Annual Report
2022
ABN 11 127 171 877
Contents
Chaiman’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
Shareholders Information
Mineral Tenement Information
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Chairman’s Letter
Dear Shareholders,
It is my great privilege to present this
Annual Report to you following a very
successful year of exploration and
advancement for Predictive Discovery.
Firstly, I would like to take this opportunity
to thank our key stakeholders, including our
employees, local communities, suppliers,
shareholders and the Government of
Guinea. The ongoing progress towards the
development of Africa’s next Tier 1 gold mine
requires the cooperation and support of
all these stakeholders and I am delighted
to report that that we are making steady
progress hand in hand with all of these
crucial groups.
In late September 2021, the Company
surprised the market when it released its
maiden Resource Estimate of 3.65 million
ounces, for an inferred Mineral Resource of
72.8 million tonnes at 1.56g/t Au1.
This first Resource was a significant
milestone for the Company and announced
the arrival of Bankan as one of the largest
new gold discoveries in West Africa over
the past decade.
Post this initial Resource, Bankan continued
to progress with some of the best gold
exploration results globally under new
Managing Director Andrew Pardey, who
was joined in the Management team by
Norman Bailie as Geology Manager. Under
the guidance of these two vastly experienced
Geologists and their team, Bankan is
continuing to grow.
This growth is evidenced by the increase
in the Resource estimate at Bankan to 79.5
million tonnes at 1.63 g/t Au for 4.2 million
ounces2. Pleasingly, this Resource update
released in August 2022, illustrates an
increase in Resource grade as the NE Bankan
Resource includes more of the high grade
material being explored at depth.
In parallel with exploration, Predictive has
commenced along the path to development
of Bankan, with the Company launching a
range of studies and programs, designed to
sustainably progress the Project through to
production.
Complimenting a 60,000-meter drilling
program, the Company launched baseline
environmental and biodiversity studies,
including stakeholder mapping and
engagement with communities, government
ministries, regulators, local interest groups
and NGO’s.
The Company is targeting the delivery of
a comprehensive Scoping Study to the
Government of Guinea by the end of 2023
and is well positioned to become Guinea’s
largest gold mine within five years with a
clear strategy to grow the resource base and
take Bankan into production.
This gradual change to a development
focussed Company was bolstered by
numerous notable management hires,
including; Pierre Louw (Chief Financial
Officer), Marlyatou Balde (Country Manager),
Andre Pieters (ESG Manager) and Chris
Boreham (Project Feasibility Manager) as well
as numerous industry-leading Project and
ESG consultants.
You should take great comfort in the
tremendous work done to date by Andrew
and his team to develop our Company and its
people, incorporating the unequivocal buy-
in across the entire organisation, while also
continuing to grow Bankan into a significant
gold deposit.
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Predictive Discovery Annual Report 2022
1 Refer to ASX release dated 30 September 2021.
2 Refer to ASX release dated 1 August 2022.
On behalf of the Board, I thank Andrew and
the entire Predictive team for their dedicated
and sustained efforts. I would also like to
extend my personal thanks to my fellow non-
executive Board members, Sandra Bates and
Steven Michael, for their support and advice
during the year.
Finally, I would like to thank the Government
of Guinea for their support and consultation,
and continuing to engage with Predictive
constructively as we look to work through the
various development studies on a pathway to
development at Bankan into the largest gold
mine in Guinea.
I thank all Predictive shareholders for your
continued support and looking forward to the
coming year.
Yours Sincerely
Simon Jackson
Non-Executive Chairman
Predictive Discovery Annual Report 2022
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Review of Operations
About the BANKAN GOLD PROJECT
The Bankan gold camp is situated in north-
east Guinea, West Africa. The project is 550km
by road from Guinea’s capital Conakry within
the region of Upper Guinea (Haute-Guinée)
and is near the regional administrative centre
of Kouroussa.
The Bankan project area covers 356km2 in
four exploration permits, Kaninko, Saman,
Bokoro and Argo. Three permits are held by
wholly owned subsidiaries of Predictive. The
fourth, Argo, is held in a joint venture with the
owners of local company Argo Mining SARLU,
through which the company has the right to
acquire 100% equity at decision-to-mine.
Geologically, the Bankan gold camp lies in
the south-western portion of the Siguiri Basin,
a component of the early Proterozoic Birimian
orogenic belt in north-eastern Guinea. The
Siguiri Basin is largely composed of turbiditic
sediments with lesser mafic volcanics
and minor felsic intrusives. The geology
in the immediate Bankan area consists of
shelf sedimentary rocks (conglomerates,
sandstones, shales and limestones), mafic
volcanics and intrusives and felsic intrusives,
the latter generally ranging from tonalite to
quartz diorite in composition.
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Predictive Discovery Annual Report 2022
Review of Operations
BANKAN PROJECT
3.65 million-ounce Bankan Maiden
Mineral Resource Estimate
On 30 September 2021, the Company
released its Maiden Mineral Resource
Estimate (MRE) for the Bankan Gold Project
- the Total Inferred Mineral Resource of 72.8
million tonnes at 1.56g/t Au for 3.65 million
ounces of gold.
The maiden MRE was defined in only 17
months since the discovery drillholes were
reported, highlighting the rapid growth of the
Bankan Project. The MRE was delivered with a
Resource discovery cost of $4/oz (US$2.90/oz),
very low-cost by industry standards.
Predictive Discovery Annual Report 2022
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Review of Operations
BANKAN PROJECT IN SITU MINERAL RESOURCE ESTIMATE – 30 JUNE 2022
Deposit
Classification
Million Tonnes
Grade Au g/t
‘000 Contained
Au ounces
NE Bankan
Bankan Creek
Total
Inferred
Inferred
Inferred
65.6
7.2
72.8
1.57
1.42
1.56
3,315
331
3,646
Notes to Mineral Resource Table:
1.
2.
3.
The Mineral Resource is estimated with all drilling data available at 11th September 2021. Drillholes
BNERD0090 and BNERD0091 (reported to ASX on 16 September 2021) were included in the Mineral
Resource database. BNERD092 was not included in the Mineral Resource estimate.
The Mineral Resource is reported in accordance with the JORC Code 2012 Edition at a 0.5g/t cut-off.
The Competent Person is Phil Jankowski MAusIMM (CP) of CSA Global.
4. The Mineral Resources are constrained by optimised pit shells using a metal price of USD1,800 per ounce Au
included:
•
•
Cyanide leach recoveries from all gold
mineralisation types ranged from 94.2%
to 98.5% under optimised conditions
(75-micron grind, 24 hours).
Very good leaching kinetics with at least
94% of extractable gold dissolution within
24 hours.
• Gravity gold recoveries ranging from
13.1% to 37% with values from the tonalite
and tonalite-skarn ore ranging from
19.6% to 37%.
and process recovery of 94%.
5. Rounding may lead to minor apparent discrepancies.
6. Refer to ASX release dated 30 September 2021.
The maiden MRE was based on assays and
information from 147 reverse circulation
drillholes for 14,973m, 28 diamond drillholes
for 6,005m, 32 RC/DDH drillholes for 9,486m
and 47 aircore drillholes for 2,231m.
Excellent metallurgical
testwork results
During the reporting period, the Company
completed initial scoping-level metallurgical
testwork for the Bankan Gold Project, with
excellent gold recoveries returned under
standard test conditions.
Bankan gold mineralisation has been
confirmed as free-milling with high gold
recoveries, and is amenable to a simple,
industry-standard comminution and carbon-
in-leach process circuit.
The key metallurgical testwork results
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Predictive Discovery Annual Report 2022
Review of Operations
NE Bankan Deposit
During financial year 2022, diamond drilling
at NE Bankan continued, designed to extend
and infill the high-grade gold zone at depth
below the US$1,800/oz optimised pit shell
containing the MRE.
Deep drilling at NE Bankan continued to
target the plunge extension of the high-
grade shoot and consolidating an inferred
resource update.
The drilling intercepts reported during
the financial year include the deepest
high-grade intercepts discovered on the
project to date, with a number of standout
results, including DD-hole BNERD0113
returning 24m @ 5.5g/t Au3.
BNERD0113 is the deepest intercept recorded
to date and further extends mineralisation
a further 300 metres downdip. This result
was approximately 630m down dip and
370m vertically below the bottom of the 2021
Maiden Resource Estimate US$1,800/oz pit
shell.
Also at NE Bankan, a detailed 10m x
10m angled RC Grade Control Program
commenced, designed to investigate the
shortrange variability on the mineralisation
within the upper fresh and oxide expression
of the high-grade shoot and NE Bankan.
Figure 1 - NE Bankan NS Longitudinal Projection showing a selection of significant Diamond Drill results completed
during the reporting period.
3 Refer to ASX release dated 15 June 2022.
Predictive Discovery Annual Report 2022
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Review of Operations
Figure 2 - NE Bankan drill plan showing a selection of DD/RC Drill holes completed during the reporting period.
Figure 3 - Section 1174940N (+20mN/- 40mS) with holes BNERD0105, BNERD0106B
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Predictive Discovery Annual Report 2022
Review of Operations
Figure 4 - Section 1175100N (+/- 20m) with hole BNERD0107.
Figure 5 - Section 1175180 (+20mN/- 35mS) with new hole BNERD0108
Predictive Discovery Annual Report 2022
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Review of Operations
Figure 6 - Section 1175060 (+/- 20m) with holes BNERD0109A and BNERD0111
Figure 7 - Section 1174780 (+/- 20m) with new hole BNERD0109.
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Predictive Discovery Annual Report 2022
Review of Operations
Figure 8 - Section 1174780N (+20mN/- 60mS) with new hole BNERD0113.
Figure 9 - Section 11754980N (+20mN/- 40mS) with new hole BNERD0116.
Predictive Discovery Annual Report 2022
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Review of Operations
Figure 10 - Section 1175020N (+20mN/- 40mS) with holes BNERD0115.
Bankan Creek Deposit
Bankan Creek is a satellite discovery 3km
to the west of NE Bankan that contributed
331,000oz to the maiden 3.65Moz Mineral
Resource estimate.
During the reporting period, nine RC/DD
holes were completed for 1,448 metres. Better
intercepts from the Bankan Creek extension
and infill drilling program included
BCKDD0018: 34m @ 3.7g/t Au from 6m,
including: 5m @ 15.5g/t Au from 17m,
BCKDD0013: 17m @1.6g/t Au from 113m, and
10.6m @ 3.8g/t Au from 142m,
BCKDD0014: 21m @ 1.5g/t Au from 38m, and
18m @ 2.6g/t Au from 64m, including;
2.5m @ 14.5g/t Au from 73m,
BCKDD0015: 36m @ 1.8g/t Au from 17m,
BCKRC0008: 36m @ 3.1g/t Au from 14m (to
EOH), including: 2m @ 17.5g/t Au from 41m1.
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Predictive Discovery Annual Report 2022
1 ASX Announcement: Strong widths and grades from
Bankan Creek Resource Drill Holes (24 August 2021)
Review of Operations
Figure 11 - Bankan Creek plan view showing results in the reporting period, overlain on the power auger and
trench defined near-surface gold anomaly.
Figure 12 - Cross section through new DD drill results, Bankan Creek Prospect.
Predictive Discovery Annual Report 2022
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Review of Operations
Figure 13 - Bankan Cross section showing new DD results (red result labels).
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Predictive Discovery Annual Report 2022
Review of Operations
Bankan Project Regional Drilling
Following the discovery of the NE Bankan
deposit, the Company undertook a
helicopter-borne magnetic and radiometric
survey on a 100m-line spacing covering the
entire project area. A detailed geological
interpretation based on processed magnetic
data over the immediate NE Bankan area
showed that gold mineralisation coincides
with the intersection of a series of ENE-
orientated and NW orientated magnetic
linears, on or close to the contact between
granitic rocks and mafic volcanics.
The lithological and structural elements
controlling mineralisation recognised at
NE Bankan have provided a model for gold
exploration across the Bankan Project with
potential to host multiple “NE Bankan-style”
gold deposits.
The Company deployed one AC and two
power auger rigs to follow-up the new targets
with 13,000m of AC and power auger drilling
completed in the past four months. AC and
power auger are both fast and relatively
cheap exploration methods.
Figure 14 - Bankan Project, regional AC and power auger drilling results overlain on interpreted geology.
Predictive Discovery Annual Report 2022
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Review of Operations
Figure 15 - Bankan Project, significant new regional AC and power auger drilling results overlain on interpreted geology.
Active and planned auger drilling grids east of NE Bankan and on SE Saman are shown as blue dots.
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Predictive Discovery Annual Report 2022
Review of Operations
A 63-sample rock chip program returned
multiple +2g/t Au values with a peak result
of 18.8g/tAu in brecciated haematitic quartz
veins to the south in exploration permit SMK2.
A total of 26% of all samples reported >1g/t Au.
