3
Limited’s manager based in Melbourne. Previously Mr Markwell
worked for LinQ Resources Fund as an investment manager and as
a resource analyst for Perth broker DJ Carmichael. He has also
worked as a geologist for BHP-Billiton, Golder Associates, Anaconda
Nickel, Great Central Mines and Reynolds.
Interest in Shares and Options
Shareholding: Nil
Optionholding: Nil
Directorships held in other listed entities
during the three years prior to the current
year
Aurora Minerals Ltd
Celamin Holdings NL
- 17 -
PREDICTIVE DISCOVERY LIMITED
30 JUNE 2014
DIRECTORS’ REPORT
MEETINGS OF DIRECTORS
During the financial year, 10 meetings / circular resolutions of directors (including committees of directors) were held.
Attendances by each director at meetings during the year were as follows:
Directors' Meetings
Number eligible to
attend
Number attended
Mr Phillip Harman
Mr Paul Roberts
Mr Philip Henty
Mr Timothy Markwell
3
3
3
3
3
3
3
3
INDEMNIFYING OFFICERS OR AUDITORS
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.
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 2014 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
27 March 2013
Date of Expiry
20 August 2015
21 July 2015
30 June 2015
30 June 2015
30 June 2015
30 October 2015
11 July 2015
31 March 2017
Exercise Price
Number under Option
$0.25
$0.31
$0.10 to $0.20*
$0.10 to $0.20*
$0.10 to $0.20*
$0.15
$0.10 to $0.20 *
$0.022
TOTAL
6,000,000
500,000
3,756,075
1,000,000
875,000
2,000,000
3,500,000
8,000,000
25,631,025
* 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, the Company contracted to issue 12,000,000 unlisted options exercisable at $0.02 per share expiring
3 years from date of issue at the annual general meeting which is expected to occur in November 2014. During the
year ended 30 June 2014, 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.
- 18 -
PREDICTIVE DISCOVERY LIMITED
DIRECTORS’ REPORT
30 JUNE 2014
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 2014 has been received and can be found on
page 14 of the financial report.
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.
- 19 -
PREDICTIVE DISCOVERY LIMITED
DIRECTORS’ REPORT
30 JUNE 2014
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
Position held during the
year ended 30 June 2014
Non-salary
cash-based
incentives
%
Options/
Rights
%
Fixed
Salary/Fees
%
Mr Phillip Harman
Non-Executive Chairman
Mr Paul Roberts
Mr Philip Henty
Mr Tim Markwell
Mr Ian Hobson
Managing Director
Non-Executive Director
Non-Executive Director
Company Secretary
-
-
-
-
91
15
13
21
24
9
85
87
79
76
-
Total
%
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.
REMUNERATION DETAILS FOR THE PERIOD ENDED 30 JUNE 2014
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:
- 20 -
PREDICTIVE DISCOVERY LIMITED
DIRECTORS’ REPORT
30 JUNE 2014
Table of Benefits and Payments for the Period Ended 30 June 2014
Key Management Personnel
Mr Phillip Harman
Mr Paul Roberts
Mr Philip Henty
Mr Tim Markwell
Mr Ian Hobson
Total Key Management
Personnel
Salary,
fees and
leave
$
46,825
22,936
164,759
169,742
35,000
17,500
28,194
-
91,975
111,705
366,753
432,345
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
Other
$
Pension
and super-
annuation Other
$
3,175
2,064
15,240
15,642
-
1,130
-
-
-
-
18,415
34,464
-
-
-
-
-
-
-
-
-
-
-
-
$
-
-
-
-
-
-
-
-
-
-
-
-
SECURITIES RECEIVED THAT ARE NOT PERFORMANCE-BASED
Shares/
Units
$
Options/
Rights
$
Total
$
59,044
25,000
9,044
-
27,123
207,132
-
185,384
9,044
-
9,044
-
44,044
18,630
37,238
-
9,044
101,019
-
111,705
63,299
448,467
-
466,809
-
-
-
-
-
-
-
-
-
-
-
-
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
Options were granted as remuneration during the year to key management personnel and other executives as set out
in notes 16 and 22.
END OF THE REMUNERATION REPORT
Signed in accordance with a resolution of the Board of Directors:
Paul Roberts
Managing Director
24 September 2014
- 21 -
PREDICTIVE DISCOVERY LIMITED
CORPORATE GOVERNANCE STATEMENT
30 JUNE 2014
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, Phil Henty and Tim Markwell. Tim Markwell was appointed
on 11 September 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
Satisfied
the Guide for reporting on Principle 1
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, Phil Henty and Tim Markwell are Non-
Executive independent directors as defined in ASX
guidelines.
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
Satisfied.
be exercised by the same individual.
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 this function is
undertaken by the Board.
Satisfied.
Board Performance Evaluation Policy is available at
www.predictivediscovery.com.au in the Corporate
Governance policy.
- 22 -
PREDICTIVE DISCOVERY LIMITED
CORPORATE GOVERNANCE STATEMENT
30 JUNE 2014
Recommendation
Current Practice
2.6 Companies should provide the information indicated in
Satisfied
the guide to reporting on Principle 2
Formal board appraisals were not conducted for the
2014 financial year.
3.1 Companies should disclose a code of conduct and
disclose the code or a summary of the code as to:
Satisfied.
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.
