ABN 11 127 171 877
2020
Annual Report
Corporate Directory
DIRECTORS
Mr Phillip Jackson Non-executive Chairman
Mr Paul Roberts Managing Director
Mr Steven Michael Non-executive Director
COMPANY SECRETARY
Mr Ian Hobson
REGISTERED OFFICE
Suite 8
110 Hay Street
SUBIACO WA 6008
Telephone: +61 8 9388 8290
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 | 2020 Annual Report
Contents
Chairman’s Letter
Review of Operations
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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2020 Annual Report | 3
“
It is hard to imagine the
Company being in a more
different position than it
was at the beginning of the
financial year. Drill results
from the Bankan Project,
announced in April this
year, have been a watershed
moment for the Company.
While success for the
Company in Guinea has
seemingly come quickly, it
represents the culmination
of 10-years work by the
Predictive team, acquiring
and exploring a portfolio of
projects in some of West
Africa’s most prolific gold
belts. The Project Generator
model which the Company
followed for a number
of years is now paying
dividends in Guinea and
continues to provide upside
exposure in Cote D’Ivoire
and Burkina Faso, with
three Joint Ventures now
in place to deliver further
value from the Company’s
landholdings.
“
4 | 2020 Annual Report
Dear Shareholders,
It gives me great pleasure to present the 2020 Annual Report for Predictive
Discovery Limited (ASX: PDI) (Predictive or Company).
It is hard to imagine the Company being in a more different position than
it was at the beginning of the financial year. Drill results from the Bankan
Project, announced in April this year, have been a watershed moment for the
Company.
While success for the Company in Guinea has seemingly come quickly, it
represents the culmination of 10-years work by the Predictive team, acquiring
and exploring a portfolio of projects in some of West Africa’s most prolific gold
belts. The Project Generator model which the Company followed for a number
of years is now paying dividends in Guinea and continues to provide upside
exposure in Cote D’Ivoire and Burkina Faso, with three Joint Ventures now in
place to deliver further value from the Company’s landholdings.
As the focus for Predictive’s exploration, Guinea has been a relatively neglected
gold exploration destination but international perceptions of the country’s
investment attractiveness have gradually improved both through revisions
to the country’s mining laws and more recently with a revamp of the mining
title administration which is now a model of transparency and efficiency. The
change in investment climate and the region’s long and storied gold mining
history led Predictive to start investigating ground acquisition opportunities in
late 2018.
In July 2019, the Company announced the granting of its Kaninko permit - now
part of the flagship Bankan Project (Bankan) - which was originally identified
through a district-scale assessment of the Siguiri Basin utilising the Company’s
PredictoreTM methodology. Following that acquisition, through aggressive,
targeted and low-cost exploration, the Company advanced the Bankan Project
in just 9 months from a greenfields tenement with no known history of past
drilling to the NE Bankan gold discovery in April 2020.
In January 2020, with initial geochemical exploration completed, the
exploration team had identified two strong gold targets and began a modest,
shallow power auger drilling program to test them both. The results were
immediately encouraging with composite intervals at NE Bankan including
11.90g/t gold, 10.30g/t gold, 4.84g/t gold, and 2.27g/t gold. The significance
of these results was probably not immediately clear to the market, but it
provided targets for follow-up aircore/reverse circulation (AC/RC) drilling,
which the Company undertook in March 2020 and announced on 15 April
2020.
Results from the March AC/RC program proved to be a significant revaluation event for the Company, with
results including 46m at 6.58g/t gold from 4m including 10m at 26.52g/t gold from 34m, 42m at 2.92g/t gold
from 8m and 50m at 1.53g/t gold from surface.
In what can only be described as one of the more remarkable days for any exploration company, Predictive’s
share price jumped more than 733%, which, at the time, was the single largest 1-day gain on the ASX in the
past 3 years, with over a billion shares traded on that day and the next. Soon thereafter, the Company initiated
a transformational capital raising, with $9 million raised in May-June, and the announcement of a substantial
drilling program including a planned 5,000 metres of RC drilling, 5,000 metres of diamond drilling and
20,000 metres of auger drilling.
Post reporting period, the exploration results have continued to impress with auger drilling increasing the
Bankan footprint to 1.6km-long and the Company uncovering a range of new regional targets including
Bankan Creek and SE Saman. Ongoing reverse circulation and diamond drilling has extended the
mineralisation at depth and the Company has confirmed the presence of a large mineralised system at NE
Bankan straddling the adjacent Kaninko and Saman permits.
As Chairman, it has been immensely satisfying to watch the Company rewarded for its approach to gold
discovery and a firm vindication of Managing Director Paul Roberts’ persistence with ground acquisition in
new areas coupled with careful cash conservation in the preceding years, now being rewarded with what is
emerging as a large new gold discovery.
Our objectives for the 2020-21 Financial Year are to complete further drilling programs on the Bankan Project
with the aim of producing a Maiden Resource Estimate by mid-2021. Greenfields exploration elsewhere in
Guinea will remain a core activity and we will continue early-stage exploration across the Guinea portfolio
with the Koundian, Kankan and Nonta Permits representing enticing opportunities.
I would like to take this opportunity to thank our joint venture partners in Cote D’Ivoire and Burkina Faso 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.
As Chairman, I thank you for your support throughout 2019-20 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
Competent Persons Statement
The exploration results reported herein are based on information compiled by Mr Paul Roberts (Fellow of the Australian Institute of Geoscientists). Mr
Roberts is a full-time employee of the company and has sufficient experience relevant to the style of mineralisation and type of deposits being considered
to qualify as a Competent Person as defined by the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves. Mr Roberts consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
2020 Annual Report | 5
Review of Operations
GUINEA (PDI 100%-OWNED)
In September 2018, the Company completed a district-scale review of Guinea’s Siguiri Basin,
confirming the region 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.
Over the past 2 years, Predictive has built a strong land position in the Siguiri Basin, now holding
861km2 across 10 permits with all Projects identified utilising the Company’s PredictoreTM methodology
(Figure 1).
Figure 1 - Location of Predictive permits in Guinea. The Kaninko and Saman permits together constitute the Bankan Project
PredictoreTM assists the Company in identifying structures deep in the earth’s crust which are thought
to have channelled large quantities of gold-bearing fluid, generating well mineralised gold belts
including large gold deposits at surface.
6 | 2020 Annual Report
THE BANKAN PROJECT (KANINKO, SAMAN, ARGO AND BOKORO PERMITS)
In July 2019, Predictive was granted the Kaninko Permit near the town of Kouroussa in the Siguiri
Basin (Figure 2). Grant of the tenement, located approximately 10km from the Kouroussa gold deposit,
laid the basis for the Company’s growth over the reporting period, with exploration activity and
drilling delivering encouraging high-grade results, culminating in additional permit acquisitions and
identification of the NE Bankan gold discovery.
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Figure 2 – Location of the Kaninko, Saman, Argo and Bokoro Permits – which constitute the Bankan Project.
Initial exploration work began in September 2019 with channel sampling at the Kaninko Permit
area returning encouraging grades 1. In the following months, the Company collected samples from
artisanal mine dumps which in turn allowed the Company to identify three prospects for drilling
including North East (NE) Bankan, Bankan Creek and the Bankan East Prospects 2.
In late 2019, the Company completed soil sampling, trenching and shallow power auger drilling
programs, designed to identify targets for deeper Reverse Circulation (RC) and Diamond Drilling (DD)
programs. The power auger results from NE Bankan outlined an inferred NNE trending gold zone 460m
long and up to 300m wide open to the north and south (Figure 3).
1 ASX Announcement - CHANNEL SAMPLING IDENTIFIES NEW GOLD AT KANINKO PROJECT IN GUINEA
https://www.investi.com.au/api/announcements/pdi/29ca37b4-e76.pdf
2 ASX Announcement - UP TO 52g/t GOLD RETURNED FROM KANINKO ARTISANAL MINE SAMPLES
https://www.investi.com.au/api/announcements/pdi/49756a56-ed9.pdf
ASX Announcement - GUINEA RESULTS IDENTIFY MORE GOLD AND NEW DRILL TARGETS AT KANINKO
https://www.investi.com.au/api/announcements/pdi/53a6e48c-3c1.pdf
2020 Annual Report | 7
Figure 3 - NE Bankan Prospect with power auger locations and results
Better values from the Auger drilling included 3:
•
•
11.90g/t gold (composite sample 15-22m)
10.30g/t gold (composite sample 11-22m)
In March 2020, a 2,200m angled Air-Core (AC) and RC program was completed, testing beneath the
better power auger gold intercepts and gold-mineralised trenches. The results of the drilling program
confirmed a significant gold discovery at NE Bankan. Drilling demonstrated the presence of a very
broad, north-trending zone containing some high-grade gold intercepts, which was interpreted to be
at least 450m long, and open in all directions and at depth (Figure 4).
3 ASX Announcement – KANINKO POWER AUGER RESULTS OUTLINE LARGE TARGET FOR AC/RC DRILLING WITH PEAK VALUES UP TO 8G/T GOLD
https://www.investi.com.au/api/announcements/pdi/07ea4287-530.pdf
ASX Announcement – HIGH GOLD GRADES AND BROAD MINERALISED WIDTHS FROM AUGER AND TRENCHING PROGRAMS AT KANINKO, GUINEA
https://www.investi.com.au/api/announcements/pdi/f734ac23-e0e.pdf
8 | 2020 Annual Report
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Auditor’s Independence
Declaration
Figure 4 – Bankan Discovery hole KKOAC01 within a broad zone of good to high-grade gold mineralisation
Significant intersections included 4:
NE Bankan
• KKOAC001: 46m (to EOH) at 6.58 g/t gold from 4m including:
•
10m at 26.52 g/t gold from 34m
• KKOAC008: 42m (to EOH) at 2.92 g/t gold from 8m
• KKOAC010: 50m (to EOH) at 1.53 g/t gold from surface including:
• 20m at 2.51 g/t gold from 30m
• KKOAC017: 42m at 1.56g/t gold from surface including:
• 30m at 2.07 g/t gold from 12m
Bankan Creek
• KKOAC039: 44m at 2.06g/t gold, including 18m at 2.97g/t gold to end of hole, all in fresh rock
• KKOAC025: 6m at 4.52g/t gold, including 2m at 10.30g/t gold
The AC/RC drilling results prompted immediate follow-up exploration activity with power auger
drilling re-starting in late April 2020. This auger program was designed to explore the full horizontal
extent of the recent NE Bankan gold discovery. Results from 124 shallow power auger holes (2,423m)
successfully doubled the strike of the gold anomaly at NE Bankan from approximately 0.5km to 1km
(Figure 5) and identified a possible new high-grade gold zone on the northernmost line drilled to date.
4 ASX Announcement – OUTSTANDING DRILL RESULTS CONFIRM NEW GOLD DISCOVERY IN GUINEA
https://www.investi.com.au/api/announcements/pdi/125cd27c-691.pdf
ASX Announcement – 44M AT 2.06G/T GOLD FROM BANKAN CREEK PROSPECT, KANINKO PROJECT, GUINEA
https://www.investi.com.au/api/announcements/pdi/e59a0d28-bb0.pdf
2020 Annual Report | 9
Figure 5 - Kaninko Project- power auger results overlain on previous AC/RC and auger results
Significant results from composite samples taken from a depth of 4m (just below the surface laterite
layer) included 5:
•
•
10m at 20.88g/t gold from 10-20m, within a broader zone of 16m @ 6.81 g/t gold
16m at 1.05g/t gold, including 2m at 7.67g/t gold from 18-20m
The first round of shallow drilling at NE Bankan uncovered a new, very wide, shallow gold with thick
intersections starting almost at surface, and open in all directions. The NE Bankan discovery, plus a
transformational capital raising, set up the Project for the largest drilling program in the Company’s
history.
The results also motivated the Company to strengthen its land position in the area, with the con-
version of the Saman Reconnaissance Authorisation to an Exploration Permit, directly abutting the
Kaninko Permit, and allowing the Company to drill further to the north along strike from the original
NE Bankan discovery6 .
5 ASX Announcement - KANINKO AUGER RESULTS DOUBLE STRIKE LENGTH OF GOLD MINERALISED ZONE
https://www.investi.com.au/api/announcements/pdi/bd73d086-531.pdf
6 ASX Announcement – SAMAN EXPLORATION PERMIT GRANTED
https://www.investi.com.au/api/announcements/pdi/aa37e069-da3.pdf
10 | 2020 Annual Report
In early June 2020 there were five rigs on site with concurrent power auger, RC and DD programs in
progress7 . This proved rewarding for the Company as further auger drilling results expanded the strike
length to approximately 1.3 kilometres on both the Kaninko and Saman Permits8 (Figure 6).
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Figure 6 - power auger drilling completed/underway within the Kaninko and Saman Permits at 30 June 2020
In July, the Company announced new RC results (Figure 7), with drilling confirming that the
mineralised zone continues at depth, with significant intersections including9 :
• KKORC006: 99m (to EOH) at 1.17 g/t gold from 1m
• KKORC007: 15m at 3.42 g/t gold from surface, including:
• 4m at 9.33g/t gold
• KKORC002: 33m at 1.72g/t gold (to EOH) from 67m, including:
•
1m at 22.1g/t gold
• KKORC010: 40m at 1.44g/t gold from surface
• KKORC005: 26m at 1.15 g/t gold from 4m
• KKORC010: 21m at 1.24g/t gold (to EOH) from 79m.
7 To mid-September 2020, the Company had completed the following programs across the Bankan Project - 17,000m of Auger Drilling, 2,200m of Air-Core Drilling, 5,500m
of Reverse Circulation Drilling and 3,700m of Diamond Drilling.
8 ASX Announcement – NE BANKAN GOLD DISCOVERY IN GUINEA EXTENDED 30% TO 1.3KM IN LENGTH
https://www.investi.com.au/api/announcements/pdi/43c19234-e2c.pdf
9 ASX Announcement – IMPRESSIVE FIRST RC DRILL RESULTS GROW NE BANKAN GOLD DISCOVERY
https://www.investi.com.au/api/announcements/pdi/9d99bae3-5dd.pdf
2020 Annual Report | 11
Figure 7 -NE Bankan Prospect drill hole locality plan showing positions of RC drill holes, overlain on earlier power auger and
AC drill holes as at 17 July 2020.
In late July 2020, results received from the first 5 DD holes at NE Bankan successfully intersecting
wide zones of good to high-grade gold in fresh rock, with no reduction in grade at depth (Figure 8).
Significant intersections included10 :
• KKODD004: 153m at 1.51g/t gold from 47m (to EOH), including:
• 6m at 10.40g/t gold from 189m (downhole)
• KKODD003: 78m at 2.58g/t gold from 3m, including 4m at 13.64g/t gold from 75m, plus:
•
•
14m at 1.60g/t gold from 88m
17m at 1.63g/t gold from 141m
• KKODD002: 22.2m at 1.51g/t gold from 1.8m, including:
• 2m at 7.65g/t gold
The deepest holes completed to that point extended the zone of gold mineralisation to a depth of at
least 150m (remaining open).
10 ASX Announcement - DIAMOND DRILLING CONFIRMS GOLD AT DEPTH AT NE BANKAN, GUINEA
https://www.investi.com.au/api/announcements/pdi/7ce8162f-8d3.pdf
12 | 2020 Annual Report
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Figure 8 - Cross section through diamond holes KKODD001, KKODD002 and KKODD003, showing gold intercepts
Since July 2020, drilling at the Bankan Project has continued to uncover new zones of gold
mineralisation with power auger drilling directly north of the previously known NE Bankan mineralised
zone identifying plus-0.25g/t gold composite intercepts on three more drill lines, expanding the NE
Bankan gold mineralised footprint to 1.6km in length (Figure 9).
2020 Annual Report | 13
Figure 9 – 4 -months of power auger drilling programs on the NE Bankan Discovery.
The auger program also successfully identified two new targets with high gold grades, one south-west
of NE Bankan (Figure 10) in the Kaninko permit and another in the south-east section of the Saman
permit (SE Saman)11 .
Results from RC drill holes post reporting period have yielded several outstanding, high-grade and
wide gold intercepts.
11 ASX Announcement - NE BANKAN NOW 1.6KM LONG WITH POSSIBLE PARALLEL GOLD ZONE
https://www.investi.com.au/api/announcements/pdi/b49c2bd1-042.pdf
14 | 2020 Annual Report
Significant intersections included12 .
NE Bankan
• KKORC016: 26m at 21.9/t gold from 58m (to end of hole), including:
• 6m at 68.0g/t gold from 59m (results re-stated after re-assay received on 19 August 2020)
• 2m at 8.6g/t gold from 72m
• 6m at 17.3g/t gold from 78m (to end of hole)
• KKORC013: 35m at 2.4g/t gold from 1m, including:
• 4m at 13.6g/t gold
• 36m at 2.2g/t gold from 64m
• KKORC017: 67m at 1.7g/t gold from 32m, including 2m at 11.0g/t gold from 59m
Bankan Creek
•
KKORC053: 42m at 2.8g/t gold from 12m (to end-of-hole)
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Figure 10 - Bankan Project, highlighting additional potential between the Bankan Creek (west) and NE Bankan (east) gold
mineralised zones.