Koundian Project
Located within the Birimian-age Siguiri Basin
approximately 115km east-northeast of the
Company’s 3.65Moz Bankan Gold Project, the
Koundian Project contains widespread gold.
Results from 63 holes, totalling 2,854m, were
released at ASX on 19 May 2022 with the
drilling carried out on a series of traverses
testing potentially well mineralised structures
including two areas of extensive shallow
artisanal gold workings. New results included
a best intercept of 6m @ 3.1g/t Au from 18m
(KDNAC0010).
Figure 16 - Koundian Project, aeromagnetic image, highlighting AC drilling, power auger and rock chip
sample assays.
Predictive Discovery Annual Report 2022
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Review of Operations
Victoria
In July 2020, Predictive confirmed its
participation in a joint venture with
Petratherm Limited (ASX: PTR) and Cape
Clear Minerals Pty Ltd (CCM) on the Glenfine
Gold Project in Victoria. Predictive previously
held a 25% equity over two of the three
Exploration Licences in the Glenfine Gold
Project (ELs 5534 and 5537) through an
unincorporated joint venture with CCM.
Under the new JV agreement, PTR had the
right to earn an 80% equity in the entire
Glenfine Gold Project by expenditure of $3
million, which, if achieved, would leave PDI
and CCM jointly holding a 20% equity in
the Project.
In December 2020, PTR transferred it interest
and rights in the Glenfine Gold Project to
Outback Goldfields (CSE: OZ) and OZ has
been exploring the project since that time.
Predictive’s interest in the Glenfine Gold
Project dates back to 2012.
Given the Company’s focus on West Africa
and minority position in the joint venture
with CCM, this is a legacy interest for PDI.
Corporate
A$55M Placement
In late May, the Company received firm
commitments to raise $55 million (before
costs) from institutional, sophisticated and
professional investors.
The Placement was well supported, with
significant levels of participation from new
domestic and international institutional
investors, as well as from existing
shareholders.
The new institutional shareholders adhere to
some of the most stringent ESG investment
criteria within the global institutional investor
community, further endorsing the Company’s
approach to its sustainability policies.
The Placement issue price of $0.18
represented a 10% discount to the last traded
share price and a 9.5% discount to the 5-day
VWAP prior to the Placement.
The Placement was issued in two tranches.
The first tranche of 206,195,748 shares
(approximately $37.1 million) fell within the
Company’s placement capacity under ASX
Listing Rule 7.1.
The second tranche, consisting of 99,359,808
shares (approximately $17.9 million), was
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Predictive Discovery Annual Report 2022
issued following shareholder approval at a
general meeting held on the 18th July 2022.
New shares issued under the Placement rank
equally with existing shares in issue.
Board Changes
The Company announced the appointment
of Mr Simon Jackson as Non-Executive
Chairman of the Company following the
resignation of Mr Francis Harper. The
Company also announced that Non-
Executive Director, Mr Andrew Pardey, would
be appointed Managing Director from 1
January 2022. On 7 June 2022, Ms Sandra
Bates was appointed a Non-Executive
Director, Mr Paul Roberts resigned from the
board effective 30 June 2022.
Share Purchase Plan
As part of the Placement, the Company also
launched a Share Purchase Plan (SPP), which
was announced on 30 May 2022 and closed
on 28 June 2022.
The Company received application monies of
$2,894,700.
The new shares were allotted to SPP
applicants on 4 July 2022 in accordance with
the SPP timetable.
Review of Operations
Annual Mineral Resource and Ore
Reserve Report - As at 30 June 2022
PDI reviews and reports its Mineral Resource
and ore Reserves at least annually. The
date of reporting is 30 June each year, to
coincide with the Company’s end of financial
year balance date. If there are any material
changes to its Mineral Resources or Ore
Reserves over the course of the year, the
Company promptly reports those changes.
The Maiden Mineral Resource Estimate (MRE)
of 3.65 million ounces for the Bankan Gold
Project, located in Guinea’s Siguiri Basin was
announced at ASX on 30 September 2021. The
Total Inferred Mineral Resource was reported
as 72.8 million tonnes at 1.56g/t Au for 3.65
million ounces of gold.
BANKAN PROJECT IN SITU MINERAL RESOURCE ESTIMATE – 30 JUNE 2022
Deposit
Classification
Million Tonnes
Grade Au g/t
‘000 Contained
Au ounces
NE Bankan
Bankan Creek
Total
Inferred
Inferred
Inferred
65.6
7.2
72.8
1.57
1.42
1.56
3,315
331
3,646
On 2 August 2022 (outside the annual report
period), the Mineral Resource was upgraded
as follows:
• NE Bankan deposit Total Mineral
Resource now 72.3 million tonnes at
1.65g/t Au for 3.9 million ounces of gold.
• Global Resource for Bankan - NE Bankan
and Bankan Creek Deposits - increases
to 79.5 million tonnes at 1.63g/t Au for 4.2
million ounces of gold.
BANKAN PROJECT UPDATED MINERAL RESOURCE ESTIMATE – 2 AUGUST 2022
Deposit
Classification
Million Tonnes
Grade Au g/t
‘000 Contained
Au ounces
NE Bankan
Bankan Creek
Total
Inferred
Inferred
Inferred
72.3
7.2
79.5
1.65
1.43
1.63
3,884
331
4,215
Predictive Discovery Annual Report 2022
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Review of Operations
Bongou Deposit Burkina Faso
Mineral Resources for the Company’s Bongou Deposit Burkina
Faso remain unchanged since 30 June 2021 and are shown below:
The governance arrangements and internal controls with respect to estimates of mineral
resources include the use of external consultants where needed with input from the
Company’s technical staff and reviewed by the Board.
Competent Person Statement
The Mineral Resource estimates reported
herein are based on information compiled
by Mr Phil Jankowski, who is a member of
The Australasian Institute of Mining and
Metallurgy. Mr Jankowski is a full-time
employee of CSA Global Pty Ltd 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 Jankowski consents to the
inclusion in the report of the matters based
on his information in the form and context in
which it appears.
The exploration results reported herein are
based on information compiled by Mr Norm
Bailie. Mr Bailie 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 Bailie consents to the
inclusion in the report of the matters based
on his information in the form and context in
which it appears.
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Predictive Discovery Annual Report 2022
The information in this annual report that
relates to prior exploration results have been
referenced to the original announcement
date. The Company confirms that it is not
aware of any new information or data that
materially affects previous exploration results
referred to in this announcement. The
Company also confirms that the form and
context in which the Competent Person’s
findings are presented have not been
materially modified from the relevant original
market announcements.
The Mineral Resource estimation and
classification of Mineral Resources for the
Bongou deposit Burkina Faso is based
on, and fairly represents, information and
supporting documentation compiled by
Mr Richard Gaze. Mr Gaze is a fulltime
employee of Golder Associates Pty Ltd and
a Member and Chartered Professional of
the Australasian Institute of Mining and
Metallurgy. Mr Gaze has sufficient experience
that is relevant to the style of mineralisation
and type of deposit under consideration
and to the activity being undertaken to
qualify as a Competent Person as defined
in the Australasian Code for Reporting of
Exploration Results, Mineral Resources and
Ore Reserves (2012 Edition). Mr Gaze consents
to the inclusion of the estimates, classification
and the supporting information in the form
and context in which it appears.
Corporate Directory
DIRECTORS
Mr Simon Jackson Non-Executive Chairman
Mr Andrew Pardey Managing Director
Mr Steven Michael Non-Executive Director
Ms Sandra Bates Non-Executive Director
AUDITOR
PKF Perth
Level 4, 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
COMPANY SECRETARY
Mr Ian Hobson
REGISTERED OFFICE
Suite 8
110 Hay Street
SUBIACO WA 6000
Telephone: +61 8 9216 1020
Email: info@predictivediscovery.com
Website: www.predictivediscovery.com
POSTAL ADDRESS
PO Box 1710
WEST PERTH WA 6872
Annual Financial Statements
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
Shareholders Information
Mineral Tenement Information
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Predictive Discovery Annual Report 2022
Predictive Discovery Annual Report 2022
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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 2022.
The names of the directors in office at any time during, or since the end of the year are:
NAMES
Mr Simon Jackson
Mr Andrew Pardey
Mr Steven Michael
Ms Sandra Bates
Mr Francis Harper
Mr Paul Roberts
POSITION
Non-Executive Chairman (Appointed 19 October 2021)
Managing Director
Non-Executive Director
Non-Executive Director (Appointed 7 June 2022)
Non-Executive Chairman (Resigned 19 October 2021)
Executive Director (Resigned 30 June 2022)
The directors have been in office since the start of the financial year to the date of this report unless otherwise stated.
COMPANY SECRETARY
Mr Ian Hobson – B. Bus FCA ACIS MAICD
Mr Hobson is a Fellow Chartered Accountant and Chartered Secretary with 15 years of experience as Company Secretary
of ASX listed companies. Mr Hobson is also Company Secretary of Decmil Group Ltd, Province Resources Ltd, Sarytogan
Graphite Ltd, Novatti Group Ltd, Dubber Corporation Ltd and VRX Silica Ltd.
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 $9,687,702 (2021:
$6,622,404). This was largely from exploration costs, provision for indirect taxes in Guinea and the costs of administering
the Group to 30 June 2022.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
23
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
DIRECTORS’ REPORT
REVIEW OF OPERATIONS
In Financial Year 2021-22, Predictive made substantial progress developing a 4.2MOZ Inferred Resource at the Bankan
gold project located in Guinea. The Bankan gold camp is situated in north-east Guinea, West Africa. The project is 550km
by road from Guinea’s capital Conakry within the region of Upper Guinea (Haute-Guinée) and is near the regional
administrative centre of Kouroussa, a city of approximately 50,000 inhabitants.
The Bankan project area covers 356km2 in four exploration permits Kaninko, Saman, Bokoro and Argo. Three permits
are held by wholly owned subsidiaries of Predictive. The fourth, Argo, is held in a joint venture with the owners of local
company Argo Mining SARLU, through which the company has the right to acquire 100% equity at decision-to-mine.
Since the initial Maiden Inferred Resource was reported on 30 September 2021, drilling at Bankan has been focused on
growing the NE Bankan Deposit and the high-grade zone beneath the 2021 Maiden Resource Estimate US$1,800/oz pit
shell. Resource drilling continued in FY22 as part of the continued growth strategy, in parallel with aircore and power
auger programmes being completed across the Bankan project, testing structural target areas interpreted from the
aeromagnetic survey across the project area.
The Mineral Resource Estimate for the Bankan Project is shown in Table 1, reported at a 0.5 g/t Au cut-off grade and
constrained by the open pit optimisation, along with the remaining Lower HG outside the optimised pit at NE Bankan,
considered as an underground resource.
The resource and grade-tonnage tables are as follows:
TABLE 1: BANKAN PROJECT UPDATED MINERAL RESOURCE ESTIMATE
Deposit
Classification
Million Tonnes
Grade Au g/t
NE Bankan
Bankan Creek
Total
Inferred
Inferred
Inferred
72.3
7.2
79.5
1.65
1.43
1.63
‘000 Contained Au
ounces
3,884
331
4,215
(Assays to 21 July 2022)
Notes to Resource Table:
1. The NE Bankan Mineral Resource is estimated with all drilling data available 21 July 2022; the Bankan Creek Mineral Resource
is estimated with all data available 2 September 2021, and was previously reported by Predictive on 30 September 2021
2. The Mineral Resource is reported in accordance with the JORC Code 2012 Edition at a 0.5 g/t Au cut-off.
3. The Competent Person is Phil Jankowski FAusIMM of CSA Global
4. The Resources are constrained by optimised pit shells using a metal price of USD$1,800 per ounce Au and process recovery of 94%.
5. Rounding may lead to minor apparent discrepancies
The entire resource for both prospects is classified Inferred, and both are open at depth and along strike. The grade-
tonnage relationship is shown in Table 2.
Cut-off Au g/t
TABLE 2: NE Bankan Grade Tonnage Table
Grade Au g/t
Tonnes
Contained Au ounces
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
496,386,611
92,718,277
88,314,177
80,670,227
75,579,577
72,332,714
68,141,564
61,957,776
54,888,963
47,457,813
40,072,925
0.25
1.35
1.41
1.52
1.60
1.65
1.71
1.82
1.96
2.13
2.35
4,014,366
4,014,366
3,993,127
3,931,687
3,876,040
3,884,109
3,755,997
3,626,769
3,456,318
3,253,238
3,027,680
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
24
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
DIRECTORS’ REPORT
COMPETENT PERSONS STATEMENT
The Mineral Resource estimates reported herein were released to ASX on 2 August 2022 and are based on information
compiled by Mr Phil Jankowski, who is a member of The Australasian Institute of Mining and Metallurgy. Mr Jankowski
is a full-time employee of CSA Global Pty Ltd 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 Jankowski consents to the inclusion
in the report of the matters based on his information in the form and context in which it appears.
