Annual Report
2019
ABN 11 127 171 877
Corporate Directory
DIRECTORS
Mr Phillip Jackson Non-executive Chairman
Mr Paul Roberts Managing Director
Mr David Kelly Non-executive Director
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
AUDITOR
PKF Perth
Level 5, 35 Havelock Street
WEST PERTH WA 6005
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
2 | 2019 Annual Report
Contents
Chairman’s Letter
Review of Operations
Joint Venture Partner
Financial Year 2018-19 Exploration Activity
Directors’ Report
Statement of Profit or Loss and
Other Comprehensive Income
Statement of Financial Position
Statement of Changes In Equity
Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Auditor’s Independence Declaration
Shareholder Information
Mineral Tenement Information
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2019 Annual Report | 3
Dear Shareholders,
Without doubt the single biggest event for the Company in FY 2018-19 was
the Ferkessedougou North drilling results announced 4th June 2019, with
thick gold intercepts and high-grade intervals reported in a newly discovered
body that is up to 100m wide and at least 210m long. The discovery, named
Ouarigue South, saw thick intercepts at good grades including 45.3m at 3.16g/t
gold from 45.9m including 9m at 10.31g/t gold and resulted in a remarkable
trading day for the Company with over 300 million shares changing hands and
the share price surging over 300% to new intra-year highs. The results are a
significant improvement on the initial reconnaissance RC results and suggest
that overall gold grades are higher at depth. Deeper drilling along strike to the
south may therefore produce higher grades than the initial, shallow RC holes.
Most of the mineralised body contains reportable gold grades, which bodes
well both for ore continuity and tonnage potential.
At Boundiali, the Company continued to test numerous targets over a more
than 20km of gold-in-soil anomalies with drilling programs at the Nyangboue
Prospect (13m at 1.78g/t gold from 63m, 14m at 1.30g/t gold from 9m, 7m at
4.02g/t gold from 87m, including 1m at 10.3g/t gold) and drilling and trenching
at targets BN1, BN2 and BN3 (5m at 3.49g/t gold from 28m and 7m at 1.43g/t
gold from 18m). The drilling and trenching programs at Boundiali have
further enhanced the potential of both permits (Boundiali North, Boundiali
South) to host large tonnages of gold mineralisation with significant new
gold mineralised zones outlined by these results. Also, large areas of gold-in-
soil anomalies remain untested on the Boundiali Project offering substantial
opportunity to discover more mineralisation on both permits.
While the Cote D’Ivoire joint venture properties continue to underpin the
future value proposition of Predictive, the opening-up of a new frontier
in Guinea provides an exciting new opportunity for gold discovery, with
500km2 of landholdings acquired for early-stage exploration. Thus far, initial
results from the Nonta, Kankan and Kaninko Permits have validated the
core company strategy of securing land in prospective gold jurisdictions and
completing low-cost early stage exploration work to vector down on new
targets and prospects. Under the stewardship of in-country Principal Geologist
Aimé Nganare, these 100%-owned properties will underpin much of the
Predictive-led exploration planned for 2019-2020 field season. The Company
has already delineated a number of high-potential targets at Kaninko and
Kankan with drilling expected in early 2020.
It gives me great pleasure to
present Predictive Discovery
Limited’s (Predictive, PDI or
the Company) 2019
Annual Report.
With significant new
gold discoveries at the
Ferkessedougou North
and Boundiali Projects and
promising results from
its 100%-owned Guinea
Properties, the Company’s
2019 field season was an
unquestionable success.
The Company also received
more good news with the sale
of Joint Venture Partner
Toro Gold to Resolute Mining
(ASX: RSG). The Company
warmly welcomes Resolute to
the Cote D’Ivoire Joint Venture
and looks forward to continued
success at the Company’s
flagship properties.
4 | 2019 Annual Report
“
Our objectives for the
2019-20 Financial Year
include adding new
gold discoveries and
resource identification.
“
The Company believes in running a lean operation and
putting shareholder money into exploration. 2018-19 was no
exception. 11,427m of RC drilling and 6,809m of trenching
were completed on the Boundiali Project, 1,059 m of
diamond drilling and 1,960m of trenching were completed at
Ferkessedougou North and numerous BLEG, soil sampling,
rock-chip sampling and field mapping programs were
completed across the Cote D’Ivoire and Guinea Properties.
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 and for their efforts
which have advanced the interests of Predictive throughout
the past year. 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.
Our objectives for the 2019-20 Financial Year include adding
new gold discoveries and resource identification. I thank
you for your support throughout 2018-20 and hope that our
progress during the forthcoming year will continue to add
value to your investment in Predictive. 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.
Yours Sincerely
Phillip Jackson
Non-Executive Chairman
2019 Annual Report | 5
Review of Operations
In 2018-2019 Predictive and Joint Venture partner, Toro Gold, focused exploration activities on the
Boundiali and Ferkessedougou North Projects resulting in excellent drill results from both properties.
The Company also expanded its 100%-owned position in Guinea, generating very promising early
stage results.
In recent years, the Company has assembled a large portfolio of properties across the world-class
Birimian greenstone belts of Cote D’Ivoire, Guinea and Burkina Faso (Figure 1).
Figure 1 – Predictive Discovery 100%-owned and joint venture projects in Guinea, Cote D’Ivoire and Burkina Faso
6 | 2019 Annual Report
Predictive has entered into joint ventures with development-orientated partners on projects in Cote D’Ivoire and
Burkina Faso. The Company holds significant minority interests (25-49%) in these projects with most exploration
activity funded by these partners. This approach has already yielded gold discoveries in Cote D’Ivoire and Burkina
Faso, including the recently announced Ouarigue South discovery at Ferkessedougou North Project. The
Company is also in the early stages of exploring a series of 100% owned projects in Guinea, which have produced
encouraging gold geochemical anomalies at the Nonta, Kankan and Kaninko Projects.
Following a period of extensive project review by Resolute on its Joint Venture properties in Cote D’Ivoire
Predictive announced Resolute’s plans for a drill-focused joint venture exploration program costing $2-3 million in
the next 12 months. The program will target the Ferkessedougou North and Boundiali Projects, where significant
gold mineralisation has already been discovered.
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Our new JV partners have strengthened the outlook for the projects, bringing a fresh approach to exploration,
supporting Resolute’s objective of adding gold ounces to its portfolio. We eagerly await the commencement of
diamond drilling at Ferkessedougou North and look forward to advancing both JV Projects towards what we
believe could be significant gold deposits.
2019 Annual Report | 7
Joint Venture Partner
Resolute Mining (ASX: RSG)
Resolute Mining (Resolute) is a Resolute is a successful dividend paying gold miner with more than 30 years of
experience as an explorer, developer, and operator of gold mines in Australia and Africa which have produced more
than 8Moz of gold.
Resolute owns four gold mines. Its flagship asset is the world class Syama Gold Mine in Mali (Syama) which can
produce more than 300,000 ounces of gold per annum from existing processing infrastructure. Resolute is currently
commissioning the world’s first fully automated underground mine at Syama which will deliver a low cost, large scale
operation with a mine life beyond 2032. The Mako Gold Mine in Senegal is a high quality, low cost asset with average
annual production of ~140,000 ounces of gold. The Ravenswood Gold Mine in Australia and the Bibiani Gold Mine in
Ghana are existing large-scale assets which provide Resolute with significant production growth potential. Resolute has
a pathway to annual gold production in excess of 500,000 ounces from a Global Mineral Resource base of more than
18 million ounces of gold.
Resolute trades on the Australian Securities Exchange (ASX) and the London Stock Exchange (LSE) under the
ticker RSG.
Predictive is in joint venture with Resolute on seven granted permits and two permit applications in Cote D’Ivoire
(Figure 2). 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
Mr Bruce Mowat (Resolute General Manager – Exploration)
Mr Bruce Mowat joined Resolute in 2011 and is currently General Manager – Exploration, responsible for the Company’s
exploration and development programs in Australia, Africa and other jurisdictions. Mr Mowat has spent 30 years
exploring for and finding gold and base metal deposits in Australia, PNG, Indonesia and West Africa and has held senior
positions in a number of companies. Prior to joining Resolute Mr Mowat was Chief Geologist for Straits Resources.
Cote D’Ivoire Projects
Kokoumbo, Boundiali, Kounahiri, Ferkessedougou North, Beriaboukro, Boundiali North.
Deal Structure
Resolute (formerly Toro Gold) earned 70% in the holding company, Predictive Discovery Cote D’Ivoire SARL through
exploration expenditures on the Joint Venture projects up to December 2018. The Company estimates that Resolute’s
equity increased by 5% in from January to June 2019. Predictive therefore intends to fund about 25% of the Joint
Venture’s exploration budget in the 2020 financial year.
8 | 2019 Annual Report
Financial Year 2018-19
Exploration Activity
Cote D’Ivoire
Predictive has been operating in Cote D’Ivoire since 2013 and regard it as a highly attractive destination for
mining investment, both because of its high prospectivity for gold discovery and for its deserved reputation as
an investor friendly jurisdiction. Apart from the Company’s own exploration successes in Cote D’Ivoire, other
Australian listed explorers, such as Exore Resources (ASX: ERX) and Tietto Minerals (ASX: TIE) are reporting very
exciting exploration results from the country.
In recent years Predictive has expanded its ground position in Cote D’Ivoire. 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 a joint venture with Resolute Mining and an agreement with Montage Gold
Corporation (formerly Progress Minerals Inc) that entitles the Company to production payments from future
gold mine production from new mines. The Company holds one wholly-owned exploration permit and two
permit applications in the name of its 100% owned subsidiary, Ivoirian Resources SARL.
Ferkessedougou North (Resolute JV)
Diamond Drilling Program
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In June, Predictive announced
the discovery of the Ouarigue
South deposit (Figure 2 & 3), a
mineralised body up to 100m
wide and at least 210m-long from
a nine-hole diamond drilling (DD)
program, with a best intercept of
45.3m at 3.16g/t gold from 45.9m
including 9m at 10.31g/t gold1.
The diamond drilling program
was designed to explore the
shape and grade distribution of
a gold mineralised body, which
was initially encountered in
reconnaissance RC drilling and
trenching programs. To date, a
total of 7,107m of trenching,
80 RC holes (for 4,989m)
and 9 DD holes (for 1,059m)
has been completed on the
Ferkessedougou North Project.
