2018
ANNUAL REPORT
Prodigy Gold NL
CORPORATE DIRECTORY
Directors
Secretary
Auditors
Bankers
Share Registry
Solicitors
Stock Exchange
Registered Office
Principal Place of
Business
Postal Address
Website
Email
ABN 58 009 127 020 ACN 009 127 020
Mr Thomas McKeith (Chairman)
Mr Matthew Briggs (Managing Director)
Mr Brett Smith
Mr Mark Faul
Ms Jutta Zimmermann
BDO Audit (WA) Pty Ltd
38 Station Street
SUBIACO WA 6008
Australia and New Zealand Banking Group Limited
Level 10, 77 St Georges Terrace
PERTH WA 6000
Security Transfer Registrars Pty Limited
770 Canning Highway
APPLECROSS WA 6153
Telephone: 1300 992 916
Ward Keller
Northern Territory House
Level 7, 22 Mitchell Street
DARWIN NT 0800
Piper Alderman
Level 16, 70 Franklin Street
ADELAIDE SA 5000
Australian Securities Exchange Limited
ASX Code: PRX
Level 1, 141 Broadway
NEDLANDS WA 6009
Level 1, 141 Broadway
NEDLANDS WA 6009
Telephone: +61 8 9423 9777
Fax: + 61 8 9423 9733
Level 1, 141 Broadway
NEDLANDS WA 6009
www.prodigygold.com.au
admin@prodigygold.com.au
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Prodigy Gold Annual Report 2018
CONTENTS
Chairman’s Report
Managing Director’s Report – Review of Operations
Summary of Mining Tenements and Areas of Interest
Directors’ Report
Corporate Governance Statement
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and Other
Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report to the Members
Additional Information for Listed Public Companies
Page
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Prodigy Gold Annual Report 2018
MESSAGE FROM THE CHAIRMAN
Dear Shareholder,
2018 was a transformational
year for Prodigy Gold. We
have executed our strategy of
prioritising the portfolio and
systematically expanding the
exploration program.
“
The Company is well funded and together with our joint
venture partners is well positioned to make a significant
discovery and deliver value for our shareholders.
Our name change to Prodigy Gold NL is symbolic of our
renewed strategy. There is a real sense of urgency to
execute the strategy and unlock the potential of our
portfolio.
Matt Briggs and team has had a busy and successful
year with the following highlights:
o An equity raising of $6 million which included St
Barbara (ASX:SBM) entering the register with a
10% stake;
o A $12 million farm-in agreement with Newcrest
Mining (ASX: NCM) over the very prospective Euro
tenements;
o A $6.5 million joint venture agreement over the
North Arunta Project area with Gladiator
Resources (ASX: GLA);
o Exploration agreements with the Central Land
Council for the Lake Mackay JV Project leading to
the granting of 12 tenement applications and
expanding the area that can be actively explored
from 517km2 to 7,612km2; and
o Significant bedrock gold targets identified at the
Capstan Prospect within the Company’s 100%
owned Bluebush Gold Project.
We have reviewed all of our Mineral Resource
estimates and the Company’s value is now solidly
underpinned by 15.7 Mt at 2 g/t gold for just over 1.0
Moz of high quality shallow Resources.
Exploration at Suplejack has demonstrated that the
geology is similar to the geology that hosts the
Groundrush and Central Tanami deposits located
immediately to the south. Suplejack is an emerging
camp-scale exploration project, with work focused on
discovering mineralised structures that can, individually
and collectively, support a standalone mining
operation.
The team is developing a pipeline of quality drill targets
in areas that were underexplored on the large areas in
our tenement portfolio that have no prior bedrock
testing. We are targeting areas that contain large-scale
anomalies or highly ranked conceptual targets with
exploration activities now underway at our Bluebush
Project. We started aircore drill testing target areas at
the Capstan Prospect with first results being highly
encouraging. Further aircore drilling, a co-funded
diamond drilling program and RC drilling will be
undertaken during this exploration season.
Our partner at the Lake Mackay Project, Independence
Group NL, is undertaking a project scale airborne EM
survey, soil sampling and is planning an RC drilling
program. Rock chip samples from the Grimlock
Prospect confirmed high Manganese-Nickel-Cobalt in
outcrops with results up to 2.5% Cobalt, 1.1% Nickel
and 46.4% Manganese.
Our partner at the North Arunta Project, Gladiator
Resources Ltd has undertaken an IP survey identifying
major gold drill targets at the Kroda Prospect. Drill
planning is underway.
Prodigy Gold is committed to environmentally
responsible exploration and rehabilitates on an ongoing
basis.
On behalf of the Board I would like to thank the team
for their hard work, innovation and loyalty and look
forward to supporting them progress our discovery
strategy with energy and focus. I would also like to
thank my fellow directors for their support and
strategic guidance over the last year.
And lastly I would like to thank Prodigy Gold’s
shareholders for your support and hopefully we will be
able to reward your patience.
Again, on behalf of the Board I am pleased to present
you with the Company’s 2018 Annual Report and look
forward to an exciting year exploring and unlocking the
discovery potential of our extensive exploration tenure.
T H O M A S M C K E I T H
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Prodigy Gold Annual Report 2018
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
EXPLORATION
Environment and Safety
The Company successfully completed all activities with no reportable injuries to its employees and contractors. Prodigy
Gold continues to improve the safety management system undertaking risk based revisions to procedures and policies.
The Company is subject to significant environmental regulation in respect to its exploration activities. Prodigy Gold
ensures rehabilitation of exploration activities is completed upon the finalisation of each program. No reportable
environmental incidents occurred during the reporting period.
Strategy
Prodigy Gold is focussed on exploration in the Tanami region in the Northern Territory. This prospective terrain had
limited previous work completed. The Company is systematically working through its tenement holding and rapidly
advancing the high priority opportunities in the portfolio.
Prodigy Gold’s strategy to unlock the discovery potential of the Company’s vast and prospective tenure was put into
action by the team implementing an aggressive exploration program to expedite discovery. The highly experienced
exploration team reviewed and ranked the projects in Prodigy Gold’s extensive portfolio. The year started with the
completion of an aircore and RC drilling program at the Suplejack Project with aircore drilling expanding to the highly
prospective Bluebush Project area located to the west of the world class Callie deposit.
Exploration at the Bluebush Project, a large project areas with no prior bedrock testing, prioritised areas that contain
large-scale anomalies or highly ranked conceptual targets for testing with RAB or aircore drilling. Existing bedrock
anomalies will be opportunistically tested where they have scale potential.
Prodigy Gold actively sought out joint-venture partners for areas ouside the Company’s current focus area and will
continue to do so.
100% PRODIGY GOLD PROJECTS
Suplejack Project
The Suplejack Project is situated on exploration licence EL9250 and located 19km north of the 1.6Moz Groundrush Pit
and 58km ot the northeast of the Central Tanami Processing Plant site. Suplejack, including Hyperion, Tethys and Seuss,
contains a Mineral Resource Estimate of 4.9Mt at 1.9g/t for 309.5koz gold (ASX Announcement 31 July 2018). In 2018 the
team continued to increase confidence around the Suplejack Resource and test targets within a prospective trend that
extends for over 50km in a north-south direction and hosts numerous areas of gold anomalism that appear to be
associated with east-west striking structures. Ongoing work is aimed at growing resources at Supljack and progressing the
discovery of new standalone targets.
Exploration
As part of the strategy to demonstate this project has the potential to support a standalone mining operation, the aircore
drilling program expanded to test 6 targets in the southern Suplejack area – Suess North, Hyperion South, Suess
South/Stoney Ridge, Suplejack EW, Pandora/Brokenwood and Dry River. Drilling totalled 179 holes for 8,490m (ASX
Announcement 13 September 2017). Suplejack-style deposits have a very limited geochemical halo. Gold is typically
constrained to the mineralised structure so geochemical vectors are used to map the mineralised system. Intersections of
>100ppb arsenic or >50ppb gold typically define the extents of the systems. Intersections of >200ppb gold often indicate
a mineralised structure has been intersected or is nearby. From this program 35 holes intersected >50ppb gold and 11
holes intersected 150ppb gold or above with the best intersection of 1m @ 1,830ppb (1.83g/t) gold.
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Prodigy Gold Annual Report 2018
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Results confirmed and extended the known mineralisation within many of the target areas. Drilling indicated strike
extensions to Seuss of 500m to the north, Hyperion South extending 200m to the east, and Stoney Ridge defined over a
total of 1,500m.
Resource Drilling – Hyperion-Tethys-Seuss Trend and Hyperion South
Targeted resource drilling continued at Suplejack (10 holes for 1,608m) with the aim of growing shallow resources by
extending known structures and identifying high grade shoots. Drilling successfully intersected higher grade shoots on the
Seuss Fault, the Tethys Structure and the Tethys-Seuss Fault intersection (ASX Announcements 19 December 2017 and 15
January 2018) including:
•
Seuss Fault
o 2.5m 1 @ 11.7g/t gold and 4m1 @ 26.6g/t gold (SSRC100044)
o 13m @ 7.3g/t gold including 7m @ 12.7g/t gold (SSRC100047)
Tethys – Seuss Intersection
•
o 5m @ 8.5g/t gold (SSRC100045)
o 12m @ 2.6g/t gold including 5m @ 4.7g/t gold (SSRC100046)
East of Hyperion South, drilling increased the strike length of mineralisation to over 600m. It is notable that the contact
between the Killi Killi and Mt Charles Formation had previously been interpreted to limit the eastern extent of
mineralisation. Drill hole HYRC100050 intersected 15m @ 1.1g/t gold to the east of the the Killi Killi and Mt Charles
Formation contact opening the potential for substantial strike extensions on Hyperion South and Hyperion.
Figure 1. Suess Fault Long Section (ASX Announcement 31 July 2018)
Other Suplejack targets
Following successfully extending mineralisation at Hyperion and positive results from the aircore program, the Company
is expanding activities to Tregony, Boco, and Old 8 Mile Fault (Figure 2). A review of the existing data requires inspection
of historic diamond core from a program at Tregony completed prior to reporting to a JORC 2012 standard.
1 Estimated true width
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Prodigy Gold Annual Report 2018
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Future planned work is summarised in Figure 2 and Figure 3. Permitting for an aircore drilling program is underway,
which will commence following the completion of drilling at Bluebush. RC drilling, aimed at growing the Seuss Fault along
strike, is being considered as part of a potential campaign of RC drilling at Capstan (ASX Announcement 31 July 2018).
Figure 2: Suplejack Project area and structures being targeted in 2018/2019
Figure 3. Potential strike extensions to the east of Hyperion Tethys
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Prodigy Gold Annual Report 2018
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Bluebush Project
Bluebush is considered prime exploration ground with potential for the discovery of another Callie deposit (14.2Moz). It is
a large-scale target area falling within the Trans-Tanami Fault Zone located 50km to the northwest of the world-class
Callie Gold Mine owned by Newmont Mining. The prospective Dead Bullock Formation – host rocks for the Callie deposit
– extends into the project area with structural similarities of folding and faulting complexity and geochemical anomalism
associated with Callie. Exploration at Bluebush comprised staged aircore drilling programs, lithogeochemistry mapping
and structural interpretation. Activities for 2018 focused on the Capstan Prospect where aircore drilling has outlined large
scale gold anomalism.