The exploration results reported herein are based on information compiled by Mr Norm Bailie. Mr Bailie 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 Bailie consents to the inclusion in the report of the
matters based on his information in the form and context in which it appears.
The information in this announcement that relates to prior exploration results have been referenced to the original
announcement date. The Company confirms that it is not aware of any new information or data that materially affects
previous exploration results referred to in this announcement. The Company also confirms that the form and context
in which the Competent Person’s findings are presented have not been materially modified from the relevant original
market announcements.
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 $37,788,338 from 30 June 2021 to 30 June 2022. This net movement is
largely due to the following factors:
•
•
$42m net capital raising;
Expenditure on exploring and evaluating the assets in Guinea.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
No significant changes in the Group’s state of affairs occurred during the financial year.
EVENTS AFTER THE END OF REPORTING PERIOD
The following events have occurred subsequent to the year ended 30 June 2022:
(i) On 1 July 2022, the Company advises that application monies received from the Share Purchase Plan was
$2,894,700;
(ii) Approval to issue 10,000,000 options and 16,000,000 ZEPOS at a shareholder meeting on 18 July 2022, which were
issued to directors on 20 July 2022
(iii) Approval of the 2nd tranche of the May 2022 Placement shares on 18 July 2022, which were issued on 22 July 2022
i.e., 99,359,878 at $0.18 per share;
(iv) Announcement of 4.2MOZ Inferred Resource at Bankan on 2 August 2022; and
(v) Conversion of Options to Shares at various dates and amounts.
The Company recognises the current global COVID-19 pandemic may impact on its operations. Specifically,
government restrictions may:
(i)
(ii)
prevent Company staff or contractors from carrying out their exploration activities; or
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.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
25
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
DIRECTORS’ REPORT
EVENTS AFTER THE END OF REPORTING PERIOD (Continued)
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.
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 the Commonwealth and State
legislation in Australia and under local legislative authorities in Guinea and Burkina Faso. The Board believes that the
Group has adequate systems in place for the management of its environmental regulations and is not aware of a breach
of those environmental requirements as they apply to the Group.
INFORMATION ON DIRECTORS
Mr Andrew Pardey
Qualifications
Experience
Interest in Shares and Options
(at the date of this report)
Managing Director
BSc
Mr Pardey is a geologist with more than 30 years’ experience covering
exploration, project development, construction and operation. From 2015 to
2019, Mr Pardey served as the CEO of the $2 billion LSE/TSX-listed Centamin
plc, which owns the major (450,000oz pa) Sukari Gold Mine in Egypt. Prior to
being CEO of Centamin, Mr Pardey was a major driving force in bringing Sukari
into production, having joined during the transition of the operation from
construction into production. Earlier in his career, Mr Pardey also held senior
management roles at the Anglogold-Ashanti Siguiri Mine and Nordgold Lefa
Mine, both of which are located within Guinea’s Siguiri Basin, which also hosts
Predictive’s Bankan Project.
Shareholding: Nil Option holding: 16,000,000
Directorships held in other listed entities during
the three years prior to the current year
Marvel Gold Limited (Appointed June 2020)
Wia Gold Limited (Appointed October 2020)
Mr Simon Jackson
Qualifications
Experience
Interest in Shares and Options
(at the date of this report)
Directorships held in other listed entities during
the three years prior to the current year
Non-Executive Chairman (appointed 19 October 2021)
B Com FCA
Mr Jackson is a Chartered Accountant with over 25 years’ experience in
management of resource companies, particularly in Africa. Mr Jackson was a
senior member of the management team of TSX listed Red Back Mining Inc., a
company that financed, developed and operated two gold mines in West Africa
culminating in a takeover by Kinross Gold Corp in 2010 that valued Red Back at
CAD$9.3 billion. He was then founding President & CEO and later Chairman of
TSXV listed Orca Gold Inc, a company which discovered the Block 14 gold
project in Sudan and was recently taken over by Perseus Mining. Mr Jackson is
currently Non-executive Chairman of ASX/TSXV listed Sarama Resources
Limited and non-executive Director of ASX/LSE listed Resolute Mining Limited.
He has been a director of multiple ASX and TSX listed companies.
Shareholding: 426,667
Option holding: 7,000,000
Cygnus Gold Limited (Resigned May 2022)
CZR Resources Limited (Resigned Sept 2021)
Kopore Metals Limited (Resigned Nov 2021)
Resolute Mining Limited (Appointed Oct 2021)
Sarama Resources Limited (Appointed Mar 2011)
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
26
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
DIRECTORS’ REPORT
Mr Steven Michael
Qualifications
Experience
Interest in Shares and Options
(at the date of this report)
Directorships held in other listed entities during
the three years prior to the current year
Ms Sandra Bates
Qualifications
Experience
Interest in Shares and Options
(at the date of this report)
Directorships held in other listed entities during
the three years prior to the current year
Mr Francis Harper
Qualifications
Experience
Interest in Shares and Options
(at the date of this report)
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
Executive Director at Deep Yellow Limited, a uranium development company.
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 Wia Gold Limited (ASX: WIA) 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: 2,866,080 Option holding: 2,500,000
Arrow Minerals Limited (Resigned February 2020)
Wia Gold Limited (Appointed September 2020)
Vimy Resources Limited (Resigned August 2022)
Deep Yellow Limited (Appointed August 2022)
Non-Executive Director
BCom, LLB
Admitted as a Solicitor of England and Wales and South Australia
Sandra Bates is an international lawyer and expert adviser with over 20 years’
experience guiding management teams and boards through complex, cross-
border, corporate transactions. Throughout her professional career, Ms Bates
has been a trusted adviser to a range of listed and private companies in the
natural resources and energy sectors and has broad experience encompassing
Africa, Australia, Europe and the Americas. In addition to her legal and
commercial expertise, Ms Bates advises on Environmental, Social and
Governance (ESG) engagement, corporate governance and risk management.
Ms Bates is General Counsel for Elemental Altus Royalties Corp and Legal
Director and ESG adviser to ion Ventures. She is also Non-Executive Director of
ASX and LSE listed Adriatic Metals Plc where she is Chair of the audit
committee.
Shareholding: Nil Option holding: 5,000,000
Adriatic Metals Plc (Appointed Nov 2019)
Pensana Plc (Resigned September 2021)
Former Non-Executive Chairman (Resigned 19 October 2021)
LLB (Hons), BEc
Mr Harper is Chairman and a significant shareholder in Tietto Minerals Limited,
which is studying development of the expanding 3 million-ounce Abujar Gold
Project in Ivory Coast. Prior to that, from 2009 to 2015, he was a major
shareholder and Chairman of West African Resources, which recently
commissioned the high-grade Sanbrado gold project in Burkina Faso. He was
also Chairman of Vital Metals Ltd until 2020 and is a founding director and co-
owner of Blackwood Capital since 2002. Blackwood Capital has raised over $1
billion for ASX resources and industrial companies. Prior to this he was an
Executive Director of Rothschild Australia and spent 15 years with the NM
Rothschild Group in the US, UK and Australia in resources M&A and project
finance advice.
Resigned at date of this report
Directorships held in other listed entities during
the three years prior to the current year
Tietto Minerals Limited
Vital Metals Ltd (resigned August 2020)
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
27
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
DIRECTORS’ REPORT
Mr Paul Roberts
Qualifications
Experience
Interest in Shares and Options
(at the date of this report)
Former Managing Director (Resigned 30 June 2022)
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.
Resigned at date of this report
Directorships held in other listed entities during
the three years prior to the current year
None
MEETINGS OF DIRECTORS
During the financial year, 20 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 Simon Jackson
Mr Steven Michael
Ms Sandra Bates
Mr Andrew Pardey
Mr Paul Roberts
Mr Francis Harper
Number eligible to
attend
5
6
0
6
6
1
INDEMNIFYING OFFICERS OR AUDITORS
Number attended Number eligible to
Number attended
5
6
0
6
6
1
attend
9
12
2
14
14
4
9
12
2
14
14
4
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.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
28
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
DIRECTORS’ REPORT
OPTIONS
At the date of this report, the unissued ordinary shares of Predictive under option, including those options issued during
the year and since 30 June 2022 to the date of this report are as follows:
Grant Date
24 December 2019
30 June 2020
09 November 2020
21 Dec 2020
05 February 2021
14 May 2021
09 July 2021
8 November 2021
25 May 2022
18 July 2022
18 July 2022
18 July 2022
18 July 2022
Date of Expiry
24 Dec 2022
30 Jun 2023
05 May 2023
21 Dec 2023
05 May 2023
26 May 2024
28 Jul 2024
05 Nov 2024
03 Jan 2025
30 June 2026
18 July 2025
18 July 2026
18 July 2027
Exercise Price
$0.0180
$0.1800
$0.0986
$0.1120
$0.0986
$0.0986
$0.1400
$0.2910
$0.3400
$0.3000
NIL
NIL
NIL
TOTAL
Number under Option
74,325,569
7,500,000
7,400,000
8,000,000
11,185,802
3,500,000
8,000,000
2,500,000
3,000,000
10,000,000
4,000,000
4,000,000
8,000,000
151,411,371
During the year ended 30 June 2022 9,005,800 ordinary shares of Predictive were issued on the exercise of options
granted at $0.0986 per share and 8,774,601 ordinary shares of Predictive were issued on the exercise of options granted
at $0.018 per share.
PROCEDINGS 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 by the auditor during the year is compatible
with the general standard of independence for auditors imposed by the Corporations Act 2001.
Details of the amounts paid to the auditor of the Group for audit and non-audit services provided during the year are
set out at note 18.
AUDITOR’S INDEPENDENCE DECLARATION
The auditor’s independence declaration for the year ended 30 June 2022 has been received and can be found on page
49 of the financial report.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
29
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.
PERFORMANCE CONDITIONS LINKED TO REMUNERATION
The Group’s remuneration of key management personnel does not include any performance conditions.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
30
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) (continued)
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 2022
Mr Francis Harper(1)
Mr Paul Roberts (2)
Mr Andrew Pardey
Mr Steven Michael
Mr Simon Jackson (3)
Ms Sandra Bates (4)
Mr Ian Hobson
Mr Pierre Louw(5)
Non-Executive Chairman
Managing Director
Non-Executive Director
Non-Executive Director
Non-Executive Chairman
Non-Executive Director
Company Secretary
Chief Financial Officer
Non-salary
cash-based
incentives
%
-
-
-
-
-
-
-
-
Options/
Rights
%
-
-
36
-
-
-
60
-
Fixed
Salary/Fees
%
100
100
64
100
100
-
40
100
Total
%
100
100
100
100
100
-
100
100
Resigned 19 October 2021
(1)
(2)
Resigned on 30 June 2022
(3) Appointed on 19 October 2021
(4) Appointed on 7 June 2022. Ms Bates was not paid any remuneration for FY22.
(5) Appointed on 25 of May 2022
All non-executive directors are remunerated on a monthly basis with no fixed term or termination benefits.
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.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
31
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) (continued)
REMUNERATION DETAILS FOR THE YEAR ENDED 30 JUNE 2022
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 2022
Key
Personnel
Management
Salary,
fees and leave Other
$
$
Pension and
super-
annuation
$
Shares/
Units
$
Options/
Rights
$
-
-
118,946
-
-
-
-
-
-
134,272
-
-
18,652
-
Total
$
20,000
323,269
322,363
63,400
55,255
-
256,224
17,405
134,272
137,598
1,057,916
1,818
29,388
-
-
18,182
293,881
203,417
63,400
55,255
-
103,300
17,405
Mr Francis Harper(1)
Mr Paul Roberts (2)
Mr Andrew Pardey
Mr Steven Michael
Mr Simon Jackson (3)
Ms Sandra Bates (4)
Mr Ian Hobson
Mr Pierre Louw(5)
Total Key Management
Personnel
Resigned 19 October 2021
(1)
(2)
Resigned on 30 June 2022
(3) Appointed on 19 October 2021
(4) Appointed on 7 June 2022. Ms Bates was not paid any remuneration during FY22.