FNDC007
12m @ 2.1g/t Au
FNDC007
10m @ 2.3g/t Au
1,065,500 mN
FNDC008
35m @ 1.0g/t Au
FNDC008
40m @ 3.5g/t Au
1,065,400 mN
FNDC004
16m @ 2.4g/t Au
1,065,300 mN
1,065,800 mN
E
m
0
0
1
,
9
9
2
E
m
0
0
2
,
9
9
2
E
m
0
0
3
,
9
9
2
E
m
0
0
4
,
9
9
2
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0
0
5
,
9
9
2
E
m
0
0
6
,
9
9
2
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m
0
0
7
,
9
9
2
1,065,700 mN
FNDC002
45m @ 1.5g/t Au
FNRC006
FNDC003
FNRC005
FNRC070
FNRC004
FNDC006
13m @ 1.4g/t Au
FNDC005
15m @ 2.1g/t Au
10m @ 1.7g/t Au
60m @ 1.4g/t Au
1,065,600 mN
FNRC003 14m @ 1.2g/t Au
FNRC002 28m @ 0.7g/t Au
FNDC001
7m @ 1.8g/t Au
FNDC001
11m @ 1.9g/t Au
FNDC001
45m @ 3.2g/t Au
FNDC001
13m @ 0.7g/t Au
FNRC016
8m @1.5g/t Au
25m @ 3.1g/t Au
FNRC007
FNRC008
FNRC009
FNRC001
13m @ 1.0g/t Au
24m @ 0.7g/t Au
FNRC010
FNRC011
FNRC012
0
N
100
metres
FERKESSEDOUGOU NORTH
OUARIGUE SOUTH
GOLD PROSPECT
New results Diamond Holes
Previous Trenches
Surface Projection DD Mineralisation
Surface Projection RC Mineralisation
Mapped Granite from Trenches
RC Holes previously released
Figure 2 - Drill locality plan showing plan view locations of DD and RC gold drill intercepts.
1 ASX Announcement - CONFIRMATION OF SIGNIFICANT NEW GOLD DISCOVERY AT FERKESSEDOUGOU NORTH, COTE D’IVOIRE
https://www.investi.com.au/api/announcements/pdi/02e800f8-176.pdf
2019 Annual Report | 9
In November 2019 the Joint Venture will commence a modest diamond drilling program to test extensions to the
known mineralised body at Ouarigue South. Elsewhere on the 17km long gold-in-soil anomalous zone, programs of
geological mapping, analysis of the infill soil samples collected by Toro and reprocessing of the aeromagnetic data.
Predictive anticipates that additional drill programs aimed at identifying more granite-hosted Ouarigue South-type
bodies will follow in the first half of 2020.
WEST
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2
5
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F
DC001
FN
FNRC016
13m @ 0.7g/t Au
EAST
15m @ 2.1g/t Au
10m @ 1.7g/t Au
45m @ 3.2g/t Au
8m @ 1.5g/t Au
250 mN
45m @ 1.5g/t Au
60m @ 1.4g/t Au
11m @ 1.9g/t Au
25m @ 3.1g/t Au
200 mN
150 mN
3m @ 3.3g/t Au
7m @ 1.8g/t Au
5m @ 6.1g/t Au
0
N
50
metres
FERKESSEDOUGOU NORTH
CROSS SECTION
X
Results this release
X
Results previously released
>0.1g/t Au grade mineralised envelope
Metasediment
Granite
Figure 3 - Ferkessedougou North drill cross section showing interpreted geology and results of DD holes FNDC001, 002, 008
and RC hole FNRC016.
10 | 2019 Annual Report
Boundiali and Boundiali North Permits (Resolute JV)
The Boundiali Project consists of two permits – Boundiali North and Boundiali South (Figure 4) - which cover more
than 35km of strike length of a very well-mineralised greenstone belt, which includes the Sissingue gold mine in
Cote D’Ivoire and Resolute’s flagship Syama mine in Mali.
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Figure 4 - Boundiali Project (North and South) geochemical map results highlighting targets BN1, BN2 and BN3 and
RC/DD holes (black dots). Note the large extent of untested gold-in-soil geochemical anomalies.
Predictive’s first exploration program on the permit was a BLEG stream sediment survey in 2014 which discovered
a series of gold stream sediment anomalies, the strongest of which was downstream of the Nyangboue Prospect.
Subsequent soil sampling by then joint venture partner Toro Gold Limited in 2015-16 revealed the 6km-long
Nyangboue gold geochemical anomaly. Initial RC and diamond drilling in 2016/17 on the Nyangboue Prospect
returned a series of excellent drill results including 30m at 8.3g/t gold from 39m and 28m at 4.04g/t gold from 3m.
In 2018 the joint venture undertook a soil geochemistry program comprising 6,338 samples on the Boundiali North
permit, identifying a series of gold anomalies extending over 14km clustered around the inferred north-south
Nyangboue structure which also passes through the Nyangboue gold mineralised zone, further south. Higher gold
values include 1,185, 806 and 626 ppb gold.
Following the initial soil sampling program, the joint venture completed a 6,809m trenching program over the
Boundiali North permit. In March 2019 an RC drill rig began work with infill drilling at Boundiali South on the
Nyangboue Prospect (Figure 5). Highly encouraging first results were received from a 31-hole (3,324m) infill Reverse
Circulation (RC) drill program at the Nyangboue Prospect with numerous significant gold results returned with
good widths and high grades with multiple +1g/t gold intercepts were recorded in every hole.
Better Results included:
•
•
•
•
•
BRC 170: 13m at 1.78g/t gold from 63m
BRC 171: 14m at 1.30g/t gold from 9m
BRC 171: 7m at 4.02g/t gold from 87m,
including 1m at 10.3g/t gold
BRC 173: 8m at 2.91g/t gold from 53m
BRC 173: 4m at 5.50g/t gold from 67m,
including 1m at 10.7g/t gold
•
•
•
•
BRC 175: 27m at 2.42g/t gold from 27m, including
3m at 10.3g/t gold, 4m at 4.96g/t gold from 32m,
including 1m at 10.7g/t gold
BRC 181: 3m at 9.69g/t gold from 137m
BRC 182: 16m at 1.49g/t gold from 6m
BRC 183: 9m at 2.86g/t gold from 68m,
including 1m at 16.7g/t gold
2019 Annual Report | 11
Figure 5 – Nyangboue Gold Prospect with current and previous drill holes overlain gold-in-soil anomalies
Based on these infill drill results, mineralisation at Nyangboue now appears to consist of a series of north-striking, sub-
parallel, gold-mineralised zones dipping shallowly to the west. Given that the mineralisation is open to the north, south
and down dip, there is clearly more drilling to be done at Nyangboue to determine the full size of the gold mineralised
system. When combined with the new gold mineralisation discovered in the Boundiali North permit (see below), the
potential scale of the mineralised systems at Boundiali continues to grow.
In April the drill rig was moved to Boundiali North where a large reconnaissance RC drill program was completed
testing targets identified by the trenching program (Figure 6). The RC drilling tested three strong gold-in-soil anomalies
with a combined length of 7.7km within the previously defined broad, 14km long zone of soil anomalies.
Better intersections included:
•
•
•
•
•
•
•
•
•
BNRC012 - 5m at 3.49g/t gold from 28m
BNRC014 - 7m at 1.43g/t gold from 18m
BNRC015 - 8m at 1.80g/t gold from 35m
BNRC016 - 3m at 6.61g/t gold from 45m
BNRC031 - 11m at 1.20g/t gold from 4m
BNRC031 - 30m at 1.08g/t gold from 32m
BNRC032 - 10m at 3.14g/t gold from 53m
BNRC032 - 32m at 1.46g/t gold from 80m
BRNC047 - 3m at 4.73g/t gold from 34m
12 | 2019 Annual Report
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Figure 6 - Boundiali North Gold Prospect Cross Section
6,809m of reconnaissance trenching at Boundiali North also encountered wide zones of anomalous gold with
multiple intersections of higher values, including:
•
•
•
•
•
•
BNTR002 - 2m at 4.96g/t gold
BNTR003A - 14m at 1.01 gold within a 162m long section averaging 0.42g/t gold
BNTR004 - 2m at 5.09g/t gold within a 60m long section averaging 0.48g/t gold
BNTR005 - 14m at 1.80g/t gold within a 34m long section averaging 0.92g/t gold
BNTR007 - 24m at 2.29g/t gold within a 58m long section averaging 1.10g/t gold
BNTR008 - 10m at 2.24g/t gold within a 66m long section averaging 0.50g/t gold
Predictive expects that the joint venture will carry out more drilling on both permits after the drill fire assay
results are received and further assessment of past programs on the project areas is completed. Given that
large areas of gold-in-soil anomalies remain undrilled on both Boundiali permits, the potential for new
discoveries remains high.
2019 Annual Report | 13
Guinea
During the reporting period the Company acquired five Reconnaissance Authorisations in Guinea totalling ~500km2
(Figure 7). All landholdings were identified through the Company’s PredictoreTM methodology which helps identify
large and deep structures which are thought to have channelled large quantities of gold-bearing fluid from deeper in
the earth’s crust, generating well mineralised gold belts including large gold deposits at surface.
Figure 7 – Predictive Discovery 100%-owned Projects in Guinea
The PredictoreTM methodology and a strategic analysis of the country has identified the Siguiri Basin Figure 7 as being
both highly prospective for gold mineralisation and underexplored. The Siguiri Basin is part of the richly mineralised
West African Birimian gold belt and consists largely of metasediments with minor granitic rocks, metavolcanics and
mafic to ultramafic intrusives.
In April, Predictive announced results from initial field work at Nonta and Kankan Projects. The Company sampled
and assayed 50 rock chip and dump samples from artisanal mine sites and rock outcrops at Nonta with a peak value
of 29g/t Au. A gold Bulk Leach Extractable Gold (BLEG) stream sediment sampling program was completed, totalling
39 samples, with results peaking at 223ppb Au and exceeding 20ppb over two stream catchment areas covering a to-
tal area of 20km2. During the period, the Company also completed a gold Bulk Leach Extractable Gold (BLEG) stream
sediment sampling program (peaking at 87ppb Au) on Kankan (Figure 7), totalling 42 samples. An initial soil sampling
program over part of the permit, totalling 269 samples, collected on an 800 x 100m2 grid, was completed revealing a
6km long zone of gold-in-soil anomalies with a peak value of 570ppb Au.
14 | 2019 Annual Report
245ppb Au
330ppb Au
286ppb Au
292ppb Au
570ppb Au
220ppb Au
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243ppb Au
N
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1km
KANKAN PROJECT
SOIL SAMPLING PROGRAM
20-50ppb gold anomalies
50-100ppb gold anomalies
+100ppb gold anomalies
Figure 8 - Kankan Project soil sampling results with wides zones of 20-50ppb gold anomalies (green), 50-100ppb gold anomalies
(yellow) and +100ppb gold anomalies (red)
In early October, the Company
also announced encouraging
initial sampling results from
the Kaninko Project (Figure 9).
Three prospects for potential drill
targeting have been identified,
Bankan Creek Prospect (peak
value of 4.6g/t gold), Bankan
north-east Prospect (peak values
of 1.6g/t gold and 1.4g/t gold) and
Bankan East Prospect (peak-value
of 1.3g/t gold).
The early results from Kaninko
add a promising new prospect to
the Guinea portfolio following the
earlier results from Kankan and
Nonta which identified exten-
sive soil geochemical anomalies.
The better results were obtained
from vertical channel sampling
of weathered bedrock within a
300m length of artisanal workings
from which artisanal miners report
that they are currently extracting
significant quantities of gold.
Figure 9 - Location of samples and prospects, Kaninko Exploration Permit, Guinea
Larger scale geochemical surveys on the Kankan, Nonta and Kaninko properties will be undertaken in the
next few months. These may be accompanied by ground geophysical surveys where appropriate. All this
work is aimed at readying Predictive’s best Guinea prospects for drilling in the March Quarter of 2020.