The Code of Conduct is available at
www.predictivediscovery.com.au in the Corporate
Governance policy.
3.2 Companies should establish a policy concerning
Satisfied.
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.
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.
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 2013 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.
- 23 -
PREDICTIVE DISCOVERY LIMITED
CORPORATE GOVERNANCE STATEMENT
30 JUNE 2014
Recommendation
Current Practice
5.2 Companies should provide the information indicated in the
Satisfied
Guide to reporting on Principle 5
6.1 Companies should design a communications policy for
Satisfied.
promoting effective communication with shareholders and
encouraging their participation at general meetings and
disclose their policy or a summary of their policy.
Shareholders communication strategy is available at
www.predictivediscovery.com.au in the Corporate
Governance policy.
6.2 Companies should provide the information indicated in the
Satisfied
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.
7.2 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.
7.3 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 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.
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.
Satisfied.
The Board has received a section 295A declaration
pursuant to the 2014 financial period.
7.4 Companies should provide the information indicated in the
Satisfied
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.
8.2 The remuneration committee should be structured so that
Not satisfied.
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.
- 24 -
PREDICTIVE DISCOVERY LIMITED
CORPORATE GOVERNANCE STATEMENT
30 JUNE 2014
Recommendation
Current Practice
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
the Corporate
Governance policy.
in
Further information about the Company’s corporate governance practices is set out on the Company’s website at
www.predictivediscovery.com.au.
- 25 -
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 2014, 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
24 September 2014
PREDICTIVE DISCOVERY LIMITED
- 27 -
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMEfor the year ended 30 June 201420142013$$NoteFinance income25,10638,533Share based payments(131,467)(14,498)Administrative expenses(1,400,827)(868,496)Foreign exchange gain / (expense)(31,326)176,854Impairment of exploration(1,026,461)(299,575)Exploration expenditure pre-right to tenure(24,907)(90,297)Profit (loss) before income taxes(2,589,882)(1,057,479)Income tax expense2--Profit (loss) from continuing operations(2,589,882)(1,057,479)Other comprehensive income158,7371,383,801Total comprehensive income for the year(2,431,145)326,322Profit attibutable to: Members of the parent entity(2,431,145)326,322(2,431,145)326,322Basic (loss) per share (cents per share)12(0.008 )0.002Diluted (loss) per share (cents per share)12(0.008 )0.002Consolidated These financial statements should be read in conjunction with the accompanying notes
PREDICTIVE DISCOVERY LIMITED
- 28 -
CONSOLIDATED STATEMENT OF FINANCIAL POSITIONas at 30 June 201420142013Note$$ASSETSCURRENT ASSETSCash and cash equivalents3950,8251,352,410Trade and other receivables474,939129,071TOTAL CURRENT ASSETS1,025,7641,481,481NON-CURRENT ASSETSProperty, plant and equipment5303,885364,969Exploration expenditure615,639,37014,604,406TOTAL NON-CURRENT ASSETS15,943,25514,969,375TOTAL ASSETS16,969,01916,450,856LIABILITIESCURRENT LIABILITIESTrade and other payables7350,802229,658Provisions919,50920,626TOTAL CURRENT LIABILITIES370,311250,284NON-CURRENT LIABILITIESTrade and other payables7100,000-TOTAL NON-CURRENT LIABILITIES100,000-TOTAL LIABILITIES470,311-NET ASSETS16,498,70816,200,572EQUITYIssued capital1022,539,83019,942,017Reserves111,958,2461,668,042Accumulated losses(7,999,368)(5,409,486)TOTAL EQUITY16,498,70816,200,573 These financial statements should be read in conjunction with the accompanying notesConsolidated
PREDICTIVE DISCOVERY LIMITED
- 29 -
CONSOLIDATED STATEMENT OF CHANGES IN EQUITYfor the year ended 30 June 20142014FOREIGNSHARE BASEDCURRENCYORDINARYACCUMULATEDPAYMENTTRANSLATIONSHARESLOSSESRESERVERESERVETOTAL$$$$$Balance at 1 July 201319,942,017(5,409,486)377,4641,290,57816,200,573Profit/(loss) attributable to members ofthe parent entity(2,589,882)(2,589,882)Other comprehensive income158,737158,737Total comprehensive income for the yearShares issued during the year2,658,4612,658,461Transaction costs(60,647)(60,647)Share-based payments131,467131,467Sub-total2,597,814(2,589,882)131,467158,737298,136(2,589,882)Balance at 30 June 201422,539,830(7,999,368)508,9311,449,31516,498,7082013FOREIGNSHARE BASEDCURRENCYORDINARYACCUMULATEDPAYMENTTRANSLATIONSHARESLOSSESRESERVERESERVETOTAL$$$$$Balance at 1 July 201215,264,188(4,352,007)311,995(93,223)11,130,953Profit/(loss) attributable to members ofthe parent entity(1,057,479)(1,057,479)Other comprehensive income1,383,8011,383,801Total comprehensive income for the yearShares issued during the year4,979,9674,979,967Transaction costs(302,138)(302,138)Share-based payments65,46965,469Sub-total4,677,828(1,057,479)65,4691,383,8015,069,620(1,057,479)Balance at 30 June 201319,942,017(5,409,486)377,4641,290,57816,200,573
PREDICTIVE DISCOVERY LIMITED
- 30 -
CONSOLIDATED STATEMENT OF CASH FLOWSfor the year ended 30 June 201420142013Note$$CASH FROM OPERATING ACTIVITIES: GST receipts2,75420,110 Payments to suppliers and employees(1,147,072)(716,682)Net cash provided by (used in) operating activities21(1,144,318)(696,572)CASH FLOWS FROM INVESTING ACTIVITIES: Interest received21,63138,533Procceds from sale of property, plant and equipment54,776- Purchase of property, plant and equipment-(2,175) Payments for exploration expenditure(1,949,111)(2,751,532)Net cash provided by (used in) investing activities(1,872,704)(2,715,174)CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issue of shares2,658,4614,177,969 Payment of share issue costs(60,647)(236,669)Net cash from financing activities2,597,8143,941,299OTHER ACTIVITIES:Foreign exchange differences17,624(240,616)Net cash used by other activities17,624(240,616)Net increase (decrease) in cash held(419,209)529,553Cash and cash equivalents at beginning of period1,352,4101,063,472Cash and cash equivalents at end of financial period3950,8251,352,410 These financial statements should be read in conjunction with the accompanying notes
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
This financial report includes the consolidated financial statements and notes of Predictive Discovery Limited and
controlled entities (The Group).