More recently, diamond drilling has re-confirmed NE Bankan as a large mineralised system, with highly
encouraging grades returned over large true widths in fresh rock (Figures 11-12). Drilling was directed
from west to east and intersected the gold mineralisation in fresh rock almost at right angles to the
mineralisation’s dip. True widths are interpreted to be 95% of downhole intercept lengths in the below
three holes.
12 ASX Announcement - OUTSTANDING HIGH-GRADE GOLD RESULTS FROM NE BANKAN, GUINEA
https://www.investi.com.au/api/announcements/pdi/b09b9b49-38a.pdf
ASX Announcement - BANKAN CREEK GOLD ZONE FURTHER EXPANDED
https://www.investi.com.au/api/announcements/pdi/7c684b14-d51.pdf
ASX Announcement - STRONG AND WIDE GOLD ZONES RETURNED FROM DRILLING AT BANKAN CREEK AND NE BANKAN, GUINEA
https://www.investi.com.au/api/announcements/pdi/62f93ee7-b77.pdf
2020 Annual Report | 15
Significant DD intersections included13 :
• KKODD011: 55m at 2.94g/t gold from 97m, including 1m at 46.5g/t gold
• KKODD009: 30m at 2.65g/t gold from 101m, including 6m at 9.4g/t gold, 17m at 0.97g/t gold
from 81m, and 19m at 1.36g/t gold from 149m.
• KKODD010: 3m at 5.33g/t gold from 88m, including 1m at 15.2g/t gold.
Figure 11 - Bankan Project, Cross Section S1175260 - diamond drillhole KKODD011 drilled west to east together with the
previous RC and AC results
Figure 12- Bankan Project, Cross Section S1175180 -diamond drillhole KKODD009 drilled west-east overlain previous RC and
AC results
13 ASX Announcement - 55M AT 2.94G/T GOLD – BROAD TRUE WIDTHS CONFIRMED AT BANKAN, GUINEA
https://www.investi.com.au/api/announcements/pdi/94452194-ceb.pdf
16 | 2020 Annual Report
BANKAN PROJECT - BANKAN-2 PROGRAM AND NEXT STEPS
The First phase (“Bankan-1”) RC-DD program was completed in mid-September 2020 before a month-
long hiatus. The Company expects ongoing receipt of assays until mid-October.
Upon receipt of the remaining drill assays (Figure 13), results will be compiled and a geological review
undertaken with the assistance of a resource geologist to guide drilling orientation and spacing for the
next phase (“Bankan-2”) drill program, to help drive progress towards the Company’s planned Maiden
Resource Estimate, targeted for mid-2021.
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Figure 13 - Bankan Project with completed AC, RC and DD holes
2020 Annual Report | 17
GUINEA - OTHER PERMITS
KANKAN
On 18 December 2019, the Company announced results from an infill soil sampling program 340
samples collected on a 200 x 25m grid and peak values of 2.5g/t and 1.0g/t gold recorded. The sampling
identified higher grade coherent anomalies within the 7km-long gold anomalous trend at the east and
west of the Kankan soil grid, namely Drill Targets A and B (Figure 14).
Figure 14 -Drill Targets A & B highlighted by zones of +100ppb soil sample results
The Company has completed 500m of AC/RC drilling, testing Drill Target A with results pending. The
RC program consisted of one drill traverse with 32m-spaced holes to obtain complete coverage of the
highest gold-in-soil values.
18 | 2020 Annual Report
KOUNDIAN
On 7 April 2020, the Company announced it had acquired the rights to the Koundian Property
Package, also located within Guinea’s prolific Siguiri Basin. Koundian is strategically located along
strike from the 2 Moz Tri-K gold deposits (Figure 15), with the southern permit boundary just 7km north
of the Koulekoun deposit (1.2 Moz at 1.52g/t gold). It also lies 15km west of the Mandiana gold deposits
and 75 km south-east of AngloGold’s (NYSE: AU) 10Moz Siguiri gold deposit.
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Figure 15 - Koundian Project located approximately 7km along strike from Tri-K’s 2Moz deposits showing location of mapped
historical artisanal mine sites
High-grade gold has been confirmed by limited historical drilling, with better intercepts including:
• 4m at 19.80g/t gold from 50m
• 2m at 7.00g/t gold from 44m
•
14m at 1.69g/t gold from 55m
Post reporting period, a large soil sampling and ground magnetics program was completed, with
results to vector down on potential drilling targets. Results of both programs will be released when all
soil and rock chip samples have been received.
2020 Annual Report | 19
COTE D’IVOIRE
RESOLUTE MINING JV (RSG 76.5% - PDI 23.5%)
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 as 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.
Predictive has been operating in Cote D’Ivoire since 2013 and regards 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. Increased corporate activity is further
validating the interest within the country with a number of ongoing transactions including Perseus
Mining Limited’s (ASX: PRU) takeover of Exore Resources (ASX: ERX) via a scheme of arrangement
and Shandong Gold Mining’s unconditional off-market bid for Cardinal Resources Ltd (ASX:CDV)
(TSX:CDV). The prevalence of a number of large scale producers such as Barrick Gold Corp (NYSE:GOLD),
Endeavour Mining (TSX: EDV) and Perseus Mining Limited gives further credibility to the potential for
gold discovery and production within Cote D’Ivoire.
FERKESSEDOUGOU NORTH
OUARIGUE SOUTH PROSPECT
Located in northern Cote D’Ivoire, directly adjacent to Burkina Faso’s southern border, the JV undertook
a diamond drilling (DD) program in the June Quarter of 2019 consisting of nine-holes (totalling 1,059m).
The program was designed to explore the shape and distribution of the Ouarigue South gold deposit
with better results including 45.3m at 3.16g/t gold from 45.9m including 9m at 10.31g/t gold16.
In early 2020, a follow-up nine-hole DD program (totalling 1,659m) was completed with better
intercepts of 51.0m at 1.27g/t gold from 169.0m and 14.0m at 10.74g/t gold from 33.0m17 . The drilling
confirmed a continuous easterly-dipping, gold-mineralised zone, extending from surface to a vertical
depth of 175m, which remains open at depth (Figure 16).
Figure 16 - Ouarigue South - Drill hole locations overlain on previous drilling and trenching results and
showing interpreted distribution of the host granite body at surface.
16 ASX Announcement – QUARTERLY ACTIVITIES REPORT FOR PERIOD ENDING 30 JUNE 2019
https://www.investi.com.au/api/announcements/pdi/d1f138fe-39c.pdf
17 ASX Announcement – DIAMOND DRILLING EXTENDS GOLD MINERALISATION AT OUARIGUE SOUTH, COTE D’IVOIRE
https://www.investi.com.au/api/announcements/pdi/455488c6-fe3.pdf
20 | 2020 Annual Report
2020 Annual Report | 21
BOUNDIALI
The Boundiali Project consists of two permits – Boundiali North and Boundiali South – 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.
During the September 2019 quarter, the Joint Venture completed several exploration programs across
the Boundiali Project, including trenching (totalling 6,809m) and a 91-hole RC drilling program.
The trenching was designed to identify new targets in shallow mineralisation, with RC drilling to
test underneath higher-grade trench results in Boundiali North and to infill previous drilling on the
Boundiali South permit.
BOUNDIALI NORTH - BN1/BN2 PROSPECTS
The RC drilling confirmed the discovery of primary gold mineralisation beneath targets BN1 and BN2
with some holes returning wide zones of lower grade mineralisation including multiple intercepts
above 0.5g/t gold, 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
BOUNDIALI SOUTH - NYANGBOUE PROSPECT
During the period, a 31-hole hole RC infill drilling program, testing a 720m section of the 1.2km-long
Nyangboue gold mineralised zone, was completed with highly encouraging results including18:
• BRC186 - 2m at 7.87g/t gold from 62m
• BRC190 - 10m at 1.5g/t gold from 49m
• BRC191 - 2m at 5.18g/t gold from 2m
• BRC193 - 4m at 4.65g/t gold from 0m
• BRC196 - 2m at 16.12g/t gold from 18m
• BRC197 - 2m at 5.36g/t gold from 64m
A follow up drilling program was completed with 16-holes of RC drilling returning numerous significant
gold results (Figure 17), including19:
• BRC208 - 3m at 14.97g/t gold from 9m
• BRC206 - 13m at 1.92g/t gold from 68m
• BRC209 – 16m at 1.64g/t gold from 7m
• BRC209 – 10m at 2.32g/t gold from 146m
• BRC202 – 4m at 3.56g/t gold from 109m
• BRC201 - 5m at 2.31g/t gold from 29m
• BRC202 - 6m at 2.48g/t gold from 71m
• BRC206 - 6m at 2.68g/t gold from 116m
• BRC213 - 7m at 1.92g/t gold from 112m
The results provided additional positive indications of the growing scale of the Boundiali gold
mineralised systems. Post reporting period, the JV began work on the Boundiali permit, with a power
auger drilling program completed.
18 ASX announcement - RC AND TRENCH RESULTS GROW BOUNDIALI POTENTIAL IN COTE D’IVOIRE
https://www.investi.com.au/api/announcements/pdi/015d9749-2be.pdf
19 ASX Announcement - BOUNDIALI RC DRILL RESULTS CONTINUE TO IMPRESS
https://www.investi.com.au/api/announcements/pdi/88fe5057-01a.pdf
22 | 2020 Annual Report
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Figure 17 - Drill-hole locations from follow-up drilling at the Nyangboue gold prospect, including significant intercepts from
previous drill programs.
2020 Annual Report | 23
BOCANDA NORTH
Post reporting date the company announced it had signed an earn-in and JV agreement with Glomin
Services (Glomin)20, to explore Predictive’s Bocanda Exploration Permit and the Issia and Tieningboue
Permit applications, all located within Cote d’Ivoire (Figure 18) .
The two stage earn-in agreement will allow Glomin to obtain an 80% interest in Predictive’s Cote
D’Ivoire Subsidiary (Ivoirian Resources SARL) by managing and funding exploration activities on the
above Permits and applications, with Predictive free carried at 20% until a Mining Lease is granted.
Stage 1: Earn an 80% interest by spending at least EUR $200,000 on the Bocanda Permit within the 12
months from agreement signature.
Stage 2: Exploration activities including, in the event that a successful discovery is made, Ore Resource
estimation and completion of a Pre-Feasibility study together with grant of a Mining Lease (known
as an Exploitation Permit in Cote d’Ivoire), while maintaining the properties in good stead through
completion of statutory expenditure and reporting on the three properties.
Following grant of a Mining Lease, Predictive will have the option to contribute to future expenses
including mine development costs or dilute to a 2% Net Smelter Return (NSR) royalty on future gold
production. Glomin may, at any time, repurchase from Predictive half of the royalty for a purchase price
of US$10,000,000, reducing the royalty to a 1% NSR.
If Glomin elects to discontinue work on any of the three Permits in the first 4 years from signature of
the agreement, the Permit in question will be returned to Predictive at no cost.
Figure 18 - Predictive’s Cote D’Ivoire Asset Portfolio
20 ASX announcement - NEW JOINT VENTURE IN COTE D’IVOIRE
https://www.investi.com.au/api/announcements/pdi/ab2cc1b7-194.pdf
24 | 2020 Annual Report
BURKINA FASO
In Burkina Faso, the company has a Joint Venture with Canadian-based Montage Gold Corp (MG 51%
– PDI 49%), which covers seven granted Exploration Permits and two Permit applications in Eastern
Burkina Faso, including the Bongou gold deposit which contains a JORC compliant Mineral Resource
Estimate of 184,000oz of gold in the Inferred and Indicated Mineral Resource categories with an
average grade of 2.6g/t Au, including 136,000oz at 3.8g/t Au21.
Montage Gold Corp. (Montage) is a private mineral exploration company with an extensive portfolio of
gold projects in Côte d’Ivoire covering 4,243 km2 and a 51% interest in the above group of Permits and
applications in Burkina Faso which now cover 845 km2. Montage was formed from the combination
of Ivory Coast projects from Orca Gold Inc.’s (TSX-V: ORG) and Avant Minerals Inc’s holdings in Burkina
Faso and Cote D’Ivoire.
The Joint Venture’s land package is separated into three non-contiguous projects – Bongou, Tambiri
and Bira (Figure 19).
No significant work was completed on the Burkina Faso properties during the reporting period with
the Company exploring divestment opportunities.
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Figure 19 – Predictive Joint Venture properties in Burkina Faso
21 ASX Release – 4 September 2014 - High-Grade Maiden Mineral Resource Estimate at Bongou, Burkina Faso
https://www.investi.com.au/api/announcements/pdi/2bab5647-9ed.pdf
2020 Annual Report | 25
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
DIRECTORS’ REPORT
Predictive Discovery Limited (“the Company” or “Predictive”) is a public company incorporated and domiciled in
Australia and listed on the Australian Securities Exchange.
The directors of the Company present their report on the Group, which comprises Predictive Discovery Limited and its
controlled entities, for the year ended 30 June 2020.
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
Mr Steven Michael
POSITION
Non-Executive Chairman
Managing Director
Non-Executive Director
Non-Executive Director
Resigned 18 December 2019
Appointed 18 December 2019
The Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.
COMPANY SECRETARIES
Ian Hobson – (Appointed 04th June 2020)
Ian was appointed as Company Secretary on 4th June 2020. He is a Chartered Accountant and Chartered Secretary with
15 years of experience as Company Secretary of ASX listed companies. Ian is also Company Secretary of PainChek Ltd,
Castle Minerals Ltd, Novatti Group Ltd, Dubber Corporation Ltd, Walkabout Resources.
Eric Moore – (Resigned 4 June 2020)
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 - (Resigned 4 June 2020)
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 $2,352,700 (2019:
$1,459,332). This was largely from exploration costs, share of losses of associates and the costs of administering the
Group to 30 June 2020.
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
DIRECTORS’ REPORT
REVIEW OF OPERATIONS
In Financial Year 2019-2020 Predictive made significant progress in realising value from its 100%-owned portfolio of
projects located in Guinea. The Company made a number of significant discoveries at the Bankan project with 17,000m
of auger drilling, 2,200 of air-core drilling, 5,500m of reverse circulation drilling and 3,700m of diamond drilling
completed to date, delivering the Bankan and Bankan Creek discoveries and confirming a large gold mineralised system
which remains open at depth and along strike.
Post reporting period, the exploration results have continued to impress with auger drilling increasing the Bankan
footprint to 1.6km-long and the Company uncovering a range of new regional targets including Bankan Creek, SE Bankan
and Bankan West.
Follow-up reverse circulation and diamond drilling has extended the mineralisation at depth and the Company has
confirmed the presence of a large mineralised system across both adjacent Kaninko and Saman permits.
The impact of COVID-19 on Predictive’s operations has been limited. The Company has continued operations throughout
the pandemic with appropriate hygiene protocols in place both in Guinea and Australia. The closure of the Guinea
border for some months prevented staff from coming to or going from Guinea, however samples (for analysis) and
drilling supplies continued to flow across the border with Mali meaning that the Bankan drilling programs continued
Permits: Boundiali, Boundiali North, Ferkessedougou North, Kounahiri, Kokoumbo, Beriaboukro plus Odienne North and
largely unaffected.
JOINT VENTURE AND INTERESTS
Resolute Joint Venture (ASX: RSG) - Cote D’Ivoire.
Equity: RSG 76.5% - PDI 23.5% (PDI contributing).
Land package encompassing 2,009 km2.
South permit applications.
Montage Joint Venture - Burkina Faso.
Equity: Montage Gold 51% - PDI 49%.
Land package encompassing 602 km2.
Glomin Joint-Venture - Cote D’Ivoire
Land package encompassing 1,135 km2.
Permits: Tieningboue, Bocanda, Issia.
Permits : Kalinga, Tantiabongou, Tambifwanou, Tamfoagou, Tambiri, Bira, Bongou, Basieri.
Glomin Mining (recently acquired by Tanga Resources (ASX: TRL)) has the right to earn up to 80%, and PDI may convert
to a 2% NSR after grant of a mining lease if PDI chooses not to contribute at 20% to mine developmental work.
Bobosso Project - Cote D’Ivoire (PDI 0% but with rights to mine development payments).
Minimum payment of US$2.15M to PDI on first mine development, US$4.30/ore reserve Oz Au as defined in the
Bankable Feasibility Study and due upon first production.
Permit: Wendene
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
26 | 2020 Annual Report
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PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
DIRECTORS’ REPORT
REVIEW OF OPERATIONS
In Financial Year 2019-2020 Predictive made significant progress in realising value from its 100%-owned portfolio of
projects located in Guinea. The Company made a number of significant discoveries at the Bankan project with 17,000m
of auger drilling, 2,200 of air-core drilling, 5,500m of reverse circulation drilling and 3,700m of diamond drilling
completed to date, delivering the Bankan and Bankan Creek discoveries and confirming a large gold mineralised system
which remains open at depth and along strike.
Post reporting period, the exploration results have continued to impress with auger drilling increasing the Bankan
footprint to 1.6km-long and the Company uncovering a range of new regional targets including Bankan Creek, SE Bankan
and Bankan West.
Follow-up reverse circulation and diamond drilling has extended the mineralisation at depth and the Company has
confirmed the presence of a large mineralised system across both adjacent Kaninko and Saman permits.