(5) Appointed on 25 May 2022
-
-
-
-
-
-
-
-
754,840
31,206
-
-
-
-
Table of Benefits and Payments for the Period Ended 30 June 2021
Key
Personnel
Management
Salary,
fees and leave Other
Pension and
super-
annuation
$
Shares/
Units
$
$
17,613
275,000
12,702
58,200
47,177
103,435
$
-
-
-
-
-
1,670
1,673
26,125
-
-
-
-
514,126
1,670
27,798
Options/
Rights
$
33,882
428,848
16,941
150,812
102,924
43,158
Total
$
53,168
729,973
29,643
209,012
150,101
148,263
776,565
1,320,160
-
-
-
-
-
Mr Francis Harper(1)
Mr Paul Roberts(2)
Mr Andrew Pardey(1)
Mr Steven Michael
Mr Philip Jackson(3)
Mr Ian Hobson
Total Key Management
Personnel
(1) Appointed 22 March 2021
Resigned on 30 June 2022
(2)
Resigned 22 March 2021
(3)
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
32
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) (continued)
KEY MANAGEMENT PERSONNEL OPTIONS AND RIGHTS HOLDINGS
The number of options over ordinary shares held by each key management person of the Group during the financial
year is as follows:
Balance at
beginning of
period
Granted as
remunerat-
ion during
the period
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 2022
Mr Francis Harper(1)
Mr Paul Roberts(2)
Mr Andrew Pardey
Mr Steven Michael
Mr Simon Jackson (3)
Ms Sandra Bates(4)
Mr Ian Hobson
Mr Pierre Louw(5)
7,000,000
12,500,000
3,500,000
2,500,000
-
-
3,000,000
-
28,500,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(7,000,000)
(12,500,000)
-
-
-
-
(1,000,000)
-
(20,500,000)
-
-
3,500,000
2,500,000
-
-
2,000,000
-
8,000,000
-
-
-
-
-
-
-
-
-
-
-
3,500,000
2,500,000
-
-
2,000,000
-
8,000,000
-
-
-
-
-
-
-
-
-
Resigned 19 October 2021
(1)
(2)
Resigned on 30 June 2022
(3) Appointed on 19 October 2021
(4) Appointed on 7 June 2022. Ms Bates was not paid any remuneration during FY22
(5) Appointed on 25 May 2022
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 2021
Mr Francis Harper(1)
Mr Paul Roberts
Mr Andrew Pardey(2)
Mr Steven Michael
Mr Philip Jackson(3)
Mr Ian Hobson
(1) Appointed 22 March 2021
(2) Appointed 22 March 2021
(3) Resigned 22 March 2021
-
7,000,000
-
7,000,000
1,100,000 12,500,000 (1,100,000)
-
3,500,000
2,500,000
-
3,000,000
3,000,000
-
-
- 12,500,000 12,500,000 12,500,000
-
-
2,500,000 2,500,000
-
-
(275,000) (3,000,000)
3,000,000 3,000,000
-
1,375,000 31,500,000 (1,375,000) (3,000,000) 28,500,000 18,000,000 18,000,000
3,500,000
2,500,000
-
3,000,000
-
-
275,000
-
-
-
-
-
-
-
-
-
-
-
-
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
33
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) (continued)
KEY MANAGEMENT PERSONNEL SHAREHOLDINGS
The number of ordinary shares in Predictive Discovery Limited held by each key management person of the Group during
the financial year is as follows:
Balance at
beginning of
period
Granted as
remuneration
during the
period
Issued on
exercise of
options during
the period
Purchased
during the
period
Other changes
during the
period
Balance at end of
period
30 June 2022
Mr Francis Harper (1)
Mr Paul Roberts (2)
Mr Andrew Pardey
Mr Steven Michael
Mr Simon Jackson(3)
Ms Sandra Bates(4)
Mr Ian Hobson
Mr Pierre Louw(5)
-
5,974,171
-
178,580
-
-
50,880
-
6,203,631
(1)
Resigned 19 October 2021
Resigned on 30 June 2022
(2)
(3) Appointed on 19 October 2021
(4) Appointed on 7 June 2022
(5) Appointed on 25 May 2022
-
-
-
-
-
-
-
-
-
-
6,100,000
-
-
-
-
-
-
6,100,000
4,000,000
375,000
-
187,500
260,000
-
-
-
4,822,580
(4,000,000)
(12,449,171)
-
-
-
-
-
-
(16,449,171)
-
-
-
366,080
260,000
-
50,880
-
676,960
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 2021
Mr Francis Harper (1)
Mr Paul Roberts
Mr Andrew Pardey (2)
Mr Steven Michael
Mr Ian Hobson
Mr Phillip Jackson (3)
(1) Appointed 22 March 2021
(2) Appointed 22 March 2021
(3) Resigned 22 March 2021
-
5,259,671
-
-
50,880
533,334
5,843,885
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
714,500
-
178,580
-
714,500
1,607,580
-
-
-
-
-
(1,247,834)
(1,247,834)
-
5,974,171
-
178,580
50,880
-
6,203,631
SECURITIES RECEIVED THAT ARE NOT PERFORMANCE-BASED
The options granted to members of key management personnel during the year were not dependent upon the
performance of the Group’s share price as part of their remuneration package.
CASH BONUSES, PERFORMANCE-RELATED BONUSES AND SHARE-BASED PAYMENTS
No options were granted as remuneration during the year to key management personnel and other executives.
END OF THE REMUNERATION REPORT
Andrew Pardey
Managing Director
21 September 2022
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
34
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 2022
Finance income
Other income
Share based payments
Administrative expenses
Depreciation of fixed assets
Foreign exchange gain/(loss)
Employee benefits expense
Impairment of receivables
Movement in provisions
Gain on acquisition of exploration asset
Impairment of exploration expenditure
Exploration expenditure pre-right to tenure
Loss before income tax
Income tax expense
Consolidated
Note
2022
$
2021
$
3,113
-
(731,130)
(1,544,165)
(221,747)
313,645
(309,962)
(918,837)
(1,682,894)
-
(2,011,363)
(2,584,362)
4,865
15,037
(1,093,054)
(1,132,892)
(60,529)
86,126
(518,329)
(426,580)
-
683
(2,492,232)
(1,005,499)
(9,687,702)
(6,622,404)
-
-
2
13
3
8
4
Loss from continuing operations
(9,687,702)
(6,622,404)
Other comprehensive income
Items that may be reclassified to profit or loss
Exchange difference on translation of foreign operations
4,025,911
948
Total comprehensive loss for the year
(5,661,791)
(6,621,456)
Loss attributable to:
Members of the parent entity
(5,661,791)
(6,621,456)
(5,661,791)
(6,621,456)
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
12
12
(0.7)
(0.7)
(0.7)
(0.7)
The accompanying notes form part of these financial statements
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
35
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2022
Current Assets
Cash and cash equivalents
Trade and other receivables
Total current assets
Non-Current Assets
Property, plant and equipment
Exploration expenditure
Total non-current assets
Total assets
Current Liabilities
Trade and other payables
Total current liabilities
Total liabilities
Net Assets
Equity
Issued capital
Reserves
Accumulated losses
Total Equity
The accompanying notes form part of these financial statements.
Note
5(a)
6
7
8
9
Consolidated
2022
$
2021
$
42,035,541
404,150
42,439,691
22,729,169
232,836
22,962,005
811,526
37,376,965
38,188,491
321,176
15,505,090
15,826,266
80,628,182
38,788,271
6,548,463
6,548,463
2,496,890
2,496,890
6,548,463
2,496,890
74,079,719
36,291,381
10
113,950,491
6,411,395
(46,282,167)
71,376,018
1,543,710
(36,628,347)
74,079,719
36,291,381
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
36
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2022
Issued Capital
Accumulated Losses
Foreign Currency
Translation Reserve
Share Based
Payments
Reserve
$
$
CONSOLIDATED
At 1 July 2020
Loss for the year
Other comprehensive income
Total comprehensive loss for the year
Transactions with owners in their capacity as owners:
Transfer of expired options
Issue of share capital
Share-based payments
Options issued to brokers
Transaction costs
At 30 June 2021
At 1 July 2021
Loss for the year
Other comprehensive income
Total comprehensive loss for the year
Transactions with owners in their capacity as owners:
Transfer of expired/lapsed options
Transfer options exercised from reserve to share capital
Issue of share capital
Share-based payments
Options issued to brokers
Transaction costs
At 30 June 2022
42,859,342
-
-
-
-
30,835,990
-
-
(2,319,314)
71,376,018
71,376,018
-
-
-
-
298,887
45,048,347
-
(443,413)
(2,329,348)
113,950,491
The accompanying notes form part of these financial statements
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
(30,136,273)
(6,622,404)
-
(6,622,404)
130,330
-
-
-
-
(36,628,347)
(36,628,347)
(9,687,702)
-
(9,687,702)
$
1,135
-
948
948
-
-
-
-
-
2,083
2,083
-
4,025,911
4,025,911
33,882
-
-
-
-
-
(46,282,167)
-
-
-
-
4,027,994
$
130,330
-
-
-
(130,330)
-
1,093,054
448,573
-
1,541,627
1,541,627
-
-
-
(33,882)
(298,887)
-
731,130
443,413
-
2,383,401
Total
$
12,854,534
(6,622,404)
948
(6,621,456)
-
30,835,990
1,093,054
448,573
(2,319,314)
36,291,381
36,291,381
(9,687,702)
4,025,911
(5,661,791)
-
-
45,048,347
731,130
-
(2,329,348)
74,079,719
37
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2022
Cash flows from operating activities
Interest received
Government grant received
Payments to suppliers and employees
Payments for exploration expenditure
Consolidated
Note
2022
$
3,113
-
(1,665,208)
(21,380,268)
2021
$
4,865
15,037
(1,645,956)
(12,661,854)
Net cash provided by (used in) operating activities
5(b)
(23,042,362)
(14,287,908)
Cash flows from investing activities
Purchase of property, plant and equipment
(712,097)
(347,181)
Net cash provided by (used in) investing activities
(712,097)
(347,181)
Cash flows from financing activities
Proceeds from issue of shares
Proceeds from advance share subscription
Proceeds on exercise of options
Payment for share issue costs
44,043,679
498,391
848,108
(2,329,347)
30,563,590
-
32,394
(1,870,741)
Net cash inflow from financing activities
43,060,831
28,725,243
Net increase (decrease) in cash held
Foreign exchange differences
Cash and cash equivalents at beginning of financial period
19,306,372
-
22,729,169
14,090,154
-
8,639,015
Cash and cash equivalents at end of the financial period
5(a)
42,035,541
22,729,169
The accompanying notes form part of these financial statements
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
38
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE FINANCIAL STATEMENTS
This financial report includes the consolidated financial statements and notes of Predictive Discovery Limited and controlled
entities (the “Group”).
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Predictive Discovery Limited is a for-profit company limited by shares, incorporated and domiciled in Australia.
Basis of preparation
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 20 September 2022.
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 22 to the
financial statements.
As at reporting date, the assets and liabilities of all controlled entities have been incorporated into the consolidated financial
statements as well as their results for the year then ended. Where controlled entities have entered (left) the Group during
the year, their operating results have been included (excluded) from the date control was obtained (ceased).
In preparing the consolidated financial statements, all inter-Group balances and transactions between entities in the Group
have been eliminated on consolidation. Accounting policies of subsidiaries have been changed where necessary to ensure
consistency with those adopted by the parent entity.
Non-controlling interests, being the equity in a subsidiary not attributable, directly or indirectly, to a parent, are shown
separately within the Equity section of the consolidated statement of financial position and consolidated statement of
comprehensive income. The non-controlling interests in the net assets comprise their interests at the date of the original
business combination and their share of changes in equity since that date.
Subsidiaries are accounted for in the parent entity at cost.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
39
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(a) Principles of consolidation (continued)
Business Combinations
Business combinations occur where an acquirer obtains control over one or more businesses and results in the consolidation
of its assets and liabilities.
A business combination is accounted for by applying the acquisition method, unless it is a combination involving entities or
businesses under common control. The acquisition method requires that for each business combination one of the
combining entities must be identified as the acquirer (i.e., parent entity). The business combination will be accounted for
as at the acquisition date, which is the date that control over the acquiree is obtained by the parent entity.
At this date, the parent shall recognise, in the consolidated accounts, and subject to certain limited exceptions, the fair value
of the identifiable assets acquired and liabilities assumed. In addition, contingent liabilities of the acquiree will be recognised
where a present obligation has been incurred and its fair value can be reliably measured.
The acquisition may result in the recognition of goodwill or a gain from a bargain purchase. The method adopted for the
measurement of goodwill will impact on the measurement of any non-controlling interest to be recognised in the acquiree
where less than 100% ownership interest is held in the acquiree.
The acquisition date fair value of the consideration transferred for a business combination plus the acquisition date fair
value of any previously held equity interest shall form the cost of the investment in the separate financial statements.
Consideration may comprise the sum of the assets transferred by the acquirer, liabilities incurred by the acquirer to the
former owners of the acquiree and the equity interests issued by the acquirer.
Fair value uplifts in the value of pre-existing equity holdings are taken to the statement of comprehensive income. Where
changes in the value of such equity holdings had previously been recognised in other comprehensive income, such amounts
are recycled to profit or loss.
Included in the measurement of consideration transferred is any asset or liability resulting from a contingent consideration
arrangement. Any obligation incurred relating to contingent consideration is classified as either a financial liability or equity
instrument, depending upon the nature of the arrangement. Rights to refunds of consideration previously paid are
recognised as a receivable. Subsequent to initial recognition, contingent consideration classified as equity is not remeasured
and its subsequent settlement is accounted for within equity. Contingent consideration classified as an asset or a liability is
remeasured each reporting period to fair value through the statement of comprehensive income unless the change in value
can be identified as existing at acquisition date.
