Annual Report
ABN 11 127 171 877
CORPORATE DIRECTORY
DIRECTORS
AUDITOR
Mr Phillip Jackson Non-executive Chairman
Moore Stephens
Mr Paul Roberts Managing Director
Level 18, 530 Collins Street
Mr David Kelly Non-executive Director
MELBOURNE VIC 3000
SHARE REGISTRY
Link Market Services Limited
Level 4, 152 St Georges Terrace
PERTH WA 6000
Telephone: +61 8 9211 6670
Email: info@linkmarketservices.com.au
ASX CODE
PDI
Company Secretaries
Mr Eric Moore
Mr Bruce Waddell
REGISTERED OFFICE
Suite 2, Level 2
20 Kings Park Road
WEST PERTH WA 6005
Telephone: +61 8 6143 1840
Fax: +61 8 9321 4692
Email: info@predictivediscovery.com
Web Site: www.predictivediscovery.com
POSTAL ADDRESS
PO Box 1710
WEST PERTH WA 6872
2 | 2018 Annual Report
CONTENTS
CHAIRMAN’S REPORT
REVIEW OF OPERATIONS
DIRECTORS’ REPORT
STATEMENT OF COMPREHENSIVE
INCOME
4
6
17
25
STATEMENT OF FINANCIAL POSITION
26
STATEMENT OF CHANGES IN EQUITY
STATEMENT OF CASH FLOWS
27
28
NOTES TO THE FINANCIAL STATEMENTS 29
DIRECTORS’ DECLARATION
INDEPENDENT AUDITOR’S REPORT
AUDITOR’S INDEPENDENCE
DECLARATION
SHAREHOLDER INFORMATION
MINERAL TENEMENT INFORMATION
58
59
63
64
66
2018 Annual Report | 3
Chairman’s Report
Dear Shareholders,
It gives me great pleasure to
present Predictive Discovery
Limited’s (Predictive, PDI
or the Company) 2017-18
Annual Report.
We have continued to see strong evidence of our ground’s potential from
widespread drilled gold intercepts within 17km of gold in-soil anomalies at
Ferkessedougou North (Cote D’Ivoire), and an 800m long gold mineralised
zone from RC drill drilling at Bira (Burkina Faso), along with identification of a
20km long zone of gold in-soil anomalies to the south-west of Bira, including
ten drill-ready targets.
This was the year Predictive
consolidated its Prospect
Generator Business model,
summarised as EXPLORATION-
PARTNERSHIP-GROWTH.
Working closely with our Joint
Venture partners, we made
great strides across our portfolio
with new discoveries in both
Cote D’Ivoire and Burkina Faso.
Both projects are being developed with partner-funded exploration with over
US$4,000,000 spent by our joint venture partners in Burkina Faso and Cote
D’Ivoire in 2017-18. These programs included soil sampling, aeromagnetic sur-
veys and RC and diamond drilling, along with extensive reconnaissance stream
geochemistry and geological surveys.
Other highlights included the delineation of a 13km zone of gold geochemical
anomalies in the newly acquired Boundiali North Permit (Cote D’Ivoire),
encouraging drill results from the large and complex Bobosso Project (Cote
D’Ivoire) and the identification of gold-bearing structures in the Kokoumbo
Project (Cote D’Ivoire).
These results have all reinforced the large-scale gold discovery potential of
the Company’s projects and permits. The drill results at Bira are especially
significant as they add to the Bongou JORC Resource and nearby Exploration
Target reported in 2014 and 2015. Our impressive project portfolio Is
4 | 2018 Annual Report
Chairman’s Report The company’s own focus
continues to be on early
stage exploration in what
is currently the most
exciting gold region in the
world.
strategically located around a number of major gold deposits and large mining
operations. Coupled with our recent exploration success, I anticipate an
exciting 2018-19 season of both results and new opportunities.
We have commenced preparation for the 2018-19 field season with new permit
applications and prospects in Burkina Faso and Mali. In Burkina, Predictive
has assessed country-wide exploration data sets to identify high-potential
zones within the large areas of recently vacated ground; a number of permit
applications have been lodged and are awaiting approval. In Mali, Predictive
has conducted a country-scale analysis and identified numerous exploration
targets resulting in low cost exploration of five exploration authorisations and
due diligence geochemical sampling of several properties held by third parties.
The company’s own focus continues to be on early stage exploration in what
is currently the most exciting gold region in the world, with new mines and
discoveries a constant reminder of the region’s immense potential.
I would like to take this opportunity to thank our joint venture partners for
their continued support and counsel as we work together for mutual benefit.
I would especially like to highlight the contribution of Howard Bills and Kirk
Woodman, the respective Exploration Directors at Toro and Progress, whose
companies have both advanced the interests of Predictive within their
respective joint ventures throughout the past year.
Predictive’s Board and management team collectively has great experience in
gold exploration and development and has demonstrated this by continued
discoveries and ongoing generation of exciting new exploration projects. I
would like to thank my fellow board members and management as well as our
in-country staff for all their efforts and success during the past year.
Our objectives for the 2018-19 Financial Year include adding new projects,
further joint ventures, new discoveries and resource identification. I thank you
for your support throughout 2017-18 and hope that our progress during the
forthcoming year will continue to add value to your investment in Predictive.
Yours Sincerely
Phillip Jackson
Non-Executive Chairman
2018 Annual Report | 5
Chairman’s Report Review of Operations
Review of Operations
Exploration
Partnership
Growth
Exploration
Acquire projects
through early-stage
exploration
The Prospect
Generator Model
Partnership
Partners to fund
exploration and
project development
Growth
Growing shareholder
value through
partnerships,
asset sales, spin outs
and royalty
streams
Review of Operations
In 2017-2018 Predictive consolidated its Prospect Generator Model. The joint
venture signed with Progress Minerals (Inc) in late 2017 completed the process
of farming out the Company’s major projects, clearing the way for PDI to
acquire a large portfolio of new ground in West Africa to carry out early stage
low cost exploration.
The Prospect Generator model is summarised in three words: EXPLORATION,
PARTNERSHIP and GROWTH. PDI has fully developed the Exploration and
Partnership components in the past two years. The Company is now beginning
to realise the Growth component, taking a payment of C$493,000 and future
cash payments on mine production for up to three mines in its Bobosso
tenement package. This demonstrates that the model is in full operation and
illustrates the potential to shareholders from larger returns from the Growth
component going forward.
6 | 2018 Annual Report
Review of Operations
The Case for Predictive Discovery
Traditional Model vs. Prospect Generator
SCENARIO
TRADITIONAL JUNIOR
PROJECT GENERATOR
Projects
Discover Goal
Risk Profile
Few (1-2 Flagships)
Single
Multiple (+5)
Multiple
low chance of producing single mine
high chance of producing one or more mines
Team/Expertise
Joint MD/Geo role
Primary Funding
Equity
Multiple expert teams
across numerous partner projects + numerous
internal exploration teams coordinated by MD
Equity, Partners:
Exploration Expenditures, Cash, Shares, Royalties
Scenario
100% of a
single Discovery
30% of
Multiple Discoveries
The case for PDI’s adoption of the Prospect Generator model is strong: 1) we substantially increase our chances of
discovery with numerous projects being explored simultaneously; 2) we have access both to our own experts and joint
venture partner exploration teams, greatly enlarging the capability which can be brought to bear in exploring the
Company’s portfolio. The opportunity to collaborate on a project with a joint venture exploration team also highlights
the value of PDI’s projects as it is unlikely a partner would spend large sums of money earning into the ground if their
due diligence didn’t match our own assessment; 3) Primary funding is through our joint venture partners. In exchange
for a majority share in the project, each partner agrees to spend a certain dollar amount, generally in the millions of
dollars to advance the project; 4) We have now shown that we can acquire high quality projects through innovative
geoscience-based ground selection methods and our experience and networks in the region to identify high-quality
targets; 5) After securing ownership and completing initial exploration, we create joint venture partnerships with
well-funded development orientated companies to aggressively drill, evaluate and ultimately develop new resources;
6) Finally, the activity on multiple parallel projects, funded mostly by joint venture partners, drives news flow while
minimising cash outlays and therefore frequent, dilutive capital raisings.
Driving Newsflow
Concurrent Funded Programs
Burkina Faso Project
Progress JV
20,000m RC Drilling
Across Tambirri and Bira-Kalinga
DECEMBER QUARTER 2018
MARCH QUARTER 2019
JUNE QUARTER 2019
Burkina Faso (new ground)
PDI
New Permits Granted
Geochemical-Geological-Magnetics Surveys
Ferkessedougou North
Project
Boundiali /Boundiali -
North Project
Cote D’Ivoire
Kokoumbo-Beriaboukro
Project
Cote D’Ivoire
PDI
Toro JV
Toro JV
Trenching and IP Surveys
RC Drilling
Infill Sampling (Gold Soil Anomalies)
IP Survey and Trenching
DD/RC Drilling
Diamond Drill Results
Geophysical Survey and Drilling
Bobosso Project
Cote D’Ivoire
Progress - WAVI
JV
RC Drilling
In progress
New west African
Projects
PDI
New Permits Granted
Geochemical-Geological-Magnetics Surveys
2018 Annual Report | 7
Review of Operations
Joint Venture Partners
Progress Minerals International Inc (www.progressminerals.com)
Progress Minerals Inc. engages in the identification, acquisition, exploration, and development of mineral resource
projects focused on the West African Birimian Greenstone Belts. The company was incorporated in 2016 and is based in
Vancouver, Canada.
Key Contact: Adam Spencer (Chief Executive Officer)
Mr. Spencer brings extensive capital markets experience in the mining industry having been involved in a wide range of
financing and advisory mandates covering mining projects globally. He is currently the Senior Vice President, Corporate
Development of Sandstorm Gold Ltd., a leading precious metal streaming and royalty company, a position he has held
since 2013. In his time at Sandstorm, Adam has been involved in over $500 million of investments and acquisitions,
taking a key role in origination, structuring and negotiation. Prior to his role at Sandstorm, Mr. Spencer was a Director in
the Mining Investment Banking group at Cormark Securities Inc., where he executed numerous financing and advisory
mandates focused on the junior and mid-tier sectors of the mining market.
Burkina Faso Permits: Kalinga, Tantiabongou, Tambifwanou, Bongou, Tamfoagou, Tangagari, Tambiri, Bira and Basieri.
Deal Structure: Progress Minerals Inc has earned 51% by spending US$1 million. They can increase their equity to 70% by
expenditure of an aggregate US$5 million spend including funds spent so far. PDI current equity 49%.
Cote D’Ivoire Projects: Bassawa, Wendene, Dabakala (permit application)
Deal Structure: Progress owns 30% in the holding company, West African Mine Investments Pty Ltd having spent
US$1 million. PDI’s interest is also 30%. PDI will convert to 0% and zero liability for future costs after conclusion of an
announced agreement by which Progress will pay Predictive C$493,000 and accept liability for future bonus payments
to Predictive on development of up to 3 mines.
Toro Gold (www.torogold.com)
Toro Gold Ltd (Toro) is a private gold exploration, development and production company focused in West Africa. Their
flagship asset is the Mako Gold Mine which is locate in eastern Senegal and commence production in early 2018. Toro’s
principal exploration focus outside of the immediate environs of the Mako Mine is its joint venture with PDI in Cote
d’Ivoire.
Predictive is in joint venture with Toro on seven granted permits and two permit applications in Cote D’Ivoire. The Toro
Joint Venture operates through Predictive’s former subsidiary, Predictive Cote D’Ivoire SARL (Predictive CI) of which
Predictive now holds 35%.
Key Contact: Howard Bills (Chief Exploration Officer)
Prior to co-founding Toro Gold with Martin Horgan in 2009 Howard was Exploration Manager for AXMIN and managed
the discovery and development of the 3Moz Passendro gold project (in the CAR) from grassroots in 1999 to completion
of the feasibility study in 2008. At Toro, Howard has managed geology and exploration at the Mako project through the
exploration and development process as well as managing exploration on Toro’s portfolio of exploration permits across
sub-Saharan Africa.
Cote D’Ivoire Projects: Kokoumbo, Boundiali, Kounahiri, Ferkessedougou, Ferkessedougou North, Beriaboukro,
Boundiali North.
Deal Structure: Toro Gold has earned 65% in the holding company, Predictive Discovery Cote D’Ivoire SARL, by spending
$US3.5 million on exploration work.
8 | 2018 Annual Report
Review of Operations
FINANCIAL YEAR 2017-18 EXPLORATION ACTIVITY
PROJECT HIGHLIGHTS
Ferkessedougou North Project (Cote D’Ivoire) - Discovery of a new style of gold mineralisation within the 17km long
gold in soil geochemical anomaly with a best drill intercept of 25m at 3.1 g/t Au.
Bira/Kalinga/Tantiabongou Permits (Burkina Faso) - Delineation of an 800m long zone of gold mineralisation with best
intercepts of 27m at 1.8g/t Au and 33m at 1.4g/t Au showing excellent continuity and very high gold recoveries from
bottle roll cyanidation testwork. Identification of a 20km long zone of gold in soil anomalies along strike to the south-
west of Bira including seven drill-ready targets.