2019 Annual Report | 15
Burkina Faso
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.
During FY 2018-2019, the Progress Minerals Joint Venture (now Montage Joint Venture) completed 2,596m of RC
drilling on the Tambiri permit, which lies within the wider Progress JV Area of Influence (AOI). The program was testing
a gold geochemical anomaly and mineralised structure along strike from high-grade gold mineralisation drilled by
Predictive in 2011-12. The drilling encountered narrow zones gold mineralisation in most holes along the Tambiri shear
zone trend. The mineralised zones dip steeply to the south, consistent with the earlier Predictive drilling.
Better intercepts included:
•
•
TAMRC005: 1m at 7.23 g/t Au.
TAMRC008: 4m at 4.23g/t Au from 74m including 1m at 10.90g/t Au.
On completion of the Tambiri program,15,000m of RC drilling was planned to commence on the Bira Project in the
March Quarter, testing 10 targets, however due to the security incident at the Tiabongou campsite, work there is
currently suspended.
On 18th January 2019, the Company advised of a security incident at its Progress Minerals Joint Venture in Burkina
Faso, which resulted in the death of a senior employee of its Canadian joint venture partner Progress Minerals Inc.
The Company extended its deepest sympathies to the family and colleagues of Kirk Woodman – a respected
geologist with 20 years of experience in working on the ground in West Africa. The ongoing safety and security
of every individual involved in the joint venture managed by Progress Minerals is of paramount importance to
both companies.
16 | 2019 Annual Report
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 2019.
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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 $1,459,332 (2018:
$1,474,046). This was largely from exploration costs, share of losses of associates and the costs of administering the
Group to 30 June 2019.
REVIEW OF OPERATIONS
In 2018-2019 Predictive‘s joint venture with Toro Gold Limited in Cote D’Ivoire continued to generate highly encouraging
drilling results from two properties. Progress during the year included recognition of two new zones with significant
resource potential – the Ouarigue South prospect and two prospects within the Boundiali North permit. The Company
also opened up a new frontier for exploration in Guinea during the year, acquiring 5 properties covering a total area of
500km2 and commencing early stage exploration programs which have revealed several promising gold-in-soil
anomalies.
JOINT VENTURE PARTNERS
Progress Minerals International Inc (now part of Montage Gold Corporation)
Progress Minerals Inc (Progress) was an unlisted Canadian exploration company which was incorporated in 2016 and
based in Vancouver, Canada. It changed its name to Avant Minerals during 2017-18 and merged with a company owned
by Orca Gold to form Montage Gold Corporation (Montage) in August 2019.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
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DIRECTORS’ REPORT
Burkina Faso Permits: Kalinga, Tambifwanou, Bongou, Tamfoagou, Tangagari, Tambiri, Bira, Basieri, Haoura and
Mansila.
Deal Structure: Progress (now Montage) earned 51% by spending US$1 million in 2018. Predictive’s current equity
interest is 49%.
Cote D'Ivoire Permits (Bobosso Project): Bassawa and Wendene.
Deal Structure: Montage now owns 100% in the project holding company, West African Mine Investments Pty Ltd.
Predictive sold its then-30% equity in the project to Progress in 2017-18 for a cash payment of C$493,000 and a
commitment by Progress to make future bonus payments to Predictive on development of up to 3 mines on the permits.
Toro Gold (now Resolute Mining Limited)
Toro Gold Ltd (Toro) was a private gold exploration, development and production company focused in West Africa. It
was purchased by Resolute Mining Limited (Resolute) in August 2019.
Predictive is in joint venture with Resolute on six granted permits and two permit applications in Cote D’Ivoire (Figure
2). The Toro Joint Venture operates through Toro Gold Equatorial (Guernsey) Limited (it previously operated through
Predictive’s former subsidiary Predictive Discovery Cote D’Voire Sarl), of which Predictive now holds 30%.
Cote D'Ivoire Permits: Ferkessedougou North, Boundiali, Boundiali North , Kounahiri, Kokoumbo and Beriaboukro.
Deal Structure: Resolute’s current equity interest in the joint venture is 70%.
FINANCIAL YEAR 2018-19 EXPLORATION ACTIVITY
Project Highlights
Ferkessedougou North Project (Cote D’Ivoire) – Diamond drilling following up highly encouraging trench results on the
Ouarigue South prospect obtained a series of broad gold intercepts in a zone of mineralised granite and metasediments
which is now known to be at least 200m long and up to 100m wide. The best gold intercepts were 45.2m at 3.2g/t Au
including 9m at 10.3 g/t Au and 59.7m at 1.4g/t Au. Infill soil sampling on the surrounding area commenced immediately
after these results were obtained, aimed at finding more such mineralised granite gold deposits within the 17km long
zone of gold-in-soil geochemical anomalies in the permit.
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 $896,460 from 30 June 2018 to 30 June 2019. This net movement is
largely due to the following factors:
$0.52m net capital raising;
Share of Losses in Associates, following deconsolidation of subsidiaries from Joint Venture earn-ins;
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, with the exception of a capital
raising net of $0.52 million.
EVENTS SUBSEQUENT TO BALANCE DATE
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.
18 | 2019 Annual Report
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
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DIRECTORS’ REPORT
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
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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. 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
Option holding: 550,000 (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: 3,430,941
1,215,021 (listed)
Option holding: 2,200,000 (unlisted)
Directorships held in other listed entities
during the three years prior to the
current year
None
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
2019 Annual Report | 19
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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 Option holding: 550,000 (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, 15 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
5
5
5
5
5
5
attend
10
10
10
10
10
10
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 2019 to the date of this report are as follows:
Grant Date
29 November 2016
29 November 2016
27 November 2017
Date of Expiry
29 November 2019
29 November 2020
30 November 2019
Exercise Price
$0.2578
$0.3867
$0.060
TOTAL
Number under Option
1,952,500
1,952,500
73,030,518
76,955,518
During the year ended 30 June 2019 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.
20 | 2019 Annual Report
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
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NON AUDIT SERVICES
The Board of Directors is satisfied that the provision of non-audit services by the auditor during the year 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 2019 has been received and can be found on
page 61 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
2019 Annual Report | 21
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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 2019
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.
To 30 November 2018, Mr Waddell and Mr Moore were not remunerated by Predictive Discovery Ltd. Former Associate
Aurora Minerals Limited provided company secretarial, accounting and book-keeping services to the Company under
an Administration Services Agreement at a scheduled rate of $89,100 per annum. From 1 December 2018, Mr
Waddell has entered into a consulting agreement at a rate of $90,000 and requires 2 months’ notice of voluntary
termination of employment that entitles Mr Waddell to $15,000 as a termination benefit. Mr Moore is charged to the
Company at a rate of $100 per hour for any services rendered under a new Administration Services Agreement with
Aurora, with those charges amounting to $3,400 for the period.
REMUNERATION DETAILS FOR THE YEAR ENDED 30 JUNE 2019
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:
22 | 2019 Annual Report
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
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REMUNERATION REPORT (AUDITED) (continued)
Table of Benefits and Payments for the Period Ended 30 June 2019
Key
Personnel
Management
Salary,
fees and leave Other
Mr Philip Jackson
Mr Paul Roberts
Mr David Kelly
Mr Eric Moore(1)
Mr Bruce Waddell(1)
Total Key
Management
Personnel
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
$
50,000
50,000
205,000
192,981
31,963
31,963
-
-
52,500
-
339,463
274,944
$
-
-
-
-
-
-
-
-
-
-
-
-
Pension and
super-
annuation
$
Shares/
Units
$
Options/
Rights
$
-
-
-
-
3,037
3,037
-
-
-
-
3,037
3,037
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
$
50,000
50,000
205,000
192,981
35,000
35,000
-
-
52,500
-
342,500
277,981
(1) Associate Aurora Minerals Limited provided company secretarial, accounting and bookkeeping services to the Company
under an Administration Services Agreement at the scheduled rate of $89,100 per annum, which included the services of
Mr Waddell and Mr Moore. From 1 December 2018, Mr Waddell is remunerated by the Company and Mr Moore’s services
are paid for on an hourly basis through a new Services Agreement with Aurora.
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
30 June 2019
Mr Philip Jackson
Mr Paul Roberts
Mr David Kelly
Mr Eric Moore
Mr Bruce Waddell
825,000
4,515,021
825,000
330,000
247,500
6,742,521
-
-
-
-
-
-
Expired
during the
period
(275,000)
(1,100,000)
(275,000)
(110,000)
(82,500)
(1,842,500)
Other
changes
during the
period
Balance at
end of
period
Vested
during
the
period
Vested and
exercisable
Vested and
unexercis-
able
-
550,000
- 3,415,021
550,000
-
220,000
-
-
165,000
- 4,900,021
-
550,000
3,415,021
550,000
-
220,000
-
-
165,500
- 4,900,021
-
-
-
-
-
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
247,500
(1,462,521) 6,742,521
-
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
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
2019 Annual Report | 23
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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:
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
DIRECTORS’ REPORT
Granted as
remuneration
during the
period
REMUNERATION REPORT (AUDITED) (continued)
Balance at
beginning of
period
Issued on
exercise of
options during
the period
Purchased
during the
period
Other changes
during the
period
Balance at end of
period
30 June 2019
Mr Phillip Jackson
Mr Paul Roberts
Mr David Kelly
Mr Eric Moore
Mr Bruce Waddell
-
2,708,260
-
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:
-
2,708,260
-
KEY MANAGEMENT PERSONNEL SHAREHOLDINGS
-
-
-
-
Issued on
-
exercise of
options during
the period
500,000
722,681
225,000
-
350,000
1,797,681
Other changes
during the
period (1)
Balance at
beginning of
period
Purchased
during the
period
Balance at end of
period
-
-
-
-
-
-
-
-
-
-
-
-
500,000
3,430,941
225,000
-
350,000
4,505,941
Granted as
remuneration
during the
period
Granted as
remuneration
-
during the
-
period
-
-
-
-
30 June 2018
Mr Phillip Jackson
Mr Paul Roberts
Mr David Kelly
30 June 2018
Mr Eric Moore
Mr Phillip Jackson
Mr Bruce Waddell
Mr Paul Roberts
Mr David Kelly
(1)
Mr Eric Moore
Mr Bruce Waddell
Issued on
exercise of
-
options during
-
the period
-
-
-
-
Balance at
-
beginning of
1,483,179
period
-
-
-
1,483,179
-
1,225,081
-
-
-
-
-
1,225,081
-
B Waddell appointed additional Company Secretary 21 August 2017
-
-
-
-
1,483,179
-
-
Granted as
-
remuneration
1,483,179
during the
period
-
-
-
-
Issued on
-
exercise of
-
options during
the period
B Waddell appointed additional Company Secretary 21 August 2017
Balance at
beginning of
period
Purchased
during the
period
(1)
-
1,225,081
-
-
-
1,225,081
Purchased
during the
period
Other changes
during the
period (1)
-
-
-
-
-
-
-
Balance at end of
2,708,260
period
-
-
-
-
-
2,708,260
-
-
-
-
-
2,708,260
-
-
-
2,708,260
Other changes
during the
period (1)
Balance at end of
period
30 June 2017
Mr Phillip Jackson
SECURITIES RECEIVED THAT ARE NOT PERFORMANCE-BASED
Mr Paul Roberts
Mr David Kelly
Mr Eric Moore
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.