1
SUMMARY OF SIGNIFICANT 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
Australian Accounting Standards, Australian Accounting Interpretations, other authoritative 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.
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 date that control over the
acquiree is obtained by the parent entity.
- 31 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
1
(A)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
PRINCIPLES OF CONSOLIDATION (continued)
Business Combinations
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 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)
BORROWING 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.
- 32 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(D)
INCOME TAX (continued)
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.
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.
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.
- 33 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(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.
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.
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.
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 is adopted).Financial instruments
are 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.
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.
(H)
(I)
- 34 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
1
(I)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
FINANCIAL INSTRUMENTS (continued)
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.
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.
Financial assets at fair value through profit or loss
(i)
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.
Loans and receivables
(ii)
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).
Held-to-maturity investments
(iii)
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).
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.
Available for sale financial assets
(iv)
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.
- 35 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
1
(I)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
FINANCIAL INSTRUMENTS (continued)
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).
Financial liabilities
(v)
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.
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.
- 36 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(J)
PROPERTY, PLANT AND EQUIPMENT (continued)
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.
(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.
- 37 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(L)
(M)
(N)
(O)
(P)
(Q)
(R)
IMPAIRMENT OF ASSETS (continued)
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.
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.
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.
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.
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.
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.
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"). 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.
- 38 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(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. $15,639,370 has been capitalised as at 30 June 2014 (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.
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) and meet operational
expenditure at current levels 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 and operational 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% subsidiaries
of $15,667,469 which is considered fully recoverable. The recoverability of this loan is dependent upon the
successful development or sale of exploration assets in Burkina Faso.
- 39 -
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
PREDICTIVE DISCOVERY LIMITED
(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.
Reference
Title
Nature of Change
of standard
Impact on entity financial statements
for entity
Application date
Application date
9
AASB
December
amended
2010)
Financial Instruments
2009
(issued
and
December
the
requirements
Amends
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.
1 January 2017 Adoption of AASB 9 is only mandatory for the
year ending 30 June 2018. The entity has not
yet made an assessment of the impact of
these amendments.
1 July 2017
Under AASB 9, there are three categories of financial
assets:
Amortised cost
Fair value through profit or loss
Fair value through other comprehensive income.
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.
- 40 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(T)
ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS (continued)
Reference
Title
Nature of Change
of standard
Impact on entity financial statements
for entity
Application date
Application date
AASB 2013-4
July 2013)
AASB 2013-5
August 2013)
AASB 2012-6
September 2012)
(issued
Amendments
to Australian
–
Accounting Standards
Novation of Derivatives and
Continuation
Hedge
Accounting (AASB 139)
of
Clarifies treatment of novated hedging instruments and
continuation of hedge accounting where entities are
required to replace the original party with a central
counterparty as a consequence of laws or regulations or
the introduction of laws and regulation.
(issued
Amendments
Accounting Standards
Investment Entities
to Australian
-
The amendment defines an ‘investment entity’ and
requires a parent that is an investment entity to measure
its investments in particular subsidiaries at fair value
through profit or loss in its consolidated and separate
financial statements.
The amendment prescribes three criteria that must be met
in order for an entity to be defined as an investment entity,
as well as four ‘typical characteristics’ to consider in
assessing the criteria.
The amendment also introduces disclosure requirements
for investment entities into AASB 12 Disclosure of
Interests in Other Entities and amends AASB 127
Separate Financial Statements.
(issued
to Australian
Amendments
Accounting Standards
-
Mandatory Effective Date of
AASB 9 and Transition
Disclosures
Defers the effective date of AASB 9 to 1 January 2015.
Entities are no longer required to restate comparatives on
first time adoption. Instead, additional disclosures on the
effects of transition are required.
1 January 2014
1 July 2014
There will be no impact on first-time adoption
of this amendment as the entity does not
account for proposed changes in taxation
legislation until the relevant Bill has passed
through both Houses of Parliament, which is
consistent with the views expressed by the
Australian Accounting Standards Board in
their agenda decision of December 2012.
1 January 2014 As the entity does not meet the definition of
an investment entity, it will continue to
consolidate its investments in subsidiaries in
accordance with AASB 10 Consolidated
Financial Statements.