Boundiali North Project (Cote D’Ivoire) - delineation of a 13km long zone of gold geochemical anomalies along strike
from the Nyangboue Prospect, where previous drilling had intersected 20m at 10.5g/t Au and 30m at 8.3 g/t Au.
Bobosso Project (Cote D’Ivoire) - Encouraging drill results from the large and complex mineralised system (including
intercepts of 11m at 4.9g/t Au and 56m at 1.6g/t Au.
Kokoumbo Project (Cote D’Ivoire) - Identification of a suite of south-dipping ESE gold-bearing structures and IP
anomalies reinforcing the large-scale gold discovery potential of the Company’s joint ventured properties.
Mali Projects – Acquisition of new ground and early stage exploration work on those properties.
COTE D’IVOIRE PROJECT ACTIVITY
Predictive has expanded its ground position Cote D’Ivoire in recent years. The country covers over a third of the highly
prospective Birimian gold belt, more than any other country in West Africa. Cote D’Ivoire is highly underexplored for
gold because the exploration investment boom in the last decade largely bypassed the country because of political
instability. Since the accession of President Alassane Ouattara in 2011 and his comfortable re-election in 2015, and with
investment certainty provided by an updated Mining Act and a forward-looking Mines Administration, Cote D’Ivoire has
become an attractive exploration investment destination.
In Cote D’Ivoire, Predictive holds joint
ventures with (1) Toro Gold Limited, a
UK-based company and (2) West African
Ventures Investment SARL (WAVI) SARL
and Progress Minerals International (Inc) of
Canada (Progress). It has also entered into
an option agreement with Sika Resources
Pty Ltd on three permit applications held
by Sika’s subsidiary, Moaye Resources SARL.
The Company holds three applications in
the name of its wholly owned subsidiary,
Ivoirian Resources SARL, in its own right.
Ferkessedougou North (Toro JV, Cote
D’Ivoire)
This project is located in northern Cote
D’Ivoire directly adjacent to Burkina Faso’s
southern border. A 17km long gold-in-soil
anomaly was identified on the permit
in the 2016-17 year (ASX releases dated
14/12/16, 2/2/17 and 28/4/17). In FY 17/18
there was a discovery of a new style of gold
mineralisation in sheared granitic dykes
and their contacts with metasediments
within the 17km long zone of gold in soil
anomalies, with a best drill intercept of 25m
at 3.1 g/t Au (including 13m at 5.4 g/t Au).
2018 Annual Report | 9
PDI project locations, west Africa region
Review of Operations
Aeromagnetic Survey
An aeromagnetic survey was carried out over the permit early in 2018. Geological interpretation of the data indicated
the potential for many sheared granitic dykes which, as yet, have neither been trenched nor drilled, therefore expanding
the potential for new gold mineralisation discovery substantially.
RC Drilling Program
A reconnaissance RC drilling program totalling 80 holes and 4,989m were carried out in February- March 2018. Most
holes were drilled to 60m downhole depth at an angle of -50 degrees in an ESE to SE direction. Broad gold intercepts on
the first drill section are a positive indication for gold mineralisation tonnage potential.
Key Results
Toro Gold JV
Ferkessedougou North New
Discovery
17km long gold-in-soil trend
Gold mineralisation along NNE trending
shear-controlled granodorite dykes
5,000m drilling program yields highly
encouraging results:
13m at 5.35g/t Au (stopped in mineralization)
2m at 5.44g/t Au
14m at 1.20g/t Au
9m at 1.47g/t Au
Broad zones with multiple intercepts
Very early days – many untested anomalies
and granitic dykes
Ferkessedougou North Gold in Soil Geochemical Anomalies
(red) & RC collars (white dots)
west
east
Ferkessedougou North
drill intersection
12m@
1.2g/t
10m@
0.7g/t
12m@
0.5g/t
4m@
0.8g/t
13m@
0.8g/t
13m@
0.8g/t
35m@
0.5g/t
8m@
0.8g/t
Fire assay
gold assays:
13m@
5.4g/t Au
6m@
0.5g/t
LEGEND
Soil and saprock
Metasediments
Granitic rocks
Gold mineralised
zones >0.25g/t
Au
12m@
1.2g/t
Bottle roll gold
intercept
10 | 2018 Annual Report
Review of Operations
Boundiali and Boundiali North Permits (Toro JV, Cote D’Ivoire)
These permits are located within a very well mineralised greenstone belt which contains the large operating Tongon
and Syama gold mines in Cote D’Ivoire and Mali respectively. The southern part of this belt has had little exploration to
date and represents a first-class opportunity to make new large gold discoveries.
The Boundiali permit contains the Nyangboue Prospect, which was outlined by a series of geochemical and drilling
programs between. Drilling at Nyangboue revealed a series of drill intercepts, the majority lie along a 1.2km long
mineralised shear zone with best intercepts of:
• NDC007 - 30m at 8.3g/t Au from 39m includes 1.5m at 56.9g/t Au and 4.5m at 26.5g/t Au.
• BRC003 - 28m at 4.04g/t Au from 3m, including 1m at 49.7g/t Au.
• BRC004 - 20m at 1.97g/t Au from 0m.
• BRC004 - 14m at 5.51g/t Au from 32m, including 1m at 31.6g/t Au.
• BRC004BIS (twin hole) – 20m at 10.45g/t Au from 38m including 1m at 145.5g/t Au.
• BRC006 – 9m at 7.9 g/t Au from 99m including 1m at 44.7g/t Au.
• BRC023 – 7m at 3.8g/t Au from 33m including 1m at 11.3g/t Au.
• BRC048 – 28m at 1.55g/t Au from 1m including 1m at 27.4g/t Au.
The Boundiali North permit is located directly north of the Nyangboue gold discovery. It covers the interpreted north-
trending structure which is inferred to control the location of the Nyangboue mineralisation.
Soil Geochemical Sampling – Boundiali North
This program covered most of the Boundiali North Permit and consisted of 6,338 samples, collected on a 400 x 100m
grid. The results of 1,356 samples on an 800 x 200m sample spacing have been reported so far. These have identified a
series of new gold anomalies extending for 13km with higher values including 1,185, 806 and 626 ppb Au.
Boundiali North Soil Geochemical Sampling
2018 Annual Report | 11
800,000mE780,000mE790,000mE1,030,000 mN1,040,000 mN1,050,000 mN1,060,000 mN770,000mE760,000mE010kilometresOriginal 6km long Nyangboue gold in soil anomalyBoundiali Northnew gold in soil anomalies Review of Operations
Aeromagnetic Survey Data - Boundiali
A detailed aeromagnetic survey was flown by Xcalibur Airborne Geophysics over the eastern part of the Boundiali
permit in the March Quarter. Interpretation of the survey results integrated with geological mapping has produced
a new detailed geological interpretation showing that the volcano-sedimentary sequence is folded into a syncline-
anticline fold pair with the gold-mineralised Nyangboue shear zone coinciding with the eastern (sheared) margin of a
tight NNE-trending anticline.
Given the widths and grades in the central part of the Nyangboue gold mineralised zone, there is potential to discover
a viable underground mining target possibly continuing a considerable distance down plunge to the north beyond
the limit of the shallow, potentially open pittable mineralisation, which is known from surface (e.g. 28m at 4.0g/t Au
from 3m).
Boundiali interpreted geology map (derived from aeromatic survey).
12 | 2018 Annual Report
Review of Operations
Kokoumbo Permit (Toro JV - Cote D’Ivoire)
The Kokoumbo permit is located in southern Côte d’Ivoire, 40km north of the operating Bonikro gold mine within the
Oume-Fetekro greenstone belt. It covers an area of historic artisanal and French colonial era mining located in a highly
prospective mineralised belt. Soil sampling has identified a series of impressive geochemical gold anomalies, many of
which remain untested by drilling.
Induced Polarisation (IP) Electrical Geophysical Survey
An IP survey over part of the permit was completed in July. Undertaken by Sagax Afrique, the program consisted of a 37
line km gradient array IP survey and 8km of dipole-dipole on 5 lines.
Drill contractor, Energold, was subsequently engaged for a diamond drilling program in the September Quarter using a
man portable diamond drill rig. The drill program is designed to test beneath and down-dip of a series of artisanal mine
sites and extensive ESE trending IP anomalies.
Kokoumbo map showing large, complex SE trending IP chargeability anomaly (magenta = highest
values, blue = lowest values), +100ppb gold-in-soil anomaly, soil sample locations (black dots), new
artisanal gold workings and initial diamond drill sites.
Bobosso Project (Progress JV – Cote D’Ivoire)
The Bobosso Project consists of two granted exploration permits, Bassawa and Wendene and one permit application,
Dabakala, in northern Cote D’Ivoire located within the southern extension of the well mineralised Hounde Belt.
Geological mapping and re-logging of historical diamond drill core by Predictive staff has demonstrated that the gold
mineralisation is hosted in a sequence of mafic volcanics. Gold mineralisation is found in both broad, moderate grade
alteration zones (silica-sericite-carbonate-pyrite) and narrower, higher grade quartz veins.
RC Drilling Program
An RC drilling program, totalling 45 holes and 4,244m, was completed on 21st December 2017. It was designed to
explore six small areas within the large Bobosso gold mineralised system by testing or extensions to gold mineralisation
intersected in the earlier diamond drilling, a postulated flat mineralised zone at the Wendene Hill location and along
strike from historical drill intercepts.
Reported drill results demonstrated that the mineralised alteration continuity that was observed in the 2017 diamond
drilling has been further confirmed by these results. The primary alteration is easily identifiable by its distinctive pale
colour and can therefore be traced from hole to hole quite easily. Much of it is gold-anomalous especially where pyrite
and/or quartz veining is present. The drilling has contributed to the ongoing process of identifying mineralised zones
with significant gold-bearing widths, especially in the near surface, most of which are open along strike.
2018 Annual Report | 13
Review of Operations
Predictive’s analysis of the results indicate that, while the project has significant potential, the investment required to
achieve sufficient ore reserves to warrant a mine development is likely to be very large. The Company has therefore
opted to eliminate its future liability to contribute to exploration costs and take cash payments both in the short term
and after mines are developed on the properties.
Key Results
Gridded gold in-soil geochemical image and drill locations (red peaks = high values)
Progress - WAVI JV
Cote D’Ivoire Bobosso Project
Progress will buy PDI’s 30% equity for C$0.5m upfront plus reserve ounce
payments in production for up to 3 mines
Very large gold anomaly
Positive RC intercepts including:
11m at 4.9g/t Au from 5m
28m at 2.18g/t Au from 5m
18m at 2.05 g/t Au from 9m
19m at 1.28g/t Au from 73m
19m at 2.13 g/t Au from 3m
21m at 1.59g/t Au from 61m
Interesting project requiring large investment to complete evaluation
14 | 2018 Annual Report
Review of Operations
BURKINA FASO PROJECT ACTIVITY
Predictive’s current tenement holdings in
Burkina Faso are located in the east of the
country and cover approximately 100km of
strike length of the Samira Hill greenstone
belt in eastern Burkina Faso. This belt
hosts the 2.5 million-ounce Samira Hill
gold deposit across the border in Niger
and contains numerous active artisanal
gold mine sites along its length.
Bira, Kalinga and Tantiabongou Permits
The area was explored by Anglo American
through its subsidiary Anmercosa in the
late 1990’s, which discovered encouraging
gold mineralisation in drilling at Bira.
PDI holds a database of Anmercosa
information including soil geochemistry
and drill data from the Bira, Kalinga and
Tantiabongou permits (ASX release 25/1/13).
Power Auger Drilling Program
Power auger drilling over and to the south of the known gold mineralisation at Bira has been underway since
December 2017. This program was designed to test an arsenic-in-soil anomaly obtained by Anmercosa that extends to
the south and west of the Bira prospect over a strike length of 28 km.
Power auger drilling have been undertaken on both the Bira and Kalinga permits with results demonstrating that
anomalous gold values extend over at least 20km to the south and south-west of the drilled area, indicating substantial
potential to discover more gold mineralisation along strike from the Bira prospect.
RC Drilling Program
An RC drilling program, totalling 49 holes and 5,129m was completed with RC holes were drilled on 17 cross sections on
the Bira permit. The new drilling has expanded the known gold mineralised trend to a strike length of at least 800m.
The gold mineralisation is highly continuous along strike and down dip. Most of the mineralisation is hosted by volcano-
sedimentary rocks.
Bottle roll tests on primary and oxidised gold mineralisation obtained very high gold recoveries when compared with the
original fire assay results, suggesting that gold recoveries should be high in a future cyanide leach metallurgical circuit.
Key Results
Burkina JV - Bira Prospect
Recent drilling
600m zone
27m at 1.8g/t Au from 23m
33m at 1.4g/t Au from 51m
17m at 1.7 g/t Au from 2m
22m at 1.5g/t Au from 115m
21m at 1.4g/t Au from 72m
14m at 1.8g/t Au from 45m
14m at 1.4g/t Au from 98m
29m at 1.0g/t Au from 79m
Excellent continuity and indicative metallurgy
Open to depth/along strike
2018 Annual Report | 15
Review of Operations
FINANCIAL YEAR 2018-19 – JOINT VENTURE WORK PROGRAMS
Toro JV Cote D’Ivoire
Kokoumbo
A diamond drilling program totalling between 1,500 and 2,500m is being carried out in the September Quarter to follow
up results of the IP geophysical survey and to test areas of new artisanal gold workings. The use of a man portable drill
rig is enabling drilling to take place during the rainy season. Further drilling may be scheduled later in the field season
depending on diamond drill results.