-
(13,348,611)
-
-
(13,348,611)
-
14,331,790
-
-
14,331,790
-
1,483,179
-
-
1,433,179
-
500,000
-
-
500,000
Consolidation of the company’s shares and options on a 1 for 10 basis effective 19 May 2017
-
-
-
-
-
-
-
-
-
-
(1)
CASH BONUSES, PERFORMANCE-RELATED BONUSES AND SHARE-BASED PAYMENTS
SECURITIES RECEIVED THAT ARE NOT PERFORMANCE-BASED
Options were granted as remuneration during the year to key management personnel and other executives as set out
No members of key management personnel received securities during the period which were not dependent upon the
in notes 16 and 22.
performance of the group’s share price as part of their remuneration package.
END OF THE REMUNERATION REPORT
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
Signed in accordance with a resolution of the Board of Directors:
in notes 17 and 23.
Paul Roberts
END OF THE REMUNERATION REPORT
Managing Director
27 September2019
Signed in accordance with a resolution of the Board of Directors:
Paul Roberts
24 | 2019 Annual Report
Managing Director
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
02 October 2018
10
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
10
Statement of
Comprehensive
Income
STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2019
Finance income
Other income
Gain on Sale of JV Interest
Administrative payments
Foreign exchange gain/(expenses)
Write off of loans
Gain on deconsolidation of subsidiary
Share of loss in Associates
Impairment of exploration expenditure
Exploration expenditure pre-right to tenure
Loss before income tax
Income tax expense
e
m
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c
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I
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s
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t
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a
s
s
o
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o
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fi
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r
P
f
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t
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m
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t
a
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S
Consolidated
Note
2019
$
2018
$
18,284
37,470
223,139
(712,765)
(14,671)
-
-
(129,435)
(474,091)
(407,263)
22,717
22,004
-
(997,744)
(135,265)
(781,043)
789,786
-
-
(394,501)
(1,459,332)
(1,474,046)
-
-
24
7
6
2
Loss from continuing operations
(1,459,332)
(1,474,046)
Other comprehensive income
Items that may be not reclassified subsequently to operating
result
Exchange difference on translation of foreign operations
10
45,395
(1,540,949)
Total comprehensive loss for the year
(1,413,937)
(3,014,995)
Profit attributable to:
Members of the parent entity
(1,413,937)
(3,014,995)
(1,413,937)
(3,014,995)
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
11
11
(0.592)
(0.592)
(0.716)
(0.716)
The accompanying notes form part of these financial statements
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
2019 Annual Report | 25
11
Statement of Financial
Position
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2019
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
2019
$
2018
$
3
4
5
6
7
8
1,173,049
104,690
1,277,739
21,500
1,923,318
747,568
2,692,386
1,684,053
104,887
1,788,940
5,696
2,189,364
840,645
3,035,705
3,970,125
4,824,645
88,829
-
88,829
88,829
46,889
-
46,889
46,889
3,881,296
4,777,756
9
10
31,491,240
298,632
(27,908,576)
30,973,763
877,409
(27,073,416)
3,881,296
4,777,756
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
26 | 2019 Annual Report
12
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2019 Annual Report | 27
3
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Statement of Changes in
Equity
I
T
R
O
P
E
R
L
A
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N
A
N
I
F
L
A
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N
N
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Statement of Cash Flows
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2019
Cash flows from operating activities
Receipts from customers
Interest received
Payments for exploration expenditure
Payments to suppliers and employees
Note
Consolidated
2019
$
-
17,262
(890,267)
(653,443)
2018
$
30,879
22,717
(2,913,887)
(1,031,426)
Net cash provided by (used in) operating activities
20
(1,526,448)
(3,891,717)
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
JV Contributions (exploration)
Proceeds from conversion of remaining JV interest
Cash in deconsolidated entities
-
-
(18,208)
-
-
514,925
-
-
725
(171,950)
(130,111)
1,563,022
(45,246)
24
Net cash provided by (used in) investing activities
496,717
1,216,440
Cash flows from financing activities
Proceeds from issue of shares
Payment for share issue costs
531,000
(13,523)
3,067,282
(349,662)
Net cash inflow from financing activities
517,477
2,717,620
Foreign exchange differences
1,250
-
Net increase (decrease) in cash held
(511,004)
42,343
Cash and cash equivalents at beginning of financial period
1,684,053
1,641,710
Cash and cash equivalents at end of the financial period
3
1,173,049
1,684,053
The accompanying notes form part of these financial statements
28 | 2019 Annual Report
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
14
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
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.
Basis of preparation
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N
Statements
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.
Notes to the Financial
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.
The financial statements were authorised for issue, in accordance with a resolution of the directors, on 27 September
2019. The directors have the power to amend and re-issue the financial statements.
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 17 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
2019 Annual Report | 29
15
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(a)
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Principles of consolidation (continued)
Principles of consolidation (continued)
Business Combinations
(a)
Business combinations occur where an acquirer obtains control over one or more businesses and results in the
Business Combinations
consolidation of its assets and liabilities.
Business combinations occur where an acquirer obtains control over one or more businesses and results in the
A business combination is accounted for by applying the acquisition method, unless it is a combination involving entities
consolidation of its assets and liabilities.
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
A business combination is accounted for by applying the acquisition method, unless it is a combination involving entities
for as at the acquisition date, which is the date that control over the acquiree is obtained by the parent entity.
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
At this date, the parent shall recognise, in the consolidated accounts, and subject to certain limited exceptions, the fair
for as at the acquisition date, which is the date that control over the acquiree is obtained by the parent entity.
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.
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
The acquisition may result in the recognition of goodwill or a gain from a bargain purchase. The method adopted for the
recognised where a present obligation has been incurred and its fair value can be reliably measured.
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 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
The acquisition date fair value of the consideration transferred for a business combination plus the acquisition date fair
acquiree where less than 100% ownership interest is held in the acquiree.
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
The acquisition date fair value of the consideration transferred for a business combination plus the acquisition date fair
former owners of the acquiree and the equity interests issued by the acquirer.
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
Fair value uplifts in the value of pre-existing equity holdings are taken to the statement of comprehensive income.
former owners of the acquiree and the equity interests issued by the acquirer.
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.
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,
Included in the measurement of consideration transferred is any asset or liability resulting from a contingent
such amounts are recycled to profit or loss.
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
Included in the measurement of consideration transferred is any asset or liability resulting from a contingent
previously paid are recognised as a receivable. Subsequent to initial recognition, contingent consideration classified as
consideration arrangement. Any obligation incurred relating to contingent consideration is classified as either a financial
equity is not remeasured and its subsequent settlement is accounted for within equity. Contingent consideration
liability or equity instrument, depending upon the nature of the arrangement. Rights to refunds of consideration
classified as an asset or a liability is remeasured each reporting period to fair value through the statement of
previously paid are recognised as a receivable. Subsequent to initial recognition, contingent consideration classified as
comprehensive income unless the change in value can be identified as existing at acquisition date.
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
All transaction costs incurred in relation to the business combination are expensed to the statement of comprehensive
comprehensive income unless the change in value can be identified as existing at acquisition date.
income.
All transaction costs incurred in relation to the business combination are expensed to the statement of comprehensive
Interests in joint arrangements
income.
IFRS defines a joint arrangement as one over which two or more parties have joint control, which is the contractually
Interests in joint arrangements
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
IFRS defines a joint arrangement as one over which two or more parties have joint control, which is the contractually
control.
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
(i) Joint operations
control.
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
(i) Joint operations
operations, the Group recognises its:
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 | 2019 Annual Report
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
16
16
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(a)
Principles of consolidation (continued)
•
•
•
•
•
Assets, including its share of any assets held jointly
Liabilities, including its share of any liabilities incurred 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
2019 Annual Report | 31
17
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(b)
Revenue recognition
The Group recognises revenue as follows:
Interest
Interest revenue is recognised using the effective interest rate method. This is a method of calculating the amortised
cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate,
which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset
to the net carrying amount of the financial asset.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
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.
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FOR THE YEAR ENDED 30 JUNE 2019
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Employee Benefits
Income Tax (continued)
Income Tax (continued)
(d)
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (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
(d)
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
Current assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net
it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will
settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets
occur in future periods in which significant amounts of deferred tax assets or liabilities are expected to be recovered or
and liabilities are offset where a legally enforceable right of set-off exists, the deferred tax assets and liabilities relate to
settled.
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
(e)
occur in future periods in which significant amounts of deferred tax assets or liabilities are expected to be recovered or
settled.
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
(e)
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
Provision is made for the company's liability for employee benefits arising from services rendered by employees to the
liability, consideration is given to employee wage increases and the probability that the employee may satisfy vesting
end of the reporting period. Employee benefits that are expected to be settled within one year have been measured at
requirements. Those cashflows are discounted using market yields on corporate bonds with terms to maturity that
the amounts expected to be paid when the liability is settled. Employee benefits payable later than one year have been
match the expected timing of cashflows.
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
Liabilities recognised in respect of employee benefits which are not expected to be settled within 12 months are
requirements. Those cashflows are discounted using market yields on corporate bonds with terms to maturity that
measured at the present value of the estimated future cash outflows to be made by The Group in respect of services
match the expected timing of cashflows.
provided by employees up to reporting date.
Employee Benefits
Provisions
Liabilities recognised in respect of employee benefits which are not expected to be settled within 12 months are
(f)
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.
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.
(f)
Provisions
The liability for long service leave is recognised in current and non-current liabilities, depending on the unconditional
Provisions are recognised when The Group has a legal or constructive obligation, as a result of past events, for which it
right to defer settlement of the liability for at least 12 months after the reporting date.
is probable that an outflow of economic benefits will result and that outflow can be reliably measured.
Foreign Currency Transactions and Balances
Foreign Currency Transactions and Balances
(g)
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.
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
(g)
which is the parent entity's functional and presentation currency. All other companies within The Group have Australian
dollars as their functional currency.
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
Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of
which is the parent entity's functional and presentation currency. All other companies within The Group have Australian
the transaction. Foreign currency monetary items are translated at the year-end exchange rate. Non-monetary items
dollars as their functional currency.
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.
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
Exchange differences arising on the translation of monetary items are recognised in the consolidated statement of
measured at historical cost continue to be carried at the exchange rate at the date of the transaction. Non-monetary
comprehensive income, except where deferred in equity as a qualifying cash flow or net investment hedge.
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 non-monetary items are recognised directly in equity to the extent
Exchange differences arising on the translation of monetary items are recognised in the consolidated statement of
that the gain or loss is directly recognised in equity, otherwise the exchange difference is recognised in the consolidated
comprehensive income, except where deferred in equity as a qualifying cash flow or net investment hedge.
statement of comprehensive income.