1 July 2014
1 January 2015 As comparatives are no longer required to be
restated, there will be no impact on amounts
recognised
financial statements.
However, additional disclosures will be
required on
the
transition,
quantitative effects of reclassifying financial
assets on transition.
including
the
in
1 July 2015
- 41 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(T)
ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS (continued)
Reference
Title
Nature of Change
of standard
Impact on entity financial statements
for entity
Application date
Application date
AASB 2014-2
Non-urgent but necessary changes to standards arising
from Annual Improvements to IFRSs 2010–2012 Cycle
and Annual
Improvements to IFRSs 2011–2013 Cycle
Improvements to IFRSs
(issued December 2013)
Non-urgent but necessary changes to standards
to Australian
Amendments
Accounting
Standards
[Operative dates: Parts A-C
–
2014;
Jul
Part D – 1 Jan 2016; Part E –
1 Jan 2015]
1
Annual Improvements 2010-
2012 Cycle (IFRS 2, IFR 3,
IFRS
16,
IAS 24, IAS 39
IAS
8,
Improvements to IFRSs
(issued December 2013)
Annual Improvements 2011-
2013 Cycle (IFRS13 & IAS
40)
Non-urgent but necessary changes to standards
1 July 2014, 1
January 2016, 1
January 2015
See below IFRS improvements
1 July 2014, 1 July
2015, 1 July 2016
1 July 2014
There will be no impact on the financial
statements when these amendments are
first
apply
because
prospectively or are disclosure impacts only
adopted
they
1 July 2014
1 July 2014
There will be no impact on the financial
statements when these amendments are
first adopted.
1 July 2014
The entity is not liable to pay any government
levies. There will therefore be no impact on
the
this
interpretation is first adopted.
statements when
financial
1 July 2014
Interpretation 21 (issued
June 2013)
Levies
Clarifies the circumstances under which a liability to pay a
levy imposed by a government should be recognised, and
whether that liability should be recognised in full at a
specific date or progressively over a period of time.
1 January 2014
- 42 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(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.
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)
Under / Over provision in prior year
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%)
Under / Over provision in prior year
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
2014
$
2013
$
-
-
-
-
-
-
(1,022,178)
(140,290)
(1,362,791)
190,342
972,126
-
912,584
450,207
-
(2,431,145)
(729,343)
(140,290)
23,763
(38,223)
(88,033)
-
972,126
-
326,322
97,897
4,349
(468,196)
(84,393)
136
450,207
-
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.
- 43 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
3
CASH AND CASH EQUIVALENTS
Cash at bank
2014
$
950,825
950,825
2014
$
1,352,410
1,352,410
Of the cash at bank amount, $10,000 is provided as security to the ANZ Bank for a bank guarantee.
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
2014
$
-
74,939
74,939
2013
$
22,978
106,093
129,071
2014
$
2013
$
364,969
(61,084)
303,885
531,334
(166,365)
364,969
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 2014
Balance at the beginning of year
Additions
Disposals
Depreciation expense
Movement in exchange rates
Balance at 30 June 2014
Balance at 30 June 2013
Balance at the beginning of year
Additions
Depreciation expense
Movement in exchange rates
Balance at 30 June 2013
Plant and
Equipment
$
364,969
-
(54,776)
(79,976)
73,668
303,885
426,044
2,175
(109,361)
46,111
364,969
Total
$
364,969
-
(54,776)
(79,976)
73.668
303,885
426,044
2,175
(109,361)
46,111
364,969
- 44 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
6
EXPLORATION, EVALUATION AND DEVELOPMENT ASSETS
Exploration and evaluation expenditure
2014
Balance at beginning of the year
Expenditure incurred
Impairment
Balance at end of the year
2013
Balance at beginning of the year
Expenditure incurred
Impairment
Balance at end of the year
2014
$
15,639,370
15,639,370
2013
$
14,604,406
14,604,406
Exploration and
evaluation
$
14,604,406
2,061,425
(1,026,461)
15,639,370
10,235,139
4,668,842
(299,575)
14,604,406
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. The board has
assessed the exploration and evaluation assets for impairment, using AASB 6 paragraph 20 as a guide. As a result of
this process 2 tenements were impaired during the period.
The budget for future exploration and evaluation expenditure 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.