Boundiali North
Immediate follow-up of the 13km soil anomaly discovery will involving infill sampling and possible trenching. RC drilling
is likely to follow later in the field season.
Ferkessedougou North
The post-rainy season work program is expected to include geophysics, trenching and drilling. Given the very large area
of gold anomalies, a program of geophysics and trenching will be necessary to identify higher priority locations prior to
drilling later in the field season.
Progress JV – Cote D’Ivoire
Bobosso Project
An IP survey is being carried out in the September Quarter. RC drilling program underway.
Progress JV – Burkina Faso
Tambiri Project
5,000m drill program is underway.
Bira Project
An RC drilling program on the Bira trend, totalling 15,000m, is planned to begin in December 2018, with ten targets
identified.
FINANCIAL 2018-19 – NEW PROJECT GENERATION
Burkina Faso
Predictive re-assessed country-scale exploration data sets to identify high-potential zones within the large areas of
vacant ground cleared of inactive tenements by the Burkina Mines Ministry during the permit application moratorium
from 2016 to 2018. A number of permit applications were made in June 2018 and the Company is now awaiting the
outcome of those applications.
Mali
PDI has conducted a country-scale analysis and identified numerous exploration targets resulting in low cost
exploration of five exploration authorisations and due diligence evaluations of several properties held by third parties.
Elsewhere in West Africa
The Company will actively assess new project opportunities in several other West African countries containing Birrimian
Belt rocks and announce any such acquisitions as and when they are confirmed.
Programs and Geochemistry
Geochemical sampling, geological mapping and geophysics will commence over new areas once granted.
16 | 2018 Annual Report
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
DIRECTORS’ REPORT
Predictive Discovery Limited (“the Company” or “Predictive”) is a public company incorporated and domiciled in
Australia and listed on the Australian Securities Exchange.
The directors of the Company present their report on the group, which comprises Predictive Discovery Limited and its
controlled entities, for the year ended 30 June 2018.
Directors’ Report
The names of the directors in office at any time during, or since the end of the year are:
NAMES
Mr Phillip Jackson
Mr Paul Roberts
Mr David Kelly
POSITION
Non-Executive Chairman
Managing Director
Non-Executive Director
The Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.
COMPANY SECRETARIES
Eric Moore
Eric (Ric) Moore was appointed as Company Secretary on 7 April 2015. He has held senior managerial positions in a
number of resource companies during the past 20 years and was Company Secretary of a publicly listed company
between 1996 and 2005. Ric is also Company Secretary of Aurora Minerals Limited and Peninsula Mines Limited.
Bruce Waddell
Bruce Waddell was appointed as additional Company Secretary on 21 August 2017. A member of CPA Australia, he
has over 25 years accounting and administration experience in the resources industry. Bruce is also Company
Secretary of Aurora Minerals Limited and Peninsula Mines Limited.
PRINCIPAL ACTIVITIES
During the financial year, the principal activity of the group was mineral exploration with the objective of identifying
and developing economic reserves in West Africa and Australia.
OPERATING RESULTS FOR THE PERIOD
The consolidated loss of the group for the financial year after providing for income tax amounted to $1,474,046 (2017:
$2,675,065). This was largely from losses on the deconsolidation of subsidiaries resulting from Joint Venture earn-ins,
the costs of administering the group to 30 June 2018 and exploration costs.
REVIEW OF OPERATIONS
In the year to June 2018, Predictive’s exploration operations expanded through complete implementation of the
Company’s West African gold prospect generator model. A joint venture with Progress Minerals (Inc), a Canadian
mine-development oriented private company, on PDI’s Burkina Faso ground in late 2017 completed the process of
farming out the Company’s major projects, clearing the way for PDI to acquire a large portfolio of new West African
ground on which it can undertake early stage, low cost exploration for large new gold deposits.
Exploration activities in 2017-18 included (1) RC drilling programs at the Bobosso, Ferkessedougou North and
Ferkessedougou South Projects in Cote D’Ivoire and the Bira permit in Burkina Faso, (2) a large trenching program at
Ferkessedougou North, (3) a large power auger drilling program on the Bira, Kalinga and Tantiabongou permits in
Burkina Faso, (4) a large soil sampling program on the Boundiali North permit, (5) aeromagnetic surveys on the
Boundiali and Ferkessedougou North permits and (6) low cost reconnaissance geochemical and geological programs
on exploration authorisations in Mali.
Important new exploration results included (1) discovery of a new style of gold mineralisation within the 17km long
Ferkessedougou North zone of gold in soil anomalies, with a best drill intercept of 25m at 3.1 g/t Au (including 13m
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
2018 Annual Report | 17
3
Directors’ Report
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
DIRECTORS’ REPORT
at 5.4 g/t Au) in a broad zone of lower grade gold mineralisation, (2) delineation of an 800m long zone of gold
mineralisation at Bira with best intercepts of 27m at 1.8g/t Au and 33m at 1.4g/t Au showing excellent continuity
and very high gold recoveries from bottle roll cyanidation testwork, (3) identification of a 20km long zone of gold in
soil anomalies along strike to the south-west of Bira including seven drill-ready targets, (4) delineation of a new,
13km long zone of gold geochemical anomalies in the newly acquired Boundiali North permits, (5) encouraging drill
results from the large and complex Bobosso gold mineralised system (including intercepts of 11m at 4.9g/t Au and
56m at 1.6g/t Au) and (6) identification of a suite of south-dipping ESE gold-bearing structures and IP anomalies on
Kokoumbo (on which drilling commenced in August 2018). These results have all reinforced the large-scale gold
discovery potential of the Company’s joint ventured properties. The drill results at Bira are especially significant as
they add to the Bongou JORC Resource and nearby Exploration Target reported in 2014 and 2015 respectively.
Project generation in 2017-18 was focused on Burkina Faso and Mali. In Burkina Faso, Predictive re-assessed country-
scale exploration data sets to identify high-potential zones within the large areas of vacant ground cleared of inactive
tenements by the Burkina Mines Ministry during the permit application moratorium from 2016 to 2018. A number of
permit applications were made in June 2018 and PDI is now awaiting the outcome of those applications. In Mali,
Predictive has conducted a country-scale analysis and identified numerous exploration targets resulting in low cost
exploration of five exploration authorisations and due diligence evaluations of several properties held by third parties.
The status of Predictive’s Joint Ventures in West Africa are as follows: (1) Cote D’Ivoire Toro Gold Joint Venture - PDI
currently holds a 35% equity, having contributed 35% of exploration expenditure for the 2017-18 financial year, (2)
Burkina Faso Joint Venture - Progress Minerals has earned a 51% equity by spending US$1 million on exploration.
Progress must achieve cumulative exploration expenditure of US$5 million before earning a 70% interest during which
time Predictive is free carried, (3) Bobosso Joint Venture - Progress earned a 30% equity during the 2017-18 year
reducing PDI’s equity to 30%; the Joint Venture parties have now agreed that Progress can acquire PDI’s 30% share in
exchange for a payment of C$500,000 once Ministerial approval of that equity transfer has been obtained and that
Progress will make cash payments on mine production for up to three mines on the Bobosso tenement package.
Total capital raisings (before costs) during the period totalled $3.07 million which were raised via a fully subscribed
Rights Issue and a small placement priced at $0.042 per share in November and December 2017. Overhead costs
remain tightly controlled. The capital raised is sufficient to sustain the Company into 2019.
DIVIDENDS PAID OR RECOMMENDED
No dividends were paid or declared since the start of the financial year. No recommendation for payment of
dividends has been made.
FINANCIAL POSITION
The net assets of the group have decreased by $297,611 from 30 June 2017 to 30 June 2018. This net movement is
largely due to the following factors:
$2.72m net capital raising;
Losses on deconsolidation of subsidiaries from Joint Venture earn-ins;
Impairment and write-off on non-recoverable loans;
Expenditure on exploring and evaluating the assets in Burkina Faso and Cote D’Ivoire; and
Exploration expenses.
•
•
•
•
•
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
On 12 June 2018 the Company announced the signing of a Memorandum of Understanding within which, subject to
several conditions precedent, a payment of C$0.5m from Progress Minerals Inc will take up the Company’s 30%
interest in the Bobosso Project in Cote D’Ivoire. At the date of this report all conditions precedent have been satisfied
and payment is pending.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
18 | 2018 Annual Report
4
Directors’ Report
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
DIRECTORS’ REPORT
Other than the above, there has not been any matter or circumstance have arisen after the balance date that has
significantly affected or could significantly affect the operations of the group, the results of those operations, or the
state of affairs of the group in future financial years.
FUTURE DEVELOPMENTS
Likely developments in the operations of the group and the expected results of those operations in future financial
years have not been included in this report, as the inclusion of such information is likely to result in unreasonable
prejudice to the group.
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 Jackson
Non-Executive Chairman
Qualification
Experience
Interest in Shares and Options
(at the date of this report)
BJuris, LLB, MBA, FAICD
legal and
Phillip Jackson, the Chairman and a Director of the Company, is a barrister
and solicitor with over 25 years
international corporate
experience, especially in the areas of commercial and contract law, mining
law and corporate structuring. He has worked extensively in the Middle
East, Asia and the United States of America. In Australia, he was formerly
a managing legal counsel for a major international mining company, and in
private practice specialised in small to medium resource companies.
Phillip was managing region legal counsel: Asia-Pacific for a leading oil
services company for 13 years. He was General Counsel for a major
international oil and gas company and is now Special Counsel. Phillip has
been Chairman of Aurora since it listed in June 2004 and of listed
subsidiary Peninsula Mines Limited (“Peninsula”), and is a non-executive
Chairman of Predictive Discovery Limited. Phillip is also a non-executive
director of listed company Scotgold Resources Limited.
Shareholding: 500,000
Optionholding: 825,000 (unlisted)
Directorships held in other listed entities
during the three years prior to the
current year
Aurora Minerals Limited
Peninsula Mines Limited
Scotgold Resources Limited
Mr Paul Roberts
Qualifications
Experience
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
(at the date of this report)
Shareholding: 2,830,941
1,215,021 (listed)
Optionholding: 3,300,000 (unlisted)
Directorships held in other listed entities
during the three years prior to the
current year
None
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
5
2018 Annual Report | 19
Directors’ Report
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
DIRECTORS’ REPORT
Mr David Kelly
Qualifications
Experience
Interest in Shares and Options
(at the date of this report)
Non-Executive Director
B.Sc. (Hons.) - Major in Geology
Mr Kelly is a highly experienced executive and director with almost 30
year’s involvement in the resources sector. Mr Kelly brings a wealth of
experience to the Company in the areas of geology and also in the areas of
strategic analysis, project evaluation and corporate advice.
Shareholding: 225,000 Optionholding: 825,000 (unlisted)
Directorships held in other listed entities
during the three years prior to the
current year
Renaissance Minerals Limited
Manas Resources Limited
MEETINGS OF DIRECTORS
During the financial year, 14 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
Circular Resolutions
Director
Mr Phillip Jackson
Mr Paul Roberts
Mr David Kelly
Number eligible to
attend
Number attended Number eligible to
Number attended
3
3
3
3
3
3
attend
11
11
11
11
11
11
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 2018 to the date of this report are as follows:
Grant Date
29 November 2016
29 November 2016
29 November 2016
27 November 2017
Date of Expiry
29 November 2018
29 November 2019
29 November 2020
30 November 2019
Exercise Price
$0.1805
$0.2578
$0.3867
$0.060
TOTAL
Number under Option
1,952,500
1,952,500
1,952,500
73,030,518
78,888,018
During the year ended 30 June 2018 no ordinary shares of Predictive Discovery Limited were issued on the exercise of
options granted.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied for leave of Court to bring proceeding on behalf of the group or intervene in any proceedings to
which the group is a party for the purpose of taking responsibility on behalf of the group for all or any part of those
proceedings.
The group was not a party to any such proceeding during the year.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
20 | 2018 Annual Report
6
Directors’ Report
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
DIRECTORS’ REPORT
NON AUDIT SERVICES
The Board of Directors is satisfied that the provision of non-audit services the by the auditor during the year by the
auditor is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001.
Details of the amounts paid to the auditor of the Group for audit and non-audit services provided during the year are
set out at note 18.
AUDITOR’S INDEPENDENCE DECLARATION
The auditors’ independence declaration for the year ended 30 June 2018 has been received and can be found on page
49 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.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
7
2018 Annual Report | 21
Directors’ Report
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) (continued)
PERFORMANCE-BASED REMUNERATION
Performance based remuneration for key management personnel is limited to granting of options.
RELATIONSHIP BETWEEN REMUNERATION POLICY AND COMPANY PERFORMANCE
The remuneration policy has been tailored to increase goal congruence between shareholders, directors and
executives. The issue of options in past years to the majority of directors and executives is to encourage the
alignment of personal and shareholder interests. The company believes this policy will be effective in increasing
shareholder wealth.