The impact of COVID-19 on Predictive’s operations has been limited. The Company has continued operations throughout
the pandemic with appropriate hygiene protocols in place both in Guinea and Australia. The closure of the Guinea
border for some months prevented staff from coming to or going from Guinea, however samples (for analysis) and
drilling supplies continued to flow across the border with Mali meaning that the Bankan drilling programs continued
largely unaffected.
JOINT VENTURE AND INTERESTS
Resolute Joint Venture (ASX: RSG) - Cote D’Ivoire.
Equity: RSG 76.5% - PDI 23.5% (PDI contributing).
Land package encompassing 2,009 km2.
Permits: Boundiali, Boundiali North, Ferkessedougou North, Kounahiri, Kokoumbo, Beriaboukro plus Odienne North and
South permit applications.
Montage Joint Venture - Burkina Faso.
Equity: Montage Gold 51% - PDI 49%.
Land package encompassing 602 km2.
Permits : Kalinga, Tantiabongou, Tambifwanou, Tamfoagou, Tambiri, Bira, Bongou, Basieri.
Glomin Joint-Venture - Cote D’Ivoire
Glomin Mining (recently acquired by Tanga Resources (ASX: TRL)) has the right to earn up to 80%, and PDI may convert
to a 2% NSR after grant of a mining lease if PDI chooses not to contribute at 20% to mine developmental work.
Land package encompassing 1,135 km2.
Permits: Tieningboue, Bocanda, Issia.
Bobosso Project - Cote D’Ivoire (PDI 0% but with rights to mine development payments).
Minimum payment of US$2.15M to PDI on first mine development, US$4.30/ore reserve Oz Au as defined in the
Bankable Feasibility Study and due upon first production.
Permit: Wendene
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
2020 Annual Report | 27
4
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
DIRECTORS’ REPORT
FINANCIAL YEAR 2019-2020 EXPLORATION ACTIVITY
Project Highlights
Bankan Project (Kaninko and Saman Permits, Guinea) - Power Auger (Auger) and subsequent Air Core (AC) drilling on
the NE Bankan and Bankan Creek prospects discovered significant gold mineralisation in both areas. The AC drill results
demonstrated the presence of a broad zone of gold mineralisation at NE Bankan and included best intercepts of 46m at
6.6g/t gold and 42m at 2.9g/t gold, both of which ended in gold mineralisation. AC/Reverse Circulation (RC) drilling at
Bankan Creek also intersected 42m at 2.1g/t gold, which also ended in gold mineralisation. Subsequent power auger
drilling extended the length of the NE Bankan shallow plus-0.25g/t gold footprint from 500m long to 1.3km long. A major
combined program of Auger, RC and Diamond Drilling (DD) was initiated during the June Quarter and continued on for
most of the 2020-21 September Quarter.
Ferkessedougou North Project (Cote D’Ivoire) – Follow-up DD at the Ouarigue South prospect obtained additional
excellent drill results and demonstrated that gold mineralisation extends to a depth of approximately 180m. The best
new gold intercepts were 14.0m at 10.7g/t gold, 51m at 1.3 g/t gold and 40.4m at 1.9g/t gold.
DIVIDENDS PAID OR RECOMMENDED
No dividends were paid or declared since the start of the financial year. No recommendation for payment of dividends
has been made.
FINANCIAL POSITION
The net assets of the Group have increased by $8,961,651 from 30 June 2019 to 30 June 2020. This net movement is
largely due to the following factors:
$11.4m net capital raising;
Expenditure on exploring and evaluating the assets in Burkina Faso and Cote D’Ivoire; and
Administration 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 $11.4 million.
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
DIRECTORS’ REPORT
EVENTS AFTER THE END OF REPORTING PERIOD
The Company recognises the current global COVID-19 pandemic may impact on its operations. Specifically,
Government restrictions may:
(i)
prevent Company staff or contractors from carrying out their exploration activities; or
(ii)
impede the supply of equipment or other exploration consumables required to do the exploration work.
The nature and extent of the effect of the outbreak on the performance of the Company remains unknown. The
Company’s share price may be adversely affected in the short to medium term by the economic uncertainty caused
by COVID-19. Further, any governmental or industry measures taken in response to COVID-19 may adversely impact
the Company’s operations and are likely to be beyond the control of the Company. The ability to freely move people
and equipment to and from exploration projects may cause delays or cost increases. The effects of COVID-19 on the
Company's share price may also impede the ability to raise capital, or require the Company to issue capital at a discount,
which may in turn cause dilution to shareholders.
On 6 August 2020, the Company signed and earn-in and Joint Venture (JV) agreement with Glomin Services Limited to
explore the Company’s Bocanda permit and Issia and Tieningboue applications, all located within Cote d’Ivoire. The
Company will be free carried at 20% until a Mining Lease is granted, after which the Company will have the option to
contribute to future expenses or dilute to a 2% Net Smelter Return (NSR) royalty on future gold production. Under the
agreement, Glomin may, at any time, repurchase from the Company half of the royalty for a purchase price of
US$10,000,000 reducing the royalty to a 1% NSR. If Glomin elects to discontinue work on the three permits in the first
four years of this agreement, the permit in question will be returned to Predictive at no cost. While Glomin is operating,
it will be responsible for ensuring that the permits and applications are kept in good standing with the Cote d’Ivoire
Mines Ministry.
There has not been any other matter or circumstance arising 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
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
Group in future financial years.
FUTURE DEVELOPMENTS
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.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
28 | 2020 Annual Report
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PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
DIRECTORS’ REPORT
EVENTS AFTER THE END OF REPORTING PERIOD
The Company recognises the current global COVID-19 pandemic may impact on its operations. Specifically,
Government restrictions may:
(i)
prevent Company staff or contractors from carrying out their exploration activities; or
(ii)
impede the supply of equipment or other exploration consumables required to do the exploration work.
The nature and extent of the effect of the outbreak on the performance of the Company remains unknown. The
Company’s share price may be adversely affected in the short to medium term by the economic uncertainty caused
by COVID-19. Further, any governmental or industry measures taken in response to COVID-19 may adversely impact
the Company’s operations and are likely to be beyond the control of the Company. The ability to freely move people
and equipment to and from exploration projects may cause delays or cost increases. The effects of COVID-19 on the
Company's share price may also impede the ability to raise capital, or require the Company to issue capital at a discount,
which may in turn cause dilution to shareholders.
On 6 August 2020, the Company signed and earn-in and Joint Venture (JV) agreement with Glomin Services Limited to
explore the Company’s Bocanda permit and Issia and Tieningboue applications, all located within Cote d’Ivoire. The
Company will be free carried at 20% until a Mining Lease is granted, after which the Company will have the option to
contribute to future expenses or dilute to a 2% Net Smelter Return (NSR) royalty on future gold production. Under the
agreement, Glomin may, at any time, repurchase from the Company half of the royalty for a purchase price of
US$10,000,000 reducing the royalty to a 1% NSR. If Glomin elects to discontinue work on the three permits in the first
four years of this agreement, the permit in question will be returned to Predictive at no cost. While Glomin is operating,
it will be responsible for ensuring that the permits and applications are kept in good standing with the Cote d’Ivoire
Mines Ministry.
There has not been any other matter or circumstance arising after the balance date that has significantly affected or
could significantly affect the operations of the Group, the results of those operations, or the state of affairs of the
Group in future financial years.
FUTURE DEVELOPMENTS
Likely developments in the operations of the Group and the expected results of those operations in future financial
years have not been included in this report, as the inclusion of such information is likely to result in unreasonable
prejudice to the Group.
ENVIRONMENTAL ISSUES
The Group’s operations are subject to significant environmental regulations under both Commonwealth and State
legislation. The Board believes that the Group has adequate systems in place for the management of its environmental
regulations and is not aware of a breach of those environmental requirements as they apply to the Group.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
2020 Annual Report | 29
6
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
DIRECTORS’ REPORT
INFORMATION ON DIRECTORS
Mr Phillip Jackson
Non-Executive Chairman
Qualification
Experience
Interest in Shares and Options
(at the date of this report)
BJuris, LLB, MBA, FAICD
legal and
Phillip Jackson, the Chairman and a Director of the Company, is a barrister
and solicitor with over 25 years
international corporate
experience, especially in the areas of commercial and contract law, mining
law and corporate structuring. He has worked extensively in the Middle
East, Asia and the United States of America. In Australia, he was formerly a
managing legal counsel for a major international mining company, and in
private practice specialised in small to medium resource companies. Phillip
was managing region legal counsel: Asia-Pacific for a leading oil services
company for 13 years. He was General Counsel for a major international oil
and gas company. Phillip has been Chairman of Predictive since December
2014. Phillip is also non-executive Chairman of Peninsula Mines Limited
(“Peninsula”), and Aurora Minerals Limited and is a non-executive director
of Scotgold Resources Limited.
Shareholding: 533,324
Option holding: 275,000 (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
Interest in Shares and Options
(at the date of this report)
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.
Shareholding: 5,259,671
Option holding: 1,100,000 (unlisted)
Directorships held in other listed entities
during the three years prior to the
current year
None
Mr David Kelly
Qualifications
Experience
Interest in Shares and Options
(at resignation date)
Non-Executive Director (resigned 18 December 2019)
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: 275,000 (unlisted)
Directorships held in other listed entities
during the three years prior to the
current year
Renaissance Minerals Limited
Manas Resources Limited
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
30 | 2020 Annual Report
7
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
DIRECTORS’ REPORT
Qualifications
Experience
Mr Steven Michael
Non-Executive Director
B.Com, CA, MAICD
Mr Michael has over 25 years’ experience in the global resources sector
specialising in corporate finance and equity capital markets. He is
currently a Managing Director at FTI Consulting, an independent global
business advisory firm. He has previously worked in the natural resources
divisions of Macquarie Bank, Rothschild and Royal Bank of Canada. Mr
Michael is also a Non-Executive Director of Tanga Resource Limited (ASX:
TRL), and was previously Managing Director of ASX-listed Arrow Minerals
Limited (ASX: AMD) which held several gold projects in Burkina Faso. Mr
Michael is a Member of the Institute of Chartered Accountants in Australia
and is a member of the Australian Institute of Company Directors.
Shareholding: Nil
Option holding: Nil
Interest in Shares and Options
(at the date of this report)
Directorships held in other listed entities
Arrow Minerals Limited
during the three years prior to the
Tanga Resources Limited
current year
MEETINGS OF DIRECTORS
During the financial year, 12 meetings / circular resolutions of directors (including committees of directors) were held.
Attendances by each director at meetings during the year were as follows:
Director
Number eligible to
Number attended Number eligible to
Number attended
Directors' Meetings
Circular Resolutions
Mr Phillip Jackson
Mr Paul Roberts
Mr David Kelly
Steven Michael
attend
3
3
0
3
3
3
0
3
attend
12
12
3
9
12
12
3
9
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
24 December 2019
30 June 2020
Date of Expiry
29 November 2020
24 December 2022
30 June 2023
Exercise Price
Number under Option
$0.3867
$0.018
$0.18
TOTAL
1,952,500
86,431,485
7,500,000
95,883,985
During the year ended 30 June 2020 30,993,519 ordinary shares of Predictive Discovery Limited were issued on the
exercise of options granted at $0.018 per share.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
8
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
DIRECTORS’ REPORT
Mr Steven Michael
Non-Executive Director
Qualifications
Experience
Interest in Shares and Options
(at the date of this report)
B.Com, CA, MAICD
Mr Michael has over 25 years’ experience in the global resources sector
specialising in corporate finance and equity capital markets. He is
currently a Managing Director at FTI Consulting, an independent global
business advisory firm. He has previously worked in the natural resources
divisions of Macquarie Bank, Rothschild and Royal Bank of Canada. Mr
Michael is also a Non-Executive Director of Tanga Resource Limited (ASX:
TRL), and was previously Managing Director of ASX-listed Arrow Minerals
Limited (ASX: AMD) which held several gold projects in Burkina Faso. Mr
Michael is a Member of the Institute of Chartered Accountants in Australia
and is a member of the Australian Institute of Company Directors.
Shareholding: Nil
Option holding: Nil
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Directorships held in other listed entities
during the three years prior to the
current year
Arrow Minerals Limited
Tanga Resources Limited
MEETINGS OF DIRECTORS
During the financial year, 12 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
Steven Michael
Number eligible to
attend
Number attended Number eligible to
Number attended
3
3
0
3
3
3
0
3
attend
12
12
3
9
12
12
3
9
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
24 December 2019
30 June 2020
Date of Expiry
29 November 2020
24 December 2022
30 June 2023
Exercise Price
$0.3867
$0.018
$0.18
TOTAL
Number under Option
1,952,500
86,431,485
7,500,000
95,883,985
During the year ended 30 June 2020 30,993,519 ordinary shares of Predictive Discovery Limited were issued on the
exercise of options granted at $0.018 per share.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
2020 Annual Report | 31
8
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
DIRECTORS’ REPORT
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied for leave of Court to bring proceeding on behalf of the Group or intervene in any proceedings to
which the Group is a party for the purpose of taking responsibility on behalf of the Group for all or any part of those
proceedings.
The Group was not a party to any such proceeding during the year.
NON-AUDIT SERVICES
The Board of Directors is satisfied that the provision of non-audit services the by the auditor during the year by the
auditor is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001.
Details of the amounts paid to the auditor of the Group for audit and non-audit services provided during the year are
set out at note 16.
AUDITOR’S INDEPENDENCE DECLARATION
The auditors’ independence declaration for the year ended 30 June 2020 has been received and can be found on page
52 of the financial report.
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
DIRECTORS’ 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.
of the Company is as follows:
The Company’s policy for determining the nature and amount of emoluments of Board members and senior executives
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.
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.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
32 | 2020 Annual Report
9
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
10
t
r
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’
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e
r
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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
DIRECTORS’ 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.
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.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
10
2020 Annual Report | 33
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
DIRECTORS’ REPORT
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 2020
Mr Phillip Jackson
Mr Paul Roberts
Mr David Kelly(4)
Mr Steven Michael (3)
Mr Ian Hobson (1)
Mr Eric Moore (2)
Mr Bruce Waddell (2)
Non-Executive Chairman
Managing Director
Non-Executive Director
Non-Executive Director
Company Secretary
Company Secretary
Company Secretary
Non-salary
cash-based
incentives
%
-
-
-
-
-
-
-
Options/
Rights
%
-
-
-
-
-
-
-
Fixed
Salary/Fees
%
100
100
100
100
100
100
100
Total
%
100
100
100
100
100
100
100
(1)
(2)
Ian Hobson was appointed company secretary on 4 June 2020.
Eric Moore and Bruce Waddell resigned as joint company secretaries on 4 June 2020.
(3) Mr Steven Michael was appointed on 18 December 2019.
(4) Mr David Kelly resigned on 18 December 2019.
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, was engaged pursuant to a consulting agreement that requires 6 months’ notice of
voluntary termination of employment that entitles Mr Roberts to $102,500 as a termination benefit. The agreement
was terminated by mutual agreement on 1 July 2020 and replaced with an employment agreement directly with Mr
Roberts with an annual salary of $275,000 plus superannuation and termination by either party without cause on 6
months’ notice or payment of 6 months’ total remuneration.
Ian Hobson, who was appointed company secretary on 4 June 2020, was engaged pursuant to a consultancy
agreement at $200/hr with no notice period.
Mr Waddell, who resigned as joint company secretary on 4 June 2020, was engaged pursuant to a consulting agreement
that at a rate of $90,000 per annum which required 2 months’ notice of voluntary termination of employment that
entitles Mr Waddell to $15,000 as a termination benefit. Mr Moore, who resigned as joint company secretary on 4 June
2020, was charged to the Company at a rate of $100 per hour for any services rendered under an Administration Services
Agreement with Aurora, with those charges amounting to $12,948 for the period.