All transaction costs incurred in relation to the business combination are expensed to the statement of comprehensive
income.
Interests in joint arrangements
IFRS defines a joint arrangement as one over which two or more parties have joint control, which is the contractually agreed
sharing of control over an arrangement. This exists only when the decisions about the relevant activities (being those that
significantly affect the returns of the arrangement) require the unanimous consent of the parties sharing control.
(i) Joint operations
A joint operation is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights
to the assets and obligations for the liabilities, relating to the arrangement. In relation to its interests in joint operations,
the Group recognises its:
•
•
•
•
•
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.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
40
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(a) Principles of consolidation (continued)
(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.
(b)
Revenue recognition
The Group recognises revenue as follows:
Interest
Interest revenue is recognised using the effective interest rate method. This is a method of calculating the amortised cost
of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the
rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying
amount of the financial asset.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
All revenue is stated net of the amount of goods and services tax (GST).
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
41
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(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.
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.
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 2022
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(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.
(g)
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.
(h)
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.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
43
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(h)
Investments and other financial assets (continued)
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, its 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.
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.
(i)
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.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
44
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(i)
Property, Plant and Equipment (continued)
An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater
than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are
included in the consolidated statement of comprehensive income.
Property, plant and equipment is derecognised and removed from the consolidated statement of financial position on
disposal or when no future economic benefits are expected. Gains and losses from derecognition are measured as the
difference between the net disposal proceeds, if any, and the carrying amount and are recognised in profit or loss.
Subsequent costs are included in the property, plant and equipment's carrying value or recognised as a separate asset when
it is probable that future economic benefits associated with the item will be realised and the cost of the item can be
measured reliably. All other repairs and maintenance are recognised in profit or loss.
Where required by accounting standards comparative figures have been adjusted to conform with changes in presentation
for the current financial year.
(j)
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.
(k)
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.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
45
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(k)
Impairment of Assets (continued)
Non-financial assets, other than inventories, deferred tax assets, assets from employee benefits, investment properties and
deferred acquisition costs, are assessed for any indication of impairment at the end of each reporting period. Any indication
of impairment requires formal testing of impairment by comparing the carrying amount of the asset to an estimate of the
recoverable amount of the asset. An impairment loss is calculated as the amount by which the carrying amount of the asset
exceeds the recoverable amount of the asset.
Intangible assets with an indefinite useful life and intangible assets not yet available for use are tested for impairment
annually regardless of whether there is any indication of impairment.
The recoverable amount is the greater of the asset's fair value less costs to sell and its value in use. The asset's value in use
is calculated as the estimated future cash flows discounted to their present value using a pre-tax rate that reflects current
market assessments of the time value of money and the risks associated with the asset. Assets that cannot be tested
individually for impairment are Grouped together into the smallest group of assets that generates cash inflows (the asset's
cash generating unit).
Impairment losses are recognised in profit or loss. Impairment losses are allocated first, to reduce the carrying amount of
any goodwill allocated to cash generating units, and then to other assets of the group on a pro rata basis.
Assets other than goodwill are assessed at the end of each reporting period to determine whether previously recognised
impairment losses may no longer exist or may have decreased. Impairment losses recognised in prior periods for assets
other than goodwill are reversed up to the carrying amounts that would have been determined had no impairment loss
been recognised in prior periods.
(l)
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.
(m)
Trade and Other Payables
Trade and other payables represent the liability outstanding at the end of the reporting period for goods and services
received by the Group during the reporting period which remain unpaid. The balance is recognised as a current liability with
the amounts normally paid within 30 days of recognition of the liability.
(n)
Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not
recoverable from the Australian 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.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
46
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(o)
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.
(p)
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.
(q)
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.
(r)
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.
$37,376,965 has been capitalised as at 30 June 2022 (see note 8). 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 13. 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
47
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(r)
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 $38,591,578
is considered fully recoverable. The recoverability of this loan is dependent upon the successful development or sale of
exploration assets in Guinea.
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
Adoption of New and Revised Accounting Standards
(s)
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.
Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early
adopted by the consolidated entity.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
48
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 2: ADMINISTRATIVE EXPENSES
Legal, professional and consultancy fees
Advertising and marketing
Compliance fees
Recruitment fees
IT & telecommunication expenses
Travel and accommodation fees
Insurance
Other expenses
NOTE 3: INDIRECT FOREIGN TAXES
Indirect foreign taxes - Guinea
Consolidated
30 June 2022
$
30 June 2021
$
406,020
301,520
155,618
104,945
97,728
28,156
82,605
367,574
1,544,165
346,761
216,007
119,572
26,000
26,280
1,968
25,419
370,885
1,132,892
Consolidated
30 June 2022
$
30 June 2021
$
1,682,894
1,682,894
-
-
The provision for foreign indirect taxes is in respect of the Company’s tenements held in Guinea. At 30 June 2021, the value
added tax (VAT) for prior periods up to December 2020 was disclosed as a contingent liability as the magnitude of this
liability could not be reliably determined, pending formal assessment by the Guinea tax authorities. Subsequently, this
liability was confirmed at $243,384 and fully paid during the year ended 30 June 2022.
In addition, a VAT provision of $1,439,510 for the period from 1 January to 30 November 2021 has been made based on a
final assessment of the tax liability by independent tax advisors in Guinea. The total provision for foreign indirect taxes at
30 June 2022 amounts to $1,774,265 (refer to note 9).
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
49
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 4: INCOME TAX
(a)
Income tax expense/benefit
The components of income tax expense/benefit comprise:
Current tax
Deferred tax
Consolidated
2022
$
2021
$
-
-
-
-
-
-
(b) Reconciliation of income tax expense/(benefit) to prima facie tax
payable on accounting profit/(loss)
Operating (loss) before income tax
Prima facie tax benefit at Australian rate of 25% (2021: 30%)
(9,687,702)
2,421,926
(6,622,404)
1,986,721
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 under-provision in prior year
Income tax benefit not brought to account
Income tax benefit
(2,306,857)
266,707
-
-
381,776
-
(1,573,928)
196,447
(787,628)
(138,099)
316,487
-
(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 25% (2020: 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:
7,662,198
8,163
(58,101)
7,612,260
7,217,818
12,666
-
7,230,484
(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 5(a): CASH AND CASH EQUIVALENTS
Cash at bank
Consolidated
2022
$
42,035,541
42,035,541
2021
$
22,729,169
22,729,169
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
50
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 5: CASH AND CASH EQUIVALENTS (continued)
NOTE 5(b): Reconciliation of loss after income tax to net cash flow
from operating activities
Operating loss after income tax
2022
$
(9,687,702)
2021
$
(6,622,404)
Non-operating items in loss:
Non-cash flows in loss:
Gain on deregistered entity
Gain on acquisition of exploration asset
Depreciation
Exchange difference on translation of foreign operations
Provision for doubtful debts
Impairment of exploration expenditure
Capitalised exploration expenditure
Share based Payment
Movement in assets and liabilities:
(Increase)/decrease in assets
Increase/(decrease) in liabilities
Net cash outflow from operating activities
NOTE 6: TRADE AND OTHER RECEIVABLES
Other receivables
NOTE 7: PLANT AND EQUIPMENT
Plant and Equipment
Accumulated depreciation
-
221,747
1,252,285
918,837
2,011,363
-
731,130
(683)
60,529
-
426,580
2,492,232
(12,707,508)
1,093,054
(22,043,204)
3,553,182
(23,042,362)
(533,878)
1,504,170
(14,287,908)
404,150
404,150
232,836
232,836
1,111,491
(299,965)
811,526
399,396
(78,220)
321,176
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:
2022
Balance at the beginning of year
Additions
Depreciation expense
Balance at the end of the year
2021
Balance at the beginning of year
Additions
Depreciation expense
Balance at the end of the year
Plant and
Equipment
$
321,176
712,097
(221,747)
811,526
34,524
347,181
(60,529)
321,176
Total
$
321,176
712,097
(221,747)
811,526
34,524
347,181
(60,529)
321,176
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
51
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 8: EXPLORATION, EVALUATION AND DEVELOPMENT ASSETS
Exploration and evaluation expenditure
2022
Balance at beginning of the year
Expenditure incurred
Expenditure acquired
Impairment of capitalised exploration
Balance at the end of the year
2021
Balance at beginning of the year
Expenditure incurred
Expenditure acquired
Impairment of capitalised exploration
Balance at the end of the year
2022
$
2021
$
37,376,965
37,376,965
15,505,090
15,505,090
Exploration and
Evaluation
$
15,505,090
23,883,238
-
(2,011,363)
37,376,965
$
5,048,178
12,709,855
239,289
(2,492,232)
15,505,090
The Group has capitalised exploration expenditure of $37,376,965 (30 June 2021: $15,505,090). This amount includes costs
directly associated with exploration and the purchase of exploration properties. These costs are capitalised as an
exploration asset until assessment and / or drilling of the permit is complete and the results have been evaluated. These
direct costs include employee remuneration, materials, permit rentals and payments to contractors. The expenditure is
carried forward until such a time as the area moves into the development phase, is abandoned or sold. The ultimate
recovery of the carrying value of exploration expenditure is dependent upon the successful development and commercial
exploitation or, alternatively, sale of the interest in the tenements. The Directors are of the opinion that the exploration
expenditure is recoverable for the amount stated in the financial report.
NOTE 9: CURRENT TRADE AND OTHER PAYABLES
Trade and other payables
Foreign indirect tax provision1
1 Refer to note 3
NOTE 10: ISSUED CAPITAL
1,582,048,031 (30 June 2021: 1,268,491,755) Ordinary Shares
Share issue costs written off against issued capital
2022
$
4,774,198
1,774,265
6,548,463
2021
$
1,883,427
613,463
2,496,890
2022
$
122,185,920
(8,235,429)
113,950,491
2021
$
76,838,685
(5,462,667)
71,376,018
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
52
Total
76,838,685
6,526,410
568,000
157,943
680,760
-
37,115,235
298,887
122,185,920
46,002,695
9,899,975
240,000
690,025
32,400
19,973,590
76,838,685
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 10: ISSUED CAPITAL (Continued)
At 1 July 2021
Issue of shares in placement
Issue of shares in placement
Exercise of listed options to shares
Exercise of unlisted options to shares
Exercise of employee options to shares - cashless
Issue of shares – Capital raising
Transfer from Reserves to share capital
At 30 June 2022
At 1 July 2020
Issue of shares in placement - Tranche 1
Issue of shares to acquire 51% PM SARL
Issue of shares in placement - Tranche 2
Exercise of options to shares
Issue of shares – Capital raising
At 30 June 2021
At 1 July 2021
Issue of Options
Exercise of listed options to shares
Exercise of unlisted options to shares
Exercise of employee options to shares - cashless
Options cancelled/expired
At 30 June 2022
At 1 July 2020
Issue of Options
Exercise of options to shares
Options cancelled/expired
At 30 June 2021
OPTIONS
Shares
No.
1,268,491,755
81,580,127
8,000,000
8,774,601
6,904,259
2,101,541
206,195,748
1,582,048,031
823,886,255
176,785,281
4,028,477
12,321,869
1,800,000
249,669,873
1,268,491,755
Listed Options
No.
84,631,485
-
(8,774,601)
-
-
-
75,856,884
86,431,485
-
(1,800,000)
-
84,631,485
Issue Price
$
-
$0.08
$0.071
$0.018
$0.0986
-
$0.18
$0.056
$0.060
$0.056
$0.018
$0.080
Unlisted
Options
No.
69,000,000
13,500,000
-
(6,904,259)
(4,000,000)
(7,000,000)
64,595,741
9,452,500
61,500,000
-
(1,952,500)
69,000,000
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 13.
NOTE 11: RESERVES
FOREIGN CURRENCY TRANSLATION RESERVE
Exchange differences arising on translation of the foreign controlled entity are recognised in other comprehensive income
foreign currency translation reserve. The cumulative amount is reclassified to profit or loss when the net investment is
disposed of.