PERFORMANCE CONDITIONS LINKED TO REMUNERATION
The group’s remuneration of key management personnel does not include any performance conditions.
EMPLOYMENT DETAILS OF MEMBERS OF KEY MANAGEMENT PERSONNEL AND OTHER EXECUTIVES
The following table provides employment details of persons who were, during the financial year, members of key
management personnel of the Group, and to the extent different, among the five Group executives or company
executives receiving the highest remuneration. The table also illustrates the proportion of remuneration that was
performance and non-performance-based and the proportion of remuneration received in the form of options.
Key Management Personnel
Position held during the
year ended 30 June 2018
Mr Phillip Jackson
Mr Paul Roberts
Mr David Kelly
Mr Eric Moore
Mr Bruce Waddell
Non-Executive Chairman
Managing Director
Non-Executive Director
Company Secretary
Company Secretary
Non-salary
cash-based
incentives
%
-
-
-
-
-
Options/
Rights
%
-
-
-
-
-
Fixed
Salary/Fees
%
100
100
100
-
-
Total
%
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 consulting agreement that requires 6 months’ notice of voluntary
termination of employment that entitles Mr Roberts to $102,500 as a termination benefit.
Mr Moore and Mr Waddell receive no salary or fee-based remuneration from the Company. Associate Aurora
Minerals Limited provides company secretarial, accounting and bookkeeping services to the Company under an
Administration Services Agreement at the scheduled rate of $89,100 per annum.
REMUNERATION DETAILS FOR THE PERIOD ENDED 30 JUNE 2018
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:
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
22 | 2018 Annual Report
8
Directors’ Report
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) (continued)
Table of Benefits and Payments for the Period Ended 30 June 2018
Key Management Personnel
Mr Philip Jackson
Mr Paul Roberts
Mr David Kelly
Mr Eric Moore(1)
Mr Bruce Waddell(1,2)
Total Key Management
Personnel
Salary,
fees and
leave
$
50,000
46,250
192,981
182,493
31,963
29,680
-
-
-
-
274,944
258,423
2018
2017
2018
2017
2018
2017
2018
2017
2018
2017
2018
2017
Pension
and super-
annuation
$
Other
$
Shares/
Units
$
Options/
Rights
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,651
3,037
2,820
-
-
-
-
3,037
5,471
-
-
-
-
-
-
-
-
-
-
-
-
-
52,194
-
208,775
-
52,194
-
20,878
-
-
-
334,041
Total
$
50,000
98,444
192,981
393,919
35,000
84,694
-
20,878
-
-
277,981
597,935
(1) Mr Moore and Mr Waddell received no salary or fee-based remuneration from the Company. Associate Aurora Minerals Limited
provides company secretarial, accounting and bookkeeping services to the Company under an Administration Services Agreement at the
scheduled rate of $89,100 per annum.
(2) Appointed Additional Company Secretary 21 August 2017.
KEY MANAGEMENT PERSONNEL OPTIONS AND RIGHTS HOLDINGS
The number of options over ordinary shares held by each key management person of the group during the financial
year is as follows:
Balance at
beginning
of period
Granted as
remunerat-
ion during
the period
Expired
during the
period
Other changes
during the
period (1)(2)
Balance at
end of
period
Vested
during
the
period
Vested and
exercisable
Vested and
unexercis-
able
30 June 2018
Mr Philip Jackson
Mr Paul Roberts
Mr David Kelly
Mr Eric Moore
Mr Bruce Waddell
825,000
3,300,000
825,000
330,000
-
5,280,000
-
-
-
-
-
-
-
-
-
-
-
-
-
825,000
1,215,021 4,515,021
825,000
330,000
247,500
1,462,521 6,742,521
-
-
247,500
-
825,000
4,515,021
825,000
-
330,000
-
-
247,500
- 6,742,521
-
-
-
-
-
(1) P Roberts acquired 715,021 listed options in a rights issue and 500,000 listed options on market during the year
(2) B Waddell appointed additional Company Secretary 21 August 2017
Balance at
beginning
of period
Granted as
remunerat-
ion during
the period
Expired
during the
period
Other changes
during the
period (1)
Balance at
end of
period
Vested
during
the
period
Vested and
exercisable
Vested and
unexercis-
able
30 June 2017
Mr Philip Jackson
Mr Paul Roberts
Mr David Kelly
Mr Eric Moore
- 8,250,000
-
3,000,000 33,000,000 (3,000,000)
-
-
3,000,000 52,800,000 (3,000,000)
- 8,250,000
- 3,300,000
825,000
825,000
(7,425,000)
825,000
(29,700,000) 3,300,000 3,300,000 3,300,000
825,000
330,000
(47,520,000) 5,280,000 5,280,000 5,280,000
(7,425,000)
(2,970,000)
825,000
330,000
825,000
330,000
-
-
-
-
-
(1) Consolidation of the company’s shares and options on a 1 for 10 basis effective 19 May 2017
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
9
2018 Annual Report | 23
Directors’ Report
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) (continued)
KEY MANAGEMENT PERSONNEL SHAREHOLDINGS
The number of ordinary shares in Predictive Discovery Limited held by each key management person of the group
during the financial year is as follows:
Balance at
beginning of
period
Granted as
remuneration
during the
period
Issued on
exercise of
options during
the period
Purchased
during the
period
Other changes
during the
period (1)
Balance at end of
period
30 June 2018
Mr Phillip Jackson
Mr Paul Roberts
Mr David Kelly
Mr Eric Moore
Mr Bruce Waddell
-
1,483,179
-
-
-
1,483,179
-
-
-
-
-
-
-
-
-
-
-
-
-
1,225,081
-
-
-
1,225,081
-
-
-
-
-
-
-
2,708,260
-
-
-
2,708,260
(1)
B Waddell appointed additional Company Secretary 21 August 2017
Balance at
beginning of
period
Granted as
remuneration
during the
period
Issued on
exercise of
options during
the period
Purchased
during the
period
Other changes
during the
period (1)
Balance at end of
period
30 June 2017
Mr Phillip Jackson
Mr Paul Roberts
Mr David Kelly
Mr Eric Moore
-
14,331,790
-
-
14,331,790
-
-
-
-
-
-
-
-
-
-
-
500,000
-
-
500,000
-
(13,348,611)
-
-
(13,348,611)
-
1,483,179
-
-
1,433,179
(1)
Consolidation of the company’s shares and options on a 1 for 10 basis effective 19 May 2017
SECURITIES RECEIVED THAT ARE NOT PERFORMANCE-BASED
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 17 and 23.
END OF THE REMUNERATION REPORT
Signed in accordance with a resolution of the Board of Directors:
Paul Roberts
Managing Director
02 October 2018
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
24 | 2018 Annual Report
10
Directors’ Report
Statement of
Comprehensive
Income
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2018
Finance income
Other income
Share based payments
Administrative payments
Foreign exchange gain/(expenses)
Writeoff of loans
Gain on deconsolidation of subsidiary
Impairment of exploration
Exploration expenditure pre-right to tenure
Loss before income tax
Income tax expense
Consolidated
Note
2018
$
2017
$
22,717
22,004
-
(997,744)
(135,265)
(781,043)
789,786
-
(394,501)
34,194
105,808
(370,574)
(981,180)
(19,112)
-
-
(1,327,506)
(116,695)
(1,474,046)
(2,675,065)
-
-
21
26
6
2
Loss from continuing operations
(1,474,046)
(2,675,065)
Other comprehensive income
Items that will not reclassified subsequently to operating result
Exchange difference on translation of foreign operations
26
(1,540,949)
24,098
Total comprehensive loss for the year
(3,014,995)
(2,650,967)
Profit attributable to:
Members of the parent entity
(3,014,995)
(2,650,967)
(3,014,995)
(2,650,967)
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
13
13
(0.716)
(0.716)
(1.728)
(1.728)
The accompanying notes form part of these financial statements
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
2018 Annual Report | 25
11
Statement of Comprehensive Income
Statement of Financial
Position
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2018
Current Assets
Cash and cash equivalents
Trade and other receivables
Total current assets
Non-Current Assets
Property, plant and equipment
Exploration expenditure
Investments in associates
Total non-current assets
Total assets
Current Liabilities
Trade and other payables
Provisions
Total current liabilities
Total liabilities
Net Assets
Equity
Issued capital
Reserves
Accumulated losses
Total Equity
The accompanying notes form part of these financial statements
Consolidated
Note
2018
$
2017
$
3
4
5
6
7
8
10
1,684,053
104,887
1,788,940
5,696
2,189,364
840,645
3,035,705
1,641,710
450,737
2,092,447
82,790
3,621,616
-
3,704,406
4,824,645
5,796,853
46,889
-
46,889
46,889
702,794
18,692
721,486
721,486
4,777,756
5,075,367
11
12
30,973,763
877,409
(27,073,416)
28,256,378
2,418,358
(25,599,369)
4,777,756
5,075,367
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
26 | 2018 Annual Report
12
Statement of Financial Position
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2018 Annual Report | 27
S
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Statement of Changes in
Equity
3
1
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Statement of Changes in Equity
Statement of Cash Flows
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2018
Cash flows from operating activities
Receipts from customers
Interest received
Payments to suppliers and employees
Consolidated
Note
2018
$
30,879
22,717
(1,031,426)
2017
$
39,952
34,138
(957,268)
Net cash provided by (used in) operating activities
22
(977,830)
(883,178)
Cash flows from investing activities
Proceeds from refunds of tenement acquisitions
Proceeds from sales of property, plant and equipment
Purchase of property, plant and equipment
Payments for acquisition of tenements
Payments for exploration expenditure
JV Contributions (exploration)
Cash in deconsolidated entities
-
725
(171,950)
(130,111)
(2,913,887)
1,563,022
(45,246)
26
-
-
(7,109)
(34,487)
(914,229)
-
-
Net cash provided by (used in) investing activities
(1,697,447)
(955,825)
Cash flows from financing activities
Proceeds from issue of shares
Payment for share issue costs
3,067,282
(349,662)
3,049,450
(194,318)
Net cash inflow from financing activities
2,717,620
2,855,132
Foreign exchange differences
Net cash provided by (used in) other activities
Net increase (decrease) in cash held
-
42,343
42,343
(336)
(336)
1,015,793
Cash and cash equivalents at beginning of financial period
1,641,710
625,917
Cash and cash equivalents at end of the financial period
3
1,684,053
1,641,710
The accompanying notes form part of these financial statements
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
28 | 2018 Annual Report
14
Statement of Cash Flows
Notes to the Financial
Statements
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
NOTES TO THE FINANCIAL STATEMENTS
This financial report includes the consolidated financial statements and notes of Predictive Discovery Limited and
controlled entities (the “group”).
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Predictive Discovery Limited is a for-profit 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
19 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.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
2018 Annual Report | 29
15
Notes to the Financial Statements
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(a)
Principles of consolidation (continued)
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.
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.
Interests in joint arrangements
IFRS defines a joint arrangement as one over which two or more parties have joint control, which is the contractually
agreed sharing of control over an arrangement. This exists only when the decisions about the relevant activities
(being those that significantly affect the returns of the arrangement) require the unanimous consent of the parties
sharing control.
(i) Joint operations
A joint operation is a type of joint arrangement whereby the parties that have joint control of the arrangement have
rights to the assets and obligations for the liabilities, relating to the arrangement. In relation to its interests in joint
operations, the Group recognises its:
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
30 | 2018 Annual Report
16
Notes to the Financial Statements
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(a)
Principles of consolidation (continued)
Liabilities, including its share of any liabilities incurred jointly
• Assets, including its share of any assets held jointly
•
• Revenue from the sale of its share of the output arising from the joint operation
•
•
Share of the revenue from the sale of the output by the joint operation
Expenses, including its share of any expenses incurred jointly
(ii) Joint ventures
A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have
rights to the net assets of the joint venture. The Group’s investment in its joint venture is accounted for using the
equity method.
Under the equity method, the investment in the joint venture is initially recognised at cost. The carrying amount of
the investment is adjusted to recognise changes in the Group’s share of net assets of the joint venture since the
acquisition date. Goodwill relating to the joint venture is included in the carrying amount of the investment and is
neither amortised nor individually tested for impairment.
The statement of profit or loss and other comprehensive income (OCI) reflects the Group’s share of the results of
operations of the joint venture. Any change in OCI of that investee is presented as part of the Group’s OCI. In addition,
when there has been a change recognised directly in the equity of the joint venture, the Group recognises its share of
any changes, when applicable, in the statement of changes in equity. Unrealised gains and losses resulting from
transactions between the Group and the joint venture are eliminated to the extent of the interest in the joint venture.
The aggregate of the Group’s share of profit or loss of the joint venture is shown on the face of the statement of profit
or loss and other comprehensive income outside operating profit and represents profit or loss after tax and non-
controlling interests in the subsidiaries of joint venture.
The financial statements of the joint venture are prepared for the same reporting period as the Group. When
necessary, adjustments are made to bring the accounting policies in line with those of the Group.