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) (continued)
REMUNERATION DETAILS FOR THE YEAR ENDED 30 JUNE 2020
The following table of benefits and payment details, in respect to the financial year, the components of remuneration
for each member of the key management personnel of the Group and, to the extent different, the five Group executives
and five company executives receiving the highest remuneration:
Table of Benefits and Payments for the Period Ended 30 June 2020
Key
Management
Salary,
super-
Shares/
Options/
Personnel
fees and leave Other
annuation
Units
Rights
$
$
$
$
Pension and
Mr Philip Jackson
Mr Paul Roberts
Mr David Kelly (1)
Mr Steven Michael (2)
Mr Bruce Waddell (2)
Mr Ian Hobson (3)
Total Key
Management
Personnel
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
$
50,000
50,000
205,000
205,000
14,865
31,963
22,955
117,190
52,500
12,600
-
-
422,610
339,463
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,412
3,037
1,412
3,037
(1) Resigned 18 December 2019, (2) Appointed 18 December 2019, (3) Resigned 4 June 2020, (4) Appointed 4 June 2020
KEY MANAGEMENT PERSONNEL OPTIONS AND RIGHTS HOLDINGS
The number of options over ordinary shares held by each key management person of the Group during the financial
year is as follows:
Granted as
Other
Balance at
remunerat-
Expired
changes
Balance at
Vested
Vested and
beginning of
ion during
during the
during the
period
the period
period
period
end of
period
during the
Vested and
unexercis-
period
exercisable
able
30 June 2020
Mr Philip Jackson
Mr Paul Roberts
Mr David Kelly (1)
Mr Steven Michael (2)
Mr Ian Hobson (3)
Mr Eric Moore (4)
Mr Bruce Waddell (4)
550,000
3,415,021
550,000
-
-
220,000
165,500
4,900,021
(275,000)
(2,315,021)
(275,000)
-
-
-
(275,000)
(220,000)
(165,500)
-
-
-
-
-
-
-
-
-
-
-
-
275,000
1,100,000
275,000
1,100,000
-
-
-
-
-
-
-
-
-
-
-
-
(1) Resigned 18 December 2019, (2) Appointed 18 December 2019, (3) Appointed 4 June 2020, (4) Resigned 4 June 2020
(2,865,021)
(660,500) 1,375,000
1,375,000
Total
$
50,000
50,000
205,000
205,000
16,277
35,000
22,955
117,190
52,500
12,600
-
-
424,022
342,500
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
11
34 | 2020 Annual Report
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
12
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) (continued)
REMUNERATION DETAILS FOR THE YEAR ENDED 30 JUNE 2020
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:
t
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Table of Benefits and Payments for the Period Ended 30 June 2020
Key
Personnel
Management
Salary,
fees and leave Other
Mr Philip Jackson
Mr Paul Roberts
Mr David Kelly (1)
Mr Steven Michael (2)
Mr Bruce Waddell (2)
Mr Ian Hobson (3)
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
$
50,000
50,000
205,000
205,000
14,865
31,963
22,955
-
117,190
52,500
12,600
-
$
-
-
-
-
-
-
-
-
-
-
-
-
Pension and
super-
annuation
$
Shares/
Units
$
Options/
Rights
$
-
-
-
-
1,412
3,037
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total Key
Management
Personnel
-
-
(1) Resigned 18 December 2019, (2) Appointed 18 December 2019, (3) Resigned 4 June 2020, (4) Appointed 4 June 2020
422,610
339,463
1,412
3,037
2020
2019
-
-
-
-
Total
$
50,000
50,000
205,000
205,000
16,277
35,000
22,955
-
117,190
52,500
12,600
-
424,022
342,500
KEY MANAGEMENT PERSONNEL OPTIONS AND RIGHTS HOLDINGS
The number of options over ordinary shares held by each key management person of the Group during the financial
year is as follows:
Balance at
beginning of
period
Granted as
remunerat-
ion during
the period
Expired
during the
period
Other
changes
during the
period
Balance at
end of
period
Vested
during the
period
Vested and
exercisable
Vested and
unexercis-
able
30 June 2020
Mr Philip Jackson
Mr Paul Roberts
Mr David Kelly (1)
Mr Steven Michael (2)
Mr Ian Hobson (3)
Mr Eric Moore (4)
Mr Bruce Waddell (4)
550,000
3,415,021
550,000
-
-
220,000
165,500
4,900,021
-
-
-
-
-
-
-
-
(275,000)
(2,315,021)
(275,000)
-
-
-
-
(2,865,021)
275,000
1,100,000
-
-
(275,000)
-
-
-
-
-
(220,000)
(165,500)
-
(660,500) 1,375,000
-
-
-
-
-
-
-
275,000
1,100,000
-
-
-
-
1,375,000
-
-
-
-
-
-
-
-
(1) Resigned 18 December 2019, (2) Appointed 18 December 2019, (3) Appointed 4 June 2020, (4) Resigned 4 June 2020
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
2020 Annual Report | 35
12
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
DIRECTORS’ REPORT
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) (continued)
CASH BONUSES, PERFORMANCE-RELATED BONUSES AND SHARE-BASED PAYMENTS
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
-
-
-
-
-
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:
Paul Roberts
Managing Director
25 September 2020
Options were granted as remuneration during the year to key management personnel and other executives as set out
in notes 15 and 21.
END OF THE REMUNERATION REPORT
Signed in accordance with a resolution of the Board of Directors:
Balance at
beginning of
period
Granted as
remuneration
during the
period
Issued on
exercise of
options during
the period
Purchased
during the
period
Other changes
during the
period
Balance at end of
period
30 June 2020
Mr Phillip Jackson
Mr Paul Roberts
Mr David Kelly (1)
Steven Michael (2)
Ian Hobson (3)
Mr Eric Moore (4)
Mr Bruce Waddell (4)
500,000
3,430,941
225,000
-
-
-
350,000
4,505,941
-
-
-
-
-
-
-
-
-
500,000
-
-
-
-
-
500,000
33,324
1,328,730
-
-
41,280
-
-
1,403,334
-
-
(225,000)
-
9,600
-
(350,000)
(565,400)
533,324
5,259,671
-
-
50,880
-
-
5,843,875
(1) Resigned 18 December 2019, (2) Appointed 18 December 2019, (3) Appointed 4 June 2020, (4) Resigned 4 June 2020
Balance at
beginning of
period
Granted as
remuneration
during the
period
Issued on
exercise of
options during
the period
Purchased
during the
period
Other changes
during the
period (1)
Balance at end of
period
30 June 2019
Mr Phillip Jackson
Mr Paul Roberts
Mr David Kelly
Mr Eric Moore
Mr Bruce Waddell
-
2,708,260
-
-
-
2,708,260
-
-
-
-
-
-
-
-
-
-
-
-
500,000
722,681
225,000
-
350,000
1,797,681
-
-
-
-
-
-
500,000
3,430,941
225,000
-
350,000
4,505,941
SECURITIES RECEIVED THAT ARE NOT PERFORMANCE-BASED
No members of key management personnel received securities during the period which were not dependent upon the
performance of the Group’s share price as part of their remuneration package.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
13
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
14
36 | 2020 Annual Report
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
DIRECTORS’ 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
in notes 15 and 21.
END OF THE REMUNERATION REPORT
t
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Signed in accordance with a resolution of the Board of Directors:
Paul Roberts
Managing Director
25 September 2020
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
14
2020 Annual Report | 37
e
m
o
c
n
I
e
v
i
s
n
e
h
e
r
p
m
o
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e
h
t
O
d
n
a
s
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o
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P
f
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a
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S
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2020
Finance income
Other income
Gain on Sale of JV Interest
Administrative payments
Foreign exchange gain/(expenses)
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
Consolidated
Note
2020
$
2019
$
7,019
-
-
(903,015)
(78,381)
10,506
(704,942)
-
(683,887)
18,284
37,470
223,139
(712,765)
(14,671)
-
(129,435)
(474,091)
(407,263)
(2,352,700)
(1,459,332)
-
-
24
7
6
2
Loss from continuing operations
(2,352,700)
(1,459,332)
Other comprehensive income
Items that may be not reclassified subsequently to operating
result
Exchange difference on translation of foreign operations
10
461
45,395
12,854,534
3,881,296
Statement of Profit or Loss and
Other Comprehensive Income
Profit attributable to:
Members of the parent entity
(2,352,239)
(1,413,937)
(2,352,239)
(1,413,937)
Total comprehensive loss for the year
(2,352,239)
(1,413,937)
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
11
11
(0.005)
(0.005)
(0.592)
(0.592)
The accompanying notes form part of these financial statements
The accompanying notes form part of these financial statements
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
38 | 2020 Annual Report
15
16
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2020
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
Consolidated
Note
2020
$
2019
$
3
4
5
6
7
8
9
8,639,015
125,538
8,764,553
34,524
5,048,178
-
5,082,702
992,721
-
992,721
992,721
1,173,049
104,690
1,277,739
21,500
1,923,318
747,568
2,692,386
88,829
-
88,829
88,829
13,847,255
3,970,125
42,859,342
131,465
(30,136,273)
31,491,240
298,632
(27,908,576)
12,854,534
3,881,296
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2020
n
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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
Consolidated
Note
2020
$
2019
$
3
4
5
6
7
8
9
8,639,015
125,538
8,764,553
34,524
5,048,178
-
5,082,702
1,173,049
104,690
1,277,739
21,500
1,923,318
747,568
2,692,386
13,847,255
3,970,125
992,721
-
992,721
992,721
88,829
-
88,829
88,829
12,854,534
3,881,296
42,859,342
131,465
(30,136,273)
31,491,240
298,632
(27,908,576)
12,854,534
3,881,296
The accompanying notes form part of these financial statements
Statement of Financial
Position
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
2020 Annual Report | 39
16
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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
7
1
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2020
)
5
2
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4
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Net cash provided by (used in) operating activities
20
(3,956,625)
(636,181)
5
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9
5
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Cash flows from operating activities
Interest received
Payments to suppliers and employees
Payments for exploration expenditure
Cash flows from investing activities
Purchase of property, plant and equipment
Cash movement on deconsolidation of subsidiary
Proceeds from conversion of remaining JV interest
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from issue of shares
Proceeds on exercise of options
Payment for share issue costs
Net cash inflow from financing activities
Net increase (decrease) in cash held
Foreign exchange differences
Cash and cash equivalents at beginning of financial period
Consolidated
Note
2020
$
2019
$
17,262
(653,443)
(890,267)
(18,208)
-
514,925
(393,550)
531,000
-
(13,523)
517,477
(512,254)
1,250
1,684,053
5,786
(866,843)
(3,095,568)
(15,534)
(603)
-
(16,137)
11,581,124
557,846
(700,704)
11,438,266
7,465,504
462
1,173,049
Cash and cash equivalents at end of the financial period
3
8,639,015
1,173,049
The accompanying notes form part of these financial statements
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40 | 2020 Annual Report
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
18
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2020
Cash flows from operating activities
Interest received
Payments to suppliers and employees
Payments for exploration expenditure
l
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o
F
h
s
a
C
f
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t
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m
e
t
a
t
S
Consolidated
Note
2020
$
5,786
(866,843)
(3,095,568)
2019
$
17,262
(653,443)
(890,267)
Net cash provided by (used in) operating activities
20
(3,956,625)
(636,181)
Cash flows from investing activities
Purchase of property, plant and equipment
Cash movement on deconsolidation of subsidiary
Proceeds from conversion of remaining JV interest
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from issue of shares
Proceeds on exercise of options
Payment for share issue costs
Net cash inflow from financing activities
Net increase (decrease) in cash held
Foreign exchange differences
Cash and cash equivalents at beginning of financial period
(15,534)
(603)
-
(16,137)
11,581,124
557,846
(700,704)
11,438,266
7,465,504
462
1,173,049
(18,208)
-
514,925
(393,550)
531,000
-
(13,523)
517,477
(512,254)
1,250
1,684,053
Cash and cash equivalents at end of the financial period
3
8,639,015
1,173,049
The accompanying notes form part of these financial statements
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
2020 Annual Report | 41
18
Statement of Cash
Flows
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTES TO THE FINANCIAL STATEMENTS
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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
(a)
Principles of consolidation (continued)
Business Combinations
Predictive Discovery Limited is a for-profit company limited by shares, incorporated and domiciled in Australia.
consolidation of its assets and liabilities.
Basis of preparation
The financial report is a general-purpose financial statement that has been prepared in accordance with Australian
Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian
Accounting Standards Board and the Corporations Act 2001.
Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial
report containing relevant and reliable information about transactions, events and conditions. Compliance with
Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial
Reporting Standards. Material accounting policies adopted in the preparation of this financial report are presented below
and have been consistently applied unless otherwise stated.
The financial report has been prepared on an accruals basis and is based on historical costs, modified, where applicable,
by the measurement at fair value of selected financial assets and financial liabilities.
The financial statements were authorised for issue, in accordance with a resolution of the directors, on 25 September
2020. 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.
Note to the Financial
Statement
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
or businesses under common control. The acquisition method requires that for each business combination one of the
combining entities must be identified as the acquirer (i.e. parent entity). The business combination will be accounted
for as at the acquisition date, which is the date that control over the acquiree is obtained by the parent entity.
At this date, the parent shall recognise, in the consolidated accounts, and subject to certain limited exceptions, the fair
value of the identifiable assets acquired, and liabilities assumed. In addition, contingent liabilities of the acquiree will be
recognised where a present obligation has been incurred and its fair value can be reliably measured.
The acquisition may result in the recognition of goodwill or a gain from a bargain purchase. The method adopted for the
measurement of goodwill will impact on the measurement of any non-controlling interest to be recognised in the
acquiree where less than 100% ownership interest is held in the acquiree.
The acquisition date fair value of the consideration transferred for a business combination plus the acquisition date fair
value of any previously held equity interest shall form the cost of the investment in the separate financial statements.
Consideration may comprise the sum of the assets transferred by the acquirer, liabilities incurred by the acquirer to the
former owners of the acquiree and the equity interests issued by the acquirer.
Fair value uplifts in the value of pre-existing equity holdings are taken to the statement of comprehensive income.
Where changes in the value of such equity holdings had previously been recognised in other comprehensive income,
such amounts are recycled to profit or loss.
Included in the measurement of consideration transferred is any asset or liability resulting from a contingent
consideration arrangement. Any obligation incurred relating to contingent consideration is classified as either a financial
liability or equity instrument, depending upon the nature of the arrangement. Rights to refunds of consideration
previously paid are recognised as a receivable. Subsequent to initial recognition, contingent consideration classified as
equity is not remeasured and its subsequent settlement is accounted for within equity. Contingent consideration
classified as an asset or a liability is remeasured each reporting period to fair value through the statement of
comprehensive income unless the change in value can be identified as existing at acquisition date.
All transaction costs incurred in relation to the business combination are expensed to the statement of comprehensive
income.
Interests in joint arrangements
control.
(i) Joint operations
IFRS defines a joint arrangement as one over which two or more parties have joint control, which is the contractually
agreed sharing of control over an arrangement. This exists only when the decisions about the relevant activities (being
those that significantly affect the returns of the arrangement) require the unanimous consent of the parties sharing
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
19
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
20
42 | 2020 Annual Report
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(a)
Principles of consolidation (continued)
Business Combinations
Business combinations occur where an acquirer obtains control over one or more businesses and results in the
consolidation of its assets and liabilities.
s
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t
a
t
S
l
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F
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A business combination is accounted for by applying the acquisition method, unless it is a combination involving entities
or businesses under common control. The acquisition method requires that for each business combination one of the
combining entities must be identified as the acquirer (i.e. parent entity). The business combination will be accounted
for as at the acquisition date, which is the date that control over the acquiree is obtained by the parent entity.
s
e
t
o
N
At this date, the parent shall recognise, in the consolidated accounts, and subject to certain limited exceptions, the fair
value of the identifiable assets acquired, and liabilities assumed. In addition, contingent liabilities of the acquiree will be
recognised where a present obligation has been incurred and its fair value can be reliably measured.
The acquisition may result in the recognition of goodwill or a gain from a bargain purchase. The method adopted for the
measurement of goodwill will impact on the measurement of any non-controlling interest to be recognised in the
acquiree where less than 100% ownership interest is held in the acquiree.
The acquisition date fair value of the consideration transferred for a business combination plus the acquisition date fair
value of any previously held equity interest shall form the cost of the investment in the separate financial statements.
Consideration may comprise the sum of the assets transferred by the acquirer, liabilities incurred by the acquirer to the
former owners of the acquiree and the equity interests issued by the acquirer.
Fair value uplifts in the value of pre-existing equity holdings are taken to the statement of comprehensive income.
Where changes in the value of such equity holdings had previously been recognised in other comprehensive income,
such amounts are recycled to profit or loss.
Included in the measurement of consideration transferred is any asset or liability resulting from a contingent
consideration arrangement. Any obligation incurred relating to contingent consideration is classified as either a financial
liability or equity instrument, depending upon the nature of the arrangement. Rights to refunds of consideration
previously paid are recognised as a receivable. Subsequent to initial recognition, contingent consideration classified as
equity is not remeasured and its subsequent settlement is accounted for within equity. Contingent consideration
classified as an asset or a liability is remeasured each reporting period to fair value through the statement of
comprehensive income unless the change in value can be identified as existing at acquisition date.
All transaction costs incurred in relation to the business combination are expensed to the statement of comprehensive
income.
Interests in joint arrangements
IFRS defines a joint arrangement as one over which two or more parties have joint control, which is the contractually
agreed sharing of control over an arrangement. This exists only when the decisions about the relevant activities (being
those that significantly affect the returns of the arrangement) require the unanimous consent of the parties sharing
control.
(i) Joint operations
A joint operation is a type of joint arrangement whereby the parties that have joint control of the arrangement have
rights to the assets and obligations for the liabilities, relating to the arrangement. In relation to its interests in joint
operations, the Group recognises its:
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
20
2020 Annual Report | 43
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
Other revenue
(c)
Income Tax
(income).
(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 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).
The income tax expense (revenue) for the year comprises current income tax expense (income) and deferred tax expense
Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated using applicable
income tax rates enacted, or substantially enacted, as at the end of the reporting period. Current tax liabilities (assets)
are therefore measured at the amounts expected to be paid to (recovered from) the relevant taxation authority.
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year
as well as unused tax losses. Current and deferred tax expense (income) is charged or credited directly to equity instead
of the profit or loss when the tax relates to items that are credited or charged directly to equity.
Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases of assets
and liabilities and their carrying amounts in the financial statements. Deferred tax assets also result where amounts
have been fully expensed but future tax deductions are available. No deferred income tax will be recognised from the
initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or
taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset
is realised or the liability is settled, based on tax rates enacted or substantively enacted at the end of the reporting
period. Their measurement also reflects the manner in which management expects to recover or settle the carrying
amount of the related asset or liability.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is
probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.
Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint ventures,
deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary difference can
be controlled and it is not probable that the reversal will occur in the foreseeable future.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
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PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
22
44 | 2020 Annual Report
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(b)
Revenue recognition
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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)
Income Tax
The income tax expense (revenue) for the year comprises current income tax expense (income) and deferred tax expense
(income).
Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated using applicable
income tax rates enacted, or substantially enacted, as at the end of the reporting period. Current tax liabilities (assets)
are therefore measured at the amounts expected to be paid to (recovered from) the relevant taxation authority.
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year
as well as unused tax losses. Current and deferred tax expense (income) is charged or credited directly to equity instead
of the profit or loss when the tax relates to items that are credited or charged directly to equity.
Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases of assets
and liabilities and their carrying amounts in the financial statements. Deferred tax assets also result where amounts
have been fully expensed but future tax deductions are available. No deferred income tax will be recognised from the
initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or
taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset
is realised or the liability is settled, based on tax rates enacted or substantively enacted at the end of the reporting
period. Their measurement also reflects the manner in which management expects to recover or settle the carrying
amount of the related asset or liability.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is
probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.
Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint ventures,
deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary difference can
be controlled and it is not probable that the reversal will occur in the foreseeable future.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
22
2020 Annual Report | 45
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(d)
Income Tax (continued)
(g)
Foreign Currency Transactions and Balances (continued)
Current assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net
settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets
and liabilities are offset where a legally enforceable right of set-off exists, the deferred tax assets and liabilities relate to
income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where
it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will
occur in future periods in which significant amounts of deferred tax assets or liabilities are expected to be recovered or
settled.
(d)
Employee Benefits
Provision is made for the company's liability for employee benefits arising from services rendered by employees to the
end of the reporting period. Employee benefits that are expected to be settled within one year have been measured at
the amounts expected to be paid when the liability is settled. Employee benefits payable later than one year have been
measured at present value of the estimated future cash outflows to be made for those benefits. In determining the
liability, consideration is given to employee wage increases and the probability that the employee may satisfy vesting
requirements. Those cashflows are discounted using market yields on corporate bonds with terms to maturity that
match the expected timing of cashflows.
Liabilities recognised in respect of employee benefits which are not expected to be settled within 12 months are
measured at the present value of the estimated future cash outflows to be made by The Group in respect of services
provided by employees up to reporting date.
(e)
Provisions
Provisions are recognised when The Group has a legal or constructive obligation, as a result of past events, for which it
is probable that an outflow of economic benefits will result, and that outflow can be reliably measured.
The liability for long service leave is recognised in current and non-current liabilities, depending on the unconditional
right to defer settlement of the liability for at least 12 months after the reporting date.
(f)
Foreign Currency Transactions and Balances
The functional currency of each of the Group's entities is measured using the currency of the primary economic
environment in which that entity operates. The consolidated financial statements are presented in Australian dollars
which is the parent entity's functional and presentation currency. All other companies within The Group have Australian
dollars as their functional currency.
Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of
the transaction. Foreign currency monetary items are translated at the year-end exchange rate. Non-monetary items
measured at historical cost continue to be carried at the exchange rate at the date of the transaction. Non-monetary
items measured at fair value are reported at the exchange rate at the date when fair values were determined.
Exchange differences arising on the translation of monetary items are recognised in the consolidated statement of
comprehensive income, except where deferred in equity as a qualifying cash flow or net investment hedge.
Exchange differences arising on the translation of non-monetary items are recognised directly in equity to the extent
that the gain or loss is directly recognised in equity, otherwise the exchange difference is recognised in the consolidated
statement of comprehensive income.
The financial results and position of foreign operations whose functional currency is different from the Group's
presentation currency are translated as follows:
•
•
•
assets and liabilities are translated at year-end exchange rates prevailing at that reporting date;
income and expenses are translated at average exchange rates for the period; and
retained earnings are translated at the exchange rates prevailing at the date of the transaction.
Exchange differences arising on translation of foreign operations are transferred directly to the Group's foreign currency
translation reserve in the consolidated statement of financial position. These differences are recognised in the
consolidated statement of comprehensive income in the period in which the operation is disposed.
(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.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
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46 | 2020 Annual Report
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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
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.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
24
2020 Annual Report | 47
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Investments and other financial assets (continued)
(i)
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.
Impairment testing is performed annually for goodwill and intangible assets with indefinite lives.
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.
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
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
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PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
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48 | 2020 Annual Report
(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.
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).
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
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.
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presentation for the current financial year.
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(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).
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
26
2020 Annual Report | 49
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(l)
Impairment of Assets (continued)
(q)
Contributed Equity
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 equal 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)
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.
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are
shown as a deduction, net of tax, from the proceeds.
(r)
Share-based Payment Transactions
Employees of the Group receive remuneration in the form of share-based payment transactions, whereby employees
render services in exchange for equity instruments ("equity settled transactions"). When the goods or services acquired
in a share-based payment transaction do not qualify for recognition as assets, they are recognised as expenses.
The cost of equity settled transactions and the corresponding increase in equity is measured at the fair value of the goods
or services acquired. Where the fair value of the goods or services received cannot be reliably estimated, the fair value
is determined indirectly by the fair value of the equity instruments using the Black Scholes option valuation technique.
Equity-settled transactions that vest after employees complete a specified period of service are recognised as services
are received during the vesting period with a corresponding increase in equity.
(s)
Critical Accounting Estimates and Judgements
The directors evaluate estimates and judgments incorporated into the financial statements based on historical
knowledge and best available current information. Estimates assume a reasonable expectation of future events and are
based on current trends and economic data, obtained both externally and within the Group.
Key estimates – Impairment
cost to sell.
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
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.
$5,048,178 has been capitalised as at 30 June 2020 (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.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
27
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
28
50 | 2020 Annual Report
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(q)
Contributed Equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are
shown as a deduction, net of tax, from the proceeds.
(r)
Share-based Payment Transactions
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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.
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The cost of equity settled transactions and the corresponding increase in equity is measured at the fair value of the goods
or services acquired. Where the fair value of the goods or services received cannot be reliably estimated, the fair value
is determined indirectly by the fair value of the equity instruments using the Black Scholes option valuation technique.
Equity-settled transactions that vest after employees complete a specified period of service are recognised as services
are received during the vesting period with a corresponding increase in equity.
(s)
Critical Accounting Estimates and Judgements
The directors evaluate estimates and judgments incorporated into the financial statements based on historical
knowledge and best available current information. Estimates assume a reasonable expectation of future events and are
based on current trends and economic data, obtained both externally and within the Group.
Key estimates – Impairment
The Group assesses impairment at the end of each reporting period by evaluating conditions specific to the Group that
may be indicative of impairment triggers. Recoverable amounts of relevant assets are reassessed using fair value less
cost to sell.
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.
$5,048,178 has been capitalised as at 30 June 2020 (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.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
28
2020 Annual Report | 51
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(t)
Critical Accounting Estimates and Judgements (continued)
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 $340,363
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.
Key judgements - Coronavirus (COVID-19) pandemic
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may
have, on the consolidated entity based on known information. This consideration extends to the nature of the products
and services offered, customers, supply chain, staffing and geographic regions in which the consolidated entity operates.
Other than as addressed in specific notes, there does not currently appear to be either any significant impact upon the
financial statements or any significant uncertainties with respect to events or conditions which may impact the
consolidated entity unfavourably as at the reporting date
(u)
Adoption of New and Revised Accounting Standards
The Group has adopted all of the new and revised Accounting Standards and Interpretations issued by the Australian
Accounting Standards Board that are mandatory for the current reporting period. The adoption of these new and
revised Accounting Standards and Interpretations has not resulted in a significant or material change to the Group’s
Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early
accounting policies.
adopted by the consolidated entity.
AASB 16 Leases
The Group has adopted AASB 16 from 1 July 2019. The standard replaces AASB 117 'Leases' and for lessees eliminates
the classifications of operating leases and finance leases. Except for short-term leases and leases of low-value assets,
right-of-use assets and corresponding lease liabilities are recognised in the statement of financial position. Straight-line
operating lease expense recognition is replaced with a depreciation charge for the right-of-use assets (included in
operating costs) and an interest expense on the recognised lease liabilities (included in finance costs). In the earlier
periods of the lease, the expenses associated with the lease under AASB 16 will be higher when compared to lease
expenses under AASB 117. However, EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) results
improve as the operating expense is now replaced by interest expense and depreciation in profit or loss. For
classification within the statement of cash flows, the interest portion is disclosed in operating activities and the principal
portion of the lease payments are separately disclosed in financing activities. For lessor accounting, the standard does
not substantially change how a lessor accounts for leases.
Impact of adoption
AASB 16 was adopted using the modified retrospective approach and as such the comparatives have not been restated.
There was no impact on recognition in the statement of financial position as a result of the adoptions.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet
mandatory, have not been early adopted by the consolidated entity for the annual reporting period ended 30 June 2020.
The consolidated entity's assessment of the impact of these new or amended Accounting Standards and Interpretations,
most relevant to the consolidated entity, are set out below.
Conceptual Framework for Financial Reporting (Conceptual Framework)
The revised Conceptual Framework is applicable to annual reporting periods beginning on or after 1 January 2020 and
early adoption is permitted. The Conceptual Framework contains new definition and recognition criteria as well as new
guidance on measurement that affects several Accounting Standards. Where the consolidated entity has relied on the
existing framework in determining its accounting policies for transactions, events or conditions that are not otherwise
dealt with under the Australian Accounting Standards, the consolidated entity may need to review such policies under
the revised framework. At this time, the application of the Conceptual Framework is not expected to have a material
impact on the consolidated entity's financial statements.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
29
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
30
52 | 2020 Annual Report
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Adoption of New and Revised Accounting Standards
(u)
The Group has adopted all of the new and revised Accounting Standards and Interpretations issued by the Australian
Accounting Standards Board that are mandatory for the current reporting period. The adoption of these new and
revised Accounting Standards and Interpretations has not resulted in a significant or material change to the Group’s
accounting policies.
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Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early
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AASB 16 Leases
The Group has adopted AASB 16 from 1 July 2019. The standard replaces AASB 117 'Leases' and for lessees eliminates
the classifications of operating leases and finance leases. Except for short-term leases and leases of low-value assets,
right-of-use assets and corresponding lease liabilities are recognised in the statement of financial position. Straight-line
operating lease expense recognition is replaced with a depreciation charge for the right-of-use assets (included in
operating costs) and an interest expense on the recognised lease liabilities (included in finance costs). In the earlier
periods of the lease, the expenses associated with the lease under AASB 16 will be higher when compared to lease
expenses under AASB 117. However, EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) results
improve as the operating expense is now replaced by interest expense and depreciation in profit or loss. For
classification within the statement of cash flows, the interest portion is disclosed in operating activities and the principal
portion of the lease payments are separately disclosed in financing activities. For lessor accounting, the standard does
not substantially change how a lessor accounts for leases.
Impact of adoption
AASB 16 was adopted using the modified retrospective approach and as such the comparatives have not been restated.
There was no impact on recognition in the statement of financial position as a result of the adoptions.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet
mandatory, have not been early adopted by the consolidated entity for the annual reporting period ended 30 June 2020.
The consolidated entity's assessment of the impact of these new or amended Accounting Standards and Interpretations,
most relevant to the consolidated entity, are set out below.
Conceptual Framework for Financial Reporting (Conceptual Framework)
The revised Conceptual Framework is applicable to annual reporting periods beginning on or after 1 January 2020 and
early adoption is permitted. The Conceptual Framework contains new definition and recognition criteria as well as new
guidance on measurement that affects several Accounting Standards. Where the consolidated entity has relied on the
existing framework in determining its accounting policies for transactions, events or conditions that are not otherwise
dealt with under the Australian Accounting Standards, the consolidated entity may need to review such policies under
the revised framework. At this time, the application of the Conceptual Framework is not expected to have a material
impact on the consolidated entity's financial statements.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
30
2020 Annual Report | 53
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 2: INCOME TAX
(a)
Income tax expense/benefit
The components of income tax expense/benefit comprise:
Current tax
Deferred tax
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
-
-
-
-
-
-
NOTE 5: PLANT AND EQUIPMENT
Plant and Equipment
Accumulated depreciation
(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 30% (2019: 27.5%)
(2,352,700)
705,810
(1,459,332)
401,316
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
(464,778)
90,702
-
(27,646)
(304,089)
-
(298,690)
121,445
-
150,409
(374,480)
-
(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% (2019: 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:
7,539,708
7,263
-
7,546,971
7,238,683
4,538
(339)
7,242,882
(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
2020
$
2019
$
8,639,015
8,639,015
1,173,049
1,173,049
125,538
125,538
104,690
104,690
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
31
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
32
54 | 2020 Annual Report
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:
Consolidated
Note
2020
$
2019
$
52,215
(17,691)
34,524
36,681
(15,181)
21,500
Plant and
Equipment
$
Total
$
21,500
15,534
(2,510)
34,524
5,696
18,209
(2,405)
21,500
21,500
15,534
(2,510)
34,524
5,696
18,209
(2,405)
21,500
2020
$
2019
$
5,048,178
5,048,178
1,923,318
1,923,318
Balance at 30 June 2020
Balance at the beginning of year
Additions
Depreciation expense
Balance at 30 June 2020
Balance at 30 June 2019
Balance at the beginning of year
Additions
Depreciation expense
Balance at 30 June 2019
NOTE 6: EXPLORATION, EVALUATION AND DEVELOPMENT ASSETS
Exploration and evaluation expenditure
2020
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
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
Exploration and
Evaluation
$
1,923,318
3,124,860
-
-
$
5,048,178
2,189,364
499,832
(291,787)
(474,091)
1,923,318
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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 5: PLANT AND EQUIPMENT
Plant and Equipment
Accumulated depreciation
Consolidated
Note
2020
$
2019
$
52,215
(17,691)
34,524
36,681
(15,181)
21,500
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 2020
Balance at the beginning of year
Additions
Depreciation expense
Balance at 30 June 2020
Balance at 30 June 2019
Balance at the beginning of year
Additions
Depreciation expense
Balance at 30 June 2019
NOTE 6: EXPLORATION, EVALUATION AND DEVELOPMENT ASSETS
Exploration and evaluation expenditure
Plant and
Equipment
$
Total
$
21,500
15,534
(2,510)
34,524
5,696
18,209
(2,405)
21,500
21,500
15,534
(2,510)
34,524
5,696
18,209
(2,405)
21,500
2020
$
2019
$
5,048,178
5,048,178
1,923,318
1,923,318
2020
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
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
Exploration and
Evaluation
$
1,923,318
3,124,860
-
-
5,048,178
$
2,189,364
499,832
(291,787)
(474,091)
1,923,318
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
32
2020 Annual Report | 55
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 6: EXPLORATION, EVALUATION AND DEVELOPMENT ASSETS (continued)
NOTE 7: INVESTMENTS IN ASSOCIATES (Continued)
The recoverability of the carrying amount of the exploration and evaluation assets is dependent on successful
development and commercial exploitation, or alternatively, sale of the respective areas of interest. The board has
assessed the exploration and evaluation assets for impairment, using AASB 6 paragraph 20 as a guide. As a result of this
process no tenements were impaired during the period.
The budget for future exploration and evaluation expenditure is split by geographical area and not by area of interest
as the allocation of resources will depend upon findings. However, it is acknowledged that the budget allows for
spending on all areas of interest without exclusion. It is anticipated that all expenditure required by agreement or
permit will be met.
In assessing the recoverability of the carrying amounts, reference is made to Note 1 (t) - Key Judgements - Exploration
and Evaluation Expenditure. 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
Information relating to interest in associates that are material to the Group are set out below:
Name
Predictive Discovery SARL
Country of Incorporation
Burkina Faso
Summarised Financial Information – Predictive Discovery SARL
Summarised statement of financial position
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net (Liabilities)/Assets
Ownership Interest
2019
2020
49%
49%
Consolidated
Note
2020
$
2019
$
1,567,165
-
1,567,165
(613,255)
(3,508,577)
(4,121,832)
2,188,796
3,230,404
5,419,200
(3,893,554)
-
(3,893,554)
(2,554,641)
1,525,647
PDI Share of Net (Liabilities)/Assets
(1,251,774)
747,567
Summarised statement of profit or loss and other comprehensive income
Consolidated
Note
2020
$
2019
$
Revenue
Expenses
Loss before income tax
Income tax expense
Loss after income tax
Other comprehensive income
Total comprehensive loss
Reconciliation of the Group’s carrying amount
Opening carrying amount
Share of loss after income tax
Share of movement in foreign exchange translation reserve
Closing carrying amount
-
-
-
-
-
-
-
-
(4,080,288)
(4,080,288)
(228,025)
(228,025)
(4,080,288)
(228,025)
(4,080,288)
(228,025)
747,567
(704,942)
(42,625)
824,985
(113,776)
36,358
747,567
The Group maintained its interest in Burkina Resources Pty Ltd, Burkina Resources SARL and Progress Minerals SARL for
the financial year ended 30 June 2020. With the Group having significant influence over this associate the Group’s
portion of the investment is equity accounted for the purposes of the consolidated financial statements, although was
written down to a value of $nil in the period ended 30 June 2019. The balance remains $nil at 30 June 2020.