7
TRADE AND OTHER PAYABLES
CURRENT
Trade payables
NON-CURRENT
Trade payables
Other payables
2014
$
2013
$
350,802
350,802
229,658
229,658
2014
$
2013
$
-
100,000
100,000
-
-
-
- 45 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
8
TAX ASSETS AND LIABILITIES
Assets
(a)
Current
Income tax refundable
Non-current
Deferred tax asset comprises:
Employee Entitlements
Accruals and payables
ASX Listing Costs
Cancelation of Licence
Tax Losses
Amount Not Recognised
Liabilities
(b)
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
Reconciliations
Gross Movements
(c)
(i)
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
Deferred tax assets
(ii)
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
- 46 -
2014
$
2013
$
-
-
-
-
5,853
9,000
-
72,000
5,119,999
(5,206,852)
-
6,188
11,250
909
-
4,097,821
(4,116,168)
-
-
-
-
-
-
-
(2,610,522)
2,610,522
-
(2,491,965)
2,491,965
-
1,624,203
140,290
831,837
(2,596,330)
-
1,173,995
-
450,208
(1,624,203)
-
6,188
(335)
(5,853)
-
41,732
(35,544)
(6,188)
-
-
-
-
-
-
-
-
-
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
8
TAX ASSETS AND LIABILITIES (continued)
Reconciliations (continued)
Deferred tax assets (continued)
(c)
(ii)
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
ASX Listing Costs
Opening balance
Credited / (charge) to the income statement
Amount Not Recognised
Closing balance
Cancellation of Licence
Opening balance
Credited / (charge) to the income statement
Amount Not Recognised
Closing balance
Deferred tax liability
(iii)
Exploration Expenditure
Opening balance
Under / Over provision in prior year
Credited / (charge) to the income statement
Amount Not Recognised
Closing balance
2014
$
2013
$
11,250
(2,250)
(9,000)
-
9,000
2,250
(11,250)
-
4,097,821
1,022,178
(5,119,999)
-
2,735,029
1,362,792
(4,097,821)
-
909
(909)
-
-
-
72,000
(72,000)
-
1,819
(910)
(909)
-
-
-
-
-
(2,491,965)
140,290
(258,847)
2,610,522
-
(1,613,585)
(878,380)
2,491,965
-
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
387,865,214 (2013: 234,633,856) Ordinary shares
Share issue costs written off against issued capital
- 47 -
2014
$
2013
$
19,509
19,509
20,626
20,626
2014
$
24,007,040
(1,467,210)
22,539,830
2013
$
21,348,580
(1,406,563)
19,942,017
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
10
ISSUED CAPITAL (continued)
ORDINARY SHARES
At the beginning of the reporting period
Tenement Purchase
Employee share issue
Placements
Rights Issues
Share Placement Plan
2014
NO.
234,633,856
2,771,462
327,000
129,757,896
-
20,375,000
387,865,214
2014
$
21,348,580
59,994
6,866
2,265,600
-
326,000
24,007,040
2013
NO.
125,555,405
11,250,000
329,500
86,236,843
11,262,108
-
234,633,856
2013
$
16,386,368
787,500
14,498
3,277,000
900,969
-
21,348,580
OPTIONS
(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
2014
$
2013
$
(2,589,881)
(1,029,304)
Weighted average number of ordinary shares outstanding during the year used in calculating basic EPS.
Weighted average number of ordinary shares outstanding during the
period - Number used in calculating basic EPS
Weighted average number of ordinary shares outstanding during the year used
in calculating dilutive EPS
316,503,790
193,090,138
316,503,790
193,090,138
2014
NO.
2013
NO.
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.
- 48 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
13
CAPITAL AND LEASING COMMITMENTS
LEASE COMMITMENTS
(A)
Payable - minimum lease payments:
- not later than 12 months
- between 12 months and 5 years
OPTIONS FEE COMMITMENTS
(B)
Payable – minimum lease payments:
– not later than 12 months
– between 12 months and 5 years
-
Later than 5 years
CAPITAL EXPENDITURE COMMITMENTS
(C)
Payable:
- not later than 12 months
- between 12 months and 5 years
more than 5 years
LICENCE FEE COMMITMENTS
(D)
Payable:
- not later than 12 months
- between 12 months and 5 years
14
FINANCIAL RISK MANAGEMENT
2014
$
2013
$
20,607
245,802
266,409
322,820
558,834
45,025
926,678
2,966,064
7,529,914
57,921
10,553,899
245,232
-
245,232
500,000
-
-
500,000
50,087
146,454
-
196,541
-
-
-
300,000
1,200,000
1,500,000
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
2014
$
2013
$
3
4
7
950,825
74,939
1,025,764
470,311
470,311
1,352,410
129,071
1,481,481
250,284
250,284
The carrying amounts of these financial instruments approximate their fair values.
- 49 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
14
FINANCIAL RISK MANAGEMENT (continued)
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.
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 of 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.
- 50 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
14
FINANCIAL RISK MANAGEMENT (continued)
SPECIFIC FINANCIAL RISK EXPOSURES AND MANAGEMENT (continued)
(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
2014
$
2013
$
2014
$
2013
$
2014
$
2013
$
Financial liabilities due for
payment
Trade and other payables
Total contractual outflows
Financial assets - cash flows
realisable
Trade and other receivables
Total anticipated inflows
450,802
450,802
250,284
250,284
74,939
74,939
129,071
129,071
The financial assets and liabilities noted above are interest free.
-
-
-
-
-
-
-
-
450,802
450,802
250,284
250,284
74,939
74,939
129,071
129,071
(C)
Interest rate risk
MARKET RISK
i.
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 0.1% p.a.
Foreign exchange risk
ii.
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.
- 51 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
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.