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
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
2019 Annual Report | 33
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19
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
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)
Investments and other financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the
initial measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently
measured at either amortised cost or fair value depending on their classification. Classification is determined based on
both the business model within which such assets are held and the contractual cash flow characteristics of the financial
asset unless, an accounting mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the
Group has transferred substantially all the risks and rewards of ownership. When there is no reasonable expectation of
recovering part or all of a financial asset, it's carrying value is written off.
Financial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value through other comprehensive income are classified as
financial assets at fair value through profit or loss. Typically, such financial assets will be either: (i) held for trading,
where they are acquired for the purpose of selling in the short-term with an intention of making a profit, or a derivative;
or (ii) designated as such upon initial recognition where permitted. Fair value movements are recognised in profit or
loss.
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include equity investments which the Group intends
to hold for the foreseeable future and has irrevocably elected to classify them as such upon initial recognition.
Impairment of financial assets
The Group recognises a loss allowance for expected credit losses on financial assets which are either measured at
amortised cost or fair value through other comprehensive income. The measurement of the loss allowance depends
upon the Group's assessment at the end of each reporting period as to whether the financial instrument's credit risk
has increased significantly since initial recognition, based on reasonable and supportable information that is available,
without undue cost or effort to obtain.
34 | 2019 Annual Report
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(i)
Investments and other financial assets (continued)
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected
credit loss allowance is estimated. This represents a portion of the asset's lifetime expected credit losses that is
attributable to a default event that is possible within the next 12 months. Where a financial asset has become credit
impaired or where it is determined that credit risk has increased significantly, the loss allowance is based on the asset's
lifetime expected credit losses. The amount of expected credit loss recognised is measured on the basis of the
probability weighted present value of anticipated cash shortfalls over the life of the instrument discounted at the
original effective interest rate.
For financial assets measured at fair value through other comprehensive income, the loss allowance is recognised within
other comprehensive income. In all other cases, the loss allowance is recognised in profit or loss.
(j)
Property, Plant and Equipment
Each class of property, plant and equipment is carried at cost or fair value as indicated, less, where applicable, any
accumulated depreciation and impairment losses.
Plant and Equipment
Plant and equipment are measured on the cost basis.
Depreciation
The depreciable amount of all fixed assets is depreciated on a straight line basis over the asset's useful life to the Group
commencing from the time the asset is held ready for use.
Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated
useful lives of the improvements.
The estimated useful lives used for each class of depreciable assets are:
Class of Fixed Asset
Plant and Equipment
Useful Life
2 - 10 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.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
2019 Annual Report | 35
21
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(j)
Property, Plant and Equipment (continued)
Subsequent costs are included in the property, plant and equipment's carrying value or recognised as a separate asset
when it is probable that future economic benefits associated with the item will be realised and the cost of the item can
be measured reliably. All other repairs and maintenance are recognised in profit or loss.
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.
(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).
36 | 2019 Annual Report
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(l)
Impairment of Assets (continued)
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 Group 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 Group'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 Group's share of losses in an associate equals or exceeds its interest in the associate, including any unsecured
long-term receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments
on behalf of the associate.
The Group 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.
(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.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
2019 Annual Report | 37
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(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.
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.
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.
$1,923,318 has been capitalised as at 30 June 2019 (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 21. 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.
38 | 2019 Annual Report
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FOR THE YEAR ENDED 30 JUNE 2019
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(t)
Critical Accounting Estimates and Judgements (continued)
Key Judgements - Going Concern
For the year ended 30 June 2019 the Group made a loss of $1,459,332 (2018: loss $1,474,046). 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
Group 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 23) there is a loan due from the 100% subsidiaries of $300,415
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.
Key Judgements - 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.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
2019 Annual Report | 39
25
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(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.
AASB 9 Financial Instruments
AASB 9 will replaced 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’;
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 adoption of AASB 9 did not materially impact on the Group’s financial statements other than various descriptive
changes in the accounting policies.
AASB 15 Revenue from Contracts with Customers
AASB 15 provides (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.
The adoption of AASB 15 did not materially impact on the Group’s financial statements other than various descriptive
changes in the 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:
AASB 16 Leases (effective from 1 January 2019)
Under AASB 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 AASB 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.`
40 | 2019 Annual Report
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
26
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 2: INCOME TAX
(a)
Income tax expense/benefit
The components of income tax expense/benefit comprise:
Current tax
Deferred tax
Consolidated
2019
$
2018
$
-
-
-
-
-
-
(b) Reconciliation of income tax expense/(benefit) to prima facie tax
payable on accounting profit/(loss)
Operating (loss) before income tax
Prima facie tax payable at Australian rate of 27.5% (2018: 27.5%)
(1,459,332)
401,316
(1,474,046)
405,363
Adjusted for tax effect of the following amounts:
Taxable/non-deductible items
Non-taxable/deductible items
Deferred tax expense relating to change in tax rate
Deferred tax benefit relating to over-provision in prior year
Income tax expense/(benefit) not brought to account
Income tax expense
(298,690)
121,445
-
150,409
(374,480)
-
(214,787)
55,617
(602,020)
-
355,827
-
(c) Deferred tax assets and liabilities not brought to account
The directors estimate that the potential deferred tax assets and liabilities
carried forward but not brought to account at year end at the Australian
corporate tax rate of 27.5% (2018: 27.5%) are made up as follows:
On income tax account
Carry forward tax losses
Deductible temporary differences
Taxable temporary differences
These benefits will only be obtained if:
7,238,683
4,538
(339)
7,242,882
7,011,592
33,006
(176,196)
6,868,402
(i)
the group derives future assessable income of a nature and of an amount sufficient to enable the benefits from the
deductions for the losses to be realised,
the group continues to comply with the conditions for deductibility imposed by tax legislation, and
(ii)
(iii) no changes in tax legislation adversely affect the group in realising the benefit from the deduction for the losses.
NOTE 3: CASH AND CASH EQUIVALENTS
Cash at bank
NOTE 4: TRADE AND OTHER RECEIVABLES
Other receivables
Consolidated
2019
$
2018
$
1,173,049
1,173,049
1,684,053
1,684,053
104,690
104,690
104,887
104,887
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
2019 Annual Report | 41
27
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 5: PLANT AND EQUIPMENT
Plant and Equipment
Accumulated depreciation
Consolidated
Note
2019
$
2018
$
36,681
(15,181)
21,500
18,472
(12,776)
5,696
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:
Balance at 30 June 2019
Balance at the beginning of year
Additions
Depreciation expense
Balance at 30 June 2019
Balance at 30 June 2018
Balance at the beginning of year
Additions
Disposals (carrying value)
Depreciation expense
Movement in exchange rate
Balance at 30 June 2018
Plant and
Equipment
$
5,696
18,209
(2,405)
21,500
82,790
171,950
(725)
(233,614)
(14,705)
5,696
2019
$
Total
$
5,696
18,209
(2,405)
21,500
82,790
171,950
(725)
(233,614)
(14,705)
5,696
2018
$
NOTE 6: EXPLORATION, EVALUATION AND DEVELOPMENT ASSETS
Exploration and evaluation expenditure
1,923,318
1,923,318
2,189,364
2,189,364
2019
Balance at beginning of the year
Expenditure incurred
Capitalised exploration written off against sale of joint venture
Impairment of capitalised exploration
Balance at the end of the year
2018
Balance at beginning of the year
Expenditure incurred
Foreign exchange adjustment on historical capitalisation (pre-
deconsolidation
Deconsolidation of subsidiaries (refer to note 24)
Balance at the end of the year
Exploration and
Evaluation
$
2,189,364
499,832
(291,787)
(474,091)
1,923,318
$
3,621,616
2,622,598
(1,067,015)
(2,987,835)
2,189,364
42 | 2019 Annual Report
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
28
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
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.
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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.
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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
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 24 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 Group’s share of net assets of the associates.
Information relating to interest in associates that are material to the Group are set out below:
Ownership Interest
Name
Predictive Discovery SARL
Country of Incorporation
Burkina Faso
2019
49%
Summarised Financial Information – Predictive Discovery SARL
Consolidated
Note
2019
$
2018
49%
2018
$
Summarised statement of financial position
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
2,188,796
3,230,404
5,419,200
(3,893,554)
-
(3,893,554)
204,599
3,225,492
3,430,091
(1,746,447)
-
(1,746,447)
1,525,647
1,683,644
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
2019 Annual Report | 43
29
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 7: INVESTMENTS IN ASSOCIATES (continued)
Consolidated
Note
2019
$
2018
$
-
-
-
-
-
-
-
-
-
824,985
-
-
824,985
Summarised statement of profit or loss and other comprehensive income
Revenue
Expenses
Loss before income tax
-
(228,025)
(228,025)
Income tax expense
Loss after income tax
Other comprehensive income
Total comprehensive loss
No profit or loss amounts have been disclosed for the 2018 as the change to
an associate from a controlled entity occurred as at 30 June 2018.
Reconciliation of the Group’s carrying amount
Opening carrying amount
Recognised as investment
Share of loss after income tax
Share of movement in foreign exchange translation reserve
Closing carrying amount
-
(228,025)
-
(228,025)
824,985
-
(113,776)
36,358
747,567
Immaterial Associates
Information relating to interest in associates that are material to the Group are set out below:
Country of Incorporation
Name
Australia
Burkina Resources Pty Ltd
Burkina Resources SARL
Burkina Faso
Predictive Discovery Cote D’Ivoire SARL Cote D’Ivoire
Birriman Pty Ltd
Birriman BV SARL
Sebba Resources SARL
Progress Minerals SARL
British Virgin Islands
Burkina Faso
Burkina Faso
Burkina Faso
Ownership Interest
2018
49%
49%
35%
49%
49%
49%
49%
2019
49%
49%
30%
49%
49%
49%
49%
The following is summarised financial information for the Group's interest in immaterial associates
Carrying amount of interests in immaterial associates
Group’s share of loss after income tax
Group’s share of loss not booked
Closing carrying amount
15,659
(252,852)
237,193
-
15,659
-
-
15,659
NOTE 8: CURRENT TRADE AND OTHER PAYABLES
Accruals and other creditors
88,829
88,829
46,889
46,889
44 | 2019 Annual Report
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
30
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 9: ISSUED CAPITAL
295,142,065 (30 June 2018: 236,142,065) Ordinary Shares
Share issue costs written off against issued capital
NOTE 9: ISSUED CAPITAL
295,142,065 (30 June 2018: 236,142,065) Ordinary Shares
Share issue costs written off against issued capital
Shares
At 1 July 2018
Issue of shares in placement
Issue of options in rights issue
Options cancelled/expired
At 1 July 2018
At 30 June 2019
Issue of shares in placement
Issue of options in rights issue
Options cancelled/expired
At 1 July 2017
At 30 June 2019
Issue of shares in placements
Issue of options as remuneration
Options cancelled/expired
At 1 July 2017
Share consolidation on 1 for 10 basis
Issue of shares in placements
At 30 June 2018
Issue of options as remuneration
Options cancelled/expired
Share consolidation on 1 for 10 basis
At 30 June 2018
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Consolidated
Consolidated
2018
$
2018
$
2019
$
2019
$
33,863,725
(2,372,485)
31,491,240
33,863,725
(2,372,485)
Listed
31,491,240
Options
73,030,518
-
Listed
-
Options
-
73,030,518
73,030,518
-
-
-
-
73,030,518
-
-
62,138,470
-
10,892,048
-
73,030,518
-
62,138,470
10,892,048
73,030,518
33,332,725
(2,358,962)
30,973,763
33,332,725
(2,358,962)
Unlisted Options
30,973,763
5,857,500
-
Unlisted Options
-
(1,952,500)
5,857,500
3,905,000
-
-
(1,952,500)
5,857,500
3,905,000
-
-
-
5,857,500
-
-
5,857,500
-
-
-
5,857,500
236,142,065
59,000,000
Shares
-
-
236,142,065
295,142,065
59,000,000
-
-
163,111,547
295,142,065
62,138,470
10,892,048
-
163,111,547
-
62,138,470
236,142,065
10,892,048
-
-
236,142,065
OPTIONS
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 21.