At each reporting date, the Group determines whether there is objective evidence that the investment in the joint
venture is impaired. If there is such evidence, the Group calculates the amount of impairment as the difference
between the recoverable amount of the joint venture and its carrying value, then recognises the loss as ‘Share of
profit of a joint venture’ in the statement of profit or loss and other comprehensive income. On loss of joint control
over the joint venture, the Group measures and recognises any retained investment at its fair value. Any difference
between the carrying amount of the joint venture upon loss of joint control and the fair value of the retained
investment and proceeds from disposal is recognised in the statement of profit or loss.
(iii) Reimbursement of the costs of the operator of the joint arrangement
When the Group, acting as an operator or manager of a joint arrangement, receives reimbursement of direct costs
recharged to the joint arrangement, such recharges represent reimbursements of costs that the operator incurred as
an agent for the joint arrangement and therefore have no effect on profit or loss. When the Group charges a
management fee (based on a fixed percentage of total costs incurred for the year) to cover other general costs
incurred in carrying out the activities on behalf of the joint arrangement, it is not acting as an agent. Therefore, the
general overhead expenses and the management fee are recognised in the statement of profit or loss and other
comprehensive income as an expense and income, respectively.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
17
2018 Annual Report | 31
Notes to the Financial Statements
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(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.
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.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
32 | 2018 Annual Report
18
Notes to the Financial Statements
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(d) Income Tax (continued)
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 corporate 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.
(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.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
19
2018 Annual Report | 33
Notes to the Financial Statements
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(g)
Foreign Currency Transactions and Balances (continued)
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.
(h)
Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short term highly liquid
investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within
short term borrowings in current liabilities in the statement of financial position.
(i)
Financial Instruments
Initial recognition and measurement
Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions to
the instrument. For financial assets, this is the equivalent to the date that the group commits itself to either the
purchase or sale of the asset (i.e. trade date accounting 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.
Amortised cost is calculated as:
(a)
(b)
(c)
the amount at which the financial asset or financial liability is measured at initial recognition;
less principal repayments;
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
less any reduction for impairment.
(d)
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.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
34 | 2018 Annual Report
20
Notes to the Financial Statements
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(i)
Financial Instruments (continued)
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).
(iii) Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable
payments, and it is the group's intention to hold these investments to maturity. They are subsequently measured at
amortised cost.
Held-to-maturity investments are included in non-current assets, except for those which are expected to mature within
12 months are the end of the reporting period. (All other investments are classified as current assets).
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.
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.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
21
2018 Annual Report | 35
Notes to the Financial Statements
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(j)
Property, Plant and Equipment (continued)
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
Plant and Equipment
Useful Life
2 - 20 years
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting
period.
An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is
greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and
losses are included in the consolidated statement of comprehensive income.
Property, plant and equipment is derecognised and removed from the consolidated statement of financial position on
disposal or when no future economic benefits are expected. Gains and losses from derecognition are measured as the
difference between the net disposal proceeds, if any, and the carrying amount and are recognised in profit or loss.
Subsequent costs are included in the property, plant and equipment's carrying value or recognised as a separate asset
when it is probable that future economic benefits associated with the item will be realised and the cost of the item can
be measured reliably. All other repairs and maintenance are recognised in profit or loss.
Where required by accounting standards comparative figures have been adjusted to conform with changes in
presentation for the current financial year.
(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.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
36 | 2018 Annual Report
22
Notes to the Financial Statements
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(l)
Impairment of Assets
At each reporting date, the group assesses whether there is any indication that an asset may be impaired. The
assessment will include considering external sources of information including, dividends received from subsidiaries,
associates or jointly controlled entities deemed to be out of pre-acquisition profits. If such an indication exists, an
impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the
asset's fair value less costs to sell and value in use to the asset's carrying value. Any excess of the asset's carrying value
over its recoverable amount is expensed to the consolidated statement of comprehensive income.
Impairment testing is performed annually for goodwill and intangible assets with indefinite lives.
Where an impairment loss on a revalued asset is identified, this is debited against the revaluation surplus in respect of
the same class of asset to the extent that the impairment loss does not exceed the amount in the revaluation surplus
for that same class of asset.
Non-financial assets, other than inventories, deferred tax assets, assets from employee benefits, investment properties
and deferred acquisition costs, are assessed for any indication of impairment at the end of each reporting period. Any
indication of impairment requires formal testing of impairment by comparing the carrying amount of the asset to an
estimate of the recoverable amount of the asset. An impairment loss is calculated as the amount by which the carrying
amount of the asset exceeds the recoverable amount of the asset.
Intangible assets with an indefinite useful life and intangible assets not yet available for use are tested for impairment
annually regardless of whether there is any indication of impairment.
The recoverable amount is the greater of the asset's fair value less costs to sell and its value in use. The asset's value in
use is calculated as the estimated future cash flows discounted to their present value using a pre-tax rate that reflects
current market assessments of the time value of money and the risks associated with the asset. Assets that cannot be
tested individually for impairment are grouped together into the smallest group of assets that generates cash inflows
(the asset's cash generating unit).
Impairment losses are recognised in profit or loss. Impairment losses are allocated first, to reduce the carrying amount
of any goodwill allocated to cash generating units, and then to other assets of the group on a pro rata basis.
Assets other than goodwill are assessed at the end of each reporting period to determine whether previously
recognised impairment losses may no longer exist or may have decreased. Impairment losses recognised in prior
periods for assets other than goodwill are reversed up to the carrying amounts that would have been determined had
no impairment loss been recognised in prior periods.
(m) Associates
Associates are entities over which the consolidated entity has significant influence but not control or joint control.
Investments in associates are accounted for using the equity method. Under the equity method, the share of the
profits or losses of the associate is recognised in profit or loss and the share of the movements in equity is recognised
in other comprehensive income. Investments in associates are carried in the statement of financial position at cost
plus post-acquisition changes in the consolidated entity's share of net assets of the associate. Goodwill relating to the
associate is included in the carrying amount of the investment and is neither amortised nor individually tested for
impairment. Dividends received or receivable from associates reduce the carrying amount of the investment.
When the consolidated entity's share of losses in an associate equals or exceeds its interest in the associate, including
any unsecured long-term receivables, the consolidated entity does not recognise further losses, unless it has incurred
obligations or made payments on behalf of the associate.
The consolidated entity discontinues the use of the equity method upon the loss of significant influence over the
associate and recognises any retained investment at its fair value. Any difference between the associate's carrying
amount, fair value of the retained investment and proceeds from disposal is recognised in profit or loss.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
23
2018 Annual Report | 37
Notes to the Financial Statements
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(n)
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.
(o)
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.
(p)
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.
(q)
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.
(r)
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.
(s)
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.
(t)
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.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
38 | 2018 Annual Report
24
Notes to the Financial Statements
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(t)
Critical Accounting Estimates and Judgements (continued)
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.
$2,189,364 has been capitalised as at 30 June 2018 (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.
In assessing the recoverability of the carrying amounts, 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.
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 23. 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
For the year ended 30 June 2018 the Group made a loss of $1,474,046 (2017: loss $2,675,065). Notwithstanding this
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 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. Should future capital raising and forecasts be unsuccessful, there is a significant uncertainty
whether the consolidated entity will continue as a going concern and therefore realise its assets and extinguish its
liabilities in the normal course of business and at amounts stated in the financial report.
Key Judgements - Recoverability of Intercompany Loan
Within Non-current assets of the parent entity (see note 21) there is a loan due from the 100% subsidiaries of
$165,466 which is considered fully recoverable. The recoverability of this loan is dependent upon the successful
development or sale of exploration assets in Burkina Faso and Cote D’Ivoire.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
25
2018 Annual Report | 39
Notes to the Financial Statements
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(t)
Critical Accounting Estimates and Judgements (continued)
Joint arrangements
Judgement is required to determine when the Group has joint control, which requires an assessment of the relevant
activities and when the decisions in relation to those activities require unanimous consent. The Group has determined
that the relevant activities for its joint arrangements are those relating to the operating and capital decisions of the
arrangement, such as: the approval the capital expenditure programme for each year, and appointing, remunerating
and terminating the key management personnel or service providers of the joint arrangement. The considerations
made in determining joint control are similar to those necessary to determine control over subsidiaries.
Judgement is also required to classify a joint arrangement. Classifying the arrangement requires the Group to assess
their rights and obligations arising from the arrangement. Specifically, it considers:
The structure of the joint arrangement – whether it is structured through a separate vehicle
•
• When the arrangement is structured through a separate vehicle, the Group also considers the rights and
obligations arising from:
•
The legal form of the separate vehicle
•
The terms of the contractual arrangement
• Other facts and circumstances (when relevant)
This assessment often requires significant judgement, and a different conclusion on joint control and also whether the
arrangement is a JO or a JV, may materially impact the accounting. The Group has a joint arrangement which is
structured through a separate vehicle, being a company structure. This structure, and the terms of the contractual
arrangement indicate that the Group has rights to the net assets of the arrangement. Given this, the Group then had
to assess the other facts and circumstances relating to this arrangement. After undertaking this assessment, there
were a number of indicators for both a joint venture classification and a joint operation classification. Significant
judgement was therefore required to determine how these factors would be analysed. The final conclusion was that
the arrangement was a joint venture.
(u)
Adoption of New and Revised Accounting Standards
In the current year, the group has adopted all of the new and revised Standards and Interpretations issued by the
AASB that are relevant to its operations and effective for the current annual reporting period. The adoption of these
new and revised Standards and Interpretations has not resulted in a significant or material change to the group’s
accounting policies.
New accounting standards issued but not yet effective
Accounting Standards and Interpretations issued by the AASB that are not yet mandatorily applicable to the Group,
together with an assessment of the potential impact of such pronouncements on the Group when adopted in future
periods, are discussed below:
Financial Instruments (effective from 1 January 2018)
AASB 9
AASB 9 will replace AASB 139: Financial Instruments: Recognition and Measurement. The key changes that may affect
the Group on initial application of AASB 9 and associated amending Standards include:
•
simplifying the general classifications of financial assets into those carried at amortised cost and those carried
at fair value;
• permitting entities to irrevocably elect on initial recognition to present gains and losses on an equity
•
•
instrument that is not held for trading in other comprehensive income (OCI);
simplifying the requirements for embedded derivatives, including removing the requirements to separate and
fair value embedded derivatives for financial assets carried at amortised cost;
requiring an entity that chooses to measure a financial liability at fair value to present the portion of the
change in its fair value due to changes in the entity’s own credit risk in OCI, except when it would create an
‘accounting mismatch’;
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
40 | 2018 Annual Report
26
Notes to the Financial Statements
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(u)
Adoption of New and Revised Accounting Standards (continued)
•
•
introducing a new model for hedge accounting that permits greater flexibility in the ability to hedge risk,
particularly with respect to non-financial items; and
requiring impairment of financial assets carried at amortised cost based on an expected loss approach.
The directors anticipate that the adoption of AASB 9 will not materially impact on the Group’s financial instruments,
including hedging activity, and continue to assess and estimate such impact.
AASB 15 Revenue from Contracts with Customers (effective from 1 January 2018)
AASB 15 will provide (except in relation to some specific exceptions, such as lease contracts and insurance contracts) a
single source of accounting requirements for all contracts with customers, thereby replacing all current accounting
pronouncements on revenue.
These Standards provide a revised principle for recognising and measuring revenue. Under AASB 15, revenue is
recognised in a manner that depicts the transfer of promised goods or services to customers in an amount that
reflects the consideration to which the provider of the goods or services expects to be entitled. The give effect to this
principle, AASB 15 requires the adoption of the following 5-step model:
•
•
•
•
•
identify the contract(s) with a customer;
identify the performance obligations under the contract(s);
determine the transaction price;
allocate the transaction price to the performance obligations under the contract(s); and
recognise revenue when (or as) the entity satisfies the performance obligations.
AASB 15 also provides additional guidance to assist entities in applying the revised principle to licences of intellectual
property, warranties, rights of return, principal/agent considerations and options for additional goods and services.
This Standard will require retrospective restatement, as well as enhanced disclosures regarding revenue.
The directors anticipate that the adoption of AASB 15 will not materially impact on the Group’s financial statements
and continue to assess and estimate such impact.
AASB 16 Leases (effective from 1 January 2019)
Under IFRS 16 there is no longer a distinction between finance and operating leases. Lessees will now bring to
account a right-to-use asset and lease liability onto their balance sheets for all leases. Effectively this means the vast
majority of operating leases as defined by the current AASB 117 Leases which currently do not impact the balance
sheet will be required to be capitalised on the balance sheet once IFRS 16 is adopted.
The directors anticipate that the adoption of AASB 16 will not materially impact on the Group’s financial statements
and continue to assess and estimate such impact.
AASB 2016-5 Amendments to Australian Accounting Standards – Classification and Measurement of Share-based
Payment Transactions (effective from 1 January 2018)
This Standard amends AASB 2 Share-based Payment to address:
(a) the accounting for the effects of vesting and non-vesting conditions on the measurement of cash-settled share
based payments;
(b) the classification of share-based payment transactions with a net settlement feature for withholding tax
obligations; and
(c) the accounting for a modification to the terms and conditions of a share-based payment that changes the
classification of the transaction from cash-settled to equity-settled.