2014
Revenue
Interest income
Expenses
Share based payments
Administration expenses
FX Expense
Exploration expenditure written off
Impairment of Exploration
Loss before tax
Current assets
Exploration expenditure
Plant and Equipment
Current liabilities
Non-Current liabilities
Net assets
2013
Revenue
Interest income
Expenses
Share based payments
Administration expenses
FX Expense
Exploration expenditure written off
Impairment of Exploration
Loss before tax
Current assets
Exploration expenditure
Plant and Equipment
Current liabilities
Corporate
$
Gold
Aust
$
Uranium
Aust
$
Gold
Burkina
Faso
$
Cote
d’Ivoire
$
Total
$
25,106
-
-
-
-
25,106
(131,467)
(873,425)
(29,456)
-
-
(1,009,242)
825,302
-
-
(199,059)
(100,000)
526,243
-
-
-
(24,907)
-
(24,907)
-
-
-
-
-
-
-
-
(408,463)
-
(1,870)
-
-
-
- (1,026,461)
-
(131,467)
(118,939) (1,400,827)
(31,326)
-
-
(24,907)
- (1,026,461)
- (1,436,794)
-
160,168
- 15,493,626
276,588
-
(132,251)
-
-
-
- 15,798,131
(118,939) (2,589,881)
40,294 1,025,764
145,744 15,639,370
303,885
(370,311)
(100,000)
174,334 16,498,708
27,297
(39,001)
-
Corporate
$
Gold
Aust
$
Uranium
Aust
$
38,533
-
(14,498)
(678,618)
251,095
-
-
-
-
-
(299,575)
(62,122)
(403,488)
1,365,866
-
2,842
(110,511)
(361,697)
-
-
-
-
Gold
Burkina
Faso
$
-
-
(189,876)
(74,241)
-
-
-
-
-
-
-
-
(264,117)
-
-
115,616
- 14,632,581
362,127
-
(139,773)
-
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)
-
Net assets
1,258,197
-
- 14,964,783
- 16,228,748
The Group operates in three principal geographical areas – Australia (country of domicile), Burkina Faso and other
West African countries.
- 52 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
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 2014.
The totals of remuneration paid to key management personnel of the company and The Group during the year are as
follows:
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:
Granted as
Other
Balance at
remunerat-
Exercised
changes
Balance at
Vested
Vested and
beginning of
ion during
during the
during the
period
the period
period
period
end of
period
during the
Vested and
unexercis-
period
exercisable
able
30 June 2014
Mr Phillip Harman
Mr Paul Roberts
Mr Philip Henty
Mr Tim Markwell
Mr Ian Hobson
900,000 1,000,000
1,700,000 3,000,000
600,000 1,000,000
- 1,000,000
- 1,000,000
3,200,000 7,000,000
-
-
-
- (1,000,000)*
-
-
195,469 2,095,469
125,000 4,825,000
626,563 2,226,563
-
- 1,000,000
(52,968) 10,147,032
- 2,095,469
- 4,825,000
- 2,226,563
-
-
- 1,000,000
- 10,147,032
-
-
-
-
-
-
Options assigned to Lion Manager Pty Ltd in which Mr Markwell does not have a controlling interest
Granted as
Other
Balance at
remunerat-
Exercised
changes
Vested
Vested and
beginning of
ion during
during the
during the
Balance at
during the
Vested and
unexercis-
period
the period
period
period
end of period
period
exercisable
able
30 June 2013
Mr Phillip Harman
Mr Paul Roberts
Dr Thomas Whiting
Dr Robert Danchin
Mr Philip Henty
Mr Ian Hobson
David Pascoe
900,000
1,700,000
600,000
600,000
600,000
-
500,000
4,900,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
900,000
- 1,700,000
600,000
-
600,000
-
600,000
-
-
-
500,000
-
- 4,900,000
-
900,000
- 1,700,000
600,000
-
600,000
-
600,000
-
-
-
500,000
-
- 4,900,000
-
-
-
-
-
-
-
-
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 2014
Mr Phillip Harman
Mr Paul Roberts
Mr Philip Henty
Mr Tim Markwell
Mr Ian Hobson
Granted as
Issued on
Balance at
remuneration
exercise of
Other changes
beginning of
during the
options during
during the
Balance at end
period
period
the period
period
of period
3,398,258
3,702,079
10,929,688
-
60,000
18,090,025
-
-
-
-
-
-
-
-
-
-
-
-
2,571,053
1,463,816
6,282,895
-
-
10,317,764
5,969,311
5,165,895
17,212,583
-
60,000
28,407,789
- 53 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
16
INTERESTS OF KEY MANAGEMENT PERSONNEL (continued)
KEY MANAGEMENT PERSONNEL SHAREHOLDINGS (continued)
30 June 2013
Mr Phillip Harman
Mr Paul Roberts
Dr Thomas Whiting
Dr Robert Danchin
Mr Philip Henty
Mr Ian Hobson
Mr David Pascoe
Balance at
Granted as
exercise of
Issued on
beginning of
remuneration
options during
Other changes
Balance at end
year
during the year
the year
during the year
of year
1,954,688
3,320,500
1,054,688
-
5,976,563
50,000
-
12,355,501
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,443,570
381,579
737,254
-
4,953,125
10,000
-
7,525,528
3,398,258
3,702,079
1,791,942
-
10,929,688
60,000
-
19,881,967
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.
2014
$
2013
$
37,000
37,000
51,450
51,450
Percentage
Owned (%)*
2014
Percentage
Owned (%)*
2013
Country of
Incorporation
Australia
Burkina Faso
Niger
Cote D’Ivoire
British Virgin Islands
Australia
100
100
100
100
100
100
100
100
100
100
17
AUDITORS’ REMUNERATION
Remuneration of the auditor of the parent entity for:
- Audit services
18
CONTROLLED ENTITIES
Name
Parent Entity:
Predictive Discovery Limited
Subsidiaries of legal parent entity:
Predictive Discovery SARL
Predictive Discovery Niger SARL
Predictive Discovery Cote D’Ivoire SARL
Birrimian Pty Ltd
Predictive Discovery Cote D’Ivoire Pty Ltd
* Percentage of voting power is in proportion to ownership
Acquisitions of controlled entities
There were no acquisitions during the year.