The Group maintains its 49% interest in Predictive Discovery SARL. With the Group having significant influence over this
associate the Group’s portion of the investment is equity accounted for the purposes of the consolidated financial
statements of which it recognised only a portion of its share of losses for the year in Predictive Discovery SARL of
$704,942. As the investment balance was $nil, the remaining portion of its share of losses of $1,294,399 have not been
recognised.
Immaterial Associates
Name
Burkina Resources Pty Ltd
Burkina Resources SARL
Birrimian Pty Ltd
Birrimian BV SARL
Sebba Resources SARL
Progress Minerals SARL
Information relating to interest in associates that are immaterial to the Group are set out below:
Country of Incorporation
2020
Ownership Interest
Australia
Burkina Faso
British Virgin Islands
Burkina Faso
Burkina Faso
Burkina Faso
49%
49%
30%
49%
49%
49%
49%
2019
49%
49%
30%
49%
49%
49%
49%
Predictive Discovery Cote D’Ivoire SARL Cote D’Ivoire
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
33
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
34
56 | 2020 Annual Report
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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 7: INVESTMENTS IN ASSOCIATES (Continued)
Consolidated
Note
2020
$
2019
$
Summarised statement of profit or loss and other comprehensive income
Revenue
Expenses
Loss before income tax
Income tax expense
Loss after income tax
Other comprehensive income
Total comprehensive loss
Reconciliation of the Group’s carrying amount
Opening carrying amount
Share of loss after income tax
Share of movement in foreign exchange translation reserve
Closing carrying amount
-
(4,080,288)
(4,080,288)
-
(4,080,288)
-
(4,080,288)
747,567
(704,942)
(42,625)
-
-
(228,025)
(228,025)
-
(228,025)
-
(228,025)
-
824,985
(113,776)
36,358
747,567
The Group maintained its interest in Burkina Resources Pty Ltd, Burkina Resources SARL and Progress Minerals SARL for
the financial year ended 30 June 2020. With the Group having significant influence over this associate the Group’s
portion of the investment is equity accounted for the purposes of the consolidated financial statements, although was
written down to a value of $nil in the period ended 30 June 2019. The balance remains $nil at 30 June 2020.
The Group maintains its 49% interest in Predictive Discovery SARL. With the Group having significant influence over this
associate the Group’s portion of the investment is equity accounted for the purposes of the consolidated financial
statements of which it recognised only a portion of its share of losses for the year in Predictive Discovery SARL of
$704,942. As the investment balance was $nil, the remaining portion of its share of losses of $1,294,399 have not been
recognised.
Immaterial Associates
Information relating to interest in associates that are immaterial to the Group are set out below:
Name
Country of Incorporation
Burkina Resources Pty Ltd
Australia
Burkina Faso
Burkina Resources SARL
Predictive Discovery Cote D’Ivoire SARL Cote D’Ivoire
Birrimian Pty Ltd
Birrimian BV SARL
Sebba Resources SARL
Progress Minerals SARL
British Virgin Islands
Burkina Faso
Burkina Faso
Burkina Faso
Ownership Interest
2019
49%
49%
30%
49%
49%
49%
49%
2020
49%
49%
30%
49%
49%
49%
49%
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
34
2020 Annual Report | 57
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 7: INVESTMENTS IN ASSOCIATES (Continued)
NOTE 10: RESERVES
The following is summarised financial information for the Group's interest in immaterial associates
FOREIGN CURRENCY TRANSLATION RESERVE
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
NOTE 8: CURRENT TRADE AND OTHER PAYABLES
Accruals and other creditors
Consolidated
2020
$
-
(1,318,435)
1,318,435
-
2019
$
15,659
(252,852)
237,193
-
992,721
992,721
88,829
88,829
Consolidated
2020
$
2019
$
Exchange differences arising on translation of the foreign controlled entity are recognised in other comprehensive
income foreign currency translation reserve. The cumulative amount is reclassified to profit or loss when the net
investment is disposed of.
OPTION RESERVE
The option reserve records items recognised as expenses on valuation of employee share options Refer to Note 21.
Consolidated
2020
$
2019
$
NOTE 11: EARNINGS PER SHARE
Reconciliation of loss
Loss used in calculating earnings per share – basic and diluted
Net loss for the reporting period
(2,352,700)
(2,352,700)
(1,459,332)
(1,459,332)
Weighted average number of ordinary shares outstanding during the year
used in the calculation of basic and diluted earnings per share
453,203,432
246,677,779
NOTE 12: CAPITAL AND LEASING COMMITMENTS
NOTE 9: ISSUED CAPITAL
823,886,255 (30 June 2019: 295,142,065) Ordinary Shares
Share issue costs written off against issued capital
At 1 July 2019
Issue of Options – Free attaching
Issue of shares in placement/rights issue
Exercise of options to shares
Options cancelled/expired
At 30 June 2020
Shares
No.
295,142,065
-
497,750,671
30,993,519
-
823,886,255
Issue
Price
$
$0.01
$0.01
46,002,695
(3,143,353)
42,859,342
33,863,725
(2,372,485)
31,491,240
Listed Options
Unlisted Options
No.
73,030,518
117,425,004
-
(30,993,519)
(73,030,518)
86,431,485
No.
3,905,000
-
-
(1,952,500)
1,952,500
At 1 July 2018
Issue of shares in placement
Options cancelled/expired
At 30 June 2019
Shares
No.
236,142,065
59,000,000
-
295,142,065
Issue Price
$
Listed Options
No.
Unlisted Options
No.
$0.009
73,030,518
-
-
73,030,518
5,875,500
-
(1,952,500)
3,905,000
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.
(A) OPTIONS FEE COMMITMENTS
Payable – minimum lease payments:
-not later than 12 months
-between 12 months and 5 years
-more than 5 years
(B) CAPITAL EXPENDITURE COMMITMENTS(i)
Payable:
-not later than 12 months
-not later than 12 months and 5 years
-more than 5 years
Consolidated
2020
$
2019
$
127,001
126,812
127,001
126,812
3,339,445
10,152,000
2,903,146
7,558,693
13,484,178
10,461,849
-
-
-
-
-
-
(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.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
35
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
36
58 | 2020 Annual Report
s
t
n
e
m
e
t
a
t
S
l
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i
a
c
n
a
n
F
e
h
t
o
t
s
e
t
o
N
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 10: RESERVES
FOREIGN CURRENCY TRANSLATION RESERVE
Exchange differences arising on translation of the foreign controlled entity are recognised in other comprehensive
income foreign currency translation reserve. The cumulative amount is reclassified to profit or loss when the net
investment is disposed of.
OPTION RESERVE
The option reserve records items recognised as expenses on valuation of employee share options Refer to Note 21.
Consolidated
2020
$
2019
$
NOTE 11: EARNINGS PER SHARE
Reconciliation of loss
Loss used in calculating earnings per share – basic and diluted
Net loss for the reporting period
(2,352,700)
(2,352,700)
(1,459,332)
(1,459,332)
Weighted average number of ordinary shares outstanding during the year
used in the calculation of basic and diluted earnings per share
453,203,432
246,677,779
NOTE 12: CAPITAL AND LEASING COMMITMENTS
Consolidated
(A) OPTIONS FEE COMMITMENTS
Payable – minimum lease payments:
-not later than 12 months
-between 12 months and 5 years
-more than 5 years
(B) CAPITAL EXPENDITURE COMMITMENTS(i)
Payable:
-not later than 12 months
-not later than 12 months and 5 years
-more than 5 years
2020
$
-
127,001
-
127,001
2019
$
-
126,812
-
126,812
3,339,445
10,152,000
-
13,484,178
2,903,146
7,558,693
-
10,461,849
(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.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
36
2020 Annual Report | 59
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 13: FINANCIAL RISK MANAGEMENT
NOTE 13: FINANCIAL RISK MANAGEMENT (continued)
The Group's financial instruments consist mainly of deposits with banks, receivables and payables.
(A)
CREDIT RISK (Continued)
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:
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
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
2020
$
3
4
8
8,639,015
125,538
8,764,553
992,721
992,721
2019
$
1,173,049
104,690
1,277,739
88,829
88,829
Exposure to key financial risks is managed in accordance with the Group’s risk management policy with the objective to
ensure that the financial risks inherent in exploration activities are identified and then managed or kept as low as
reasonably practicable.
The main financial risks that arise in the normal course of business are market risk (including currency risk, interest rate
risk and price risk), credit risk and liquidity risk. Different methods are used to measure and manage these risk exposures.
Liquidity risk is monitored through the ongoing review of available cash and future commitments for exploration
expenditure.
Exposure to liquidity risk is limited by anticipating liquidity shortages and ensures capital can be raise in advance of
shortages. Interest rate risk is managed by limiting the amount of interest-bearing loans entered into by the Group. It is
the Board's policy that no speculative trading in financial instruments be undertaken so as to limit expose to price risk.
Primary responsibility for identification and control of financial risks rests with the Company Secretary, under the
authority of the Board. The Board is apprised of these risks from time to time and agrees any policies that may be
undertaken to manage any of the risks identified.
Details of the significant accounting policies and methods adopted, including criteria for recognition, the basis of
measurement and the basis on which income and expenses are recognised, in respect of each financial instrument are
disclosed in Note 1 to the financial statements. The carrying values less the impairment allowance for receivables and
payables are assumed to approximate fair values due to their short-term nature. Cash and cash equivalents are subject
to variable interest rates.
SPECIFIC FINANCIAL RISK EXPOSURES AND MANAGEMENT
(A)
CREDIT RISK
Exposure to credit risk relating to financial assets arises from the potential non-performance by counter parties of
contract obligations that could lead to a financial loss to the Group.
The Group trades only with recognised, creditworthy third parties.
The Group has no customers and consequently no significant exposure to bad debts or other credit risks.
Limited.
(B)
LIQUIDITY RISK
Liquidity risk arises from the possibility that the Group might encounter difficulty in settling its debts or otherwise
meeting its obligations related to financial liabilities.
Prudent liquidity risk management implies maintaining sufficient cash reserves to meet the ongoing operational
requirements of the business. It is the Group’s policy to maintain sufficient funds in cash and cash equivalents.
Furthermore, the Group monitors its ongoing exploration cash requirements and raises equity funding as and when
appropriate to meet such planned requirements. The Group has no undrawn financing facilities. Trade and other
payables, the only financial liability of the Group, are due within 6 months.
The tables below reflect an undiscounted contractual maturity analysis for financial liabilities.
Cash flows realised from financial assets reflect management's expectation as to the timing of realisation. Actual timing
may therefore differ from that disclosed. The timing of cash flows presented in the table to settle financial liabilities
reflects the earliest contractual settlement dates and does not reflect management's expectations that banking facilities
will be rolled forward.
Financial liability and financial asset maturity analysis
Financial liabilities due for
payment
Trade and other payables
Total contractual outflows
Financial assets - cash flows
realisable
Within 1 Year
1 to 5 Years
Total Contractual Cash Flow
2020
$
2019
$
2020
$
2019
$
2020
$
2019
$
992,721
992,721
88,829
88,829
992,721
992,721
88,829
88,829
-
-
-
-
-
-
-
-
Trade and other receivables
Total anticipated inflows
125,538
125,538
104,690
104,690
125,538
125,538
104,690
104,690
The financial assets and liabilities noted above are interest free.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
37
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
38
60 | 2020 Annual Report
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 13: FINANCIAL RISK MANAGEMENT (continued)
CREDIT RISK (Continued)
(A)
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.
s
t
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a
t
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a
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F
e
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t
(B)
LIQUIDITY RISK
s
e
t
o
N
Liquidity risk arises from the possibility that the Group might encounter difficulty in settling its debts or otherwise
meeting its obligations related to financial liabilities.
Prudent liquidity risk management implies maintaining sufficient cash reserves to meet the ongoing operational
requirements of the business. It is the Group’s policy to maintain sufficient funds in cash and cash equivalents.
Furthermore, the Group monitors its ongoing exploration cash requirements and raises equity funding as and when
appropriate to meet such planned requirements. The Group has no undrawn financing facilities. Trade and other
payables, the only financial liability of the Group, are due within 6 months.
The tables below reflect an undiscounted contractual maturity analysis for financial liabilities.
Cash flows realised from financial assets reflect management's expectation as to the timing of realisation. Actual timing
may therefore differ from that disclosed. The timing of cash flows presented in the table to settle financial liabilities
reflects the earliest contractual settlement dates and does not reflect management's expectations that banking facilities
will be rolled forward.
Financial liability and financial asset maturity analysis
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
2020
$
2019
$
2020
$
2019
$
2020
$
2019
$
992,721
992,721
88,829
88,829
125,538
125,538
104,690
104,690
-
-
-
-
-
-
-
-
992,721
992,721
88,829
88,829
125,538
125,538
104,690
104,690
The financial assets and liabilities noted above are interest free.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
38
2020 Annual Report | 61
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 13: FINANCIAL RISK MANAGEMENT (continued)
(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 0.42% (2019: 1.23%). The table below
summarises the sensitivity of the Group’s cash assets to interest rate risk.
Financial Assets
30 June 2020
Total increase/(decrease)
30 June 2019
Total increase/(decrease)
Effect of decrease or increase of
interest rate on profit and equity
-1%
Profit
$
Equity
$
+1%
Profit
$
Equity
$
(16,654)
(16,654)
16,654
16,654
(14,853)
(14,853)
14,853
14,853
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
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
The following is an analysis of the Group’s revenue and results from operations by reportable segment.
Corporate
Burk. Faso
Cote D’Ivoire
Gold
Aust
$
Gold
Gold
$
$
Gold
Mali
$
Gold
Guinea
$
(838,831)
(38,950)
(25,234)
-
(903,015)
(19,564)
(3,063)
(661,260)
(48,008)
(25,234)
(3,063)
(661,260)
(2,352,700)
10,872
27,560
6,286
204,508
2,541,607
2,506,571
30,778
-
(4,054)
(301,495)
(113,327)
(992,724)
6,818
2,267,673
6,286
2,628,530
12,854,532
Corporate
Burk. Faso
Cote D’Ivoire
$
$
$
Gold
Aust
$
Gold
Gold
Gold
Mali
$
Gold
Guinea
$
statements.
2020
Revenue
Interest income
Other income
Expenses
Gain on subsidiary deregistration
Administration expenses
Share based expense
FX Expense
Exploration expenditure expensed
Share of loss in associates
Loss before tax
Current assets
Exploration expenditure
Plant and Equipment
Investments in Associates
Current liabilities
Net assets
2019
Revenue
Interest income
Other income
Expenses
Gain on sale of joint venture
Administration expenses
Share based expense
FX Expense
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
$
7,019
-
-
-
-
-
-
(78,381)
(704,942)
(1,615,135)
8,515,327
3,746
(573,849)
7,945,225
18,284
223,139
37,470
(615,446)
-
(14,671)
(36,631)
(129,435)
-
3,292
747,568
(69,196)
10,506
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(19,021)
(5,710)
(41,348)
(31,240)
(712,765)
Exploration expenditure expensed
(45,011)
(19,128)
(209,520)
(96,973)
-
(14,051)
(108,867)
(141,096)
(59,497)
(150,580)
(517,290)
(14,051)
(172,899)
(165,934)
(310,365)
(278,793)
(1,459,332)
1,139,727
23,776
52,118
19,462
42,656
1,277,739
1,737,897
185,421
1,923,3184
1,821,391
10,321
1,783,837
19,462
246,285
3,881,296
(13,455)
(6,178)
18,208
-
-
21,500
747,568
(88,829)
Total
$
7,019
10,506
-
-
(78,381)
(683,887)
(704,942)
8,764,553
5,048,178
34,524
-
Total
$
18,284
223,139
37,470
-
(14,671)
(407,263)
(474,091)
(129,435)
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
39
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
40
62 | 2020 Annual Report
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
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.
The following is an analysis of the Group’s revenue and results from operations by reportable segment.