Although the directors anticipate that the adoption of AASB 2016-5 may have an impact on the group’s financial
statements, it is impracticable at this stage to provide a reasonable estimate of such impact.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
27
2018 Annual Report | 41
Notes to the Financial Statements
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 2: INCOME TAX
(a)
Income tax recognised in profit or loss
Tax expense/(revenue) comprises:
Current tax expense/(revenue)
Current tax expenses/(revenue) relating to under (over) provision in prior
year
Deferred tax expense/(revenue) relating to the origination and reversal of
temporary difference
Prior year amounts not recognised
Deferred tax expense/(revenue) relating to under (over) provision in prior
year
Deferred tax expense / (revenue) relating to change in tax rate
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 in the financial statements as
follows:
Profit/(loss) from operations
Income tax expense/(revenue) calculated at 27.5% (2017: 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
Tax effect on other items
Tax losses not recognised
Income tax rate
Consolidated
2018
$
2017
$
(1,097,007)
(547,399)
-
-
850,814
(7,224,229)
(64,071)
(6,612,759)
-
602,020
6,868,402
-
-
-
7,224,229
-
(1,474,046)
(405,363)
-
-
(3,248)
(52,369)
214,787
246,193
-
(2,675,065)
(802,521)
-
111,173
6,480
(54,278)
127,675
611,471
-
The tax rate used in the above reconciliation is the corporate tax rate of 27.5% payable by the Australian corporate
entities on taxable profits under the Australian tax law. This rate is reduced from 30% in previous years. In
accordance with current legislation, the lower rate of 27.5% is expected to apply in future financial periods when
deferred tax assets are realised and deferred tax liabilities are settled.
NOTE 3: CASH AND CASH EQUIVALENTS
Cash at bank
NOTE 4: TRADE AND OTHER RECEIVABLES
Other receivables
2018
$
2017
$
1,684,053
1,684,053
1,641,710
1,641,710
104,887
104,887
450,737
450,737
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
42 | 2018 Annual Report
28
Notes to the Financial Statements
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
Note
NOTE 5: PLANT AND EQUIPMENT
Plant and Equipment
Accumulated depreciation
Consolidated
2018
$
2017
$
18,472
(12,776)
5,696
482,527
(399,737)
82,790
A reconciliation of the carrying amounts of each class of plant and equipment between the beginning of the current
financial year is set out below:
Plant and
Equipment
$
Balance at 30 June 2018
Balance at the beginning of year
Additions
Disposals – carrying value
Deconsolidation of subsidiaries – carrying value 26
Depreciation expense
Balance at 30 June 2018
82,790
171,950
(725)
(233,614)
(14,705)
5,696
Balance at 30 June 2017
Balance at the beginning of year
Additions
Disposals (carrying value)
Depreciation expense
Movement in exchange rate
Balance at 30 June 2017
113,759
7,076
-
(36,726)
(1,319)
82,790
Total
$
82,790
171,950
(725)
(233,614)
(14,705)
5,696
113,759
7,076
-
(36,726)
(1,319)
82,790
Note
NOTE 6: EXPLORATION, EVALUATION AND DEVELOPMENT ASSETS
Exploration and evaluation expenditure
Consolidated
2018
$
2017
$
2,189,364
2,189,364
3,621,616
3,621,616
2018
Balance at beginning of the year
Expenditure incurred
Foreign exchange adjustment on historical capitalisation (pre- deconsolidation)
Deconsolidation of subsidiaries 26
Balance at the end of the year
2017
Balance at beginning of the year
Expenditure incurred
Impairment
Balance at the end of the year
Exploration
and
Evaluation
$
3,621,616
2,622,598
(1,067,015)
(2,987,835)
2,189,364
$
3,675,061
1,274,061
(1,327,506)
3,621,616
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
29
2018 Annual Report | 43
Notes to the Financial Statements
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 6: EXPLORATION, EVALUATION AND DEVELOPMENT ASSETS (continued)
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 no 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 (t) - 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.
NOTE 7: INVESTMENTS IN ASSOCIATES
On 30 June 2018, Predictive Discovery Limited reduced its investment in Burkina Resources Pty Ltd, Burkina Resources
SARL, Predictive Discovery SARL, Birrimian Pty Ltd and Birrimian BVI SARL from 100% to 49% as a result of Progress
Minerals Inc earning 51% in the Burkina Faso Joint Venture by spending US $1m. Additionally, in the prior year with
Toro Gold Ltd earning 65% of the Cote D’Ivoire Toro Gold Joint Venture by spending US $2.5m, Predictive Discovery
Limited has reduced its investment in Predictive Discovery Cote D’Ivoire SARL from 100% to 35%. As a consequence,
Predictive Discovery Limited lost control of the entities previously consolidated and reducing the investments to one
of significant influence over these investment and the investment was reclassified from a consolidated Joint
Arrangement to an associate (refer note 26 for further detail of deconsolidation). The carrying amount of the
investment at the time of the transaction was $840,645, The group’s accounting policy (refer note 1(m)) for
acquisitions of associates is to deconsolidate the previously consolidated joint arrangement, carry the investment at
cost (being fair value in this instance) plus post-acquisition changes in the consolidated entity’s share of net assets of
the associates.
The carrying amount of equity-accounted investments has changed as follows in the six months to June 2018:
Note
Investment in associates 26
Share of loss of associate using the equity method
NOTE 8: CURRENT TRADE AND OTHER PAYABLES
Accruals and other creditors
Consolidated
2018
$
840,645
-
840,645
2017
$
-
-
-
Consolidated
2018
$
2017
$
46,889
46,889
702,794
702,794
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
44 | 2018 Annual Report
30
Notes to the Financial Statements
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 9: TAX ASSETS AND LIABILITIES
(a) Assets
Current
Income tax refundable
Non-current
Deferred tax asset comprises:
Employee entitlements
Accruals and payables
Exploration expenditure
Cancellation of licence
Tax losses
Amount not recognised
(b) Liabilities
Current
Income tax liabilities
Less: PAYG instalments paid
Income tax payable
Non-current
Deferred tax liability comprises:
Investments in associates
Amount not recognised
Net DTA/DTL
(c) Reconciliation
(i) Gross Movements
The overall movement in the deferred tax balance is as follows:
Opening balance
Movement due to change in tax rate
Credited / (charge) to the retained profit
Credited/(charged) to the income statement
Current year losses
Amount not recognised
Closing balance
Consolidated
2018
$
2017
$
-
-
-
-
-
7,219
25,787
-
7,011,592
(7,044,598)
-
-
-
-
176,196
(176,196)
-
5,608
7,500
740,846
18,000
6,452,275
(7,224,229)
-
-
-
-
-
-
-
7,224,229
(602,020)
-
(850,814)
1,097,007
(6,868,402)
-
6,612,759
-
-
64,071
547,399
(7,224,229)
-
(ii) Deferred tax assets
The movement in deferred tax assets for each temporary difference during the
year is as follows:
Employee Entitlements
Opening balance
Movement due to change in tax rate
Credited/(charged) to the income statement
Amount not recognised
Closing balance
5,608
(468)
(5,140)
-
-
4,829
-
779
(5,608)
-
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
31
2018 Annual Report | 45
Notes to the Financial Statements
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 9: TAX ASSETS AND LIABILITES (continued)
Accruals and payables
Opening balance
Movement due to change in tax rate
Credited/(charged) to the income statement
Amount not recognised
Closing balance
Tax Losses
Opening balance
Movement due to change in tax rate
Credited/(charged) to the income statement
Amount not recognised
Closing balance
Cancellation of Licence
Opening balance/previous amounts not recognised
Movement due to change in tax rate
Credited/(charged) to the income statement
Amount not recognised
Closing balance
Exploration Expenditure
Opening balance
Movement due to change in tax rate
Credited/(charged) to the income statement
Amount not recognised
Closing balance
(iii) Deferred tax liability
Exploration Expenditure
Opening balance
Under/(over) provision in prior year
Credited/(charged) to the income statement
Amount not recognised
Closing balance
NOTE 10: PROVISIONS
CURRENT
Employee entitlements
Consolidated
2018
$
2017
$
7,500
(625)
344
(7,219)
-
6,450
-
1,050
(7,500)
-
6,452,275
(537,690)
1,097,007
(7,011,592)
-
5,904,876
-
547,399
(6,452,275)
-
18,000
(1,500)
(16,500)
-
-
740,846
(61,737)
(653,322)
(25,787)
-
-
-
176,196
(176,196)
-
36,000
-
(18,000)
(18,000)
-
660,604
-
80,242
(740,846)
-
-
-
-
-
-
-
-
18,692
18,692
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
46 | 2018 Annual Report
32
Notes to the Financial Statements
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 11: ISSUED CAPITAL
236,142,065 (30 June 2017: 163,111,547) Ordinary Shares
Share issue costs written off against issued capital
At 1 July 2017
Issue of shares in rights issue
Issue of shares in placement
Issue of options in rights issue
Issue of options in placement
At 30 June 2018
At 1 July 2016
Issue of shares in placements
Issue of options as remuneration
Options cancelled/expired
Share consolidation on 1 for 10 basis
At 30 June 2017
OPTIONS
Consolidated
2018
$
2017
$
33,332,725
(2,358,962)
30,973,763
Listed
Options
-
-
-
62,138,470
10,892,048
73,030,518
-
-
-
-
-
-
30,265,443
(2,009,065)
28,256,378
Unlisted Options
5,857,500
-
-
-
-
5,857,500
8,000,000
-
58,575,000
(8,000,000)
(52,717,500)
5,857,500
Shares
163,111,547
62,138,470
10,892,048
-
-
236,142,065
1,326,168,686
304,945,000
-
-
(1,468,002,139)
163,111,547
For information relating to the 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 23.
NOTE 12: 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.
Consolidated
2018
$
2017
$
NOTE 13: EARNINGS PER SHARE
Reconciliation of loss
Loss used in calculating earnings per share – basic and diluted
Net loss for the reporting period
(1,474,046)
(1,474,046)
(2,675,065)
(2,675,065)
Weighted average number of ordinary shares outstanding during the
year used in the calculation of basic and diluted earnings per share
205,747,444
155,196,223
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
33
2018 Annual Report | 47
Notes to the Financial Statements
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 14: CAPITAL AND LEASING COMMITMENTS
(A) LEASE COMMITMENTS
Payable – minimum lease payments:
-not later than 12 months
-between 12 months and 5 years
(B) OPTIONS FEE COMMITMENTS
Payable – minimum lease payments:
-not later than 12 months
-between 12 months and 5 years
-more than 5 years
(C) CAPITAL EXPENDITURE COMMITMENTS(i)
Payable:
-not later than 12 months
-not later than 12 months and 5 years
-more than 5 years
Consolidated
2018
$
2017
$
-
-
-
-
118,195
-
118,195
1,565,383
4,371,156
108,275
6,044,814
42,304
169,218
211,522
-
227,702
-
227,702
1,857,566
5,138,718
88,372
7,084,656
(i)
Capital expenditure commitments are Predictive Discovery Limited’s share of expenditure commitment on
exploration permits in Burkina Faso and Cote D’Ivoire. The permits are all the subject of Joint Ventures in which
Predictive recognises its investment as Investments in Associates (refer Note 7).
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
48 | 2018 Annual Report
34
Notes to the Financial Statements
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 15: FINANCIAL RISK MANAGEMENT
The group's financial instruments consist mainly of deposits with banks, receivables and payables.
The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in the
accounting policies to these financial statements, are as follows:
Financial Assets
Cash and cash equivalents
Trade and other receivables
Total Financial Assets
Financial Liabilities
Trade and other payables
Total Financial Liabilities
FINANCIAL RISK MANAGEMENT POLICIES
Consolidated
Note
2018
$
3
4
8
1,684,053
104,887
1,788,940
46,889
46,889
2017
$
1,641,710
450,737
2,092,447
702,794
702,794
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.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
35
2018 Annual Report | 49
Notes to the Financial Statements
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 15: FINANCIAL RISK MANAGEMENT (continued)
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 Australia and New Zealand Banking
Group Limited.
(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 6 months.
The tables below reflect an undiscounted contractual maturity analysis for financial liabilities.
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
2018
$
2017
$
2018
$
2017
$
2018
$
2017
$
Financial liabilities due for
payment
Trade and other payables
Total contractual outflows
Financial assets - cash flows
realisable
Trade and other receivables
Total anticipated inflows
46,889
46,889
702,794
702,794
104,887
104,887
450,737
450,737
-
-
-
-
-
-
-
-
46,889
46,889
702,794
702,794
104,887
104,887
450,737
450,737
The financial assets and liabilities noted above are interest free.
(C) MARKET RISK
Foreign exchange risk
i.
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.
Interest rate risk
ii.
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. The weighted
average rate of interest earned by the group on its cash assets during the year was 1.23% (2017: 1.8%). The table
below summarises the sensitivity of the group’s cash assets to interest rate risk.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
50 | 2018 Annual Report
36
Notes to the Financial Statements
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 15: FINANCIAL RISK MANAGEMENT (continued)
Financial Assets
30 June 2018
Total increase/(decrease)
30 June 2017
Total increase/(decrease)
Effect of decrease or increase of
interest rate on profit and equity
-1%
Profit
$
Equity
$
+1%
Profit
$
Equity
$
(18,537)
(18,537)
18,537
18,537
(19,024)
(19,024)
19,024
19,024
NOTE 16: 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.
The following is an analysis of the Group’s revenue and results from operations by reportable segment.