Exploration
The initial first pass aircore drilling program was aimed at testing anomalous geochemical and structural targets at the
Capstan, Indefatigable, Hornblower and Wild Turkey Prospects. This program totaled 159 holes for 8,474m with the bulk
of the drilling completed over Capstan, where 95 holes were drilled for 5,488m (ASX Announcements 21 November 2017
and 14 December 2017). Drilling results were highlighted by bedrock gold anomalism extending over a 8km long area at
the Capstan Prospect. A follow-up, second aircore program covering 5 targets over the Capstan Prospect was completed
in May 2018. The program totaled 202 holes for 14,207m. Significant anomalism was intersected in the drilling,
supporting the potential for mineralised zones to be present in fresh rock. Drilling results were highlighted by an
intersection of 21m @ 0.65g/t Au, including 9m @ 1.2g/t Au, and continued to enhance the prospectivity of the project
by defining extensive (+50ppb Au) continuous trends of gold anomalism up to 4.5km long and 750m wide (Figure 4)
associated with Dead Bullock Formation. This is encouraging considering the Callie deposit was identified as a 50ppb
(0.05g/t) Au bedrock anomaly of a few hundred metres long in a 200m x 25m bedrock drill program.
The best results from both programs include (ASX Announcements 5 June 2018, 12 June 2018 and 9 July 2018):
•
Capstan
o 21m @ 0.14g/t Au from 15m (BL0042) including 6m @ 0.35g/t Au from 15m
o 3m @ 0.20g/t Au from 45m & 6m @ 0.30g/t Au from 60m (BL0047)
o 6m @ 0.25g/t Au from 39m (BL0003)
o 3m @ 0.88g/t Au from 51m (BL0245) Capstan North
o 1m @ 0.67g/t Au from 41m (BL0233A) Capstan North
o 3m @ 0.62g/t Au from 33m & 3m @ 0.59g/t Au from 51m (BL0198) Capstan North
o 3m @ 0.48g/t Au from 33m & 3m @ 0.35g/t Au from 42m (BL0195) Capstan North
o 3m @ 0.42g/t Au from 39m (BL0169B) Capstan Anticline
o 21m @ 0.65g/t Au from 48m (BL0316) Top Hat including 9m @ 1.2g/t Au from 54m
o 6m @ 0.31g/t Au from 54m (BL0312) Top Hat
o 6m @ 0.24g/t Au from 48m (BL0329) Hat
o 3m @ 0.31g/t Au from 69m (BL0330) Hat
• Other prospects
o 3m @ 0.07g/t Au from 6m (BL0144) - Indefatigable
o 3m @ 0.1g/t Au from 21m (BL0122) - Wild Turkey
o 2m @ 0.05g/t Au from 57m (BL0072) - Hornblower
An infill program of 250 aircore holes commenced in June 2018 to test seven target areas. Results were received for 102
holes (ASX Announcement 2 August 2018) from the Capstan Anticline and Capstan North target areas and include the
highest grade intersections recorded to date at Capstan – 1m @ 4.0g/t Au and 3m @ 2.8g/t Au. Highlights above 0.4g/t
Au include:
•
•
•
•
•
•
9m @ 1.4g/t Au from 36m including 3m @ 2.8g/t Au from 36m - BL0412 Capstan Anticline
1m @ 4.0g/t Au from 89m (EOH) - BL440 Capstan North
3m @ 0.6g/t Au from 48m - BL0415 Capstan Anticline
6m @ 0.5g/t Au from 48m - BL0445 Capstan North
3m @ 0.5g/t Au from 69m - BL395 Capstan Anticline
3m @ 0.4g/t Au from 21m - BL379 Capstan Anticline
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Prodigy Gold Annual Report 2018
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
The Infill drilling has delineated two continuous gold trends. One west-southwest striking of ~4.5km long (Capstan
Anticline) and a north-northwest trend ~3.5km long (Capstan North). Within the 4.5km gold trend at Capstan Anticline
two zones each 1.5km long, of 0.3 – 2.8g/t Au were defined. Each of these zones have a single diamond hole planned to
confirm the lithology, and orientation of mineralised structures in bedrock.
At Capstan North, hole BL440 intersected 1m @ 4.0g/t Au at the end of the hole. This result is within a 3.5km long gold
trend in the eastern part of the system. This second major trend includes BL0415 with 3m @ 0.6g/t Au and also previous
results of 3m @ 0.67g/t Au and 1m @ 0.45g/t Au.
Figure 4: Capstan Prospect - Bedrock gold geochemistry anomalies with selected aircore drill intersections.
Northern Territory Govt co-funded diamond drilling collars (preliminary) shown in yellow.
Future Work
Significant drilling is planned for the remainder of 2018. This will comprise the completion of the Capstan infill aircore
program, reconnaissance aircore drilling over the Galaxy Prospect area located on the eastern margin of the project area,
and along strike of Jims Pit (120kozs). Two diamond holes and follow-up RC are also planned at Capstan targeting
mineralised positions interpreted from both the infill aircore and diamond drilling. The two diamond holes are co-funded
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Prodigy Gold Annual Report 2018
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
by the NT Geological Survey and represent the first diamond core generated from Capstan and will provide an early
opportunity to test for primary mineralisation.
In addition to drilling, an airborne magnetics and radiometric survey on a 100m line spacing is underway over the Capstan
Prospect. The survey, completed in conjunction with the NT Geological Survey, is approximately 2,100 line kilometres.
This survey will provide more data to allow detailed structural and lithological interpretation to optimise planning of
bedrock RC and diamond drilling.
Lithogeochemistry Project – Suplejack and Capstan
In parallel to aircore drilling, historical drill spoils from 560 RAB holes covering Suplejack and 206 RAB holes at Capstan
were collected for multi-element analysis. Results were assessed in partnership with the CSIRO to geochemically
fingerprint the geological sequence to assist future targeting. The compilation of the work to date has already resulted in
a revision of the geological interpretation of both areas. The rocks at Suplejack were previously interpreted to be Ware
Group on the basis of the inferred stratigraphic position. Comprehensive sampling and analysis has now confirmed these
rocks to be within the Mt Charles Formation, which is the host rock of the previously mined Tanami pits and further
enhances the prospectivity of Suplejack for this style of gold mineralisation. At Capstan, lithogeochemical analysis of
historic spoils confirmed the underlying geology to contain Dead Bullock Formation, the host rock of the world class Callie
gold deposit, 75km to the east (ASX Announcement 31 October 2017) (Figure 5).
Figure 5. (A) Whole rock geochemistry samples (points) demonstrate South Suplejack is predominantly Mt Charles
Formation; (B) Whole rock geochemistry samples for the Capstan Prospect confirm the rocks are Dead Bullock.
JOINT VENTURE PROJECTS
Lake Mackay JV Project
Independence Group NL (IGO) conducted exploration on Prodigy Gold’s Lake Mackay tenements under an exploration
agreement executed in August 2013 in which IGO had the right to enter into a farm-in and joint venture agreement over
the tenements. In May 2016 IGO exercised its right to commence earning a 70% joint venture interest in the Lake Mackay
tenements by sole funding $6 million of exploration expenditure and the JV partners now operate under a farm-in and
exploration joint venture agreement executed in November 2017.
Project Background
The Lake Mackay Project is 400km northwest of Alice Springs, adjacent to the Western Australian border, and comprises
approximately 13,000km2 of exploration licences and applications (12,100km2 IGO/Prodigy Gold JV, 900km2 IGO/Prodigy
Gold/Castile JV). The emerging mineralised belt at Lake Mackay is at a very early stage of exploration. The Project has
consolidated tenure over the favourable Proterozoic margin between the Aileron and Warumpi Provinces and is
characterised by a continent-scale geophysical gravity ridge and the Central Australian Suture. The JV partners consider
10
Prodigy Gold Annual Report 2018
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
that exploration has the potential to unlock a new metallogenic province hosting multiple styles of precious and base
metals mineralisation.
Exploration activities managed by IGO in the past year focused on following up previously reported promising RC results
(ASX Annoucements 14 November 16 and 20 December 2016) at the Grapple Prospect on EL24915, and expanding
regional activities in the form of mapping and infill/reconnaissance soil sampling programs and an airborne EM survey.
The area under JV was increased by over 60% to approximately 13,000km2 with additional EL applications aimed at
increasing coverage over the extension of the prospective geology along the Central Australian Suture.
Drilling
At Grapple a 6 hole 2,917m diamond drilling program was completed to further define the size and grade of
mineralisation. The mineralisation consists of massive to semi-massive pyrrhotite-chalcopyrite-sphalerite-galena-
arsenopyrite breccia sulphides and pyrrhotite and chalcopyrite stringers. The sulphide zones can be targeted with down
hole electromagnetic (DHEM) surveys due to the high conductance of pyrrhotite. Drilling has confirmed that the
mineralisation has an extensive plunge component that is presently confirmed over 800m and is still open to the west
(Figure 6). Best results from the program were from drill hole 17GRDD001 (ASX Announcement 15 November 2017):
•
•
o
11.4m @ 7.9g/t gold, 20.7g/t silver, 0.8% copper, 1.1% zinc, 0.5% lead and 0.1% cobalt
Including 3.5m @ 18.3g/t gold, 13.8 g/t silver, 1.1% copper, 0.3% zinc and 0.2% lead
14.4m @ 1.8g/t gold, 6.0g/t silver, 1.1% copper, 0.3% zinc and 0.1% lead
o
Including 2m @ 7.2g/t gold, 1.0g/t silver, 0.2% copper and 0.1% zinc
The remaining holes intersected narrow zones of mineralisation (Table 1) that generated off-hole conductors from
DHEM. Modelling of this data suggests holes 17GRDD002 to 17GRD006 clipped the (mostly) upper edge of mineralisation
and additional drilling downdip would be required to intersect the position of the DHEM modelled conductor interpreted
to be the thicker zones of mineralisation.