OPTIONS
For information relating to the Predictive Discovery Limited employee option plan, including details of options issued,
NOTE 10: RESERVES
exercised and lapsed during the financial year and the options outstanding at year end, refer to Note 21.
FOREIGN CURRENCY TRANSLATION RESERVE
Exchange differences arising on translation of the foreign controlled entity are recognised in other comprehensive
NOTE 10: RESERVES
income foreign currency translation reserve. The cumulative amount is reclassified to profit or loss when the net
investment is disposed of.
FOREIGN CURRENCY TRANSLATION RESERVE
Exchange differences arising on translation of the foreign controlled entity are recognised in other comprehensive
OPTION RESERVE
income foreign currency translation reserve. The cumulative amount is reclassified to profit or loss when the net
The option reserve records items recognised as expenses on valuation of employee share options Refer to Note 21.
investment is disposed of.
OPTION RESERVE
The option reserve records items recognised as expenses on valuation of employee share options Refer to Note 21.
NOTE 11: EARNINGS PER SHARE
Reconciliation of loss
Loss used in calculating earnings per share – basic and diluted
NOTE 11: EARNINGS PER SHARE
Net loss for the reporting period
Reconciliation of loss
Weighted average number of ordinary shares outstanding during the year
Loss used in calculating earnings per share – basic and diluted
used in the calculation of basic and diluted earnings per share
Net loss for the reporting period
2019
$
Consolidated
Consolidated
2019
$
(1,459,332)
(1,459,332)
2018
$
2018
$
(1,474,046)
(1,474,046)
(1,459,332)
246,677,779
(1,459,332)
(1,474,046)
205,747,444
(1,474,046)
Weighted average number of ordinary shares outstanding during the year
used in the calculation of basic and diluted earnings per share
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
246,677,779
205,747,444
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
2019 Annual Report | 45
31
31
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 12: CAPITAL AND LEASING COMMITMENTS
LEASE COMMITMENTS
(A)
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
2019
$
2018
$
-
-
-
-
126,812
-
126,812
2,903,146
7,558,693
-
10,461,849
-
-
-
-
118,195
-
118,195
1,565,383
4,371,156
108,275
6,044,814
(i)
Capital expenditure commitments are Predictive Discovery Limited’s share of expenditure commitment on exploration permits
in Burkina Faso, Cote D’Ivoire and Guinea. Some permits are the subject of Joint Ventures in which Predictive recognises its
investment as Investments in Associates (refer Note 7). Predictive can choose to dilute its interest in these Joint Ventures by
not contributing to expenditure.
NOTE 13: 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 9 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
2019
$
3
4
8
1,173,049
104,690
1,277,739
88,829
88,829
2018
$
1,684,053
104,887
1,788,940
46,889
46,889
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.
46 | 2019 Annual Report
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
32
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 13: FINANCIAL RISK MANAGEMENT (continued)
The main financial risks that arise in the normal course of business are market risk (including currency risk, interest rate
risk and price risk), credit risk and liquidity risk. Different methods are used to measure and manage these risk exposures.
Liquidity risk is monitored through the ongoing review of available cash and future commitments for exploration
expenditure.
Exposure to liquidity risk is limited by anticipating liquidity shortages and ensures capital can be raise in advance of
shortages. Interest rate risk is managed by limiting the amount of interest bearing loans entered into by the Group. It is
the Board's policy that no speculative trading in financial instruments be undertaken so as to limit expose to price risk.
Primary responsibility for identification and control of financial risks rests with the Company Secretary, under the
authority of the Board. The Board is apprised of these risks from time to time and agrees any policies that may be
undertaken to manage any of the risks identified.
Details of the significant accounting policies and methods adopted, including criteria for recognition, the basis of
measurement and the basis on which income and expenses are recognised, in respect of each financial instrument are
disclosed in Note 1 to the financial statements. The carrying values less the impairment allowance for receivables and
payables are assumed to approximate fair values due to their short term nature. Cash and cash equivalents are subject
to variable interest rates.
SPECIFIC FINANCIAL RISK EXPOSURES AND MANAGEMENT
(A)
CREDIT RISK
Exposure to credit risk relating to financial assets arises from the potential non-performance by counter parties of
contract obligations that could lead to a financial loss to the Group.
The Group trades only with recognised, creditworthy third parties.
The Group has no customers and consequently no significant exposure to bad debts or other credit risks.
With respect to credit risk arising from financial assets, which comprise cash and cash equivalents and receivables, the
exposure to credit risk arises from default of the counter party, with a maximum exposure equal to the carrying amount
of these instruments. At balance date cash and deposits were held with 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.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
2019 Annual Report | 47
33
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 13: FINANCIAL RISK MANAGEMENT (continued)
Financial liability and financial asset maturity analysis
Financial liabilities due for
payment
Trade and other payables
Total contractual outflows
Financial assets - cash flows
realisable
Trade and other receivables
Total anticipated inflows
Within 1 Year
1 to 5 Years
Total Contractual Cash Flow
2019
$
2018
$
2019
$
2018
$
2019
$
2018
$
88,829
88,829
46,889
46,889
104,690
104,690
104,887
104,887
-
-
-
-
-
-
-
-
88,829
88,829
46,889
46,889
104,690
104,690
104,887
104,887
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% (2018: 1.23%). The table below
summarises the sensitivity of the Group’s cash assets to interest rate risk.
Financial Assets
30 June 2019
Total increase/(decrease)
30 June 2018
Total increase/(decrease)
Effect of decrease or increase of
interest rate on profit and equity
-1%
Profit
$
Equity
$
+1%
Profit
$
Equity
$
(14,853)
(14,853)
14,853
14,853
(18,537)
(18,537)
18,537
18,537
NOTE 14: 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.
48 | 2019 Annual Report
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
34
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 14: OPERATING SEGMENTS (continued)
The following is an analysis of the Group’s revenue and results from operations by reportable segment.
2019
Revenue
Interest income
Gain on sale of joint venture
Other income
Expenses
Administration expenses
Share based expense
FX Expense
Exploration expenditure expensed
Impairment of Exploration
Share of loss in associates
Loss before tax
Current assets
Exploration expenditure
Plant and Equipment
Investments in Associates
Current liabilities
Net assets
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
Burk. Faso
$
Gold
Cote D’Ivoire
$
Gold
Mali
$
Gold
Guinea
$
Total
$
18,284
223,139
37,470
-
-
-
-
-
-
-
-
18,284
223,139
37,470
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(615,446)
-
(14,671)
(36,631)
-
-
-
-
-
(19,021)
-
-
(45,011)
(14,051) (108,867)
(5,710)
-
-
(19,128)
(141,096)
(41,348)
-
-
(209,520)
(59,497)
(129,435)
(517,290)
-
-
(14,051) (172,899)
-
(165,934)
-
(310,365)
(96,973)
(31,240)
(712,765)
-
(14,671)
(407,263)
(150,580) (474,091),995
)
(129,435)
(1,459,332)
(278,793)
1,139,727
-
3,292
747,568
(69,196)
1,821,391
-
-
-
-
-
-
23,776
-
-
-
(13,455)
10,321
52,118
1,737,897
-
-
(6,178)
1,783,837
19,462
-
-
-
-
19,462
42,656
185,421
18,208
-
-
246,285
1,277,739
1,923,3184
21,500
747,568
(88,829)
3,881,296
Corporate
$
Gold
Aust
$
Gold (a)
Burk. Faso
$
Gold
Cote D’Ivoire
$
Gold
Mali
$
Gold
Guinea
$
Total
$
22,717
22,004
-
-
-
-
-
-
-
-
(533,772)
-
24,952
(81,017)
-
(20,821,194)
(435,718)
-
-
-
- (159,019)
-
-
-
-
- 20,038,95
1
(28,254)
-
(1,198)
(16,415)
-
1,200
-
-
-
(297,069)
-
-
-
(21,366,310)
-
753,641
- 20,197,855
36,145
(8,522)
-
(297,069)
1,721,637
-
5,696
840,645
(46,889)
2,521,089
-
12,651
-
-
-
12,651
42,664
14,630
-
-
-
57,294
24,639
2,162,083
-
-
-
2,186,722
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
22,717
22,004
(997,744)
-
(135,265)
(394,501)
-
(781,043)
789,786
(1,474,046)
1,788,940
2,189,364
5,696
840,645
(46,889)
4,777,756
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
2019 Annual Report | 49
35
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 15: 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 2019.
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
2019
$
339,463
3,037
342,500
2018
$
274,944
3,037
277,981
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 19: Related Party Transactions.
NOTE 16: REMUNERATION OF AUDITORS
Remuneration of the auditor of the parent entity for:
Moore Stephens Victoria
Moore Stephens Victoria
PKF Perth
PKF Perth
-Audit services(a)
-Other services
-Audit services(b)
-Other services
Consolidated
2019
$
21,070
13,950
49,905
-
84,925
2018
$
38,250
4,000
42,250
(a) Additional costs relating to audit of year ending 30 June 2018.
(b) Additional costs due to audit of foreign Associates being conducted in Australia rather than in-country and costs incurred
in changing auditors.
50 | 2019 Annual Report
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
36
s
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 17: CONTROLLED ENTITIES
Parent Entity:
Predictive Discovery Limited
Subsidiaries of legal parent entity:
Predictive Discovery Cote D’Ivoire Pty Ltd
Ivoirian Resources Pty Ltd
Gayeri Resources Pty Ltd
Predictive Discovery Mali Resources Pty Ltd
Battle Resources Pty Ltd (iii)
Bouake Resources Pty Ltd (iii)
Bougouni Resources Pty Ltd
Kenieba Resources Pty Ltd
Kita Resources Pty Ltd (ii)
Ivoirian Resources SARL
Predictive Discovery Niger SARL
Gayeri Resources SARL
Solna Resources SARL
Predictive Discovery Mali SARL
Kindia Resources SARLU (ii)
Mamou Resources SARLU (ii)
Country of
Incorporation
Percentage Owned(i)
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Cote D’Ivoire
Niger
Burkina Faso
Burkina Faso
Mali
Guinea
Guinea
2019
-
100%
100%
100%
100%
-
-
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
2018
-
100%
100%
100%
100%
100%
100%
100%
100%
-
100%
100%
100%
100%
100%
-
-
(i)
(ii)
(iii)
Percentage of voting power is in proportion to ownership
Incorporated during the period
Interests transfer to other parties. The entities had no assets or liabilities.