OPTION RESERVE
The option reserve records items recognised as expenses on valuation of employee share options, refer to Note 13.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
53
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 12: EARNINGS PER SHARE
2022
$
2021
$
Reconciliation of loss
Loss used in calculating earnings per share – basic and diluted
Net loss for the reporting period
(9,687,702)
(9,687,702)
(6,622,404)
(6,622,404)
Weighted average number of ordinary shares outstanding during the year
used in the calculation of basic and diluted earnings per share
1,373,148,452
976,478,193
NOTE 13: SHARE BASED PAYMENTS
During the year ended 30 June 2022, the Group granted the following options as share-based payment:
•
•
•
8,000,000 unlisted options exercisable at $0.14 expiring in 3 years to the brokers
2,500,000 unlisted options exercisable at $0.2910 expiring in 3 years as part of the long-term employee incentive
plan
3,000,000 unlisted options exercisable at $0.34 expiring in 3 years as part of the long-term employee incentive
plan
During the year ended 30 June 2021, the Group granted the following options as share-based payment:
•
•
•
•
40,500,000 unlisted options exercisable at $0.0986 expiring in 2 years as part of the long-term employee incentive
plan
2,500,000 unlisted options exercisable at $0.011 expiring in 2.5 years as part of the long-term employee incentive
plan
8,000,000 unlisted options exercisable at $0.1120 expiring in 3 years to the brokers
10,500,000 listed options exercisable at $0.0986 expiring in 3 years as part of the long-term employee incentive
plan.
At 30 June 2022, the Group has the following share-based payment options on issue:
Grant Date
24 Dec 2019
30 Jun 2020
09 Nov 2020
09 Nov 2020
11 Dec 2020
05 Feb 2021
14 May 2021
28 Jul 2021
05 Nov 2021
26 May 2022
Expiry Date
24 Dec 2022
30 Jun 2023
05 May 2023
19 Dec 2022
21 Dec 2023
05 May 2023
26 May 2024
28 Jul 2024
05 Nov 2024
03 Jan 2025
Exercise
price
$0.0180
$0.1800
$0.0986
$0.011
$0.112
$0.0986
$0.0986
$0.1400
$0.2910
$0.3400
Start of the
year
84,431,485
7,500,000
15,500,000
2,500,000
8,000,000
25,000,000
10,500,000
-
-
-
153,631,485
Granted during
the year
-
-
-
-
-
-
-
8,000,000
2,500,000
3,000,000
13,500,000
Exercised during
the year
(8,774,601)
-
(6,100,000)
-
-
(4,804,259)
-
-
-
-
(19,678,860)
Expired
during the
year
-
-
-
-
-
-
(7,000,000)
-
-
-
(7,000,000)
Balance at the
end of the year
75,856,884
7,500,000
9,400,000
2,500,000
8,000,000
20,195,741
3,500,000
8,000,000
2,500,000
3,000,000
140,452,625
Vested and
exercisable at the
end of the year
75,856,884
7,500,000
9,400,000
2,500,000
8,000,000
20,195,741
3,500,000
8,000,000
2,500,000
-
137,452,625
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
54
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 13: SHARE BASED PAYMENTS (continued)
At 30 June 2021, the Group has the following share-based payment options on issue:
Grant Date
29 Nov 2016
24 Dec 2019
30 Jun 2020
09 Nov 2020
09 Nov 2020
11 Dec 2020
05 Feb 2021
14 May 2021
Expiry Date
29 Nov 2020
24 Dec 2022
30 Jun 2023
05 May 2023
05 May 2023
21 Dec 2023
05 May 2023
26 May 2024
Exercise
price
$0.3867
$0.0180
$0.1800
$0.0986
$0.011
$0.112
$0.0986
$0.0986
Start of the
year
Granted during
the year
Exercised during
the year
1,952,500
86,431,485
7,500,000
-
-
-
-
-
95,883,985
-
15,500,000
2,500,000
8,000,000
25,000,000
10,500,000
61,500,000
-
(1,800,000)
-
-
-
-
-
-
(1,800,000)
Expired
during the
year
(1,952,500)
-
-
-
-
-
-
-
(1,952,500)
Balance at the
end of the year
-
84,631,485
7,500,000
15,500,000
2,500,000
8,000,000
25,000,000
10,500,000
153,631,485
Vested and
exercisable at the
end of the year
-
84,631,485
7,500,000
15,500,000
2,500,000
8,000,000
-
-
118,131,485
The three tranches of options granted on 29 November 2016 were originally issued with exercise prices of $0.01805,
$0.02578 and $0.03867 respectfully and in quantities of 19,525,000 options in each tranche. A 1 for 10 capital consolidation
effective 19 May 2017 resulted in the quantities and conditions shown in the above table.
The weighted average exercise price of options as at 30 June 2022 was $0.1498 (30 June 2021: $0.0347). The weighted
average remaining contractual life of options outstanding at year end was 0.79 years (30 June 2021: 1.26 years).
For the options granted, the valuation model inputs used in the Black-Scholes Model were as follows:
2022:
Grant date
Expiry date
Share
price at
grant date
Exercise
price
Expected
volatility
Dividend
yield
09 July 2021
28 July 2024
05 Nov 2021
08 Nov 2024
10 May 2022
03 Jan 2025
$0.100
$0.220
$0.243
$0.140
$0.291
$0.340
100%
100%
100%
-
-
-
2021:
Grant date
Expiry date
09 Nov 2020
05 May 2023
09 Nov 2020
05 May 2023
21 Dec 2020
05 Feb 2021
14 May 2021
21 Dec 2023
05 May 2023
05 May 2023
Share
price at
grant date
$0.069
$0.069
$0.055
$0.065
$0.0088
Exercise
price
Expected
volatility
Dividend
yield
$0.0986
$0.0110
$0.1120
$0.0986
$0.0986
100%
100%
100%
70%
70%
-
-
-
-
-
Risk-free
interest
rate
0.40%
0.40%
1.15%
Risk-free
interest
rate
1.1%
1.1%
1.1%
0.4%
0.4%
Fair value
$0.055
$0.123
$0.134
Fair value
$0.034
$0.060
$0.026
$0.019
$0.039
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
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
55
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 14: OPERATING SEGMENTS (Continued)
The following is an analysis of the Group’s revenue and results from operations by reportable segment.
2022
Revenue
Interest income
Other income
Expenses
Administration expenses
Depreciation of fixed asset
Share based expense
FX gain / (loss)
Exploration expenditure expensed
Impairment of Exploration
Provision for doubtful debts
Movement in provision
Loss before tax
Current assets
Exploration expenditure
Plant and Equipment
Intercompany loans
Current liabilities
Net assets/(liabilities)
2021
Revenue
Interest income
Other income
Expenses
Administration expenses
Depreciation of fixed asset
Share based expense
FX gain / (loss)
Exploration expenditure expensed
Impairment of Exploration
Provision for doubtful debts
Revaluation
Loss before tax
Current assets
Exploration expenditure
Plant and Equipment
Intercompany loans
Current liabilities
Net assets/(liabilities)
Gold
Gold
Corporate
Burk. Faso
Cote D’Ivoire
$
$
$
Gold
Guinea
$
Total
$
3,113
-
-
-
-
-
-
-
3,113
-
(269,057)
9,009
(1,289,498)
(4,993)
(731,130)
695,644
-
-
-
-
(1,326,864)
41,151,709
-
4,215
38,590,184
(981,798)
78,764,310
-
-
-
(239,289)
-
-
(508,346)
36,657
-
-
(673,285)
(4,114)
(401,453)
(304,581)
(216,754)
-
(381,999)
(2,584,362)
(1,772,074)
(918,837)
(1,682,894)
(7,861,501)
-
-
-
-
-
-
9,009
46,013
-
-
(165,630)
(29,587)
1,205,312
37,376,965
807,311
(37,751,269)
(5,532,963)
(1,854,127)
(221,747)
(731,130)
313,645
(2,584,362)
(2,011,363)
(918,837)
(1,682,894)
(9,687,702)
42,439,691
37,376,965
811,526
-
(6,548,463)
(149,204)
(3,894,644)
74,079,719
Gold
Gold
Corporate
Burk. Faso
Cote D’Ivoire
$
$
$
Gold
Guinea
$
Total
$
4,865
15,037
-
-
-
-
-
-
4,865
15,037
(189,929)
(44,036)
(1,393,992)
(2,568)
(1,093,054)
(152,194)
(1,713)
-
-
683
(2,622,937)
21,026,381
-
6,675
16,860,670
(212,617)
37,681,109
-
-
-
-
-
-
(189,929)
27,892
239,289
-
(200,681)
(25,056)
(41,444)
(23,264)
(57,961)
-
238,320
(1,003,786)
-
(426,580)
-
(1,273,271)
-
-
-
(2,492,232)
-
-
(2,536,267)
16,672
-
-
(160,423)
(9,009)
1,891,060
15,265,801
314,502
(16,499,566)
(2,250,209)
(1,651,220)
(60,529)
(1,093,054)
86,126
(1,005,499)
(2,492,232)
(426,580)
683
(6,622,404)
22,962,005
15,505,090
321,177
-
(2,496,891)
(152,760)
(1,278,412)
36,291,381
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
56
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 15: CAPITAL AND LEASING COMMITMENTS
(A) CAPITAL EXPENDITURE COMMITMENTS(i)
Payable:
-not later than 12 months
-not later than 12 months and 5 years
-more than 5 years
2022
$
2021
$
3,709,456
14,837,823
-
18,547,279
3,601,239
14,404,955
-
18,006,194
(i)
Capital expenditure commitments are expenditure commitments on exploration permits in Guinea and Burkina Faso.
NOTE 16: CONTINGENT ASSETS/LIABILITIES
Contingent Assets
According to Guinean tax law, value added tax (VAT) paid in relation to the Company’s Guinea tenements may be
recovered from the Guinea tax authorities if these tenements progress to the development phase. No asset has been
recognised in the Consolidated Statement of Financial Position as there is currently no certainty that these tenements will
reach the development phase or that the total VAT will be fully recovered in this event. However, a contingent asset
exists of $1,081,641 at 30 June 2022 (2021: $426,580) relating to total VAT paid to date. A total of $655,061 of VAT was
paid to the Guinea tax authorities during the year which was expensed in the Statement of Comprehensive Income.
Contingent Liabilities
On acquisition of a 51% interest of Burkina Resources Pty Ltd, Predictive Discovery SARL and Progress Minerals SARL the
company entered into Net Smelter Return (NSR) royalty agreements dated 12 April 2019 in which the company assumed
payment and the following obligations:
- El Dore Agreement: a US$2 million payment in shares to be made upon completion of a bankable feasibility study and
subject to an offer to finance being made to in terms acceptable to the property holder on any of the following
properties: Kalinga; Tiabongou; Tambifwanou; Bongou. This liability is only payable if and when the Group reaches a
stage of mine development on those permits.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
57
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 17: INTERESTS OF KEY MANAGEMENT PERSONNEL
Refer to the Remuneration Report contained in the Directors' Report for details of the remuneration paid or payable to
each member of the Group's key management personnel for the year ended 30 June 2022.
The totals of remuneration paid to key management personnel of the company and the Group during the year are as
follows:
Consolidated
Short-term benefits
Share based payments
Post-employments benefits
NOTE 18: RELATED PARTY TRANSACTIONS
2022
$
754,840
271,870
31,206
1,057,916
2021
$
514,126
776,565
29,468
1,320,160
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 comprised the following:
Intercompany Loans
Predictive Discovery Limited has made loans to its subsidiaries in the amount of $38,590,184 (2021: $17,032,152). The loan
is interest free and payable on demand.
Directors’ Remuneration
Refer to Note 17.
Other Related Party Transactions
There was no related party transactions during the year ended 30 June 2022.
NOTE 19: REMUNERATION OF AUDITORS
Remuneration of the auditor of the parent entity for:
PKF Perth -Audit services
Consolidated
2022
$
58,525
58,525
2021
$
57,740
57,740
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
58
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 20: FINANCIAL RISK MANAGEMENT
The Group's financial instruments consist mainly of deposits with banks, receivables and payables.
The totals for each category of financial instruments, measured in accordance with AASB 9 as detailed in the accounting
policies to these financial statements, are as follows:
Financial Assets
Cash and cash equivalents
Trade and other receivables
Total Financial Assets
Financial Liabilities
Trade and other payables
Total Financial Liabilities
FINANCIAL RISK MANAGEMENT POLICIES
Note
5(a)
6
9
Consolidated
2022
$
2021
$
42,035,541
404,150
42,439,691
6,548,463
6,548,463
22,729,169
232,836
22,962,005
2,496,890
2,496,890
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 Chief Financial Officer, 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.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
59
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 20: FINANCIAL RISK MANAGEMENT (Continued)
SPECIFIC FINANCIAL RISK EXPOSURES AND MANAGEMENT
(A)
CREDIT RISK
Exposure to credit risk relating to financial assets arises from the potential non-performance by counter parties of contract
obligations that could lead to a financial loss to the Group.
The Group trades only with recognised, creditworthy third parties.
The Group has no customers and consequently no significant exposure to bad debts or other credit risks.
With respect to credit risk arising from financial assets, which comprise cash and cash equivalents and receivables, the
exposure to credit risk arises from default of the counter party, with a maximum exposure equal to the carrying amount of
these instruments. At balance date cash and deposits were held with Australia and New Zealand Banking Group Limited.
(B)
LIQUIDITY RISK
Liquidity risk arises from the possibility that the Group might encounter difficulty in settling its debts or otherwise meeting
its obligations related to financial liabilities.