Table 1: Significant intercepts from the Grapple Prospect 2017 Diamond Drilling
Hole Name
17GRDD001
From
(m)
284.9
To
(m)
296.3
including
288.8
292.25
17GRDD001
348
including
17GRDD002
348.0
342.6
17GRDD002
346
17GRDD003
149.5
17GRDD003
214
17GRDD003
17GRDD003
220.4
364.9
17GRDD004
382
17GRDD005
17GRDD005
17GRDD006
289.4
377.7
337.4
362.4
350.0
343.6
346.5
151
215
220.9
365.9
382.8
291
378.3
338
Interval
(m)1
11.4
3.45
14.4
2.00
1
0.5
1.5
1
0.5
1
0.8
1.6
0.6
0.6
Au
(g/t)2
7.9
18.3
1.8
7.2
1.4
1.3
4.1
1.2
0.1
1.1
2.8
1.4
2.3
Ag
(g/t)
20.7
13.8
6.0
1.0
25.8
8.5
0.8
5.6
9.0
0.0
10.7
0.9
0.5
Cu
(%)2
0.77
1.06
1.05
0.17
0.81
0.05
0.41
0.84
4.95
0.00
3.08
0.65
0.47
Zn
(%)
1.05
0.29
0.32
0.05
0.32
0.63
0.10
1.64
0.39
0.00
0.50
0.05
0.00
Pb
(%)
0.45
0.21
0.13
0.02
0.66
0.20
0.00
0.11
0.01
0.01
0.18
0.00
0.00
Co
(ppm)
761
142
268
48
326
368
150
200
1420
1
589
430
1256
Interval is below intersection reporting cut-off grade
1Intervals are reported downhole. True widths are currently uncertain.
2Reporting cut-offs at >1.0 g/t Au or >1.0% Cu with maximum internal dilution of 2m.
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Prodigy Gold Annual Report 2018
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Figure 6. Long section projection of Grapple Prospect looking north showing drilling and EM plates.
Mineralisation has been identified over 800m down-plunge.
Soil and Rock Chip Programs
Reconnaissance and infill sampling campaigns were conducted during the year. Sampling was conducted over areas
adjacent to and surrounding EL24915, including EL29748. Several significant gold anomalies were identified in the areas
north and northeast of the Grapple and Bumblebee Prospects. The largest of the anomalies is called Blaze. Results
received subsequent to year end confirm multi-element (Au-Bi-As-Cu (Pb-Zn)) anomalism suggesting “Grapple Style”
mineralisation is associated with these new prospects. Regional reconnaissance soil sampling on an 400m x 800m grid
over poorly explored areas of the project commenced in June 2018, and a 200m x 200m spaced +3.15mm lag sampling
program was completed over the Grimlock Mn-Ni-Co Prospect. Results are pending (ASX Announcement 26 July 2018).
Figure 7: Blaze, Grapple and Bumblebee gold soil anomalies. Rock samples shown as red triangles with anomalous samples labelled.
12
Prodigy Gold Annual Report 2018
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
A total of thirty rock chip samples were collected for assaying as part of the mapping program. Three samples returned
anomalous results from the Blaze and Bumblebee Prospects, including a maximum assay result of 0.25g/t Au (ASX
Announcement 26 July 2018).
Table 2: Anomalous rock chip results from Blaze and Bumblebee Prospects
Prospect
Sample
Au g/t
Ag g/t
Cu ppm
Bl a ze
A553887
Bumbl ebee
A553890
Bl a ze
A553904
0.25
0.09
0.15
0.3
1.4
0.6
244
681
1268
Fe %
20.19
40.65
25.14
Mn ppm Pb ppm S ppm Sn ppm Zn ppm
386
735
380
24
1019
137
1100
418
631
7
338
73
667
552
274
At the Grimlock Prospect, eight samples were collected from a pyrolusite-bearing duricrust. Four of the eight samples
assayed returned values greater than 1.5% Co and 0.5% Ni, providing support for the 2015 sampling results and
confirming the prospect as a strong Mn-Ni-Co anomaly warranting further follow-up exploration (Table 3). The Grimlock
Prospect overlies a gabbronorite intrusion.
Table 3. Grimlock Prospect rock sample results
Following the completion of a trial survey to determine the effectiveness of two fixed-wing EM systems, the Spectrem
airborne EM system was preferred over the Tempest system. The regional survey commenced using the Spectrem system
with two survey blocks completed to the east and west of the Bumblebee and Grapple Prospects (Figure 8). Work
completed covers two NTGS collaborative co-funded survey areas. By the end of the June 2018 Quarter, 5,582 line-km
had been flown. Analysis of the data from the completed survey is at a very preliminary stage with final analysis and
target generation to be completed in the September 2018 Quarter with the aim of testing the targets during the balance
of 2018 and the 2019 field season. The survey is continuing in the September 2018 Quarter.
Figure 8. Lake Mackay JV area highlighting active prospects and Spectrem AEM survey lines completed (orange) and planned survey area
(blue outline).
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Prodigy Gold Annual Report 2018
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Exploration work this past year continued to build on the success of earlier programs. The delineation of sulphide
mineralisation extending over 800m down-plunge at Grapple, the outlining of a strong multi-element soil anomaly at
Blaze north of the Bumblebee-Grapple trend and confirmation of a strong Mn-Ni-Co anomaly at Grimlock provides
ongoing support to the concept that the Lake Mackay Project represents an emerging new metallogenic province.
Tenements
During the year, 12 Lake Mackay Joint Venture tenements, were granted by the Department of Primary Industry and
Resources in the NT. This expanded the area that can be actively explored from 517km2 to 7,407km2. Tenement
E80/5001 in WA has been granted but an exploration agreement with the traditional owners is presently not in place.
Additionally IGO added 3,245km2 of tenement applications covering the extension of the prospective geology along the
Central Australian Suture. These applications, the Prodigy Gold application EL25147 (1,580km2) plus recent IGO
application EL31913 have been incorporated into the JV representing a 60% increase in the project area to a total of
approximately 13,000km2.
North Arunta JV Project
During the financial year Prodigy Gold entered into a Joint Venture agreement with Thunderbird Metals on the North
Arunta Project (ASX Announcement 15 February 2018), which was later assigned to Gladiator Resources (ASX: GLA).
Gladiator Resources is required to sole fund $6.5M over 4.5 years to ultimately earn a 70% interest in the project. Prodigy
Gold will be free-carried through to the completion of a Bankable Feasibity Study and a decsion to mine.
Project Background
The Project covers ~4,500km2 of exploration licences 100% owned by Prodigy Gold and is also known as Prodigy Gold’s
Barrow Creek Project. Barrow Creek consists of a 200km long gravity trend with associated metamorphosed sedimentary
rocks, dolerite intrusions and large granite intrusions. The region has several known mineral occurrences including gold,
copper, nickel, zinc, tin and tantalum.
The Kroda Prospect, which is the most advanced gold prospect in the project area, is located on EL29896, 200km south of
Tennant Creek. Kroda consists of 4 individual targets (Kroda 1 to 4) with a combined anomalous strike length of 14km.
Kroda is well serviced with infrastructure and is located on pastoral land close to the Stuart Highway, the Ghan Rail Line
and the Northern Territory Gas Pipeline.
Exploration
Exploration at North Arunta commenced, with Gladiator Resources completing an induced polarisation (IP) survey at
Kroda (Gladiator ASX Announcement 17 July 2018). This work defined three large, deep-seated IP chargeability anomalies
(apparent chargeability ˃20msec), representing high priority drill targets for Kroda-style gold mineralisation.
Work has also commenced on generating an exploration prospect pipeline. A key focus of this work involves the
compilation and reprocessing of all relevant geophysical data with cutting edge structure and intrusion detection tools
developed by Dr Amanda Buckingham of Fathom Geophysics Australia Pty Ltd and Thunderbird Metals Pty Ltd (Gladiator
ASX Announcement 22 May 2018).
Future Work
Drill holes have been planned for testing each of the chargeability anomalies, which range in depth from 100m to 350m
below the surface. Drilling is expected to commence once all relevant government and heritage clearances have been
received.
14
Prodigy Gold Annual Report 2018
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Euro Farm-in Agreement
During May 2018 a subsidiary of Newcrest Mining Ltd (“Newcrest”) and Prodigy Gold signed a non-binding heads of
agreement to advance exploration on the Euro Project (ASX Announcement 8 May 2018). On 4 July 2018 the Company
announced the conversion of the heads of agreement into a binding farm-in agreement. Under the agreement Newcrest
will sole fund up to $12M over seven years to ultimately earn up to a 75% interest in the project.
Project Background
The Euro Project area covers ~3,478km2 of exploration licences and applications in the Tanami Region of the Northern
Territory. The project is along strike of, or contains structures parallel to, the Trans-Tanami Trend which is the regional
control of major gold deposits in the area, including Newmont Mining’s Callie Gold mine.
The land surface is generally flat with a thin covering of windblown sand over variable thicknesses of transported
Quaternary sediments. Laterite exposures form low rises. There are minor outcrops of underlying rocks, however outcrop
is limited to less than 2% of the project area.
Previous exploration has primarily been soil sampling and patchy reconnaissance drilling with 10 of the 17 tenements in
the project having no drilling in the last 20 years. The shallow veneer of transported sand covering 90% of the area and
the limited previous work has resulted in the area remaining untested or ineffectively tested. The majority of the project
area has been subjected to no exploration as the early focus shifted to the Titania/Oberon and Ptilotus discoveries. Strike
extensions or potential repeats of these deposits exist within the project area.
Future Work
Work programs for Euro are currently being permitted, with initial activity focusing on the Dune target, 2km to the south
of the Newmont Oberon deposit.
Operator Agreement – Old Pirate
Ark Mines (ASX: AHK) and Prodigy Gold signed a letter agreement for Ark Mines to operate the Old Pirate Project and
provide an exclusive option to negotiate an agreement for Buccaneer subject to various conditions, including the
completion of an operator agreement (ASX Announcement 17 April 2018). Prodigy Gold received the $50,000 non-
refundable deposit. Finalisation of the Sale Agreement and Operator Agreement, which was to be completed within 60
business days of the letter agreement, has been delayed (Ark Mines ASX Announcement 23 July 2018). This process has
recommenced with the expectation that the Agreements will be in place by the end of next Quarter.
MINERAL RESOURCES
Prodigy Gold’s Mineral Resources for 31 July 2018 are summarised below. See the 2018 Annual Mineral Resource
Statement (ASX Announcement 14 August 2018) and the individual announcements referenced below for additional
information.
Prodigy Gold's Mineral Resource governance includes systems and procedures that ensure:
• All persons responsible for preparing and reporting Prodigy Gold estimates qualify as a Competent Person as
•
•
defined by the JORC Code (2012 Edition), and the Competent Persons have provided written sign-off on publicly
reported estimates
Estimates are prepared using accepted industry methods
Competent Persons prepare and provide Prodigy Gold with the supporting documentation for each estimate,
and before being reported to the Board, estimates are either reviewed by Prodigy Gold senior technical staff or
by a suitably qualified external reviewer
• Any material changes or updates to estimates are reviewed and approved by the Prodigy Gold's Board before
being promptly announced to the market
15
Prodigy Gold Annual Report 2018
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Consolidated Resource Summary
Table 4 – Prodigy Gold Mineral Resource Summary as at 31 July 2018.