2018
Revenue
Interest income
Other income
Expenses
Administration expenses
Share based expense
FX Expense
Exploration expenditure expensed
Impairment of Exploration
Forgiveness of Loans
Gain / (Loss) on deconsolidation
of subsidiary
Loss before tax
Current assets
Exploration expenditure
Plant and Equipment
Investments in Associates
Current liabilities
Net assets
Corporate
$
Gold
Aust
$
Gold (a)
Burkina Faso
$
Gold
Cote D’Ivoire
$
Gold
Mali
$
Total
$
22,717
22,004
-
-
-
-
-
-
-
-
22,717
22,004
(533,772)
-
24,952
(81,017)
-
(20,821,194)
-
(21,366,310)
1,721,637
-
5,696
840,645
(46,889)
2,521,089
-
(435,718)
-
-
-
(159,019)
-
-
-
-
- 20,038,951
(28,254)
-
(1,198)
(16,415)
-
1,200
-
-
-
(297,069)
-
-
(997,744)
-
(135,265)
(394,501)
-
(781,043)
-
753,641
- 20,197,855
36,145
(8,522)
-
(297,069)
789,786
(1,474,046)
-
12,651
-
-
-
12,651
42,664
14,630
-
-
-
57,294
24,639
2,162,083
-
-
-
2,186,722
-
-
-
-
-
-
1,788,940
2,189,364
5,696
840,645
(46,889)
4,777,756
(a) While control was maintained for the entire financial year, entities were deconsolidated on 30 June 2018
(refer Note 26).
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
37
2018 Annual Report | 51
Notes to the Financial Statements
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 16: OPERATING SEGMENTS (continued)
2017
Revenue
Interest income
Other income
Expenses
Administration expenses
FX Expense
Exploration expenditure expenses
Impairment of Exploration(i)
Loss before tax
Current assets
Exploration expenditure(i)
Plant and Equipment
Current liabilities
Net assets
Corporate
$
34,194
67,056
(553,110)
(370,574)
(21,601)
(116,695)
(14,785)
(975,515)
1,933,769
132,284
6,344
(678,572)
1,393,825
Gold
Aust
$
Gold
Burkina Faso Cote D’Ivoire
$
$
Total
$
-
-
-
-
-
-
-
-
12,651
-
-
12,651
-
38,752
-
-
34,194
105,808
(396,740)
(31,330)
2,187
-
(1,312,721)
(1,668,522)
102,258
2,663,940
76,446
(42,914)
2,799,730
302
-
-
(31,028)
56,420
812,741
-
-
869,161
(981,180)
(370,574)
(19,112)
(116,695)
(1,327,506)
(2,675,065)
2,092,447
3,621,616
82,790
(721,486)
5,075,367
(i) The exploration incurred on behalf of Corporate relates to Burkina Faso, which was subsequently impaired during the year.
The group operates in four principal geographical areas – Australia (country of domicile), Burkina Faso, Cote D’Ivoire
and Mali.
NOTE 17: 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 2018.
The totals of remuneration paid to key management personnel of the company and the group during the year are as
follows:
Short-term benefits
Post-employments benefits
OTHER KEY MANAGEMENT PERSONNEL TRANSACTIONS
Consolidated
2018
$
274,944
3,037
277,981
2017
$
258,423
5,471
263,894
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 21: Related Party Transactions.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
52 | 2018 Annual Report
38
Notes to the Financial Statements PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 18: REMUNERATION OF AUDITORS
Remuneration of the auditor of the parent entity for:
-Audit services
-Other services
NOTE 19: CONTROLLED ENTITIES
Parent Entity:
Predictive Discovery Limited
Subsidiaries of legal parent entity:
Predictive Discovery Cote D’Ivoire Pty Ltd
Burkina Resources Pty Ltd(ii)
Ivoirian Resources Pty Ltd
Gayeri Resources Pty Ltd
Predictive Discovery Mali Resources Pty Ltd
Battle Resources Pty Ltd
Bouake Resources Pty Ltd
Bougouni Resources Pty Ltd
Kenieba Resources Pty Ltd
Predictive Discovery SARL(ii)
Predictive Discovery Niger SARL
Predictive Discovery Cote D’Ivoire SARL(ii)
Birrimian Pty Ltd(ii)
Birrimian BV SARL(ii)
Burkina Resources SARL(ii)
Gayeri Resources SARL
Solna Resources SARL
Sebba Resources SARL(ii)
Predictive Discovery Mali SARL
Country of
Incorporation
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Burkina Faso
Niger
Cote D’Ivoire
British Virgin Islands
Burkina Faso
Burkina Faso
Burkina Faso
Burkina Faso
Burkina Faso
Mali
Consolidated
2018
$
38,250
4,000
42,250
2017
$
37,000
5,500
42,500
Percentage Owned(i)
2018
-
100%
49%
100%
100%
100%
100%
100%
100%
100%
49%
100%
35%
49%
49%
49%
100%
100%
49%
100%
2017
-
100%
100%
100%
-
-
-
-
-
-
100%
100%
35%
100%
100%
100%
100%
100%
100%
-
(i)
(ii)
Percentage of voting power is in proportion to ownership
Deemed to have lost control during the period and as such are equity accounted investments (refer Notes 7 and 26)
Acquisitions of controlled entities
There were no acquisitions during the year.
NOTE 20: CONTINGENT LIABILITIES / ASSETS
There are no material contingent liabilities of the group at balance date.
On 12 June 2018 the Company announced the signing of a Memorandum of Understanding within which, subject to
several conditions precedent, a payment of C$0.5m from Progress Minerals Inc will take up the Company’s 30%
interest in the Bobosso Project in Cote D’Ivoire. At the date of this report all conditions precedent have been satisfied
and payment is pending.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
2018 Annual Report | 53
39
Notes to the Financial Statements PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 21: 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 $165,466 (2017: $18,826,754). The
loan is interest free and payable on demand. Loans between deconsolidated entities were forgiven prior to 30 June
2018 (refer Note 16).
Directors’ Remuneration
For information relating to related party transactions with key management personnel during the financial year, refer
to Note 17.
Other Related Party Transactions
Aurora Minerals Limited, an entity of which Mr Phillip Jackson is a director, was paid $89,100 (2017: $92,950) for
administration services, including company secretarial and accounting services.
NOTE 22: STATEMENT OF CASH FLOWS
Reconciliation of loss after income tax to net cash flow from operating
activities
Operating loss after income tax
(1,474,046)
(2,675,065)
Consolidated
2018
$
2017
$
Non-operating items in loss:
Exploration expenditure
Non-cash flows in loss:
Gain on deconsolidation of subsidiaries
Forgiveness of loans
Share based payments
Depreciation
Foreign exchange (gains)/losses
Write off of exploration expenditure
Movement in assets and liabilities:
(Increase)/decrease in receivables
Increase/(decrease) in payables
Increase/(decrease) in provisions
Net cash outflow from operating activities
394,501
116,695
(789,786)
781,043
-
14,705
-
-
30,879
83,566
(18,692)
(977,830)
-
-
370,574
1,687
19,112
1,327,506
(55,767)
9,539
2,541
(883,178)
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
54 | 2018 Annual Report
40
Notes to the Financial Statements PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 23: SHARE BASED PAYMENTS
During the period ending 30 June 2018, the group did not enter into any share-based payments.
During the period ending 30 June 2017, the group did not enter into any share-based payments.
At 30 June 2018 the group has the following share-based payment options on issue to employees:
Exercise
Grant Date Expiry Date
price
29 Nov 2016 29 Nov 2018 $0.1805
29 Nov 2016 29 Nov 2019 $0.2578
29 Nov 2016 29 Nov 2020 $0.3867
Start of the
year
1,952,500
1,952,500
1,952,500
5,857,500
Granted
during the
year
Exercised
during the
year
-
-
-
-
-
-
-
-
Expired
during the
year
Balance at
the end of
the year
- 1,952,500
- 1,952,500
- 1,952,500
- 5,875,500
Vested and
exercisable
at the end of
the year
1,952,500
1,952,500
1,952,500
5,875,500
The three tranches of options granted on 29 November 2016 were originally issued with exercise prices of $0.01805,
$0.02578 and $0.03867 respectively and in quantities of 19,525,000 options in each tranche. A 1 for 10 capital
consolidation effective 19 May 2017 resulted in the quantities and conditions shown in the above table.
The weighted average exercise price of options as at 30 June 2018 was $0.275 (30 June 2017: $0.275). The weighted
average remaining contractual life of options outstanding at year end was 1.42 years (30 June 2017: 2.42 years).
The fair value of the options granted during the year was $nil (2017: $370,574).
The values of options granted during the previous year were calculated by using a Black-Scholes option pricing model
applying the following inputs:
Number of options granted
Expected volatility (%)
Risk free interest rate (%)
Weighted average expected life of options (years)
Option exercise price (cents)
Share price at grant date (cents)
Fair value of option
Vesting date
Options Granted
29 Nov 2016
(1)
19,525,000
101
1.81
2.00
1.805
1.3
$0.0059
29 Nov 16
Options Granted
29 Nov 2016
(2)
19,525,000
101
1.94
3.00
2.578
1.3
$0.0064
29 Nov 16
Options Granted
29 Nov 2016
(3)
19,525,000
101
1.94
4.00
3.868
1.3
$0.0067
29 Nov 16
NOTE 24: EVENTS AFTER THE END OF THE REPORTING PERIOD
On 12 June 2018 the Company announced the signing of a Memorandum of Understanding within which, subject to
several conditions precedent, a payment of C$0.5m from Progress Minerals Inc will take up the Company’s 30%
interest in the Bobosso Project in Cote D’Ivoire. At the date of this report all conditions precedent have been satisfied
and payment is pending.
Other than the above, there are no matters or circumstances that 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.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
2018 Annual Report | 55
41
Notes to the Financial Statements PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 25: PARENT ENTITY DISCLOSURES
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Total liabilities
Equity
Issued capital
Reserves
Accumulated losses
Total equity
CONTINGENT LIABILITIES
Nil
CONTRACTUAL COMMITMENTS
2018
$
1,721,636
3,186,433
4,908,069
46,889
46,889
30,973,763
879,467
(26,992,050)
4,861,180
2017
$
1,933,769
20,584,988
22,518,757
678,572
678,572
28,256,378
2,792,408
(9,208,601)
21,840,185
The parent entity has commitments as at 30 June 2018 that are disclosed in Note 14.
RECOVERABILITY OF INTERCOMPANY LOAN
Within Non-current assets is a loan due from the 100% subsidiaries of $165,466 which is considered fully recoverable.
The recoverability of this loan is dependent upon the successful development or sale of exploration assets in Burkina
Faso and Cote D’Ivoire.
NOTE 26 – LOSS OF CONTROL – CONTROLLED ENTITIES
As detailed in Note 7, during the year ended 30 June 2018, the Company’s effective shareholdings in Predictive
Discovery SARL, Birrimian Pty Ltd, Birrimian BVI SARL, Burkina Resources Pty Ltd and Burkina Resources SARL changed
from 100% to 49% due to Progress Minerals Inc attaining 51% earn in. In the prior year, the Company's effective
holding in Predictive Discovery Cote D'Ivoire SARL changed to 35% as a result of Toro Gold Ltd attaining 65% earn in.
The directors have considered the requirement of the applicable accounting standard and determined that 30 June
2018 the Company no longer deems these four entities and their respective subsidiaries to be controlled by Predictive
Discovery Limited.
As a result of control over the investments being reduced to significant influence over these investments, the
investments were reclassified from a consolidated Joint Arrangement to an associate (refer note 26 for further detail
of deconsolidation). The carrying amount of the investment at the time of the transaction was $840,645, The group’s
accounting policy (refer note 1(m)) for acquisitions of associates is to deconsolidate the previously consolidated joint
arrangement, carry the investment at cost (being fair value in this instance) plus post-acquisition changes in the
consolidated entity’s share of net assets of the associates.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
56 | 2018 Annual Report
42
Notes to the Financial Statements PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 26 – LOSS OF CONTROL – CONTROLLED ENTITIES (continued)
Consolidated
Note
2018
$
2017
$
Carrying amounts of assets and liabilities deconsolidated at 30 June 2018
and gain on deconsolidation was:
Cash and cash equivalents
Trade and other receivables
Plant and equipment
Capitalised exploration expenditure
Trade and other payables
Related party loans (JV contribution – expenditure)
FX transfer
Net assets/(Net liabilities)
Equity investment retained
Gain on deconsolidation
NOTE 27: COMPANY DETAILS
5
6
7
(45,246)
(187,481)
(233,614)
(2,987,835)
299,346
1,563,022
1,540,949
(50,859)
840,645
789,786
-
-
-
-
-
-
-
-
-
-
The registered office of the company is:
The principal place of business of the company is:
Predictive Discovery Limited
Suite 2, Level 2
20 Kings Park Road
WEST PERTH WA 6005
Predictive Discovery Limited
Level 2, 33 Ord Street
WEST PERTH WA 6005
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
2018 Annual Report | 57
43
Notes to the Financial Statements Directors’ Declaration
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 871 877
DIRECTOR’S DECLARATION
FOR THE YEAR ENDED 30 JUNE 2018
DIRECTORS’ DECLARATION
The directors of the company declare that:
1.