NOTE 18: CONTINGENT LIABILITIES / ASSETS
There are no material contingent liabilities or assets of the Group at balance date.
NOTE 19: 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 $300,415 (2018: $165,466). The loan
is interest free and payable on demand. Loans between deconsolidated entities were forgiven prior to 30 June 2018
(refer Note 24).
Directors’ Remuneration
For information relating to related party transactions with key management personnel during the financial year, refer
to Note 15.
Other Related Party Transactions
Aurora Minerals Limited, an entity of which Mr Phillip Jackson is a director, was paid $45,075 (2018: $89,100) for
administration services, including company secretarial and accounting services.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
2019 Annual Report | 51
37
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 20: STATEMENT OF CASH FLOWS
Reconciliation of loss after income tax to net cash flow from operating
activities
Operating loss after income tax
(1,459,332)
(1,474,046)
Consolidated
2019
$
2018
$
Non-operating items in loss:
Exploration expenditure
Non-cash flows in loss:
Gain on deconsolidation of subsidiaries
Forgiveness of loans
Gain on sale joint venture
Depreciation
Foreign exchange (gains)/losses
Share of loss in associates
Write off of exploration expenditure
Capitalised 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
NOTE 21: SHARE BASED PAYMENTS
407,263
394,501
-
-
(223,139)
2,405
(9,038)
129,435
474,091
(890,267)
194
41,940
-
(1,526,448)
(789,786)
781,043
14,705
-
-
-
(2,913,887)
30,879
83,566
(18,692)
(3,891,717)
During the period ended 30 June 2019, the Group did not enter into any share-based payments.
During the period ended 30 June 2018, the Group did not enter into any share-based payments.
At 30 June 2019 the Group has the following share-based payment options on issue to employees:
Exercise
Grant Date Expiry Date
price
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
3,905,000
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
- 3,905,000
Vested and
exercisable
at the end of
the year
1,952,500
1,952,500
3,905,000
The three tranches of options granted on 29 November 2016 were originally issued with exercise prices of $0.01805,
$0.02578 and $0.03867 respectfully 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 2019 was $0.3225 (30 June 2018: $0.275). The weighted
average remaining contractual life of options outstanding at year end was 0.92 years (30 June 2018: 1.42 years).
The fair value of the options granted during the year was $nil (2018: nil).
52 | 2019 Annual Report
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
38
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 22: EVENTS AFTER THE END OF THE REPORTING PERIOD
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.
NOTE 23: PARENT ENTITY DISCLOSURES
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a
n
F
e
h
t
o
t
2019
$
1,201,849
3,118,730
4,320,579
69,196
69,196
s
e
t
o
N
2018
$
1,721,636
3,186,433
4,908,069
46,889
46,889
31,491,240
922,132
(28,161,989)
4,257,383
30,973,763
879,467
(26,992,050)
4,861,180
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
The parent entity has commitments as at 30 June 2019 that are disclosed in Note 12.
RECOVERABILITY OF INTERCOMPANY LOAN
Within Non-current assets is a loan due from the 100% subsidiaries of $300,415 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 24 – 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 considered
the requirement of the applicable accounting standard and determined that 30 June 2018 the Company no longer
deemed 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. 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 Group’s share of net assets of the associates.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
2019 Annual Report | 53
39
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTE 24 – LOSS OF CONTROL (continued)
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 25: COMPANY DETAILS
Consolidated
2018
$
Note
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
54 | 2019 Annual Report
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
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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:
DIRECTOR’S DECLARATION
Granted as
FOR THE YEAR ENDED 30 JUNE 2019
remuneration
during the
period
Issued on
exercise of
options during
the period
Other changes
during the
period (1)
Balance at
beginning of
period
Purchased
during the
period
Balance at end of
period
DIRECTORS’ DECLARATION
30 June 2018
-
Mr Phillip Jackson
-
Mr Paul Roberts
-
Mr David Kelly
-
Mr Eric Moore
-
Mr Bruce Waddell
-
-
1,483,179
-
-
-
1,483,179
The directors of the company declare that:
1.
-
-
-
-
-
-
-
1,225,081
-
-
-
1,225,081
-
-
-
-
-
-
-
2,708,260
-
-
-
2,708,260
(1)
B Waddell appointed additional Company Secretary 21 August 2017
The financial statements and notes, as set out on pages 11 to 40, are in accordance with the Corporations
Act 2001 and:
(a)
comply with Accounting Standards (including the Australian Accounting Interpretations) and the
Corporations Regulations 2001; and
Balance at
give a true and fair view of the financial position as at 30 June 2019 and of the performance for
beginning of
the year ended on that date of the consolidated group;
period
Issued on
exercise of
options during
the period
Granted as
remuneration
during the
period
Other changes
during the
period (1)
Balance at end of
period
Purchased
during the
period
(b)
2.
30 June 2017
Mr Phillip Jackson
Mr Paul Roberts
Mr David Kelly
Mr Eric Moore
The Chief Executive Officer and Chief Financial Officer have each declared that:
-
-
14,331,790
(13,348,611)
-
-
the financial records of the company for the financial year have been properly maintained in
-
-
accordance with section 286 of the Corporations Act 2001;
(13,348,611)
14,331,790
-
1,483,179
-
-
1,433,179
-
500,000
-
-
500,000
-
-
-
-
-
-
-
-
-
-
(a)
(1)
Consolidation of the company’s shares and options on a 1 for 10 basis effective 19 May 2017
(b)
the financial statements and notes for the financial year comply with the Accounting Standards;
and
SECURITIES RECEIVED THAT ARE NOT PERFORMANCE-BASED
(c)
the financial statements and notes for the financial year give a true and fair view.
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
Note 1 confirms that the financial statements also comply with International Financial Reporting
Standards as issued by the International Accounting Standards Board.
Options were granted as remuneration during the year to key management personnel and other executives as set out
in notes 17 and 23.
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.
END OF THE REMUNERATION REPORT
This declaration is made in accordance with a resolution of the Board of Directors.
Signed in accordance with a resolution of the Board of Directors:
Paul Roberts
Paul Roberts
Managing Director
Managing Director
02 October 2018
27 September 2019
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
10
PREDICTIVE DISCOVERY LIMITED ANNUAL REPORT
2019 Annual Report | 55
41
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF PREDICTIVE DISCOVERY LIMITED
Report on the Financial Report
Opinion
We have audited the accompanying financial report of Predictive Discovery Limited (the company), which
comprises the consolidated statement of financial position as at 30 June 2019, 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, notes comprising a summary of significant
accounting policies and other explanatory information, and the directors’ declaration of the company and the
consolidated entity comprising the company and the entities it controlled at the year’s end or from time to time
during the financial year.
In our opinion the financial report of Predictive Discovery Limited is in accordance with the Corporations Act 2001,
including:
i)
ii)
Giving a true and fair view of the consolidated entity’s financial position as at 30 June 2019 and of its
performance for the year ended on that date; and
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we
comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain
reasonable assurance about whether the financial report is free from material misstatement. Our responsibilities
under those standards are further described in the Auditor’s Responsibility section of our report.
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
Without modifying our opinion, we draw attention to Note 1(t) in the financial report, which indicated that the
consolidated entity incurred a net loss after tax of $1,459,332 during the year ended 30 June 2019 (2018: net loss
after tax of $1,474,046). This, along with other matters as set forth in Note 1(t), indicate the existence of a material
uncertainty that may cast significant doubt about the consolidated entity’s ability to continue as a going concern
and therefore, the consolidated entity may be unable to realise its assets and discharge its liabilities in the normal
course of business.
The financial report of the consolidated entity does not include any adjustments in relation to the recoverability
and classification of recorded asset amounts or to the amounts and classification of liabilities that might be
necessary should the consolidated entity not continue as a going concern.
Independence
We are independent of the consolidated entity in accordance with 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.
Level 4, 35 Havelock Street, West Perth, WA 6005
PO Box 609, West Perth, WA 6872
T: +61 8 9426 8999 F: +61 8 9426 8900 www.pkfperth.com.au
PKF Perth is a member firm of the PKF International Limited family of legally independent firms and does not accept any responsibility or liability for the actions
or inactions of any individual member or correspondent firm or firms.
Liability limited by a scheme approved under Professional Standards Legislation.
42
56 | 2019 Annual Report
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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.
For each matter below, our description of how our audit addressed the matter is provided in that context.
1. Carrying value of capitalised exploration expenditure
Why significant
How our audit addressed the key audit matter
As at 30 June 2019 the carrying value of
exploration and evaluation assets was $1,923,318
(2018: $2,189,364) which represents 48.4% of
total assets and the total impairment recognised
during the year was $474,091, as disclosed in Note
6.
The consolidated entity’s accounting policy in
respect of exploration and evaluation expenditure
is outlined in Note 1(k) with the nature of critical
estimates and judgements relating to this balance
outlined in Note 1(t). Significant judgement is
required:
•
•
facts
tested
whether
determining
and
in
circumstances indicate that the exploration and
evaluation assets should be
for
impairment
in accordance with Australian
Accounting Standard AASB 6 Exploration for
and Evaluation of Mineral Resources (“AASB
6”); and
in determining the treatment of exploration and
evaluation expenditure in accordance with
AASB 6, and
the consolidated entity’s
accounting policy. In particular:
o whether areas of
interest meet
the
recognition conditions for an asset; and
o which elements of exploration and
evaluation
for
expenditures
capitalisation for each area of interest.
qualify
Our work included, but was not limited to, the
following procedures:
there are indicators of
•
to assess whether
impairment:
o
assessing whether the rights to tenure of
the areas of interest remained current at
reporting date as well as confirming that
rights to tenure are expected to be renewed
for tenements that will expire in the near
future;
obtaining specific representations from the
directors and management as to the status
of ongoing exploration programmes for the
areas of interest, as well as assessing if
there was evidence that a decision had
been made to discontinue activities in any
specific areas of interest; and
obtaining and assessing evidence of the
consolidated entity’s future intention for the
areas of interest, including reviewing future
budgeted expenditure and related work
programmes;
o
o
•
of
assessment
• considering whether exploration activities for the
areas of interest had reached a stage where a
economically
reasonable
recoverable reserves existed;
testing, on a sample basis, exploration and
evaluation expenditure incurred during the year
the
for compliance with AASB 6 and
consolidated entity’s accounting policy; and
• assessing the appropriateness of the related
disclosures in Notes 1(k), 1 (t) and 6.
43
2019 Annual Report | 57
Directors’ Declaration
2. Equity accounting for Interest in Joint Ventures
Why significant
How our audit addressed the key audit matter
The consolidated entity has various Interests in
Associates that have a total value as at 30 June
2019 of $747,568 (2018: $840,645). This balance
solely relates to the 49% interest in Predictive
Discovery SARL (PD SARL) in Burkina Faso, as
the other interests have been impaired to nil. This
represents 18.8% of total assets.