Indicated
Inferred
Total
Tonnes
(Mt)
Grade
(g/t Gold)
Metal
(Koz)
Tonnes
(Mt)
Grade
(g/t Gold)
Metal
(Koz)
Tonnes
(Mt)
Grade (g/t
Gold)
Metal
(Koz)
Resource
Author
0.04
1.2
0.92
2.2
4.6
1.7
2.35
2.0
7
65
69
141
0.72
8.8
4.02
13.5
4.7
1.8
1.86
2.0
109
520
240
869
0.76
10.0
4.93
15.7
4.7
1.8
1.95
115
585
310
2.0
1,010
1
2
2
Project
Date
Old Pirate
Aug-16
Buccaneer Aug-17
Suplejack
July-18
Cut-Off
Grade
(g/t)
1.0
1.0
0.8
Total
Note: Totals may vary due to rounding.
various
•
•
1 CSA Global
2 Optiro Pty Ltd
Old Pirate Mineral Resource
Table 5 – Old Pirate August 2016 Mineral Resource Estimate (ASX Announcement 19 August 2016)
Old Pirate-Project – Mineral Resource Estimate – August 2016
Domain
Classification
Tonnes (Mt)
Grade (Au g/t)
Metal (koz)
Western Limb
Central
East
Golden Hind
Sub-Total
Indicated
Inferred
Indicated
Inferred
Indicated
Inferred
Indicated
Inferred
Indicated
Inferred
Total
Note: Totals may vary due to rounding.
Indicated + Inferred
0.010
0.280
0.020
0.420
0.005
0.010
0.005
0.005
0.040
0.720
0.760
7.5
5.5
3.1
4.2
7.6
4.9
3.5
4.1
4.6
4.7
4.7
3.0
49.7
2.4
56.3
0.5
1.6
0.5
0.9
6.5
108.5
114.9
Buccaneer Mineral Resource
Table 6 – Buccaneer August 2017 Mineral Resource Estimate (ASX Announcement 1 September 2017)
Buccaneer Project - Mineral Resource Estimate – August 2017
Oxide
Oxidised
Transitional
Fresh
Total
Indicated
Grade
(Au g/t)
1.69
1.69
1.59
1.67
Tonnes
(Mt)
0.2
0.7
0.3
1.2
Metal
(koz)
12
40
13
65
Tonnes
(Mt)
0.1
0.5
8.3
8.8
Inferred
Grade
(Au g/t)
1.82
1.52
1.86
1.84
Metal
(koz)
4
22
494
521
Tonnes
(Mt)
0.3
1.2
8.5
10.0
Total
Grade
(Au g/t)
1.73
1.63
1.85
1.82
Metal
(koz)
16
62
507
585
Note: Totals may vary due to rounding.
16
Prodigy Gold Annual Report 2018
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Suplejack Mineral Resource
Table 7 – Suplejack July 2018 Mineral Resource Estimate (ASX Announcement 31 July 2018)
Suplejack Project - Mineral Resource Estimate July 2018
Indicated
Inferred
Oxide
Metal
(koz)
Grade
Grade
Au (g/t)
Au (g/t)
1.48
2.28
1.79
2.08
2.62
1.72
1.86
2.35
Note: Reported above 0.8g/t cut-off and above the 230mRL. Totals may vary due to rounding.
Oxide
Transitional
Fresh
Total
Tonnes
(Mt)
0.29
1.16
2.57
4.02
Tonnes
(Mt)
0.03
0.26
0.63
0.92
1.3
14.8
53.1
69.3
Metal
(koz)
21.2
77.3
141.8
240.3
Tonnes
(Mt)
0.32
1.41
3.20
4.93
Total
Grade
Au (g/t)
2.21
2.03
1.89
1.95
Metal
(koz)
22.6
92.1
194.9
309.5
Competent Persons Statements
The information in this announcement relating to exploration targets and exploration results is based on information reviewed and checked by
Mr Matt Briggs who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Briggs is a full time employee of Prodigy Gold NL
and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he
is undertaking to qualify as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting Exploration Results,
Mineral Resources and Ore Reserves”. Mr Briggs consents to the inclusion in the documents of the matters based on this information in the form
and context in which it appears.
The information in this report relating to the Mineral Resources is based on information reviewed and compiled by Mr Matt Briggs who is a
Member of The Australasian Institute of Mining and Metallurgy. Mr Briggs is a full time employee of Prodigy Gold NL and has sufficient
experience 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 2012 edition of the “Australasian Code for Reporting Exploration Results, Mineral Resources and Ore
Reserves”. Mr Briggs consents to the inclusion in the documents of the matters based on this information in the form and context in which it
appears.
All information compiled in this statement has been previously announced and this annual statement fairly represents a summary of the
supporting information and documentation. Prodigy Gold NL confirms that it is not aware of any new information or data that materially affects
the information included in the market announcement and that all material assumptions and technical parameters underpinning the estimates
included in referenced previous market announcements continue to apply and have not materially changed.
TENEMENT MANAGEMENT
The total area of 36,913km2 held under tenure by Prodigy Gold and its joint venture partners has increased slightly during
the financial year. The area held under granted mineral tenements has increased to 20,415km2 with 16,498km2 held
under exploration licence application. To address the costs associated with maintaining such a large land holding and to
better focus exploration activities, the Company continues to actively seek to reduce its tenure costs through joint
venture and divestment.
A total of three Exploration Licence applications in the Tanami Project area and eight Prodigy Gold applications in the
Lake Mackay Joint Venture area were progressed to grant during the financial year. The Company withdrew nine
tenement applications.
A map showing the location of the Company’s current tenement holding is presented in Figure 9 below and a complete
list of tenements follows this report.
17
Prodigy Gold Annual Report 2018
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Figure 9. Prodigy Gold’s Central Desert mineral tenements and applications as at 30 June 2018.
CORPORATE
Shares on Issue and Unlisted Options
Following shareholder approval at the 2017 Annual General Meeting, the Company issued 3 million unlisted options to
Directors.
During March 2018 the Company undertook a private placement to new and existing sophisticated and professional
shareholders of 60,443,531 fully paid ordinary shares at A$0.10 (10 cents) per share to raise $6,044,531. Notably, St
Barbara Limited has joined the register.
Prodigy Gold has a total of 435.6 million shares on issue and 24 million unlisted options.
Company Name Change
Following shareholder approval at a General Meeting in May 2018, the Company changed its name to Prodigy Gold NL.
18
Prodigy Gold Annual Report 2018
SUMMARY OF MINING TENEMENTS AND AREAS OF INTEREST
Summary of Mining Tenements as at 30 June 2018
Area of Interest
Tenement
Group’s
Interest
Tenement
Status
Status Changes
During the Year
NORTHERN TERRITORY
TANAMI
Birrindudu
Bluebush
Bonanza
Suplejack
Abroholos
Tobruk
EL5889
EL28326
EL31332
EL23523
EL23659
EL24436
EL26610
EL26634
EL27119
EL27127
EL27589
EL28327
EL29860
EL31288
EL31290
EL31291
EL30944
EL25194
EL26608
EL27378
EL28322
EL28324
EL28325
EL28328
EL28394
EL29790
EL31289
ML29822
EL30814
EL9250
EL26619
EL27125
EL27126
EL27979
EL31330
EL31331
EL31530
EL26623
EL27570
EL27980
EL29833
EL29834
EL25156
EL25191
EL25192
EL28785
EL29832
EL29859
EL30270
EL30274
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
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
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
application
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
application
granted
granted
granted
granted
granted
granted
granted
granted
vetoed
application
vetoed
application
application
granted
granted
granted
granted
granted
granted
application
application
Granted during the year
Granted during the year
Withdrawn during the year
19
Prodigy Gold Annual Report 2018
SUMMARY OF MINING TENEMENTS AND AREAS OF INTEREST
Area of Interest
Tenement
Euro
Tanami Altura JV (1)
LAKE MACKAY
Tarawera
Lake Mackay North
Tekapo
Warumpi (2)
EL25845
EL26590
EL26591
EL26592
EL26593
EL26613
EL26615
EL26618
EL26620
EL26621
EL26622
EL26673
EL27604
EL30271
EL30272
EL30273
EL30283
EL26628
EL29828
EL26626
EL26627
EL8695
EL23898
EL24473
EL27894
EL29314
EL29315
EL29316
EL29369
EL30552
EL30553
EL30554
EL30555
EL30556
EL28682
EL24915
EL25146
EL30729
EL30730
EL30731
EL30732
EL30733
EL30739
EL30740
EL31234 (3)
E80/5001 (3)
EL27947 (4)
EL31974 (4)
Group’s
Interest
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
90
90
90
90
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
0
0
0
0
Tenement
Status
Status Changes
During the Year
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
application
application
application
application
granted
granted
granted
application
application
application
application
application
application
application
application
application
application
application
application
application
application
application
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
Granted during the year
Withdrawn during the year
Withdrawn during the year
Withdrawn during the year
Withdrawn during the year
Withdrawn during the year
Granted during the year
Granted during the year
Granted during the year
Granted during the year
Granted during the year
Granted during the year
Granted during the year
Granted during the year
Granted during the year
Independence Group NL
Independence Group NL
Castile Resources Pty Ltd
Castile Resources Pty Ltd
Granted during the year
Granted during the year
Granted during the year
20
Prodigy Gold Annual Report 2018
SUMMARY OF MINING TENEMENTS AND AREAS OF INTEREST
Area of Interest
Tenement
Warumpi (2)
NORTH ARUNTA
Barrow Creek
Lander River
Bonita
Reynolds Range
Walkeley
EL25147
EL31718
EL31719
EL31720
EL31721
EL31722
EL31723
EL31913
EL8766
EL23880
EL23883
EL23884
EL23885
EL23886
EL26825
EL28515
EL28727
EL28748
EL29723
EL29724
EL29725
EL29896
EL30470
EL30507
EL30637
EL30422
EL25031
EL25033
EL25034
EL25035
EL25041
EL25042
EL25044
EL25030
EL25036
EL29819
EL29820
EL30506
EL30508
EL23655
EL23888
EL28083
EL26903
Group’s
Interest
100
0
0
0
0
0
0
0
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
100
100
100
100
100
100
80 (5)
100
100
100
Tenement
Status
Status Changes
During the Year
Independence Group NL
Independence Group NL
Independence Group NL
Independence Group NL
Independence Group NL
Independence Group NL
Independence Group NL
Withdrawn during the year
Out of veto during the year
Out of veto during the year
Out of veto during the year
Out of veto during the year
Withdrawn during the year
Withdrawn during the year
application
application
application
application
application
application
application
application
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
application
granted
granted
granted
granted
granted
granted
granted
application
application
application
application
application
application
granted
granted
granted
application
1)
2)
3)
4)
5)
21
Joint Venture with Altura Lithium Operations Pty Ltd.
Farm-in and Joint Venture with Independence Group NL earning a 70% interest in the tenements.
Tenements form part of the Farm-in and Joint Venture with Independence Group NL with Prodigy Gold receiving a 30% interest on
completion of Independence Group NL earning a 70% interest in the Lake Mackay Warumpi Project.
Tenement is part of an Earn-in and Joint Venture Agreement between with Castile Resources Pty Ltd, Independence Group NL and Prodigy
Gold.
Tenement is subject to a Joint Venture with Select Resources Pty Ltd. Prodigy Gold holds an 80% beneficial interest with a 60% interest
currently registered on title.