The financial statements and notes, as set out on pages 11 to 43, 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 2018 and of the performance for
the year ended on that date of the consolidated group;
2.
The Chief Executive Officer and Chief Financial Officer have each declared that:
(a)
(b)
the financial records of the company for the financial year have been properly maintained in
accordance with section 286 of the Corporations Act 2001;
the financial statements and notes for the financial year comply with the Accounting Standards;
and
(c)
the financial statements and notes for the financial year give a true and fair view.
Note 1 confirms that the financial statements also comply with International Financial Reporting
Standards as issued by the International Accounting Standards Board.
3.
In the directors' opinion, there are reasonable grounds to believe that the company will be able to pay
its debts as and when they become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors.
Paul Roberts
Managing Director
02 October 2018
PREDICTIVE DISCOVERY LIMITED ANNUAL REPORT
58 | 2018 Annual Report
44
Directors’ Declaration
Independent Auditor’s
Report
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Predictive Discovery Limited and Controlled Entities (the Group), which
comprises the consolidated statement of financial position as at 30 June 2018, the consolidated statement of profit
or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated
statement of cash flows for the year then ended, and notes to the financial statements, including a summary of
significant accounting policies, and the directors’ declaration.
In our opinion:
a)
the accompanying financial report of the Company is in accordance with the Corporations Act 2001, including:
i.
giving a true and fair view of the Company’s financial position as at 30 June 2018 and of its financial
performance for the year then ended; and
ii.
complying with Australian Accounting Standards and the Corporations Regulations 2001.
b)
the financial report also complies with International Financial Reporting Standards as disclosed in Note 1.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our
report. We are independent of the Company in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Material Uncertainty Related to Going Concern
We draw attention to note 1 (t) “Key Judgements – Going Concern” which indicates the company incurred a loss for
the year ended 30 June 2018 of $1,474,046 and that the company’s ability to continue the exploration and
development of its mining tenements and meet operational expenditure at current levels is dependent upon future
capital raising. These conditions, along with other matters as set forth in note 1 (s), indicate the existence of a
material uncertainty that may cast significant doubt about the company’s ability to continue as a going concern and
therefore, the company may be unable to realise its assets and discharge its liabilities in the normal course of
business. Our opinion is not modified in respect of this matter.
45
2018 Annual Report | 59
Independent Auditor’s Report
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial report of the current period. These matters were addressed in the context of our audit of the financial
report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
In addition to the matter described the Material Uncertainty Related to Going Concern section above we have
determined the matters described below to be the key audit matters to be communicated in our report.
KEY AUDIT MATTER 1 – Carrying value of capitalised exploration and evaluation assets
Refer to Note 6 “Exploration, Evaluation and Development assets”
As at 30 June 2018 the carrying amount of
Exploration and Evaluation (E&E) assets is $2,189,364
(2017: $3,621,616).
The carrying value of the E&E assets was a key audit
matter due to the size of the balance as at 30 June
2018 and the subjectivity involved in determining its
carrying value.
Our procedures included, amongst others:
Obtaining a management prepared schedule of
capitalised Exploration and Evaluation
expenditure and agreeing to the general ledger;
Tested a sample of current year expenditure to
source documents;
Undertook a detailed review of management’s
assessment of impairment including:
Ensuring rights to tenure were current;
Enquired of management about their
intentions for each tenement, including
reviewing forecast expenditure; and
Reviewing any other transactions that
support the carrying value of the
capitalised Exploration and Evaluation
expenditure.
Reviewed ASX announcements and minutes of
directors’ meetings to ensure that the company
had not decided to discontinue activities in any
of its areas of interest; and
Considered the adequacy of disclosures
included within Note 6 of the financial report.
46
60 | 2018 Annual Report
Independent Auditor’s Report
KEY AUDIT MATTER 2 – De‐consolidation of entities upon loss of control and carrying value of investment in
associates
Refer to Note 7 “Investments in Associates” and Note 26 “Loss of Control – Controlled Entities”
As at 30 June 2018 control of a number of subsidiary
entities was lost through contractual arrangements
being met by parties to joint venture entities.
A gain on deconsolidation of subsidiary of $789,786.
Investment in Associate carrying value is $840,645
(2017: nil).
The gain on deconsolidation and carrying value of the
Investment in Associate was a key audit matter due
to the size of the balance as at 30 June 2018 and the
subjectivity and complexity involved in
determination of investment and control to
determine appropriate accounting treatment.
Our procedures included, amongst others:
Review of contractual agreements to determine
existence of control.
Undertook detailed review of component
auditor procedures where applicable over
equity accounted and deconsolidated entities to
obtain comfort over carrying value and gain
calculations.
Reviewed ASX announcements and minutes of
directors’ meetings along with management
enquiry to establish intention and timing of
change in control.
Considered adequacy of disclosures included
within notes 7 and 26 of the financial report.
Other Information
The directors are responsible for the other information. The other information comprises the information included
in the Company’s annual report for the year ended 30 June 2018, but does not include the financial report and our
auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Company to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
47
2018 Annual Report | 61
Independent Auditor’s Report
accordance with the Australian Auditing Standards will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial
report.
A further description of our responsibilities for the audit of the financial report is located on the Auditing and
Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf. This
description forms part of our auditor’s report.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably
be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most significance in
the audit of the financial report of the current period and are therefore the key audit matters. We describe these
matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 7 to 10 of the directors’ report for the year ended 30
June 2018.
In our opinion, the Remuneration Report of Predictive Discovery Limited and Controlled Entities, for the year ended
30 June 2018 complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in
accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
MOORE STEPHENS AUDIT (VIC)
ABN 16 847 721 257
RYAN LEEMON
Partner
Audit & Assurance Services
Melbourne, Victoria
2 October 2018
62 | 2018 Annual Report
48
Independent Auditor’s Report
AUDITOR’S INDEPENDENCE DECLARATION
UNDER S 307C OF THE CORPORATIONS ACT 2001
TO THE DIRECTORS OF PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
I declare that, to the best of my knowledge and belief, during the year ended 30 June 2018, 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.
Auditor’s Independence
Declaration
MOORE STEPHENS AUDIT (VIC)
ABN 16 847 721 257
RYAN LEEMON
Partner
Audit & Assurance Services
Melbourne, Victoria
2 October 2018
49
2018 Annual Report | 63
Auditor’s Independence Declaration
Shareholder
Information
Shareholder Information
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 871 877
SHAREHOLDER INFORMATION
The shareholder information set out below was applicable at 08 October 2018
1. Number and Distribution of Equity Securities
The number and class of all securities on issue:
ASX Code
PDI
PDIO
PDIAK
Number
236,142,065
73,030,518
5,857,500
Description
Fully Paid Ordinary Shares Quoted
Listed Options expiring 30 November 2019
Unlisted Options expiring various dates
Distribution of equity securities
Size of Holding
1-1,000
1,001-5,000
5,001-10,000
10,001-100,000
100,001 and over
Total
Number of Holders
97
228
283
756
199
1,563
Unmarketable Parcels
1,141
The number of holders
Ordinary shares fully paid (ASX Code: PDI):
1,563
Shares Held
36,607
827,349
2,283,539
27,533,808
205,460,762
236,142,065
Shares
15,503,900
2. Substantial Shareholders
Substantial shareholders as defined by Section 671B of Australian Corporations Law are:
Name
Aurora Minerals Limited
Citicorp Nominees Pty Limited
Equity Trustees Limited (Lowell Resources Fund A/C)
Number of Shares
64,653,686
31,817,029
21,462,161
%
27.38
13.47
9.09
3. Voting Rights
Subject to any rights or restrictions for the time being attached to any class or classes of shares, at a general
meeting every shareholder or class of shareholder present in person or by proxy, attorney or representative has
one vote on a show of hands and, on a poll, one vote for each fully paid share which that member holds or
represents.
64 | 2018 Annual Report
PREDICITIVE DISCOVERY LIMITED ANNUAL REPORT
1
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 871 877
Shareholder Information
SHAREHOLDER INFORMATION (Continued)
4.
Twenty Largest Shareholders as at 08 October 2018
The twenty largest fully paid shareholders hold 63.50% of the issued capital and are tabled below:
Shareholder
No. of Shares
%
Dyspo Pty Limited
Bond Street Custodians Limited (GRIPIC PH 240 A/C)
Ayers Pty Ltd (Hita Investment No 2 A/C)
Rookharp Investments Pty Limited
Aurora Minerals Limited
Citicorp Nominees Pty Limited
Equity Trustees Limited (Lowell Resources Fund)
Bond Street Custodians Limited (Apicon D05711 A/C)
1.
2.
3.
4.
5. Mr Alistair Campbell Leitch
6.
7.
8.
9.
10. Aggregated Capital Pty Ltd (Super Fund No 2 Account)
11. Mrs Sandy Tan Siew MayTechnica Pty Ltd
12. Toltec Holdings Pty Ltd
13. Mr Michael Robert Hodgetts
14. Mr Jose Martim Rodrigues Pimenta
15. Paso Holdings Pty Ltd
16. Mrs Sarah Cameron
17. BNP Paribas Nominees Pty Ltd (IB AU NOMS RetailClient DRP)
18. Croftbank Pty Ltd (Wats Family Super Fund A/C)
19. Mrs Zi Juan Qi (Chen Family A/C)
20. Zappia Nominees Pty Ltd
Total Issued Shares
5. Corporate Governance Statement
64,653,686
31,817,029
21,462,161
2,830,941
2,667,542
2,654,775
2,538,992
2,397,903
2,380,952
2,100,000
1,713,741
1,644,514
1,634,000
1,620,000
1,429,519
1,428,571
1,360,393
1,245,023
1,190,476
1,190,476
27.38
13.47
9.09
1.20
1.13
1.12
1.08
1.02
1.01
0.89
0.73
0.70
0.69
0.69
0.61
0.60
0.58
0.53
0.50
0.50
149,960,694
236,142,065
63.50
100.00
The 2018 Corporate Governance statement of Predictive Discovery Limited is available on the Company’s website
at
http://www.predictivediscovery.com/images/stories/Corporate/2018-pdi-corporate-governance-statement.pdf
PREDICTIVE DISCOVERY LIMITED ANNUAL REPORT
2018 Annual Report | 65
2
Mineral Tenement
Information
Mineral Tenement Information
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 871 877
MINERAL TENEMENT INFORMATION (as at 08 October 2018)
Name
Number
Location
Area
(sq. km)
PDI equity
Kalinga (formerly
Fouli)
arrêté 2014-294/MCE/SG/DGMGC
Burkina Faso
186
49%
Tantiabongou
Arrêté 2017-054/MCE/SG/DGMGC
Burkina Faso
50
49%
Tambifwanou
(formerly Sirba)
Bongou (formerly
Madyabari)
Arrêté 2017-119/MCE/SG/DGMGC
Burkina Faso
136.2
49%
Arrêté 2017-121/MCE/SG/DGMGC
Burkina Faso
170.9
49%
Tamfoagou
Arrêté 2017-132/MCE/SG/DGMGC
Burkina Faso
83
49%
Tangagari
Arrêté 2013-37/MCE/SG/DGMGC
Burkina Faso
127.5
Earning 46.5%; current equity 0%
(until final cash payment is made)
Tambiri (formerly
Bangaba)
Bira
Basieri
Arrêté 2017-120/MCE/SG/DGMGC
Burkina Faso
127.5
46.5%
Arrêté 2016-129/MCE/SG/DGMGC
Burkina Faso
12
49%
Arrêté 2017-133/MCE/SG/DGMGC
Burkina Faso
73.5
49%
Kokoumbo
Mining exploration permit No. 307
Cote D'Ivoire
300
Predictive-Toro
joint venture (also
known as Predictive Discovery Cote
- Predictive 35%)
D’Ivoire SARL
earning 90% in JV
Ferkessedougou
South
Mining exploration permit No. 310
Cote D'Ivoire
290
35%
Boundiali
Mining exploration permit No. 414
Cote D'Ivoire
299
35%
Boundiali North
Mining exploration permit – No. to be
allocated
Cote D’Ivire
350
Predictive-Toro
joint venture (also
known as Predictive Discovery Cote
D’Ivoire SARL
- Predictive 35%)
earning 85% in JV
Kounahiri
Mining exploration permit No. 317
Cote D'Ivoire
260
35%
Beriaboukro
Mining exploration permit No. 464
Cote D'Ivoire
400
Ferkessedougou
North
Mining exploration permit No. 367
Cote D'Ivoire
400
joint
Predictive-Toro
venture
(Predictive Discovery Cote D’Ivoire
SARL - Predictive 35%) earning 85%
in JV
Predictive-Toro
venture
(Predictive Discovery Cote D’Ivoire
SARL - Predictive 35%) earning 85%
in JV
joint
Wendene
Mining exploration permit No. 572
Cote D'Ivoire
400
30%
Bassawa
Mining exploration permit No. 570
Cote D'Ivoire
400
30%
Cape Clear
EL 5434
Victoria,
Australia
63
25%
66 | 2018 Annual Report
PREDICTIVE DISCOVERY LIMITED ANNUAL REPORT 3
predictivediscovery.com
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