Corporate
$
Gold
Aust
$
Gold
Gold
Burk. Faso
Cote D’Ivoire
$
$
Gold
Mali
$
Gold
Guinea
$
s
t
n
e
m
e
t
a
t
S
l
i
i
a
c
n
a
n
F
e
h
t
o
t
s
e
t
o
N
2020
Revenue
Interest income
Gain on subsidiary deregistration
Other income
Expenses
Administration expenses
Share based expense
FX Expense
Exploration expenditure expensed
Share of loss in associates
Loss before tax
Current assets
Exploration expenditure
Plant and Equipment
Investments in Associates
Current liabilities
Net assets
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
-
10,506
-
(38,950)
-
-
(19,564)
-
(48,008)
10,872
-
-
-
(4,054)
7,019
-
-
(838,831)
-
(78,381)
-
(704,942)
(1,615,135)
8,515,327
-
3,746
-
(573,849)
7,945,225
Corporate
$
Gold
Aust
$
18,284
223,139
37,470
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(25,234)
-
-
-
-
-
-
-
-
-
(3,063)
-
-
(661,260)
(25,234)
(3,063)
(661,260)
(2,352,700)
27,560
2,541,607
-
-
(301,495)
6,286
-
-
-
-
204,508
2,506,571
30,778
-
(113,327)
8,764,553
5,048,178
34,524
-
(992,724)
6,818
2,267,673
6,286
2,628,530
12,854,532
Gold
Gold
Burk. Faso
Cote D’Ivoire
$
$
Gold
Mali
$
Gold
Guinea
$
-
-
-
-
-
-
(615,446)
-
(14,671)
(36,631)
-
(129,435)
-
-
-
-
(14,051)
-
(19,021)
-
-
(45,011)
(108,867)
-
(5,710)
-
-
(19,128)
(141,096)
-
(41,348)
-
-
(209,520)
(59,497)
-
(31,240)
(96,973)
(150,580)
Total
$
7,019
10,506
-
(903,015)
-
(78,381)
(683,887)
(704,942)
Total
$
18,284
223,139
37,470
(712,765)
-
(14,671)
(407,263)
(474,091)
(129,435)
Loss before tax
(517,290)
(14,051)
(172,899)
(165,934)
(310,365)
(278,793)
(1,459,332)
Current assets
Exploration expenditure
Plant and Equipment
Investments in Associates
Current liabilities
Net assets
1,139,727
-
3,292
747,568
(69,196)
1,821,391
-
-
-
-
-
-
23,776
-
-
-
(13,455)
52,118
1,737,897
-
-
(6,178)
10,321
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
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
40
2020 Annual Report | 63
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
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 2020.
Percentage Owned(i)
The totals of remuneration paid to key management personnel of the company and the Group during the year are as
follows:
Parent Entity:
Predictive Discovery Limited
Short-term benefits
Post-employments benefits
OTHER KEY MANAGEMENT PERSONNEL TRANSACTIONS
Consolidated
2020
$
422,610
1,412
424,022
2019
$
339,463
3,037
342,500
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
2020
$
-
8,000
62,505
-
70,505
2019
$
21,070
13,950
49,905
-
84,925
(i)
(ii)
Percentage of voting power is in proportion to ownership
Solna was deregistered on the 5th May 2020
NOTE 18: CONTINGENT LIABILITIES / ASSETS
There are no contingent assets and liabilities at reporting date (2019: Nil).
NOTE 19: RELATED PARTY TRANSACTIONS
(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
Transactions between related parties are on normal commercial terms and conditions no more favourable than those
available to other parties unless otherwise stated.
in changing auditors.
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 17: CONTROLLED ENTITIES
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
Bougouni Resources Pty Ltd
Kenieba Resources Pty Ltd
Kita Resources Pty Ltd
Ivoirian Resources SARL
Predictive Discovery Niger SARL
Gayeri Resources SARL
Solna Resources SARL (ii)
Predictive Discovery Mali SARL
Kindia Resources SARLU
Mamou Resources SARLU
Country of
Incorporation
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Cote D’Ivoire
Niger
Burkina Faso
Burkina Faso
Mali
Guinea
Guinea
2020
-
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
-
100%
100%
100%
2019
-
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Transactions with related parties:
Intercompany Loans
is interest free and payable on demand.
Directors’ Remuneration
to Note 15.
Other Related Party Transactions
Predictive Discovery Limited has made loans to its subsidiaries in the amount of $340,363 (2019: $300,415). The loan
For information relating to related party transactions with key management personnel during the financial year, refer
Aurora Minerals Limited, an entity of which Mr Phillip Jackson is a director, was paid $31,615 (2019: $45,075) for
administration services, including company secretarial and accounting services.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
41
64 | 2020 Annual Report
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
42
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
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
Bougouni Resources Pty Ltd
Kenieba Resources Pty Ltd
Kita Resources Pty Ltd
Ivoirian Resources SARL
Predictive Discovery Niger SARL
Gayeri Resources SARL
Solna Resources SARL (ii)
Predictive Discovery Mali SARL
Kindia Resources SARLU
Mamou Resources SARLU
Country of
Incorporation
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Cote D’Ivoire
Niger
Burkina Faso
Burkina Faso
Mali
Guinea
Guinea
(i)
(ii)
Percentage of voting power is in proportion to ownership
Solna was deregistered on the 5th May 2020
NOTE 18: CONTINGENT LIABILITIES / ASSETS
There are no contingent assets and liabilities at reporting date (2019: Nil).
NOTE 19: RELATED PARTY TRANSACTIONS
Percentage Owned(i)
s
t
n
e
m
e
t
a
t
S
l
i
i
a
c
n
a
n
F
e
h
t
o
t
s
e
t
o
N
2020
-
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
-
100%
100%
100%
2019
-
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
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 $340,363 (2019: $300,415). The loan
is interest free and payable on demand.
Directors’ Remuneration
For information relating to related party transactions with key management personnel during the financial year, refer
to Note 15.
Other Related Party Transactions
Aurora Minerals Limited, an entity of which Mr Phillip Jackson is a director, was paid $31,615 (2019: $45,075) for
administration services, including company secretarial and accounting services.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
42
2020 Annual Report | 65
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 20: STATEMENT OF CASH FLOWS
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 21: SHARE BASED PAYMENTS (Continued)
Consolidated
2020
$
2019
$
The three tranches of options granted on 29 November 2016 were originally issued with exercise prices of $0.01805,
$0.02578 and $0.03867 respectively and in quantities of 19,525,000 options in each tranche. A 1 for 10 capital
consolidation effective 19 May 2017 resulted in the quantities and conditions shown in the above table.
Reconciliation of loss after income tax to net cash flow from operating
activities
Operating loss after income tax
(2,352,700)
(1,459,332)
Non-operating items in loss:
Exploration expenditure
Non-cash flows in loss:
Gain on deregistered entity
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
Net cash outflow from operating activities
NOTE 21: SHARE BASED PAYMENTS
683,887
407,263
(10,506)
-
2,510
78,381
704,942
-
(3,887,128)
(16,306)
840,295
(3,956,625)
-
(223,139)
2,405
(9,038)
129,435
474,091
(890,267)
194
41,940
(1,526,448)
During the period ended 30 June 2020, the Group granted 7,500,000 unlisted options exercisable at $0.18 expiring in 3
years in lieu of corporate advisory services.
Government restrictions may:
During the period ended 30 June 2019, the Group did not enter into any share-based payments.
At 30 June 2020, the Group has the following share-based payment options on issue.
Expiry Date
Exercise
Grant Date
price
29 Nov 2016 29 Nov 2019 $0.2578
29 Nov 2016 29 Nov 2020 $0.3867
24 Dec 2022 $0.1800
24 Dec 2019
Start of the
year
1,952,500
1,952,500
-
3,905,000
Granted during
the year
Exercised during
the year
-
-
117,425,004
117,425,004
-
-
(30,993,519)
(30,993,519)
Balance at
Expired
the end of
during the
the year
year
-
(1,952,500)
-
1,952,500
- 86,431,485
(1,952,500) 88,383,985
Vested and
exercisable at the
end of the year
-
1,952,500
86,431,485
88,383,985
At 30 June 2019 the Group has the following share-based payment options on issue to employees:
Exercise
price
Grant Date Expiry Date
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 weighted average exercise price of options as at 30 June 2020 was $0.1842 (30 June 2019: $0.3225). The weighted
average remaining contractual life of options outstanding at year end was 2.48 years (30 June 2019: 0.92 years).
For the options granted during the 2020 financial year, the valuation model inputs used in the Black-Scholes Model were
as follows:
2020:
Grant date
Expiry date
Share
price at
grant date
Exercise
price
Expected
volatility
Dividend
yield
Risk-free
interest
rate
30 June 2020
30 June 2023
$0.088
$0.18
83.14%
-
0.25%
The options granted during the 2020 financial year were not exercisable at reporting date, as these vest at the earlier
of the following:
31 December 2020 and;
a)
b)
Announcement of a proposed change of control transaction
As there was no announcement of a proposed change of control up to the signature date of the annual report, the fair
value of the options granted during the year was $nil (2019: nil).
NOTE 22: EVENTS AFTER THE END OF THE REPORTING PERIOD
The Company recognises the current global COVID-19 pandemic may impact on its operations. Specifically,
(i) prevent Company staff or contractors from carrying out their exploration activities; or
(ii) impede the supply of equipment or other exploration consumables required to do the exploration work.
The nature and extent of the effect of the outbreak on the performance of the Company remains unknown. The
Company’s Share price may be adversely affected in the short to medium term by the economic uncertainty caused by
COVID-19. Further, any governmental or industry measures taken in response to COVID-19 may adversely impact the
Company’s operations and are likely to be beyond the control of the Company. The Company's ability to freely move
people and equipment to and from exploration projects may cause delays or cost increases. The effects of COVID-19 on
the Company's Share price may also impede the Company's ability to raise capital or require the Company to issue capital
at a discount, which may in turn cause dilution to Shareholders.
On 6 August 2020, the Company signed and earn-in and Joint Venture (JV) agreement with Glomin Services Limited to
explore the Company’s Bocanda permit and Issia and Tieningboue applications, all located within Cote d’Ivoire. The
Company will be free carried at 20% until a Mining Lease is granted, after which the Company will have the option to
contribute to future expenses or dilute to a 2% Net Smelter Return (NSR) royalty on future gold production. Under the
agreement, Glomin may, at any time, repurchase from the Company half of the royalty for a purchase price of
US$10,000,000 reducing the royalty to a 1% NSR. If Glomin elects to discontinue work on the three permits in the first
four years of this agreement, the permit in question will be returned to Predictive at no cost. While Glomin is operating,
it will be responsible for ensuring that the permits and applications are kept in good standing with the Cote d’Ivoire
Mines Ministry.
There are no other matters or circumstances arising for the year which significantly affected or could significantly affect
the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial years.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
43
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
44
66 | 2020 Annual Report
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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 21: SHARE BASED PAYMENTS (Continued)
The three tranches of options granted on 29 November 2016 were originally issued with exercise prices of $0.01805,
$0.02578 and $0.03867 respectively and in quantities of 19,525,000 options in each tranche. A 1 for 10 capital
consolidation effective 19 May 2017 resulted in the quantities and conditions shown in the above table.
The weighted average exercise price of options as at 30 June 2020 was $0.1842 (30 June 2019: $0.3225). The weighted
average remaining contractual life of options outstanding at year end was 2.48 years (30 June 2019: 0.92 years).
For the options granted during the 2020 financial year, the valuation model inputs used in the Black-Scholes Model were
as follows:
2020:
Grant date
Expiry date
Share
price at
grant date
Exercise
price
Expected
volatility
Dividend
yield
Risk-free
interest
rate
30 June 2020
30 June 2023
$0.088
$0.18
83.14%
-
0.25%
The options granted during the 2020 financial year were not exercisable at reporting date, as these vest at the earlier
of the following:
a)
b)
31 December 2020 and;
Announcement of a proposed change of control transaction
As there was no announcement of a proposed change of control up to the signature date of the annual report, the fair
value of the options granted during the year was $nil (2019: nil).
NOTE 22: EVENTS AFTER THE END OF THE REPORTING PERIOD
The Company recognises the current global COVID-19 pandemic may impact on its operations. Specifically,
Government restrictions may:
(i) prevent Company staff or contractors from carrying out their exploration activities; or
(ii) impede the supply of equipment or other exploration consumables required to do the exploration work.
The nature and extent of the effect of the outbreak on the performance of the Company remains unknown. The
Company’s Share price may be adversely affected in the short to medium term by the economic uncertainty caused by
COVID-19. Further, any governmental or industry measures taken in response to COVID-19 may adversely impact the
Company’s operations and are likely to be beyond the control of the Company. The Company's ability to freely move
people and equipment to and from exploration projects may cause delays or cost increases. The effects of COVID-19 on
the Company's Share price may also impede the Company's ability to raise capital or require the Company to issue capital
at a discount, which may in turn cause dilution to Shareholders.
On 6 August 2020, the Company signed and earn-in and Joint Venture (JV) agreement with Glomin Services Limited to
explore the Company’s Bocanda permit and Issia and Tieningboue applications, all located within Cote d’Ivoire. The
Company will be free carried at 20% until a Mining Lease is granted, after which the Company will have the option to
contribute to future expenses or dilute to a 2% Net Smelter Return (NSR) royalty on future gold production. Under the
agreement, Glomin may, at any time, repurchase from the Company half of the royalty for a purchase price of
US$10,000,000 reducing the royalty to a 1% NSR. If Glomin elects to discontinue work on the three permits in the first
four years of this agreement, the permit in question will be returned to Predictive at no cost. While Glomin is operating,
it will be responsible for ensuring that the permits and applications are kept in good standing with the Cote d’Ivoire
Mines Ministry.
There are no other matters or circumstances arising for the year which significantly affected or could significantly affect
the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial years.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
44
2020 Annual Report | 67
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 23: PARENT ENTITY DISCLOSURES
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Total liabilities
Equity
Issued capital
Reserves
Accumulated losses
Total equity
CONTINGENT LIABILITIES
Nil
CONTRACTUAL COMMITMENTS
2020
$
8,726,122
5,406,049
14,132,171
(983,426)
(983,426)
42,859,342
130,330
(29,840,925)
13,148,747
2019
$
1,201,849
3,118,730
4,320,579
69,196
69,196
31,491,240
922,132
(28,161,989)
4,257,383
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 871 877
DIRECTOR’S DECLARATION
FOR THE YEAR ENDED 30 JUNE 2020
DIRECTORS’ DECLARATION
The directors of the company declare that:
1.
The financial statements and notes, as set out on pages 15 to 45, are in accordance with the Corporations
Act 2001 and:
comply with Accounting Standards (including the Australian Accounting Interpretations) and the
Corporations Regulations 2001; and
give a true and fair view of the financial position as at 30 June 2020 and of the performance for
the year ended on that date of the consolidated group;
2.
The Chief Executive Officer and Chief Financial Officer have each declared that:
the financial records of the company for the financial year have been properly maintained in
accordance with section 286 of the Corporations Act 2001;
the financial statements and notes for the financial year comply with the Accounting Standards;
and
the financial statements and notes for the financial year give a true and fair view.
(a)
(b)
(a)
(b)
(c)
Note 1 confirms that the financial statements also comply with International Financial Reporting
Standards as issued by the International Accounting Standards Board.
3.
In the directors' opinion, there are reasonable grounds to believe that the company will be able to pay its
debts as and when they become due and payable.
The parent entity has commitments as at 30 June 2020 that are disclosed in Note 12.
This declaration is made in accordance with a resolution of the Board of Directors.
RECOVERABILITY OF INTERCOMPANY LOAN
Within Non-current assets is a loan due from the 100% subsidiaries of $340,363 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: COMPANY DETAILS
The registered office of the company is:
The principal place of business of the company is:
Predictive Discovery Limited
Suite 8
110 Hay Street
SUBIACO WA 6008
Predictive Discovery Limited
Level 2, 33 Ord Street
WEST PERTH WA 6005
Paul Roberts
Managing Director
25 September 2020
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
45
68 | 2020 Annual Report
PREDICTIVE DISCOVERY LIMITED ANNUAL REPORT
46
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Directors’ Declaration
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 871 877
DIRECTOR’S DECLARATION
FOR THE YEAR ENDED 30 JUNE 2020
DIRECTORS’ DECLARATION
The directors of the company declare that:
1.
The financial statements and notes, as set out on pages 15 to 45, are in accordance with the Corporations
Act 2001 and:
(a)
comply with Accounting Standards (including the Australian Accounting Interpretations) and the
Corporations Regulations 2001; and
give a true and fair view of the financial position as at 30 June 2020 and of the performance for
the year ended on that date of the consolidated group;
(b)
2.
The Chief Executive Officer and Chief Financial Officer have each declared that:
(a)
(b)
(c)
the financial records of the company for the financial year have been properly maintained in
accordance with section 286 of the Corporations Act 2001;
the financial statements and notes for the financial year comply with the Accounting Standards;
and
the financial statements and notes for the financial year give a true and fair view.
Note 1 confirms that the financial statements also comply with International Financial Reporting
Standards as issued by the International Accounting Standards Board.
3.
In the directors' opinion, there are reasonable grounds to believe that the company will be able to pay its
debts as and when they become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors.