Prodigy Gold Annual Report 2018
DIRECTORS’ REPORT
The Directors of Prodigy Gold NL present their report on the consolidated entity (Group), consisting of Prodigy Gold NL
and the entities it controlled at the end of, and during, the financial year ended 30 June 2018.
Directors
Mr Thomas McKeith
Non-Executive Chairman
Mr Matthew Briggs
Managing Director
Mr Brett Smith
Mr Mark Faul
Non-Executive Director
Non-Executive Director
Directors have been in office since the start of the financial year to the date of this report.
Principal Activities
The principal activities of the Company during the year consisted of exploration and evaluation of mineral resources. There
was no significant change in the nature of the Company’s activities during the year.
Dividends
There were no dividends paid or declared during the year.
Operating Results
The consolidated loss for the Group after providing for income tax amounted to $5,693,350 (2017: loss of $7,012,190).
Financial Position
The net assets of the Group have increased by $556,770 from 30 June 2017 to $16,427,131 in 2018. The increase is
largely due to the equity raising undertaken during the financial year.
Significant Changes in the State of Affairs
Other than as disclosed in this Report, no significant changes in the state of affairs of the Company occurred during the
financial year.
Matters Subsequent to the End of the Financial Year
No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly
affect the operations of the Company, the results of those operations, or the state of affairs of the Company in future
financial periods.
Likely Development
o Continued regional exploration; and
o
Further rationalisation of tenement holdings through divestment or joint venture.
Environmental Regulation
The Group’s operations are subject to standard environmental regulation under the laws of the Commonwealth of
Australia and the Northern Territory. The Group monitors its compliance with environmental regulations on an ongoing
basis. The Directors are not aware of any significant breaches during the period covered by this report.
22
Prodigy Gold Annual Report 2018
DIRECTORS’ REPORT
INFORMATION ON DIRECTORS
Mr Thomas McKeith
BSc Hons (Geol), GDE (Mining), MBA, Fellow AusIMM
Status: Independent
Position: Non-Executive Chairman
Qualifications and Experience:
Mr McKeith is a resource company executive with 28 years’ experience in various exploration, business development,
mine geology and executive leadership roles. He has led exploration teams to several significant discoveries and
concluded several significant business development transactions. Mr McKeith was formerly Executive Vice President:
Growth and International Projects for Gold Fields Ltd, where he was responsible for global exploration and project
development. He has also served as CEO of Troy Resources Ltd and held non-executive director roles at Sino Gold Ltd and
Avoca Resources. He is currently a non-executive director of Evolution Mining Ltd (since February 2014) and principal in
various private resource investment companies.
Mr Matthew Briggs
BSc Hons (Geol), Member AusIMM
Status: Not independent
Position: Executive Director
Qualifications and Experience:
Mr Briggs has 20 years’ experience in Australia and internationally in various aspects of mine geology, exploration, project
management and strategic leadership in the gold industry. Matt graduated as a geologist from the University of
Queensland and worked at a number of mine sites in Western Australia. Since then he has worked internationally on
projects in Africa and headed Group Strategic Planning for Gold Fields Limited. Matt has been directly involved or
managed teams that have discovered several multi-million ounce gold deposits.
Mr Brett Smith
BEng Hons (Chem), MBA, MA
Status: Not independent
Position: Non-Executive Director
Qualifications and Experience:
Mr Smith has participated in the development and delivery of a number of mining and mineral processing projects
including coal, iron ore, base and precious metals. He has also managed engineering and construction companies in
Australia and internationally. Mr Smith has served on boards of both private and public mining and exploration
companies. He is currently Executive Director of Dragon Mining Limited (since February 2014) and Deputy Executive
Chairman of APAC Resources Limited (since May 2016). Overall, Mr Smith has over 30 year’s international experience in
the engineering, project development and organisational change management.
Mr Mark Faul
BE Mining (Hons), MBA, MAppFin, Member AusIMM, Graduate AICD
Status: Not independent
Position: Non-Executive Director
Qualifications and Experience:
Mr Faul has 12 years of mining engineering and mine management experience across a variety of mineral commodities in
both small and large company environments. He has held roles with Mount Isa Mines and WMC Resources, and various
junior exploration and mining companies. His direct resource company experience was followed by 19 years of
international resources corporate advisory and investment banking experience with RMB Resources (wholly owned
by FirstRand in South Africa), principally in providing equity and debt finance for project acquisition, mine development
23
Prodigy Gold Annual Report 2018
DIRECTORS’ REPORT
and general corporate funding. Mark was an Investment Director with resources private equity funds manager Pacific
Road Capital for two years until February 2018. He currently consults to Behre Dolbear Australia, resource companies
and financial institutions on project due diligence, project development and financing strategy, corporate strategy and as
an independent technical expert.
Ms Jutta Zimmermann
Dip AQF, Dip IT, GradDipACG, FGIA, FCIS
Position: Company Secretary
Qualifications and Experience:
Ms Zimmermann is an accountant (Australian AQF diploma level) with over twenty five years of Australian and
international industry experience encompassing accounting, company secretarial, government and community liaison,
business development and corporate administration management. She holds a diploma in information technology
(Australian bachelor degree level) and a graduate diploma in applied corporate governance. Ms Zimmermann holds the
position of Chief Financial Officer and Company Secretary with the Company. She is a fellow of the Governance Institute
of Australia and is a Director of two of Prodigy Gold’s subsidiaries.
Directors’ Meetings
The Company had no Board committees during the financial year. The number of meetings of the Group’s Board of
Directors held during the year ended 30 June 2018, and the number of meetings attended by each Director were:
Directors
Mr T McKeith
Mr M Briggs
Mr B Smith
Mr M Faul
Board Meetings
Eligible to Attend
Attended
8
8
8
8
8
8
8
8
Interests in Shares and Share Rights of the Company
At the date of this report, the interests of the Directors in the shares and share rights of the Group were as follows:
Directors
Mr T McKeith
Mr M Briggs
Mr B Smith
Mr M Faul
Fully Paid Ordinary Shares
1,726,869
-
140,000
-
24
Prodigy Gold Annual Report 2018
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED)
This Remuneration Report outlines the Director’s and the Group’s key management personnel remuneration
arrangements in accordance with the requirements of the Corporations Act 2001 and its Regulations. For the purposes of
this report, key management personnel of the Group are defined as those persons having authority and responsibility for
planning, directing and controlling the major activities of the Company and the Group, directly or indirectly, including any
Director (whether executive or otherwise) of the Group.
Remuneration Principles
Remuneration levels are set with the objective of attracting and retaining appropriately qualified and experienced staff.
Remuneration packages are structured to recognise, encourage and reward improved performance and business growth,
balanced between short-term and long-term goals. Benchmarking is undertaken where considered appropriate to ensure
remuneration packages are competitively positioned in the market.
Remuneration and Nomination Committee
The Company had no Remuneration and Nomination Committee during the financial year. Given the current size and
composition of the Company’s Board, the full Board is responsible for the duties of the Committee as detailed in the
relevant charter.
Non-Executive Director Remuneration
Non-Executive Directors’ fees are set by the Board within the maximum aggregate amount of fees approved by
shareholders at a general meeting. Non-Executive Directors are not entitled to retirement benefits other than statutory
superannuation or other statutory required benefits. The remuneration of Non-Executive Directors is fixed for each
individual Director taking into account market rates for comparable companies for time, commitment, responsibilities
and accountability. Shareholder representative Directors were offered options, which were shareholder approved, in lieu
of cash remuneration.
The available Non-Executive Directors’ fees pool is currently $400,000. As at 30 June 2018 the Company utilised $60,000
(2017: $60,000) of the pool.
Performance evaluations of the Board are usually undertaken annually with a view to comparing the performance of the
Board and Directors against their relevant Charters and their interactions with and performance of management. The
Performance Evaluation Disclosure is available in the Corporate Governance Section of the Company’s website.
Key Management Personnel Remuneration including the Managing Director
The key management personnel remuneration framework has three components and the combination of these comprise
the key management personnel’s total remuneration:
o Base salary and benefits
o
o
Short-term incentives at the Boards discretion
Long-term incentives at the Boards discretion
Base Salary and Benefits
Executive Directors, key management personnel and employees are offered a fixed base salary and benefits. Base salary
and benefits are usually reviewed every year to ensure the employee’s remuneration is competitive with the market.
Employment contracts do not guarantee increases in base salary and benefits. The Executive Directors, key management
personnel and employees receive the superannuation guarantee contribution required by the government, which was
9.5% during the reporting period, and do not receive any other retirement benefits. Other benefits include personal
accident (working directors) insurance and other fringe benefits. No remuneration consultants were engaged.
25
Prodigy Gold Annual Report 2018
DIRECTORS’ REPORT
Short-Term Incentives
The objective of short-term incentives is to align the interests of Executive Directors, key management personnel and
employees with those of the shareholders through the payment of short-term incentives linked to pre-agreed targets. The
targets include, where appropriate meeting budget forecasts, occupational health and safety measures, relationship
management, exploration success, staff retention, compliance and formulating company strategies. Short-term incentives
are designed to incentivise and reward individual contribution to achieving overall performance. No discretionary short-
term incentive cash bonuses have been granted during the year.
Long-Term Incentives
All long-term and equity incentives must be linked to predetermined performance and/or continuity criteria. Long-term
incentives are designed to align Executive Directors, key management personnel and employee’s interest with the
Company’s longer term objectives of growth in market capitalisation, earnings per share, share performance compared to
peer companies, exploration and strategic success. The Board may exercise its discretion in relation to approving
incentives, including equity participation. The policy is designed to attract the highest calibre of key management
personnel and reward them for performance. Key management personnel are also entitled to participate in employee
share or option arrangements. No discretionary long-term incentive cash bonuses have been granted during the year.
Executive management received options during the previous financial year with details provided in Note 14.
Performance Evaluation
There was no performance based remuneration paid during the year but the Company may in future grant, as part of each
Executive Director and key management personnel’s remuneration package, a performance-based component, consisting
of cash bonuses and/or incentives, including equity participation, linked to the achievement of key performance indicators
(KPIs) and taking into account experience, qualifications and length of service.
Company Performance
The following table shows the gross revenue, losses and dividends for the last five years for the listed entity, as well as the
share price at the end of the respective financial years.