Prudent liquidity risk management implies maintaining sufficient cash reserves to meet the ongoing operational
requirements of the business. It is the Group’s policy to maintain sufficient funds in cash and cash equivalents.
Furthermore, the Group monitors its ongoing exploration cash requirements and raises equity funding as and when
appropriate to meet such planned requirements. The Group has no undrawn financing facilities. Trade and other payables,
the only financial liability of the Group, are due within 6 months.
The tables below reflect an undiscounted contractual maturity analysis for financial liabilities.
Cash flows realised from financial assets reflect management's expectation as to the timing of realisation. Actual timing
may therefore differ from that disclosed. The timing of cash flows presented in the table to settle financial liabilities reflects
the earliest contractual settlement dates and does not reflect management's expectations that banking facilities will be
rolled forward.
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
2022
$
2021
$
2022
$
2021
$
2022
$
2021
$
6,548,463
6,548,463
2,496,890
2,496,890
404,150
404,150
232,836
232,836
-
-
-
-
-
-
-
-
6,548,463
6,548,463
2,496,890
2,496,890
404,150
404,150
232,836
232,836
The financial assets and liabilities noted above are interest free.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
60
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 20: FINANCIAL RISK MANAGEMENT (Continued)
SPECIFIC FINANCIAL RISK EXPOSURES AND 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 0.02% (2021: 0.04%). The table below summarises
the sensitivity of the Group’s cash assets to interest rate risk.
Financial Assets
30 June 2022
Total increase/(decrease)
30 June 2021
Total increase/(decrease)
Effect of decrease or increase of
interest rate on profit and equity
-1%
Profit
$
Equity
$
+1%
Profit
$
Equity
$
(193,187)
(193,187)
193,187
197,187
(121,012)
(121,012)
121,012
121,012
NOTE 21: EVENTS AFTER THE END OF THE REPORTING PERIOD
The following events have occurred subsequent to the year ended 30 June 2022:
(i) On 1 July 2022, the Company advises that application monies received from the Share Purchase Plan was $2,894,700;
(ii) Approval to issue 10,000,000 options and 16,000,000 ZEPOS at a shareholder meeting on 18 July 2022, which were
issued to directors on 20 July 2022
(iii) Approval of the 2nd tranche of the May 2022 Placement shares on 18 July 2022, which were issued on 22 July 2022 i.e.,
99,359,878 at $0.18 per share;
(iv) Announcement of 4.2MOZ Inferred Resource at Bankan on 2 August 2022; and
(v) Conversion of Options to Shares at various dates and amounts.
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.
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
61
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 21: EVENTS AFTER THE END OF THE REPORTING PERIOD (Continued)
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.
NOTE 22: 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
Burkina Resources Pty Ltd(ii)
Tinkisso Pty Ltd
Manoko Resources Pty Ltd
Predictive Discovery SARL (ii)
Ivoirian Resources SARL
Predictive Discovery Niger SARL
Gayeri Resources SARL
Burkina Resources SARL(ii)
Birrimian BV SARL(ii)
Sebba Resources SARL(ii)
Progress Minerals SARL(ii)
Predictive Discovery Mali SARL
Kindia Resources SARLU
Mamou Resources SARLU
Tinkisso Resources SARLU
Birrimian Pty Ltd(ii)
PMI Burkina Faso (BVI) Inc(ii)
BF Progress (BVI) Inc(ii)
Country of
Incorporation
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Cote D’Ivoire
Cote D’Ivoire
Niger
Burkina Faso
Burkina Faso
Burkina Faso
Burkina Faso
Burkina Faso
Mali
Guinea
Guinea
Guinea
British Virgin Islands
British Virgin Islands
British Virgin Islands
(i)
(ii)
Percentage of voting power is in proportion to ownership
Refer to notes 6 and 7
Percentage Owned(i)
2022
-
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
2021
-
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
62
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 171 877
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 23: PARENT ENTITY DISCLOSURES
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Total liabilities
Equity
Issued capital
Reserves
Prior year accumulated losses
Current year losses
Total equity
CONTINGENT LIABILITIES
Nil
CONTRACTUAL COMMITMENTS
2022
$
41,151,709
38,595,794
79,747,503
(981,799)
(981,799)
114,396,488
2,383,400
(34,791,872)
(3,222,312)
78,765,704
2021
$
21,026,381
17,278,115
38,304,496
(212,617)
(212,617)
71,376,018
1,541,626
(29,710,596)
(5,115,169)
38,091,879
The parent entity has commitments as at 30 June 2022 that are disclosed in Note 15.
RECOVERABILITY OF INTERCOMPANY LOAN
Within Non-current assets is a loan due from the 100% subsidiaries of $38,590,184 which is considered fully recoverable.
The recoverability of this loan is dependent upon the successful development or sale of exploration assets in Guinea.
NOTE 24: COMPANY DETAILS
The registered office of the company is:
The principal place of business of the company is:
Suite 8, 110 Hay Street,
SUBIACO WA 6000
Suite 8, 110 Hay Street,
SUBIACO WA 6000
PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT
63
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES
ACN 127 871 877
DIRECTOR’S DECLARATION
FOR THE YEAR ENDED 30 JUNE 2022
DIRECTORS’ DECLARATION
The directors of the company declare that:
1.
The financial statements and notes, as set out on pages 15 to 43, 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 2022 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.
Andrew Pardey
Managing Director
21 September 2022
PREDICTIVE DISCOVERY LIMITED ANNUAL REPORT
64
PKF Perth
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF PREDICTIVE DISCOVERY LIMITED
Report on the Financial Report
Opinion
We have audited the accompanying financial report of Predictive Discovery Limited (the company), which
comprises the consolidated statement of financial position as at 30 June 2022, 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 2022 and of its
performance for the year ended on that date; and
ii) 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.
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.
65
PKF Perth
Key Audit Matters
A key audit matter is a matter that, in our professional judgement, was 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 the matter below, our description of how our audit addressed these matters are provided in that
context.
1. Valuation of capitalised exploration expenditure
Why significant
How our audit addressed the key audit matter
assets
As at 30 June 2022 the carrying value of exploration and
evaluation
(2021:
was
$15,505,090), as disclosed in Note 8. This represents
46.4% of total assets of the consolidated entity, after an
impairment of capitalised exploration expenditure of
$2,011,363 had been recorded.
$37,376,965
The consolidated entity’s accounting policy in respect of
exploration and evaluation expenditure is outlined in
Note 1(j) with the nature of critical estimates and
judgements relating to this balance outlined in Note 1(r).
Significant judgement is required:
•
•
in determining whether facts and circumstances
indicate that the exploration and evaluation assets
should be tested for impairment in accordance with
Australian Accounting Standard AASB
6
Exploration
for and Evaluation of Mineral
Resources (“AASB 6”); and
in determining the treatment of exploration and
evaluation expenditure in accordance with AASB 6,
and the consolidated entity’s accounting policy. In
particular:
o whether the particular areas of interest meet
the recognition conditions for an asset; and
o which elements of exploration and evaluation
expenditures qualify for capitalisation for each
area of interest.
Our work included, but was not limited to, the following
procedures:
•
conducting a detailed review of management’s
assessment of
trigger events
impairment
prepared in accordance with AASB 6 including:
o
o
o
interest
assessing whether the rights to tenure of the
areas of
remained current at
reporting date as well as confirming that
rights to tenure are expected to be renewed
for tenements that will expire in the near
future;
obtaining specific representations with the
directors and management as to the status of
ongoing exploration programmes
the
areas of interest, as well as assessing if
there was evidence that a decision had been
made to discontinue activities in any specific
areas of interest; and
for
obtaining and assessing evidence of the
consolidated entity’s future intention for the
areas of interest, including reviewing future
budgeted expenditure and
related work
programmes.
•
•
•
considering whether exploration activities for the
areas of interest had reached a stage where a
reasonable
economically
recoverable reserves existed;
assessment
of
testing, on a sample basis, exploration and
evaluation expenditure incurred during the year
for compliance with AASB 6 and
the
consolidated entity’s accounting policy; and
reviewing the impairment calculations provided
and related assumptions and disclosures in
Notes 1(j), 1(r) and 8
for accuracy and
completeness.
66
PKF Perth
2. Share Based Payments
Why significant
How our audit addressed the key audit matter
issued
For the year ended 30 June 2022, the value of share
totalled $1,174,543 as
based payments
disclosed in Note 13. This has been recognised as a
share-based payment expense of $731,130 in the
Statement of Profit or Loss and Other Comprehensive
Income and a share issue cost of $443,413 within
issued capital in the Statement of Financial Position.
The consolidated entity’s accounting judgement and
estimates in respect of share-based payments is
outlined in Note 1(q) and (r). Significant judgement is
required in relation to:
• The valuation method used in the model; and
• The assumptions and inputs used within the model.
Our work included, but was not limited to, the following
procedures:
• Reviewed the company’s valuations of the equity
instruments issued, including:
o assessing the appropriateness of the valuation
method used; and
o assessing the reasonableness of the assumptions
and inputs used within the valuation model.
• Reviewed Board meeting minutes and ASX
announcements as well as enquired of relevant
personnel to ensure all share-based payments had
been recognised;
• Assessed the allocation and recognition to ensure
these are reasonable; and
• Assessed
the appropriateness of
the
related
disclosures in Notes 1(q), 1(r) and 13.
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 2022 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.
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.
67
PKF Perth
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.
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.
68
PKF Perth
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 2022.
In our opinion, the Remuneration Report of Predictive Discovery Limited for the year ended 30 June 2022
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
21 SEPTEMBER 2022
WEST PERTH
WESTERN AUSTRALIA
69
PKF Perth
AUDITOR’S INDEPENDENCE DECLARATION
TO THE DIRECTORS OF PREDICTIVE DISCOVERY LIMITED
In relation to our audit of the financial report of Predictive Discovery Limited for the year ended 30 June 2022, 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.
PKF PERTH
SHANE CROSS
AUDIT PARTNER
21 SEPTEMBER 2022
WEST PERTH
WESTERN AUSTRALIA
Level 4, 35 Havelock Street, West Perth, WA 6005
PO Box 609, West Perth, WA 6872
T: +61 8 9426 8999 F: +61 8 9426 8900 www.pkfperth.com.au
PKF Perth is a member firm of the PKF International Limited family of legally independent firms and does not accept any responsibility or liability for the actions or
inactions of any individual member or correspondent firm or firms.
Liability limited by a scheme approved under Professional Standards Legislation.
70
Shareholders Information
The shareholder information set out below
was applicable at 12 September 2022
1.1. The number and class of all securities on issue:
ASX Code
Number
Description
PDI
PDIOA
PDIAM
PDIAL
PDIAP
PDIAQ
PDIAR
PDIAS
PDIAT
PDIAU
PDIAV
PDIAW
PDIAX
1,707,639,886
Fully Paid Ordinary Shares Quoted
74,325,569
ASX Listed Options expiring 24/12/2022 EX $0.018
18,585,802
Unlisted Options expiring 05/05/2023 EX $0.0986
7,500,000
Unlisted Options expiring 30/06/2023 EX $0.18
8,000,000
Unlisted Options expiring 21/12/2023 EX $0.112
3,500,000
Unlisted Options expiring 26/05/2024 EX $0.0986
8,000,000
Unlisted Options expiring 28/07/2024 EX $0.14
2,500,000
Unlisted Options expiring 05/11/2024 EX $0.291
3,000,000
Unlisted Options expiring 03/01/2025 EX $0.34
10,000,000
Unlisted Options expiring 30/06/2026 EX $0.30
4,000,000
Unlisted Options expiring 20/07/2025 EX $0.00
8,000,000
Unlisted Options expiring 20/07/2027 EX $0.00
4,000,000
Unlisted Options expiring 20/07/2026 EX $0.00
71
Predictive Discovery Annual Report 2022
1.2. Distribution of Equity Securities
Fully Paid
Ordinary Shares
Shareholders Information
Listed
Options
Exercisable
@ $0.018
and Expiring
24/12/2022
Range
Securities
%
No. of
holders
Securities
%
No. of
holders
1,640,629,987
96.08
771
72,741,644
97.87
100,001 and
Over
10,001 to
100,000
1 to 1,000
Total
5,001 to 10,000
4,427,412
1,001 to 5,000
1,444,946
61,085,620
51,921
3.58
0.26
0.08
0.00
1,549
1,542,303
2.08
548
420
168
28,228
0.04
13,373
0.02
21
0.00
40
29
3
3
3
1,707,639,886
100.00
3,456
74,325,569
100.00
78
There are 251 shareholders with less than a marketable parcel.
There are 3 option holders with less than a marketable parcel.