The consolidated entity’s accounting policy in
respect of associates is outlined in Note 1(m).
At 30 June 2019, a share of the loss of associates
was recognised in the statement of profit or loss of
$129,435, of which $113,776 related to PD SARL.
An additional share of loss amount of $237,193
has not been recognised in the consolidated
statement of profit or loss relating to the other
associates as these are carried at nil value. This is
disclosed within note 7 to the financial report.
As disclosed in note 7, these associates are equity
accounted in accordance with the requirements of
AASB 128 Investments in Associates and Joint
Ventures and disclosures set out in AASB 12
Disclosures of Interest in Other Entities.
Our work included, but was not limited to, the
following procedures:
• We considered the control relationship to
confirm that equity accounting is appropriate in
accordance with AASB 128 Investments in
Associates and Joint Ventures;
• We performed the relevant audit procedures in
accordance with
the Australian Auditing
Standards on the material assets, liabilities
and expenditure within each of the material
associates management accounts provided, in
particular:
• Existence and valuation of capitalised
exploration expenditure pursuant to AASB
6;
• Recoverability of receivables;
• Valuation and existence of fixed assets;
• Completeness and valuation of loans; and
• Occurrence and existence of expenditure.
• We assessed the appropriateness of the
related disclosures in Note 1(m), 1 (t) and 7 to
ensure they are in accordance with AASB 12
Disclosures of Interest in Other Entities.
Other Information
Other information is financial and non-financial information in the annual report of the consolidated entity which is
provided in addition to the Financial Report and the Auditor’s Report. The directors are responsible for Other
Information in the annual report.
Our opinion on the Financial Report does not cover the Other Information and, accordingly, the auditor does not
and will not express an audit opinion or any form of assurance conclusion thereon, with the exception of the
Remuneration Report.
In connection with our audit of the Financial Report, our responsibility is to read the Other Information. In doing
so, we 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.
We are required to report if we conclude that there is a material misstatement of this Other Information in the
Financial Report and based on the work we have performed on the Other Information that we obtained prior the
date of this Auditor’s Report we have nothing to report.
Directors’ Responsibilities 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 Note 1, the Directors also
state, in accordance with Australian Accounting Standard AASB 101 Presentation of Financial Statements, that
the financial report complies with International Financial Reporting Standards.
58 | 2019 Annual Report
44
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In preparing the financial report, the Directors are responsible for assessing the consolidated entity’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using a going concern
basis of accounting unless the Directors either intend to liquidate the consolidated entity or to cease operations,
or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our responsibility is to express an opinion on the financial report based on our audit. Our objectives are to obtain
reasonable assurance about whether the financial report as a whole is free from material misstatement, whether
due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with 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 aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and
maintain professional scepticism throughout the audit.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial report.
The procedures selected depend on the auditor’s judgement, including assessment of the risks of material
misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation of the financial report that gives a true and fair view
in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the entity’s internal control.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial report.
We conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the consolidated entity’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial
report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the
consolidated entity to cease to continue as a going concern.
We evaluate the overall presentation, structure and content of the financial report, including the disclosures, and
whether the financial report represents the underlying transactions and events in a manner that achieves fair
presentation.
We obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the consolidated entity to express an opinion on the financial report. We are responsible for the
direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our
audit.
The Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements.
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.
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2019 Annual Report | 59
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 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
We have audited the Remuneration Report included in the directors’ report for the year ended 30 June 2019. In
our opinion, the Remuneration Report of Predictive Discovery Limited for the year ended 30 June 2019, 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.
PKF PERTH
SHANE CROSS
PARTNER
27 SEPTEMBER 2019
WEST PERTH,
WESTERN AUSTRALIA
60 | 2019 Annual Report
46
AUDITOR’S INDEPENDENCE DECLARATION
TO THE DIRECTORS OF PREDICTIVE DISCOVERY LIMITED
In relation to our audit of the financial report of Predictive Discovery Limited for the year ended 30 June 2019, to
the best of my knowledge and belief, there have been no contraventions of the auditor independence
requirements of the Corporations Act 2001 or any applicable code of professional conduct.
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PKF PERTH
SHANE CROSS
PARTNER
27 SEPTEMBER 2019
WEST PERTH,
WESTERN AUSTRALIA
Level 4, 35 Havelock Street, West Perth, WA 6005
PO Box 609, West Perth, WA 6872
T: +61 8 9426 8999 F: +61 8 9426 8900 www.pkfperth.com.au
PKF Perth is a member firm of the PKF International Limited family of legally independent firms and does not accept any responsibility or liability for the actions
or inactions of any individual member or correspondent firm or firms.
Liability limited by a scheme approved under Professional Standards Legislation.
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2019 Annual Report | 61
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 871 877
SHAREHOLDER INFORMATION
The shareholder information set out below was applicable at 09 October 2019
1. Number and Distribution of Equity Securities
The number and class of all securities on issue:
ASX Code
PDI
PDIO
PDIAK
Number
295,142,065
73,030,518
3,905,000
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
103
210
243
690
281
1,527
Unmarketable Parcels
964
The number of holders
Ordinary shares fully paid (ASX Code: PDI):
1,527
Shares Held
37,211
749,500
1,960,575
26,376,065
266,018,714
295,142,065
Shares
11,310,045
2. Substantial Shareholders
Substantial shareholders as defined by Section 671B of Australian Corporations Law are:
Name
Aurora Minerals Limited
Capital Di Limited
Equity Trustees Limited (Lowell Resources Fund A/C)
Number of Shares
49,653,686
31,817,029
21,462,161
%
16.82
13.96
7.27
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.
PREDICITIVE DISCOVERY LIMITED ANNUAL REPORT
1
62 | 2019 Annual Report
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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 871 877
SHAREHOLDER INFORMATION (Continued)
4. Twenty Largest Shareholders as at 09 October 2019
The twenty largest fully paid shareholders hold 56.08% of the issued capital and are tabled below:
Shareholder
No. of Shares
%
Aurora Minerals Limited
Equity Trustees Limited (Lowell Resources Fund A/C)
Bond Street Custodians Limited (Apicon D05711 A/C)
1.
2. Capital Di Limited
3.
4. Dyspo Pty Limited
5. Sacrosanct Pty Ltd (Sacrosanct Super Fund A/C)
6. BNP Paribas Nominees Pty Ltd (IB AU NOMS RetailClient DRP)
7.
8. Fiori Pty Ltd
9. MSI 888 Pty Ltd (MSI 888 A/C)
10. Mr Michael Robert Hodgetts
11. Sagar SMSF Pty Ltd
12. Jetosea Pty Ltd
13. Mr Alistair Campbell Leitch
14. Pajal Pty Ltd (P&A Harman Super Fund A/C)
15. Mr William Henry Hernstadt
16. Citicorp Nominees Pty Limited
17. Aggregrated Capital Pty Ltd (Super Fund No 2 Account)
18. Paso Holdings Pty Ltd
19. Micjud Pty Ltd (Chester Family)
20. Croftbank Pty Ltd (Wats Family Super Fund A/C)
Total Issued Shares
5. Corporate Governance Statement
49,653,686
41,189,153
21,462,161
7,375,000
5,000,000
4,823,783
3,430,941
3,300,000
3,120,483
3,000,000
2,790,626
2,700,000
2,667,542
2,538,992
2,500,000
2,449,918
2,100,000
2,000,000
1,868,056
1,545,023
16.82
13.96
7.27
2.50
1.69
1.63
1.16
1.12
1.06
1.02
0.95
0.91
0.90
0.86
0.85
0.83
0.71
0.68
0.63
0.52
165,515,364
295,142,065
56.08
100.00
The 2019 Corporate Governance statement of Predictive Discovery Limited is available on the Company’s website at
https://www.predictivediscovery.com/corporate-governance/
PREDICTIVE DISCOVERY LIMITED ANNUAL REPORT
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2019 Annual Report | 63
MINERAL TENMENT INFORMATION (as at 09 October 2019)
Name
Number
Location
Area (sq.
km)
PDI Equity
Kalinga (formerly
Fouli)
Tambifwanou
(formerly Sirba)
Bongou (formerly
Madyabari)
arrêté 2017-199/MCE/SG/DGMGC
Burkina Faso
186
arrêté 2017-119/MCE/SG/DGMGC
Burkina Faso
136.2
arrêté 2017-121/MCE/SG/DGMGC
Burkina Faso
170.9
Tamfoagou
arrêté 2017-132/MCE/SG/DGMGC
Burkina Faso
83
49%
49%
49%
49%
Tangagari-Takatami arrêté 2013-037/MCE/SG/DGMGC
Burkina Faso
127.5
Earning 46.5%;current equity 0%
(until final cash payment is
made)
Tambiri (formerly
Bangaba)
arrêté 2017-120/MCE/SG/DGMGC
Burkina Faso
127.5
46.5%
Bira
arrêté 2016-129/MCE/SG/DGMGC
Burkina Faso
10.5
Haoura
arrêté 2018-232/MCE/SG/DGMGC
Burkina Faso
41.8
Mansila
arrêté 2018-231/MCE/SG/DGMGC
Burkina Faso
107.2
Basieri
arrêté 2017-133/MCE/SG/DGMGC
Burkina Faso
73.5
49%
49%
49%
49%
Kourakou
arrêté 2018-233/MCE/SG/DGMGC
Burkina Faso
178.5
100%
Bolle
arrêté 2019-11/MCE/SG/DGMGC
Burkina Faso
239.6
100%
Kokoumbo
Mining exploration permit No. 307
Cote D'Ivoire
300
Predictive-Resolute Mining
Limited joint venture (Predictive
30%) earning 90% in JV
Boundiali
Mining exploration permit No. 414
Cote D'Ivoire
299
30%
Boundiali North
Mining exploration permit
Cote D'Ivoire
400
Predictive-Resolute Mining
Limited joint venture (Predictive
30%) earning 85% in JV
Kounahiri
Mining exploration permit No. 317
Cote D'Ivoire
260.25
30%
Ferkessedougou
North
Mining exploration permit No. 367
Cote D'Ivoire
400
Beriaboukro
Mining exploration permit No. 464
Cote D'Ivoire
400
Predictive-Resolute Mining
Limited joint venture (Predictive
30%) earning 85% in JV
Predictive-Resolute Mining
Limited joint venture (Predictive
30%) earning 85% in JV
Nonta
Kankan
Kaninko
Exploration permit - arrete
A/2019/1161/MMG
Exploration permit - arrete
A/2019/1160//MMG
Exploration permit - arrete
A/2019/5784//MMG
Guinea
100
100%
Guinea
98.8
100%
Guinea
98
63
100%
25%
Cape Clear
EL 5423
Victoria, Australia
64 | 2019 Annual Report
2019 Annual Report | 65
predictivediscovery.com
66 | 2019 Annual Report
2019 Annual Report | 67
Level 2, 33 Ord Street
WEST PERTH WA 6005
T | +61 8 9216 1000
F | +61 8 9481 0411
predictivediscovery.com