Revenue
Net loss
Share price at year-end
Dividend paid
Key Management Personnel
2014
4,948,009
8,138,232
0.300
-
2015
2016
392,368
36,149,624
2017
180,138
2018
141,739
11,202,318
21,616,759
7,012,190
5,693,350
0.250
-
0.065
-
0.095
-
0.087
-
The following persons were key management personnel of the Group during the financial year:
Key Management Person
Position
Commencement of Position
Mr T McKeith
Mr M Briggs
Mr B Smith
Mr M Faul
Non-Executive Chairman
Managing Director
Non-Executive Director
Non-Executive Director
Ms J Zimmermann
CFO / Company Secretary
27 June 2016
3 October 2016
9 May 2016
12 June 2017
1 June 2005
Details of Remuneration
Details of compensation for key management personnel (“KMP”) and Directors of the Group are set out below:
26
Prodigy Gold Annual Report 2018
Proportion
of
Remune-
ration that
is at Risk
Total
$
122,401
475,442
51.0%
24.5%
-
-
-
-
-
597,843
253,745
253,745
851,588
-
-
-
-
-
-
-
-
Propor-
tion of
Remune-
ration that
is at Risk
80.1%
67.2%
100%
-
Total
$
301,629
810,794
113,880
-
113,880
100%
1,340,183
-
-
-
-
-
-
DIRECTORS’ REPORT
2018
Directors
Mr T McKeith 4)
Mr M Briggs 4)
Mr B Smith
Mr M Faul
54,795
317,269
-
-
Total Directors
372,064
Other KMP
J Zimmermann
Total Other
Total
220,000
220,000
592,064
Short-Term Employee Benefits
Cash Salary
and Fees
$
Cash Bonus
$
Annual
Leave 1)
$
Post-
Employ-
ment
Super-
annuation
$
Long-Term
Benefits
Long
Service
Leave 2)
$
Share-
based
Payments
Options 3)
$
Termina-
tion
Benefits
$
-
-
-
-
-
-
-
-
-
5,205
19,173
22,731
-
-
-
-
19,173
27,936
-
-
-
-
-
9,325
9,325
20,900
20,900
28,498
48,836
3,520
3,520
3,520
62,401
116,269
-
-
178,670
-
-
178,670
1)
2)
3)
4)
Annual leave relates to movements in annual leave provisions during the year.
Long service leave relates to movements in long service leave provisions during the year.
These amounts are accounting accruals and have not actually been paid during the year.
Share based payments are options expensed based on the vesting conditions (refer to Note 14 in the consolidated financial statements).
Short-Term Employee Benefits
Cash
Salary and
Fees
$
Cash Bonus
$
Annual
Leave 1)
$
Post-
Employ-
ment
Super-
annuation
$
Long-Term
Benefits
Long
Service
Leave 2)
$
Share-
based
Payments
Options 3)
$
Termina-
tion
Benefits
$
-
5,205
10,748
22,123
-
-
-
-
-
-
10,748
27,328
-
-
-
-
-
-
241,629
545,046
113,880
-
113,880
1,014,435
2017
Directors
Mr T McKeith 4)
Mr M Briggs 4)
Mr B Smith 4)
Mr M Faul
Ms S Corlett 4)
54,795
232,877
-
-
-
Total Directors
287,672
Other KMP
Mr B Lambert
51,844
J Zimmermann 4)
222,500
Total Other
Total
274,344
562,016
-
-
-
-
-
-
-
-
-
-
(1,882)
4,925
-
-
152,308
207,195
0%
(17,119)
21,137
(23,632)
49,677
-
252,563
19.7%
(19,001)
26,062
(23,632)
49,677
152,308
459,758
(8,253)
53,390
(23,632) 1,064,112
152,308
1,799,941
1)
2)
3)
4)
27
Annual leave relates to movements in annual leave provisions during the year.
Long service leave relates to movements in long service leave provisions during the year.
These amounts are accounting accruals and have not actually been paid during the year.
Share based payments are options expensed based on the vesting conditions (refer to Note 14 in the consolidated financial statements).
Prodigy Gold Annual Report 2018
DIRECTORS’ REPORT
Performance Bonuses
No discretionary cash performance bonuses have been granted to executive management for performance to 30 June
2018 as executive management agreed to forgo their entitlement for this financial year in the best interest of the
Company.
Options and Shares Issued as Part of Remuneration
Following shareholder approval, options were issued to Non-Executive Directors or their nominees. For further detail refer
to Note 14.
Employment Contracts of Directors and Other Key Management Personnel
Remuneration and other terms of engagement for Non-Executive Directors are formalised in service agreements. The
agreement summarises the Board policies and terms, including compensation relevant to the office of Director.
The employment contracts of Executive Directors and Other Key Management Personnel stipulate a range of one to four
month resignation notification periods. The Company may terminate an employment contract without cause by providing
a range of one to three-month written notice or making payment in lieu of notice based on the individual’s annual salary
component. In the instance of serious misconduct the Company can terminate employment at any time. Other material
provisions of the agreements relating to remuneration are set out below.
Non-Executive Directors
The base fees for the Non-Executive Chairman is $60,000 per year and the shareholder nominee Directors did not receive
any cash salary.
Mr M Briggs, Managing Director
o Term of agreement – 3 year contract commencing 3 October 2016;
o Base salary, inclusive of superannuation, $340,000 per year;
o Payment of a termination benefit on early termination by the Company, other than for gross misconduct, equals
3 month salary and, in the event of a takeover, equals 9 month salary;
o Notice period varies between no notice if mutually agreed and three month notice by the Company or the
executive without reason.
Ms J Zimmermann, CFO and Company Secretary
o Term of agreement – 2 year contract commencing 1 July 2012, contract extended automatically;
o Base salary, exclusive of superannuation, $220,000 per year;
o Payment of a termination benefit on early termination by the Company, other than for gross misconduct, equals
6 month salary and, in the event of a takeover, equals 9 month salary;
o Notice period varies between no notice if mutually agreed and three month notice by the Company and 4
month notice by the executive without reason.
Additional Disclosure Relating to Key Management Personnel
Shareholding
No shares were issued by the Company during the financial year. Details of shares held directly, indirectly or beneficially
by Directors and key management personnel and their related parties are as follows:
28
Prodigy Gold Annual Report 2018
DIRECTORS’ REPORT
Name
Mr T McKeith
Mr M Briggs
Mr B Smith 1)
Mr M Faul 2)
Ms J Zimmermann
Balance at the
Start of the Year
Received as Part
of Remuneration
Additions
Disposals/Other
Balance at the
End of the Year
1,726,869
-
100,000
-
1,331,996
3,158,865
-
-
-
-
-
-
-
-
40,000
-
-
40,000
-
-
-
-
-
-
1,726,869
-
140,000
-
1,331,996
3,198,865
1)
2)
Mr Smith is a nominee of APAC Resources Limited who are a substantial shareholder of Prodigy Gold.
Mr Faul is a nominee of Pacific Road Capital Management who are a substantial shareholder of Prodigy Gold.
Option Holding
Directors and other key management personnel of the Group, including their personally related parties, hold options over
ordinary shares in the Company.
Balance at the
Start of the Year
Received as Part
of Remuneration
Additions
Disposals/Other
Balance at the
End of the Year
7,000,000
11,000,000
1,500,000
-
1,000,000
20,500,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
7,000,000
11,000,000
1,500,000
-
1,000,000
20,500,000
Name
Mr T McKeith
Mr M Briggs
Mr B Smith
Mr M Faul
Ms J Zimmermann
Share-Based Payments
Fair values at grant date are independently determined using a Black-Scholes option pricing model that takes into
account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected
price volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the
option.
Refer to Note 14 to the financial statements for more information on options provided as part of remuneration to the
Directors.
Loans to Directors and Other Key Management Personnel
No loans to Directors and other key management personnel of the Group were provided in 2018 (2017: NIL).
Other Transactions with Directors and Other Key Management Personnel
The terms and conditions of transactions with Directors, other key management personnel and their related parties and
entities were no more favourable than those available, or which might reasonably be expected to be available, on similar
transactions with non-Director related parties and entities on an arm’s length basis.
This concludes the Remuneration Report, which has been audited.
29
Prodigy Gold Annual Report 2018
DIRECTORS’ REPORT
Insurance of Officers and Indemnities
During the financial year, the Company paid an insurance premium in respect of a contract insuring the Directors and
executive officers of the Company and its related entities against a liability incurred as such a Director or executive officer
to the extent permitted by the Corporations Law. The contract of insurance prohibits disclosure of the nature of the
liability and the amount of the premium.
The Company has not otherwise, during or since the end of the financial year, indemnified or agreed to indemnify an
officer of the Company or any of its related entities against a liability incurred by such an officer.
Proceeding on Behalf of the Company
No person has applied to the Court under Section 237 of the Corporations Act 2001 for leave to bring proceedings on
behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purpose of taking
responsibility on behalf of the Company for all or part of those proceedings.
No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under Section 237
of the Corporations Act 2001.
Non-Audit Services
The Company may decide to employ the auditor on assignments additional to their statutory audit duties where the
auditor's expertise and experience with the Company and/or the Group are important.
The Directors are satisfied that the provision of non-audit services, during the year, by the auditor (or by another person
or firm on behalf of the auditor), is compatible with the general standard of independence for auditors imposed by the
Corporations Act 2001. Payments for non-audit services are detailed in Note 12.
The Directors are satisfied that the provision of non-audit services by the auditor, as set out above, did not compromise
the auditor independence requirements of the Corporations Act 2001 for the following reasons:
o all non-audit services have been reviewed by the Board to ensure they do not impact the impartiality and
objectivity of the auditor; and
o none of the services undermine the general principles relating to auditor independence as set out in APES 110
Code of Ethics for Professional Accountants.
30
Prodigy Gold Annual Report 2018
DIRECTORS’ REPORT
Auditor’s Independence Declaration
A copy of the auditor's independence declaration as required under Section 307C of the Corporations Act 2001 is set out
on page 33.
Auditor
BDO continues in office in accordance with section 327 and the Corporation Act 2001.
This report is made in accordance with a resolution of Directors, pursuant to section 298(2)(a) of the Corporations Act
2001.
On behalf of the Directors
MATTHEW BRIGGS
Managing Director
Dated this 14th day of August 2018
Perth, Western Australia
31
Prodigy Gold Annual Report 2018
CORPORATE GOVERNANCE STATEMENT
In March 2014, the ASX Corporate Governance Council released a third edition of the ASX Corporate Governance
Council’s Principles and Recommendations (ASX Principles).
The Group’s Corporate Governance Statement for the year ended 30 June 2018 (which reports against these ASX
Principles) may be accessed from the Company’s website at www.prodigygold.com.au/about-prodigy-gold/corporate-
governance.
32
Prodigy Gold Annual Report 2018
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
DECLARATION OF INDEPENDENCE BY WAYNE BASFORD TO THE DIRECTORS OF PRODIGY GOLD NL
As lead auditor of Prodigy Gold NL for the year ended 30 June 2018, I declare that, to the best of my
knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Prodigy Gold NL and the entities it controlled during the period.
Wayne Basford
Partner
BDO Audit (WA) Pty Ltd
Perth, 14 August 2018
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275,
an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and
form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation other than for
the acts or omissions of financial services licensees
33
ANNUAL FINANCIAL REPORT
The financial statements of Prodigy Gold NL for the year ended 30 June 2018 were authorised for issue in accordance with
a resolution of the Directors on 14 August 2018 and cover the consolidated entity consisting of Prodigy Gold NL and its
subsidiaries as required by the Corporations Act 2001. Separate financial statements for Prodigy Gold NL as an individual
entity are no longer presented as a consequence of a change to the Corporations Act 2001. However, limited financial
information for Prodigy Gold NL as an individual entity is included in Note 19.