Unlisted
Options
Exercisable
@ $0.0986
and Expiring
05/05/2023
Unlisted
Options
Exercisable
@ $0.291
and Expiring
05/11/2024
Range
Securities
%
No. of
holders
Securities
%
No. of
holders
100,001 and
Over
10,001 to
100,000
5,001 to 10,000
1,001 to 5,000
1 to 1,000
Total
18,585,802
100.00
0
0
0
0
0.00
0.00
0.00
0.00
18,585,802
100.00
11
0
0
0
0
11
2,500,000
100.00
0
0
0
0
0.00
0.00
0.00
0.00
2,500,000
100.00
1
0
0
0
0
1
Predictive Discovery Annual Report 2022
72
Shareholders Information
Unlisted
Options
Exercisable
@ $0.112 and
Expiring
21/12/2023
Unlisted
Options
Exercisable
@ $0.18 and
Expiring
30/06/2023
Range
Securities
%
No. of
holders
Securities
%
No. of
holders
100,001 and
Over
10,001 to
100,000
5,001 to 10,000
1,001 to 5,000
1 to 1,000
Total
8,000,000
100.00
0
0
0
0
0.00
0.00
0.00
0.00
8,000,000
100.00
2
0
0
0
0
2
7,500,000
100.00
0
0
0
0
0.00
0.00
0.00
0.00
7,500,000
100.00
1
0
0
0
0
1
Unlisted
Options
Exercisable
@ $0.0986
and Expiring
26/05/2024
Unlisted
Options
Exercisable
@ $0.14 and
Expiring
28/07/2024
Range
Securities
%
No. of
holders
Securities
%
No. of
holders
100,001 and
Over
10,001 to
100,000
5,001 to 10,000
1,001 to 5,000
1 to 1,000
Total
3,500,000
100.00
0
0
0
0
0.00
0.00
0.00
0.00
3,500,000
100.00
1
0
0
0
0
1
8,000,000
100.00
0
0
0
0
0.00
0.00
0.00
0.00
8,000,000
100.00
2
0
0
0
0
2
73
Predictive Discovery Annual Report 2022
Shareholders Information
Unlisted
Options
Exercisable
@ $0.34 and
Expiring
03/01/2025
Unlisted
Options
Exercisable
@ $0.30 and
Expiring
30/06/2026
Range
Securities
%
No. of
holders
Securities
%
No. of
holders
100,001 and
Over
10,001 to
100,000
5,001 to 10,000
1,001 to 5,000
1 to 1,000
Total
3,000,000
100.00
0
0
0
0
0.00
0.00
0.00
0.00
3,000,000
100.00
1
0
0
0
0
1
10,000,000
100.00
0
0
0
0
0.00
0.00
0.00
0.00
10,000,000
100.00
4
0
0
0
0
4
Unlisted
Options
Exercisable
@ $0.00 and
Expiring
27/07/2025
Unlisted
Options
Exercisable
@ $0.00 and
Expiring
27/07/2026
Range
Securities
%
No. of
holders
Securities
%
No. of
holders
100,001 and
Over
10,001 to
100,000
5,001 to 10,000
1,001 to 5,000
1 to 1,000
Total
4,000,000
100.00
0
0
0
0
0.00
0.00
0.00
0.00
4,000,000
100.00
4
0
0
0
0
4
4,000,000
100.00
0
0
0
0
0.00
0.00
0.00
0.00
4,000,000
100.00
4
0
0
0
0
4
Predictive Discovery Annual Report 2022
74
Shareholders Information
Unlisted Options
Exercisable @ $0.00 and
Expiring 27/07/2027
Range
100,001 and
Over
10,001 to
100,000
5,001 to 10,000
1,001 to 5,000
1 to 1,000
Total
Securities
%
No. of
holders
8,000,000
100.00
0
0
0
0
0.00
0.00
0.00
0.00
8,000,000
100.00
4
0
0
0
0
4
1. 3. Substantial Shareholders (Ordinary Shares: PDI)
Substantial shareholders as defined by Section 671B of Australian Corporations Law are:
Name
Blackrock Group
Capital Di Limited
Number of Shares
111,600,000
111,000,000
%
7.05
6.50
1.4. Substantial Option Holders (PDIOA)
Name
MR PHILLIP RICHARD PERRY & MRS TETYANA PERRY
CAPITAL DI LIMITED
QUINTERO GROUP LIMITED
ROCK THE POLO PTY LTD
RAM PLATINUM PTY LTD
Number of
Options
22,684,024
12,500,000
7,500,000
7,375,109
4,320,501
%
30.52
16.82
10.09
9.92
5.81
75
Predictive Discovery Annual Report 2022
Shareholders Information
1.5. Voting Rights
Subject to any rights or restrictions for the time being attached to any class or classes of shares, at
a general meeting every shareholder or class of shareholder present in person or by proxy, attorney
or representative has one vote on a show of hands and, on a poll, one vote for each fully paid share
which that member holds or represents.
1.6. Twenty Largest Shareholders: Ordinary Shares (PDI)
The twenty largest fully paid shareholders hold 68.60% of the issued capital and are tabled below:
Shareholder
No. of shares
%
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
382,900,837
22.42
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
CITICORP NOMINEES PTY LIMITED
115,519,212
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
104,706,683
CAPITAL DI LIMITED
MR PHILLIP RICHARD PERRY
MR JAMIE PHILLIP BOYTON
CAPITAL DI LIMITED
MR PASQUALE BEVILACQUA & MRS MARIA CARMELA
BEVILACQUA
90,000,000
79,013,834
50,915,581
49,227,368
45,490,000
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
41,537,263
AIGLE ROYAL SUPERANNUATION PTY LTD
BNP PARIBAS NOMS PTY LTD
CAPITAL DI LIMITED
EQUITY TRUSTEES LIMITED
BNP PARIBAS NOMINEES PTY LTD
ORIMCO RESOURCE INVESTMENTS PTY LTD
DYSPO PTY LIMITED
BPM INVESTMENTS LIMITED
AIGLE ROYAL SUPERANNUATION PTY LTD
EL-RAGHY KRIEWALDT PTY LTD
37,866,667
30,927,212
24,000,000
19,431,068
18,367,173
16,765,023
15,400,000
15,000,000
11,966,667
11,500,000
10,903,640
6.76
6.13
5.27
4.63
2.98
2.88
2.66
2.43
2.22
1.81
1.41
1.14
1.08
0.98
0.90
0.88
0.70
0.67
0.64
20
UBS NOMINEES PTY LTD
Total
Balance of register
Grand total
1,171,438,228
536,201,658
68.60
31.40
1,707,639,886
100.00
Predictive Discovery Annual Report 2022
75
Option Holder
No. of
Options
MR PHILLIP RICHARD PERRY & MRS TETYANA PERRY
22,684,024
Shareholders Information
1.7. Twenty Largest Option Holders: (PDIOA)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
CAPITAL DI LIMITED
QUINTERO GROUP LIMITED
ROCK THE POLO PTY LTD
RAM PLATINUM PTY LTD
MR JAMIE PHILLIP BOYTON
JIMZBAL PTY LTD
TECHNICA PTY LTD
JIMZBAL PTY LTD
GOFFACAN PTY LTD
GOFFACAN PTY LTD
MR PHILLIP RICHARD PERRY
MR CARMELO STILLISANO
MR ARTHUR EDWARD JOHNSON
SPURFIRE PTY LTD
MR ANDREW PETER FISHER & MRS LORIS JOYCE
FISHER
PAJAL PTY LTD
CAPITAL DI LIMITED
MICJUD PTY LTD
20
MR ANDREW PETER FISHER
Total
Balance of register
Grand total
76
Predictive Discovery Annual Report 2022
%
30.52
16.82
10.09
9.92
5.81
3.56
2.93
2.02
1.80
1.35
1.28
0.81
0.74
0.67
0.67
0.67
0.67
0.65
0.57
0.60
12,500,000
7,500,000
7,375,109
4,320,501
2,644,419
2,175,000
1,500,000
1,340,000
1,000,000
950,000
600,000
547,536
500,000
500,000
500,000
500,000
480,000
426,200
400,000
68,442,789
5,882,780
92.09
7.91
74,325,569
100.00
Shareholders Information
1.8. Unquoted Equity Securities
ASX Code
No. of
holders
Number
Description
Holders of more
than 20%
PDIAM
PDIAL
PDIAP
PDIAQ
PDIAR
PDIAS
PDIAT
PDIAU
PDIAV
PDIAW
PDIAX
11
1
2
1
2
1
1
4
4
4
4
18,585,802
Unlisted Options expiring
5/5/2023 EX $0.0986
Finbarr Murphy
(5,000,000)
7,500,000
Unlisted Options expiring
30/06/2023 EX $0.18
8,000,000
Unlisted Options expiring
21/12/2023 EX $0.112
Mr Dale Alan Bryan
(7,500,000)
HSBC
Custody Nominees
(4,000,000)
Zenix Nominees Pty
Ltd (4,000,000)
3,500,000
Unlisted Options expiring
26/05/2024 EX $0.0986
Mr Andrew Pardey
(3,500,000)
8,000,000
Unlisted Options expiring
28/07/2024 EX $0.14
2,500,000
Unlisted Options expiring
05/11/2024 EX $0.291
HSBC
Custody Nominees
(4,000,000)
Zenix Nominees Pty
Ltd (4,000,000)
Mr Philippe
Blackburn
(2,500,000)
3,000,000
Unlisted Options expiring
03/01/2025 EX $0.34
Norman Bailie
(3,000,000)
10,000,000
Unlisted Options expiring
30/06/2026 EX $0.30
4,000,000
Unlisted Options expiring
20/07/2025 EX $0.00
8,000,000
Unlisted Options expiring
20/07/2027 EX $0.00
4,000,000
Unlisted Options expiring
20/07/2026 EX $0.00
Bigjac Investments
Pty Ltd< Bigjac
Investment A/C>
(5,000,000)
Sandra Bates
(3,000,000)
Andrew Pardey
(2,500,000)
Andrew Pardey
(5,000,000)
Andrew Pardey
(2,500,000)
1.9. Corporate Governance Statement
The 2022 Corporate Governance statement of Predictive Discovery Limited is available on the
Company’s website at https://www.predictivediscovery.com/corporate-governance/
Predictive Discovery Annual Report 2022
77
Mineral Tenement Information
Name
Number
Location
Area
(sq.
km)
PDI equity
Kalinga
Arrêté 2022-015/MCE/SG/DGMGC
(renewed)
Burkina Faso
180
100%
Tambifwanou
Arrêté 2020-310/MCE/SG/DGMGC
Burkina Faso
Bongou
Bira Nord
Basieri
Haoura
Arrêté 2020-311/MCE/SG/DGMGC
Burkina Faso
Arrêté 2020-248/MCE/SG/DGMGC
Burkina Faso
Arrêté 2017-133/MCE/SG/DGMGC
Burkina Faso
Arrêté 2018-232/MCE/SG/DGMGC
Burkina Faso 42
136
167
10
73
100%
100%
100%
100%
100%
Boundiali
Mining exploration permit No. 414
Cote D'Ivoire
299
11%
Boundiali North Mining exploration permit
Cote D'Ivoire
350
Wendene
Mining exploration permit No. 572
Cote D'Ivoire
400
Dabakala
Mining exploration permit
application
Cote D'Ivoire
400
Beriaboukro
(Toumodi)
Ferkessedougou
North
Mining exploration permit No. 464 Cote D'Ivoire
400
Mining exploration permit No. 367 Cote D'Ivoire
400
Bocanda North
Mining exploration permit No. 844 Cote D'Ivoire
368
Issia
Mining exploration permit
Cote D'Ivoire
400
Nonta
Kankan
Kaninko
Saman
Bokoro
Argo
Exploration Permit
Exploration Permit
Exploration Permit
Exploration Permit
Exploration Permit
Exploration Permit
Koundian 1
Exploration Permit
Koundian 2
Exploration Permit
Koundian 3
Exploration Permit
Koundian 4
Exploration Permit
Cape Clear
EL 5434
78
Predictive Discovery Annual Report 2022
Guinea
Guinea
Guinea
Guinea
Guinea
Guinea
Guinea
Guinea
Guinea
Guinea
Victoria,
Australia
100
100
100
100
100
58
85
100
63
55
63
Predictive CI earning
90%. PDI holds 11% of
Predictive CI
0% (rights to
bonus payments
on production)
0% (rights to
bonus payments
on production)
Predictive CI can earn
85% in the permit.
PDI holds 11% of
Predictive CI
Predictive CI can earn
85% in the permit.
PDI holds 11% of
Predictive CI
Predictive 100% (Wia
Gold Ltd earning
80%)
Predictive 100% (Wia
Gold Ltd earning
80%)
Predictive 100%
Predictive 100%
Predictive 100%
Predictive 100%
Predictive 100%
Predictive – right to
earn 90% during the
exploration phase
Predictive 12.5% but
will reduce eventually
to 5%
Suite 8, 110 Hay Street
Subiaco WA 6000
predictivediscovery.com
ASX: PDI