- 54 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
19
CONTINGENT LIABILITIES
There are no material contingent liabilities or contingent assets of The Group at balance date.
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 subsidiaries in the amount of $15,667,469. 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 $101,019 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
2014
$
2013
$
(2,589,882)
(1,029,304)
24,907
(25,106)
62,122
(38,533)
131,467
2,405
14,498
2,802
1,026,461
299,575
(54,132)
221,144
(1,117)
119,535
(1,144,318)
30,381
(99,603)
(12,693)
74,183
(696,572)
- 55 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
22
SHARE BASED PAYMENTS
During the year, the group entered into the following share-based payments:
1.
The issue of 2,771,462 ordinary shares in the Company in consideration for the option payments on mining
permits for the value of $59,994;
The issue of 327,000 ordinary shares in the company as employee incentives to Burkina Faso employees for
the value of $6,867; and
Entered into a contract to issue 12,000,000 unlisted options exercisable at $0.02 per share expiring 3 years
from date of issue for the value of $59,123.
2.
3.
At 30 June 2014 the Group has the following share-based payment options on issue to employees:
2012
Exercise
Start of the
during the
during the
during the
the end of
the end of the
Grant Date
Expiry Date
price
year
year
year
year
the year
year
Granted
Exercised
Forfeited
Balance at
exercisable at
20 Aug 2010
20 Aug 2015
$0.250
6,000,000
-
27 Mar 2014
31 Mar 2017
$0.022
-
8,000,000
6,000,000
8,000,000
-
-
-
-
-
-
6,000,000
6,000,000
8,000,000
8,000,000
14,000,000
14,000,000
Vested and
At 30 June 2014 the Group has the following share-based payment options on issue in lieu of capital raising fees:
2012
Exercise
Start of the
during the
during the
during the
the end of
the end of the
Grant Date
Expiry Date
price
year
year
year
year
the year
year
Granted
Exercised
Forfeited
Balance at
exercisable at
5 Dec 2012
30 Oct 2015
$0.15
2,000,000
5 Dec 2012
30 Oct 2015
$0.20
3,500,000
$0.10 –
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.
Vested and
The weighted average exercise price of options as at 30 June 2014 was $0.12 (30 June 2013: $0.19). The weighted
average remaining contractual life of options outstanding at year end was 1.78 years (30 June 2013: 2.13).
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 $72,344 (30 June 2013: $ 65,469).
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 (%):
-
2.2 cents
3
100
3.03
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.
- 56 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
23
EVENTS AFTER THE END OF THE REPORTING PERIOD
No 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
Equity
Issued capital
Accumulated losses
Reserves
Total Equity
CONTINGENT LIABILITIES
Nil
CONTRACTUAL COMMITMENTS
2014
$
2013
$
825,302
18,067,404
18,892,707
1,365,866
15,592,764
19,958,630
199,059
100,000
299,059
110,511
-
110,511
22,539,831
(5,905,102)
1,958,919
18,593,648
19,942,017
(4,762,648)
1,668,750
16,848,119
The parent entity has commitments as at 30 June 2014 that are disclosed in Note 13.
RECOVERABILITY OF INTERCOMPANY LOAN
Within Non-current assets is a loan due from the 100% subsidiaries of $15,667,469 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 of the company is:
The principal place of business of the company is:
Predictive Discovery Limited
Suite 5, 95 Hay Street
SUBIACO WA 6008
Predictive Discovery Limited
Level 2, 33 Ord Street
West Perth WA 6005
- 57 -
PREDICTIVE DISCOVERY LIMITED
DIRECTORS’ DECLARATION
The directors of the company declare that:
1.
The financial statements and notes, as set out on pages 15 to 45, 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 2014 and of the performance
the year ended on that date of the consolidated group;
for
2.
The Chief Executive Officer and Chief Financial Officer have each declared that:
(a)
(b)
(c)
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
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
24 September 2014
- 58 -
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 2014, 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.
Independence
In conducting our audit, we have complied with the independence requirements of the Corporations
Act 2001.
Independent Auditor’s Report to the Members
of Predictive Discovery Limited & Controlled Entities
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
2014 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 modifying the opinion 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 2014, the ability of the Group to meet its day to
day obligations is dependent upon future capital raising.
Report on the Remuneration Report
We have audited the remuneration report included in pages 7 to 9 of the directors’ report for the year
ended 30 June 2014. 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.
Auditor’s Opinion
In our opinion the remuneration report of Predictive Discovery Limited & controlled entities for the
year ended 30 June 2014 complies with s 300A of the Corporations Act 2001.
NEXIA MELBOURNE
ABN 16 847 721 257
ANDREW JOHNSON
Partner
Audit & Assurance Services
Melbourne
24 September 2014
PREDICTIVE DISCOVERY LIMITED
ADDITIONAL SHAREHOLDER INFORMATION
IN COMPLIANCE WITH ASX REQUIREMENTS ……
The additional ASX information is current as at 15 October 2014.