The financial statements are presented in Australian currency.
Prodigy Gold NL is a company limited by shares, incorporated and domiciled in Australia whose shares are publicly traded
on the Australian Securities Exchange.
The address of the registered office and principal place of business is:
Prodigy Gold NL
Level 1, 141 Broadway
NEDLANDS WA 6009
A description of the nature of the Group’s operations and its principal activities is included in the review of operations and
activities on pages 5 to 18 and in the Directors’ Report on pages 22 to 31, both of which are not part of this financial
statement.
Through the use of the internet, we have ensured that our corporate reporting is timely and complete. All press releases,
financial reports and other information are available on our website: www.prodigygold.com.au
34
Prodigy Gold Annual Report 2018
ANNUAL FINANCIAL REPORT
CONTENTS
Financial Report
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report to the Members
Additional Information for Public Listed Companies
34
36
37
38
39
40
57
58
62
35
Prodigy Gold Annual Report 2018
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 30 JUNE 2018
Revenue
Other income
Mining and processing expenses
Administrative expenses
Employee and Directors benefits expenses
Share-based payments
Depreciation expenses
Other expenses
Exploration expenses
Impairment of capitalised exploration and evaluation expenditure
Loss before income tax expense
Income tax expense
Loss for the year
Loss attributable to members of Prodigy Gold NL
Other comprehensive income
Total other comprehensive income for the year
Total comprehensive loss for the year
Total comprehensive loss for the year attributable
to members of Prodigy Gold NL
Consolidated
Notes
2018
$
2017
$
141,739
133,121
180,093
171,538
-
(698,658)
2
2
2
2
6
3(a)
(498,778)
(178,670)
(15,981)
(493,332)
(4,781,449)
-
(5,693,350)
(5,693,350)
(5,693,350)
-
-
(809,763)
(1,064,113)
(28,816)
(606,204)
(4,143,964)
(12,303)
(7,012,190)
(7,012,190)
(7,012,190)
-
-
(5,693,350)
(7,012,190)
(5,693,350)
(7,012,190)
Basic loss per share attributable to the ordinary equity holders of the
Company
Basic loss per share (cents per share)
18
(1.45)
(1.87)
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the
accompanying notes.
36
Prodigy Gold Annual Report 2018
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2018
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Other receivables
Inventories
Other current assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Term deposits
Property, plant and equipment
Exploration and evaluation expenditure
TOTAL NON CURRENT ASSETS
TOTAL ASSETS
LIABILITIES
CURRENT LIABILITIES
Trade and other payables
Employee benefits
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Employee benefits
Provisions
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Reserves
Accumulated losses
TOTAL EQUITY
Consolidated
Notes
2018
$
2017
$
4
5
5
6
7
8
6,136,652
110,995
15,003
125,408
6,388,058
2,431,677
155,176
10,048,751
12,635,604
19,023,662
671,193
178,702
849,895
58,385
1,688,251
1,746,636
2,596,531
5,361,475
23,875
47,919
135,697
5,568,966
2,533,023
251,802
10,048,751
12,833,576
18,402,542
539,698
180,274
719,972
56,737
1,755,472
1,812,209
2,532,181
16,427,131
15,870,361
9
10(a)
172,403,391
3,310,340
166,374,620
3,088,991
(159,286,600)
(153,593,250)
16,427,131
15,870,361
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
37
Prodigy Gold Annual Report 2018
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Other Income
Payments to suppliers and employees (excludes payments for exploration)
Interest received
R&D uplift refund
Payments for exploration
Payments for mining and processing
Net cash (outflow) from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Net cash inflow from investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Employee loan repayments
Proceeds from issue of shares
Placement / Refund of security deposits (cash-back)
Share issue costs
Net cash inflow from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Consolidated
Notes
2018
$
2017
$
3,679
249,348
(921,725)
(1,749,596)
138,105
71,069
175,441
810,212
(4,704,442)
(4,134,779)
-
(1,877,884)
17
(5,413,314)
(6,527,258)
-
58,374
58,374
(2,500)
29,010
26,510
-
148,106
6,044,353
101,346
(15,582)
-
1,617,651
(100)
6,130,117
1,765,657
775,177
(4,735,091)
5,361,475
6,136,652
10,096,566
5,361,475
4
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
38
Prodigy Gold Annual Report 2018
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2018
Contributed
Equity
$
Notes
Share-based
Payment
Reserve
$
Employee
Options
Reserve
$
Accumulated
Losses
$
Total
$
166,259,494
1,937,613
311,382
(146,892,443)
21,616,046
Balance at 1 July 2016
Comprehensive income
for the year
Loss for the year
Other comprehensive income
Total comprehensive loss for the year
Transaction with owners in their
capacity as owners:
Transaction costs
Recognition of treasury shares
Share-based payments
Employee share loan de-recognition
Treasury shares sold
9(a)
9(a)
14
9(a)
9(a)
Transfer of expired option reserve
10(a)
-
-
-
(100)
516,793
-
-
-
-
-
-
1,151,378
(549,673)
148,106
-
-
-
-
-
-
-
-
-
-
-
-
(7,012,190)
(7,012,190)
-
-
(7,012,190)
(7,012,190)
-
-
-
-
-
(100)
516,793
1,151,378
(549,673)
148,106
-
1,266,505
(311,382)
(311,382)
311,382
311,382
Total transactions with owners
115,126
1,151,378
Balance at 30 June 2017
Comprehensive income
for the year
Loss for the year
Other comprehensive income
Total comprehensive loss for the year
Transaction with owners in their
capacity as owners:
Shares issued
Transaction cost
Share-based payments
Total transactions with owners
Balance at 30 June 2018
166,374,620
3,088,991
-
(153,593,250)
15,870,361
-
-
-
9(a)
9(a)
14
6,044,353
(15,582)
-
6,028,771
-
-
-
-
-
221,349
221,349
172,403,391
3,310,340
-
-
-
-
-
-
-
-
(5,693,350)
(5,693,350)
-
-
(5,693,350)
(5,693,350)
-
-
-
-
6,044,353
(15,582)
221,349
6,250,120
(159,286,600)
16,427,131
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
39
Prodigy Gold Annual Report 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018
CONTENTS OF THE NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1.
2.
3.
4.
5.
6.
7.
8.
9.
Segment Information
Expenses
Income Tax Expense
Cash and Cash Equivalents
Term Deposits and Other Receivables
Exploration, Evaluation and Development Expenditure
Trade and Other Payables
Provisions
Contributed Equity
10. Reserves
11. Financial Risk Management
12. Auditor’s Remuneration
13. Contingencies
14. Share-Based Payments
15. Related Party Transactions
16. Subsequent Events
17. Cash Flow Information
18. Loss per Share
19. Parent Entity Information
20. Subsidiaries
21. Company Details
22. Summary of Significant Accounting Policies
Page
41
41
42
43
44
44
45
45
46
47
47
50
50
50
52
52
52
52
53
54
54
54
40
Prodigy Gold Annual Report 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018
NOTE 1:
SEGMENT INFORMATION
Commencing 1 July 2017 the full Board of Directors, who are the chief operating decision makers, identified one operating segment
reportable as exploration for the Group. Prior to 1 July 2017 the Company additionally reported on the Mining and Processing segment.
NOTE 2:
EXPENSES
Employee and Directors’ benefits expense
1,629,665
1,906,918
Consolidated
2018
$
2017
$
Less: Amounts included in mining and processing expenses
Amounts included in exploration expenses
Share-based payment expense
Less: Amounts included in exploration expenses
Depreciation expense
Less: Amounts included in mining and processing expenses
Amounts included in exploration expenses
Exploration expenses:
Employee benefit expense
Share-based payment expense
Depreciation expense
Other exploration expenses
-
(1,130,887)
498,778
221,349
(42,679)
178,670
96,626
-
(80,645)
15,981
1,130,887
42,679
80,645
3,527,238
4,781,449
(113,946)
(983,209)
809,763
1,151,378
(87,265)
1,064,113
279,995
(34,807)
(216,372)
28,816
983,209
87,265
216,372
2,857,118
4,143,964
41
Prodigy Gold Annual Report 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018
NOTE 3:
INCOME TAX EXPENSE
a)
Income tax expense
Current tax
Deferred tax
b)
Reconciliation of income tax expense to prima facie tax payable
Loss from continuing operations before income tax expense
Tax at the Australian tax rate of 27.5% (2017: 27.5%)
Tax effect of amounts which are not deductible (taxable) in calculating
taxable income:
Non-assessable income
Share-based payments
Other permanent differences
Deferred tax assets not brought to account
Income tax expense
The applicable weighted average effective tax rates
Consolidated
2018
$
2017
$
-
-
-
-
-
-
(5,693,350)
(7,012,190)
(1,565,671)
(1,928,352)
(19,544)
60,871
633
-
316,629
652
(1,523,711)
(1,611,071)
1,523,711
1,611,071
-
0%
-
0%
The Group made an election to form a tax-consolidated group from 1 July 2003. As a consequence, the transactions between the
member entities will be ignored.
c)
Deferred tax liability
Exploration and evaluation expenditure
Temporary difference
Off-set of deferred tax assets
Net deferred tax liability recognised
d)
Unrecognised deferred tax assets arising on timing
Tax losses
Temporary differences
Expenses taken into equity
Off-set of deferred tax liabilities
Net deferred tax assets not brought to account
2,707,538
2,702,680
42,886
53,768
2,750,424
2,756,448
(2,750,424)
(2,756,448)
-
-
39,020,923
37,375,508
2,090,875
76,017
2,164,977
172,106
41,187,815
39,712,591
(2,750,424)
(2,756,448)
38,437,391
36,956,143
No deferred tax assets have been recognised as it is not probable that future tax profits will be available to offset these balances.
42
Prodigy Gold Annual Report 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018
NOTE 3:
INCOME TAX EXPENSE cont’d
Accounting Policy
Income taxes
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the consolidated financial statements.
Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the reporting date and
are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred tax assets are not brought to account unless realisation of the asset is probable. Deferred tax assets in relation to tax losses are
not brought to account unless it is probable that the benefit will be utilised.
Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a
net basis, or to realise the asset and settle the liability simultaneously.
Current and deferred tax is recognised in profit and loss, except to the extent that it relates to items recognised in other comprehensive
income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.
Tax consolidation legislation
Prodigy Gold NL and its wholly-owned Australian controlled entities have implemented the tax consolidation legislation. The Parent
Entity, Prodigy Gold NL, and the controlled entities in the tax consolidated group account for their own current and deferred tax
amounts. These tax amounts are measured as if each entity in the tax consolidated group continues to be a stand-alone taxpayer in its
own right.
Accounting estimates and judgements
Income taxes
The Group is subject to income taxes in Australia. There are many transactions and calculations undertaken during the ordinary course
of business for which the ultimate tax determination is uncertain. The Group estimates its tax liabilities based on the Group’s
understanding of the tax law. Where the final tax outcome of these matters is different from the amounts that were initially recorded,
such differences will impact the current and deferred tax provisions in the period in which such determination is made.