Paul Roberts
Managing Director
25 September 2020
PREDICTIVE DISCOVERY LIMITED ANNUAL REPORT
46
2020 Annual Report | 69
70 | 2020 Annual Report
Level 4, 35 Havelock Street, West Perth, WA 6005 PO Box 609, West Perth, WA 6872 T: +61 8 9426 8999F: +61 8 9426 8900 www.pkfperth.com.auPKF 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.47 PKF PerthINDEPENDENT AUDITOR’S REPORTTO 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 2020, 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 accompanying financial report of Predictive Discovery Limited is in accordance with the Corporations Act 2001, including: i)Giving a true and fair view of the consolidated entity’s financial position as at 30 June 2020and of itsperformance for the year ended on that date; andii)Complying with Australian Accounting Standards and the Corporations Regulations 2001.Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of the consolidated entity in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. t
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Independent Auditor’s Report
2020 Annual Report | 71
48PKF PerthKey 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 year. 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 audit opinion on these matters.For each matter below, our description of how our audit addressed these matters are provided in that context. 1.Valuation of capitalised exploration expenditureWhy significantHow our audit addressed the key audit matterAs at 30 June 2020the carrying value of exploration and evaluation assets was $5,048,178(2019:$1,923,318), as disclosed in Note 6. This represents 36.5% of total assets of the consolidated entity.The consolidated entity’s accounting policy in respect of exploration and evaluation expenditure is outlined in Note1(k)with the nature of critical estimates and judgements relating to this balance outlined in Note 1(s). Significant judgement is required:in determining whether facts and circumstancesindicate that the exploration and evaluation assetsshould be tested for impairment in accordancewith Australian Accounting Standard AASB 6Exploration for and Evaluation of MineralResources (“AASB 6”); andin determining the treatment of exploration andevaluation expenditure in accordance with AASB6, and the consolidated entity’s accounting policy.In particular:owhether the particular areas of interest meetthe recognition conditions for an asset; andowhich elements of exploration and evaluationexpenditures qualify for capitalisation for eacharea of interest.Our work included, but was not limited to, the following procedures:conducting a detailed review of management’sassessment of impairment trigger events prepared inaccordance with AASB 6 including:oassessing whether the rights to tenure of theareas of interest remained current at reportingdate as well as confirming that rights to tenureare expected to be renewed for tenements thatwill expire in the near future;oobtaining specific representations with thedirectors and management as to the status ofongoing exploration programmes for the areasof interest, as well as assessing if there wasevidence that a decision had been made todiscontinue activities in any specific areas ofinterest; andoobtaining and assessing evidence of theconsolidated entity’s future intention for theareas of interest, including reviewing futurebudgeted expenditure and related workprogrammes.considering whether exploration activities for theareas of interest had reached a stage where areasonable assessment of economically recoverablereserves existed;testing, on a sample basis, exploration andevaluation expenditure incurred during the yearforcompliance with AASB 6 and the consolidatedentity’s accounting policy; andassessing the appropriateness ofthe relateddisclosures in Notes 1(k), 1(s) and 6.
2. Valuation of Investment in Associate
Why significant
How our audit addressed the key audit matter
Interests
in
The consolidated entity has various
Associates that have a total value as at 30 June 2020
of $nil (2019: $747,568). This balance solely related to
the 49% interest in Predictive Discovery SARL (PD
SARL) in Burkina Faso, as the other interests have
been impaired to $nil as detailed in note 7.
The consolidated entity’s accounting policy in respect
of Associates is outlined in Note 1(m).
the associated
At 30 June 2020, a share of the loss of PD SARL was
recognised in the statement of profit or loss of
$704,942 after eliminating
foreign
exchange reserve balance of $42,625. There was also
an unrecognised share of the loss of $1,251,774 for PD
SARL. An additional share of
loss amount of
$1,318,435 has not been
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.
recognised
in
As disclosed in note 7, these Associates are equity
accounted in accordance with the requirements of
in Associates and Joint
AASB 128
Investments
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:
considering the control relationship to confirm
that equity accounting
in
accordance with AASB 128 Investments in
Associates and Joint Ventures;
is appropriate
performing 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:
o
o
o
o
existence and valuation of capitalisation
expenditure pursuant to AASB 6;
recoverability of receivables;
completeness and valuation of loans; and
occurrence and existence of expenditure.
reviewing the foreign exchange translation of
the movements within the investment during the
year, to confirm that it is reasonable and in
accordance with AASB 121 The Effect of
Changes in Foreign Exchange Rates;
assessing the appropriateness of the related
disclosures in Notes 1(m), 1(s) and 7 to ensure
they are
in accordance with AASB 12
Disclosures of Interest in Other Entities.
Other Information
Those charged with governance are responsible for the other information. The other information comprises the
information included in the consolidated entity’s annual report for the year ended 30 June 2020, but does not
include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon, with the exception of the Remuneration Report.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
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Independent Auditor’s Report
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Responsibilities of Directors’ for the Financial Report
The Directors of the company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the Directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the Directors are responsible for assessing the consolidated entity’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the Directors either intend to liquidate the 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 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. We also:
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. 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.
Obtain an understanding of internal control relevant to the audit 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
consolidated entity’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the Directors.
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.
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.
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 group financial report. We are
responsible for the direction, supervision and performance of the group audit. We remain solely responsible
for our audit opinion.
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2020 Annual Report | 73
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.
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, actions taken to eliminate threats or safeguards
applied.
From the matters communicated with the Directors, we determine those matters that were of most significance
in the audit of the financial report of the current period and are therefore the key audit matters. We describe
these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Report on the Remuneration Report
Opinion
We have audited the Remuneration Report included in the Directors’ Report for the year ended 30 June 2020.
In our opinion, the Remuneration Report of Predictive Discovery Limited for the year ended 30 June 2020
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
AUDIT PARTNER
25 SEPTEMBER 2020
WEST PERTH
WESTERN AUSTRALIA
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Auditor’s Independence
Declaration
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2020 Annual Report | 75
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.52 PKF PerthAUDITOR’S INDEPENDENCE DECLARATIONTO THE DIRECTORS OF PREDICTIVE DISCOVERY LIMITEDIn relation to our audit of the financial report of Predictive Discovery Limited for the year ended 30 June 2020, 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. PKFPERTHSHANE CROSSAUDIT PARTNER25SEPTEMBER 2020WEST PERTHWESTERN AUSTRALIA
SHAREHOLDER INFORMATION
The shareholder information set out below was applicable at 29 September 2020
1. Number and Distribution of Equity Securities The number and
class of all securities on issue:
Number
ASX Code
PDI
PDIOA
PDIAK
PDIAL
Description
Fully Paid Ordinary Shares Quoted
ASX Listed Options expiring 24/12/2022
Unlisted Options expiring 29/11/2020
Unlisted Options expiring 30/06/2023
823,886,255
86,431,485
1,952,500
7,500,000
Distribution of equity securities
Range
Securities
No. of holders
Securities
No. of holders
SHARES (PDI)
LISTED OPTIONS (PDIOA)
100,001 and Over
10,001 to 100,000
5,001 to 10,000
1,001 to 5,000
1 to 1,000
Total
746,596,869
70,953,603
5,452,012
828,114
55,657
735
1,879
675
236
152
84,032,437
2,358,817
39,294
0
937
823,886,255
3,677
86,431,485
Unmarketable Parcels
2,208,799
599
40,231
55
48
4
0
4
111
8
2.
Substantial Shareholders (Ordinary Shares: PDI)
Substantial shareholders as defined by Section 671B of Australian Corporations Law are:
Name
Capital Di Limited
HSBC Custody Nominees (Australia) Limited
3. Substantial Option Holders (PDIOA)
Number of Shares
93,000,000
42,706,161
%
11.29
5.18
Substantial shareholders as defined by Section 671B of Australian Corporations Law are:
Name
Mr Philip Richard Perry
Capital Di Limited
Quintero Group Limited
Rock the Polo Pty Ltd
Syndicate Minerals Pty Ltd
4. Voting Rights
Number of Options
21,084,024
12,500,000
7,500,000
6,989,921
6,000,000
%
24.39
14.46
8.68
8.09
6.94
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.
76 | 2020 Annual Report
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Share Holder
Information
SHAREHOLDER INFORMATION (Continued)
5. Twenty Largest Shareholders as at 29 September 2020: Ordinary Shares (PDI)
The twenty largest fully paid shareholders hold 51.45% of the issued capital and are tabled below:
Shareholder
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
CAPITAL DI LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
EQUITY TRUSTEES LIMITED
CITICORP NOMINEES PTY LIMITED
MR PHILLIP RICHARD PERRY
AURORA MINERALS LIMITED
QUINTERO GROUP LIMITED
MR PASQUALE BEVILACQUA & MRS MARIA CARMELA BEVILACQUA
BNP PARIBAS NOMINEES PTY LTD
DYSPO PTY LIMITED
MR PASQAUALE BEVILACQUA
YANG AND CHEN FAMILY INVESTMENT PTY LTD
JORGENSON-WATTS PTY LTD
MICJUD PTY LTD
MR O.J COOTE & MRS M.R COOTE
MRS HELEN ELIZABETH ACKERMAN
TINTERN (VIC) PTY LTD
TECHNICA PTY LTD
MR MICHAEL ROBERT HODGETTS
BOND STREET CUSTODIANS LIMITED
Total Issued Shares
6. Twenty Largest Option Holders as at 25 September 2020: (PDIOA)
Option Holder
1 MR PHILLIP RICHARD PERRY
2 CAPITAL DI LIMITED
3 QUINTERO GROUP LIMITED
4 ROCK THE POLO PTY LTD
5 SYNDICATE MINERALS PTY LTD
6 MR MJ HICKLING & MRS JF HICKLING
7 EQUITY TRUSTEES LIMITED
8 GOFFACAN PTY LTD
8 EMMESS PTY LTD
9 MR OJ COOTE & MRS MR COOTE
10 TECHNICA PTY LTD
11 MR JASON TANG
12 GOFFACAN PTY LTD
13 MR JASON MICHAEL BARNETT
14 MR WM PALMER & MRS PD GREGORY
15 MR PAUL JOSEPH MASSARA
16 MR JA TREMAIN & MRS ST TREMAIN
17 MR CARMELO STILLISANO
18 MR ARTHUR EDWARD JOHNSON
18 MR ANDREW PETER FISHER
18 PAJAL PTY LTD
18 SPURFIRE PTY LTD
18 MR AP FISHER & MRS LJ FISHER
19 TITAN CAPITAL PTY LTD
20 JOMOT PTY LTD
Total
Balance of register
Grand total
No. of Shares
93,000,000
42,706,161
38,892,972
31,924,488
28,520,569
27,217,125
26,666,667
25,193,000
22,140,140
15,400,000
10,000,000
8,650,000
8,500,000
7,500,003
7,007,013
6,980,000
6,570,758
6,400,000
5,400,000
5,259,671
423,928,567
823,886,255
No. of Listed Options
21,084,024
12,500,000
7,500,000
6,989,921
6,000,000
4,070,334
2,500,000
2,000,000
2,000,000
1,585,825
1,500,000
1,115,000
1,080,000
1,000,000
860,000
650,000
600,000
547,536
500,000
500,000
500,000
500,000
500,000
480,000
458,667
77,021,307
9,410,178
86,431,485
%
11.29
5.18
4.72
3.87
3.46
3.30
3.24
3.06
2.69
1.87
1.21
1.05
1.03
0.91
0.85
0.85
0.80
0.78
0.66
0.64
51.45
100.00
%
24.39
14.46
8.68
8.09
6.94
4.71
2.89
2.31
2.31
1.83
1.74
1.29
1.25
1.16
1.00
0.75
0.69
0.63
0.58
0.58
0.58
0.58
0.58
0.56
0.53
89.11
10.89
100.00
2020 Annual Report | 77
7. Unquoted Equity Securities
MINERAL TENEMENT INFORMATION (as at 25 September 2020)
Number
Number of Holders
Class
Holders of more than 20%
Number
Location
Area (sq. km) PDI equity
1,952,500
6
7,500,000
1
PDIAK Unlisted Options
exercisable at $0.3867 and
expiring 29 November 2020
PERTH-CANGUROS PTY LTD (56.34%) (1,100,000)
PDIAL Unlisted Options
exercisable at $0.18 expiring
of 31 March 2024
ZENIX NOMINEES PTY LTD
(100%)(7,500,000)
8.
Corporate Governance Statement
The 2020 Corporate Governance statement of Predictive Discovery Limited is available on the Company’s website at
https://www.predictivediscovery.com/corporate-governance/
Name
Kalinga
Tantiabongou
Tambifwanou
Bongou
Tamfoagou
Tambiri
Bira
Basieri
Kokoumbo
Boundiali
Kounahiri
Bassawa
Wendene
Dabakala
Nonta
Kankan
Boroto
Kaninko
Saman
Koundian 1
Koundian 2
Koundian 3
Koundian 4
Cape Clear
Arrêté 2014-294/MCE/SG/DGMGC
Burkina Faso
Arrêté 2017-054 /MCE/SG/DGMGC
Burkina Faso
Arrêté 2017-119/MCE/SG/DGMGC
Burkina Faso
Arrêté 2017-121/MCE/SG/DGMGC
Burkina Faso
Arrêté 2017-132/MCE/SG/DGMGC
Burkina Faso
Arrêté 2017-120/MCE/SG/DGMGC
Burkina Faso
Arrêté 2016-129/MCE/SG/DGMGC
Burkina Faso
Arrêté 2017-133/MCE/SG/DGMGC
Burkina Faso
Mining exploration permit No. 307
Cote D'Ivoire
Predictive CI earning 90%.
Mining exploration permit No. 414
Cote D'Ivoire
Boundiali North
Mining exploration permit
Cote D'Ivoire
Predictive CI earning 90%.
Mining exploration permit No. 317
Cote D'Ivoire
Mining exploration permit No. 570
Cote D'Ivoire
0% (rights to bonus payments on
Mining exploration permit No. 572
Cote D'Ivoire
0% (rights to bonus payments on
Mining exploration permit application Cote D'Ivoire
0% (rights to bonus payments on
Beriaboukro (Toumodi) Mining exploration permit No. 464
Cote D'Ivoire
Ferkessedougou North Mining exploration permit No. 367
Cote D'Ivoire
Bocanda North
Mining exploration permit No. 844
Cote D'Ivoire
Predictive CI can earn 85% in the permit.
Predictive CI can earn 85% in the permit.
Exploration Permit
Exploration Permit
Exploration Authorisation
Exploration Permit
Exploration Permit
Exploration Permit
Exploration Permit
Exploration Permit
Exploration Permit
EL 5434
Guinea
Guinea
Guinea
Guinea
Guinea
Guinea
Guinea
Guinea
Guinea
Victoria, Australia
Predictive – right to earn 90% during
the exploration phase
186
50
136
171
83
127
12
73
300
299
350
260
400
400
400
400
400
368
100
100
0
100
100
85
100
63
55
63
49%
49%
49%
49%
49%
46.5%
49%
49%
30%
30%
production)
production)
production)
Predictive 100%
Predictive 100%
Predictive 100%
Predictive 100%
Predictive 100%
Predictive 100%
Predictive 100%
Predictive 100%
25%
78 | 2020 Annual Report
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Area (sq. km) PDI equity
186
50
49%
49%
49%
49%
49%
46.5%
49%
49%
Predictive CI earning 90%.
30%
MINERAL TENEMENT INFORMATION (as at 25 September 2020)
Name
Kalinga
Tantiabongou
Tambifwanou
Bongou
Tamfoagou
Tambiri
Bira
Basieri
Kokoumbo
Boundiali
Boundiali North
Kounahiri
Bassawa
Wendene
Dabakala
Number
Arrêté 2014-294/MCE/SG/DGMGC
Arrêté 2017-054 /MCE/SG/DGMGC
Arrêté 2017-119/MCE/SG/DGMGC
Arrêté 2017-121/MCE/SG/DGMGC
Arrêté 2017-132/MCE/SG/DGMGC
Arrêté 2017-120/MCE/SG/DGMGC
Arrêté 2016-129/MCE/SG/DGMGC
Arrêté 2017-133/MCE/SG/DGMGC
Mining exploration permit No. 307
Mining exploration permit No. 414
Mining exploration permit
Mining exploration permit No. 317
Location
Burkina Faso
Burkina Faso
Burkina Faso
Burkina Faso
Burkina Faso
Burkina Faso
Burkina Faso
Burkina Faso
Cote D'Ivoire
Cote D'Ivoire
Cote D'Ivoire
Cote D'Ivoire
Mining exploration permit No. 570
Cote D'Ivoire
Mining exploration permit No. 572
Cote D'Ivoire
Mining exploration permit application Cote D'Ivoire
Beriaboukro (Toumodi) Mining exploration permit No. 464
Ferkessedougou North Mining exploration permit No. 367
Bocanda North
Nonta
Kankan
Boroto
Kaninko
Saman
Koundian 1
Koundian 2
Koundian 3
Koundian 4
Cape Clear
Mining exploration permit No. 844
Exploration Permit
Exploration Permit
Exploration Authorisation
Exploration Permit
Exploration Permit
Exploration Permit
Exploration Permit
Exploration Permit
Exploration Permit
EL 5434
Cote D'Ivoire
Cote D'Ivoire
Cote D'Ivoire
Guinea
Guinea
Guinea
Guinea
Guinea
Guinea
Guinea
Guinea
Guinea
Victoria, Australia
136
171
83
127
12
73
300
299
350
260
400
400
400
400
400
368
100
100
0
100
100
85
100
63
55
63
Predictive CI earning 90%.
30%
0% (rights to bonus payments on
production)
0% (rights to bonus payments on
production)
0% (rights to bonus payments on
production)
Predictive CI can earn 85% in the permit.
Predictive CI can earn 85% in the permit.
Predictive 100%
Predictive 100%
Predictive 100%
Predictive 100%
Predictive 100%
Predictive 100%
Predictive – right to earn 90% during
the exploration phase
Predictive 100%
Predictive 100%
25%
2020 Annual Report | 79
predictivediscovery.com
80 | 2020 Annual Report
2020 Annual Report | 81
Level 2, 33 Ord Street
WEST PERTH WA 6005
T | +61 8 9216 1000
F | +61 8 9481 0411
predictivediscovery.com