SUBSTANTIAL SHAREHOLDERS
Substantial shareholders as defined by Section 671B of Australian Corporations Law are:
Shareholder name
AURORA MINERALS LIMITED
EQUITY TRUSTEES LIMITED
Number Held
Percentage
79,691,417
25,383,184
19.60%
6.24%
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
AURORA MINERALS LIMITED
EQUITY TRUSTEES LIMITED
MR NEIL CLIFFORD DUNCAN & MRS LUDMILLA
DUNCAN
KITARA INVESTMENTS PTY LTD
FINANCE ASSOCIATES PTY LTD
DYSPO PTY LIMITED
BOND STREET CUSTODIANS LIMITED
PAJAL PTY LTD
MR WILLIAM HENRY HERNSTADT
MR WILLIAM HENRY HERNSTADT
MR ROBERT TONY SAMBUCCO
CITICORP NOMINEES PTY LIMITED
SISU INTERNATIONAL PTY LTD
BUPRESTID PTY LIMITED
MR MICHAEL ROBERT HODGETTS
BLUE SKY HOLDINGS PTY LTD
PRIVATE EQUITY CAPITAL PTY LTD
MR RHETT ANTHONY JOHN MORSON
HYDRONOMEES PTY LTD
AGGREGATED CAPITAL PTY LTD
Holding
79,691,417
25,383,184
11,978,058
10,312,500
10,000,000
9,868,833
6,165,895
5,901,811
5,828,557
5,750,000
5,417,414
5,389,379
5,263,158
5,070,000
5,000,000
4,491,203
4,218,750
3,900,000
3,851,562
3,845,000
%IC
19.60%
6.24%
2.95%
2.54%
2.46%
2.43%
1.52%
1.45%
1.43%
1.41%
1.33%
1.33%
1.29%
1.25%
1.23%
1.10%
1.04%
0.96%
0.95%
0.95%
TOTAL
Balance of Register
Grand TOTAL
217,326,721
189,288,493
406,615,214
53.45%
46.55%
100.00%
DISTRIBUTION OF EQUITY SECURITIES
Analysis of numbers of shareholders by size of holding:
Range
100,001 and Over
10,001 to 100,000
5,001 to 10,000
1,001 to 5,000
1 to 1,000
Total
Unmarketable Parcels
Securities
No of Holders
391,581,479
14,568,706
349,866
111,849
3,314
406,615,214
8,681,118
303
314
40
30
23
710
334
- 61 -
PREDICTIVE DISCOVERY LIMITED
ADDITIONAL SHAREHOLDER INFORMATION
IN COMPLIANCE WITH ASX REQUIREMENTS ……
DISTRIBUTION OF EQUITY SECURITIES (continued)
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 181 holders of 9,131,075 unlisted options with an exercise price of 20 cents expiring on 30 June
2015.
Holders of more than 20%
Holder name
Kitara Investments Pty Ltd
Number
3,000,000
%
32.8%
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%
There are 6 holders of 8,000,000 unlisted options expiring 31 March 2017 and exercisable at 2.2 cents.
Holders of more than 20%
Holder name
PAUL ROBERTS
Number
3,000,000
%
37.5%
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.
- 62 -
PREDICTIVE DISCOVERY LIMITED
INTERESTS IN MINING TENEMENTS
Name
Number
Location
Area
(sq. km)
PDI equity
Fouli
Tantiabongou
Sirba
Madyabari
Tyekanyebi
arrêté 2011- 11-
351/MCE/SG/DGMGC
arrêté 2007-
019/MCE/SG/DGMGC
arrêté 2011-11 - 353
/MCE/SG/DGMGC
arrêté 2011- 11 -
352/MCE/SG/DGMGC
Arrêté 2010-
202/MCE/SG/DGMGC
Burkina Faso
186.2
100%
Burkina Faso
93.9
100%
Burkina Faso
136.9
100%
Burkina Faso
171.9
100%
Burkina Faso
242
100%
Tamfoagou
353 (arrêté 2005-
061/MCE/SG/DGMGC)
Burkina Faso
238
100%
Tangagari
arrêté 2009-
068/MCE/SG/DGMGC
Burkina Faso
127.5
Earning 95%; current equity 0%
(until final cash payment is made)
Aoura
arrêté 2008-
023/MCE/SG/DGMGC
Burkina Faso
25
Earning 95%; current equity 0%
(until final cash payment is made)
Boussouma
Arrete 2011-
059/MCE/SG/DGMGC
Burkina Faso
116
Earning 95%; current equity 0%
(until final cash payment is made)
Bangaba
Arrete 2009-
100/MCE/SG/DGMGC
Burkina Faso
128
Earning 95%; current equity 84%
Kogodou South
2011-299/MCE/SG/DGMGC
Burkina Faso
44.6
Earning 100%; current equity 0%
(until final cash payment is made)
Bira
2013-33/MCE/SG/DGMGC
Burkina Faso
21
100%
Basieri
2013-16/MCE/SG/DGMGC
Burkina Faso
73.5
100%
Kokumbo
Mining exploration permit
No. 307
Cote D'Ivoire
400
Earning 90%
Ferkessedougou
Mining exploration permit
No. 310
Cote D'Ivoire
387
100%
Boundiali
Mining exploration permit
No. 414
Cote D'Ivoire
399
100%
Kounahiri
Mining exploration permit
No. 317
Cote D'Ivoire
347
100%
Cape Clear
EL 5423
Victoria, Australia
160
Cape Clear Minerals Pty Ltd
earning 51%
- 63 -