NOTE 4:
CASH AND CASH EQUIVALENTS
Cash at bank and in hand
Short-term bank deposits
Consolidated
2018
$
2017
$
1,146,652
4,990,000
6,136,652
1,332,185
4,029,290
5,361,475
For cash flow statement presentation purposes, cash and cash equivalents includes cash on hand, deposits held at call with financial
institutions, other short-term, highly liquid investments with original maturities of six months or less that are readily convertible to
known amounts of cash and which are subject to an insignificant risk of changes in value.
43
Prodigy Gold Annual Report 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018
NOTE 5:
TERM DEPOSITS AND OTHER RECEIVABLES
CURRENT
Trade receivables
Other receivables (Note 5(a))
NON-CURRENT
Bond term deposit
(a)
Other receivables
Consolidated
2018
$
2017
$
85,457
25,538
110,995
-
23,875
23,875
2,431,677
2,431,677
2,533,023
2,533,023
These amounts generally arise from transactions outside the usual operating activities of the Group, and do not contain any past due
assets that are not impaired.
NOTE 6:
EXPLORATION, EVALUATION AND DEVELOPMENT EXPENDITURE
Carrying amount at the beginning of reporting period
Less: Impairment expense
Carrying amount at the end of reporting period
Accounting Policy
Consolidated
2018
$
2017
$
10,048,751
10,061,054
-
(12,303)
10,048,751
10,048,751
Acquired exploration and evaluation assets are carried at acquisition value less any subsequent impairment.
All exploration and evaluation expenditure, subsequent to initial acquisition, is expensed until the Directors conclude that the technical
feasibility and commercial viability of extracting a Mineral Resource are demonstrable and that future economic benefits are probable.
In making this determination, the Directors consider the extent of exploration, the proximity to existing mine or development properties
as well as the degree of confidence in the mineral resource.
No amortisation is charged during the exploration and evaluation phase. Amortisation is charged upon commencement of commercial
production. Exploration and evaluation assets are tested for impairment triggers annually and if there is an indicator of impairment
under AASB 6, the area of interest is tested for impairment under AASB 136. Upon establishment of commercially viable mineral
resources, exploration and evaluation assets are tested for impairment.
Accounting estimates and judgements
The Company undertook an assessment for impairment triggers of its exploration assets. No changes occurred and no impairment was
recognised (2017: $12,303).
44
Prodigy Gold Annual Report 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018
NOTE 7:
TRADE AND OTHER PAYABLES
CURRENT LIABILITIES (Unsecured)
Trade payables
Sundry payables and accrued expenses
Consolidated
2018
$
2017
$
172,237
498,956
671,193
376,793
162,905
539,698
Information about the Group’s exposure to liquidity risk is provided in Note 11.
Accounting Policy
These amounts represent liabilities for goods and services provided to the Group prior to the end of financial year which are unpaid. Trade
and other payables are recognised initially at fair value and subsequently at amortised cost.
NOTE 8:
PROVISIONS
NON-CURRENT
Exploration and mine restoration
Movement in provisions
Consolidated
2018
$
2017
$
1,688,251
1,688,251
1,755,472
1,755,472
Movement in provisions during the current financial year, other than employee benefits, are set out below:
Opening balance
Additional provisions
Amounts reversed
Closing balance
Accounting Policy
Consolidated
2018
$
2017
$
1,755,472
1,972,192
164,403
(231,624)
8,113
(224,833)
1,688,251
1,755,472
Long-term environmental obligations are based on the Group's environmental management plans, in compliance with current
environmental and regulatory requirements. Full provision is made based on the value of the estimated cost of restoring the
environmental disturbance that has occurred up to the reporting date. The restoration provision relates to exploration, evaluation and
development expenditure and rehabilitation relating to the mining lease.
The estimated costs of rehabilitation are reviewed annually and adjusted as appropriate for changes in legislation, technology or other
circumstances. Cost estimates are not reduced by the potential proceeds from the sale of assets.
45
Prodigy Gold Annual Report 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018
NOTE 8:
PROVISIONS cont’d
Accounting estimates and judgements
Rehabilitation obligation
The Group estimates the future rehabilitation costs of the site and exploration locations taking into consideration facts and circumstances
available at statement of financial position date. A provision has been recognised for the cost to be incurred for the restoration of mine
and exploration sites based on the estimated cost. The estimated cost is determined to be the equivalent to the bonds provided to the
relevant government departments, reduced by restoration work completed and then increased by a correction factor. The bonds provided
are calculated by the government by allocating rehabilitation cost to activities proposed in a mine management plan submitted to the
department. Restoration work is completed on an ongoing basis.
NOTE 9:
CONTRIBUTED EQUITY
(a)
Ordinary Shares
Details
Opening balance
Employee share loan de-recognition 1)
Treasury shares sold 1)
Recognition of treasury shares 1)
Transaction costs relating to share issues
Date
Number of Shares
Issue Price
$
Value
$
1 July 2016
6 June 2017
6 June 2017
6 June 2017
375,157,803
166,259,494
(549,673)
148,106
516,793
(100)
Closing balance
30 June 2017
375,157,803
166,374,620
Share placement
15 March 2018
60,443,531
0.10
6,044,353
Transaction costs relating to share issues
Closing balance
30 June 2018
435,601,334
(15,582)
172,403,391
1)
The treasury shares relating to Director and employee non-recourse share loans have been derecognised to take into account the expiry
of the outstanding share loans during the year. The total number of treasury shares as at 30 June 2018 was nil (2017: nil). An amount of
nil (2017: $148,106) in relation to the Directors and employees share loans has been received following a sale of the shares on behalf of
the employees in satisfaction of their share loans. The remainder of the non-recourse loans was derecognised in 2017. There are no
balances remaining.
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the Company in proportion to the
number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the Company does not have a
limited amount of authorised capital.
(b)
Options
The number of unlisted options of the Company as at 30 June 2018 is 24 Million (2017: 24 Million). For further details refer to Note 14.
Accounting Policy
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity
as a deduction, net of tax, from the proceeds. Incremental costs directly attributable to the issue of new shares or options for the
acquisition of a business are not included in the cost of the acquisition as part of the purchase consideration.
46
Prodigy Gold Annual Report 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018
NOTE 9:
CONTRIBUTED EQUITY cont’d
If the entity reacquires its own equity instruments, for example as the result of a share buy-back, those instruments are deducted from
equity and the associated shares are cancelled. No gain or loss is recognised in the profit or loss and the consideration paid including
any directly attributable incremental costs (net of income taxes) is recognised directly in equity.
NOTE 10:
RESERVES
(a)
Reserves
Share-based payment reserve
Movements in reserves
Balance at 1 July 2016
Share-based payments expense
Transfer of reserve to retained earnings
Balance at 30 June 2017
Share-based payments expense
Balance at 30 June 2018
Consolidated
2018
$
2017
$
3,310,340
3,310,340
3,088,991
3,088,991
Share-based
payment
$
Employee
options
$
1,937,613
1,151,378
311,382
-
-
(311,382)
3,088,991
221,349
3,310,340
-
-
-
(b)
Nature and purpose of Share-based payment reserve
The share-based payment reserve is used to recognise the fair value of options issued as consideration for services provided.
NOTE 11:
FINANCIAL RISK MANAGEMENT
The Group’s activities expose it to a variety of financial risks: market risk (including interest rate risk), credit risk and liquidity risk. The
Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse
effects on the financial performance of the Group.
The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework. Risk
management is addressed within an evaluative process at Board meetings.
Accounting estimates
Market Risk - Interest rate risk
Interest rate risk for the Group is considered to be minimal. The Group had no interest attracting debts at 30 June 2018 and assets are
managed with a mixture of short term and at call investments. All other receivables are non-interest bearing.
47
Prodigy Gold Annual Report 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018
NOTE 11:
FINANCIAL RISK MANAGEMENT cont’d
The Group’s exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a result of changes in
market interest rates and the effective weighted average interest rates on classes of financial assets and financial liabilities, is as follows:
Weighted
Average
Effective
Interest
Rate %
Floating
Interest Rate
$
Fixed Interest Rate Maturing
< 1 year
$
1 - 5 year
$
> 5 years
$
Non-Interest
Bearing
$
Total
$
30 June 2018
Financial Assets:
Cash and bonds
Receivables
1.92%
1,146,652
4,990,000
-
-
Total financial assets
1,146,652
4,990,000
Financial Liabilities:
Payables
Total financial liabilities
30 June 2017
Financial Assets:
Cash and bonds
Receivables
-
-
-
-
1.88%
1,332,185
4,029,290
-
-
Total financial assets
1,332,185
4,029,290
Financial Liabilities:
Payables
Total financial liabilities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6,136,652
110,995
110,995
110,995
6,247,647
671,193
671,193
671,193
671,193
-
5,361,475
23,875
23,875
23,875
5,385,350
539,698
539,698
539,698
539,698
The Group’s exposure to interest rate risk relates primarily to the Group’s cash and cash equivalents as detailed in the above table. A
sensitivity analysis has been determined based on the exposure to interest rates at reporting date with the stipulated change taking
place at the beginning of the financial year and held constant throughout the reporting period. A 100 basis point increase or decrease is
used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the
possible change in interest rates.
Based on the financial instruments held at 30 June 2018, should the interest rate weaken/strengthen by 100 basis points against the
effective interest rate with all other variables held constant, post-tax loss for the year would have been $61,367 higher/$61,367 lower
(2017: $53,615 higher/$53,615 lower).
Credit Risk
Credit risk is managed on a Group basis. Credit risk is a risk of financial loss if the Group’s counterparties are failing to discharge their
obligation in respect to the Group’s financial instruments held in those counterparties. Credit risk mainly arises from cash, cash
equivalents, deposits with banks and receivables. The Group deposits its fund only with prudent banks with the minimum rating of “A”,
and the management believes they are fully recoverable from the banks when due. There are no receivables past due but not impaired.
Credit risk further arises in relation to financial guarantees given to certain parties (see Note 13 for details). The maximum exposure to
credit risk at the reporting date is the carrying amount of the financial assets as summarised in the table below.
48
Prodigy Gold Annual Report 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018
NOTE 11:
FINANCIAL RISK MANAGEMENT cont’d
Cash at bank
Bonds term deposit
Receivables
Bank guarantees
Liquidity Risk
Consolidated
2018
$
2017
$
6,136,652
2,431,667
110,995
2,431,667
5,361,475
2,533,023
23,875
2,533,023
The Group has prudent liquidity risk management which includes maintaining sufficient funds to meet operational and exploration
expenditure when they are due for payment, and the availability of funding through an adequate amount of a committed fund sources.
The Group and Parent Entity manage liquidity risk by continuously monitoring forecasts and actual cash flows.
The Directors of the Group place high importance on capital raising strategies and investor relations. Strategies pursued include road
shows, company presentation to fund managers and sophisticated investors and consideration of strategic partnerships.
Maturities of financial liabilities
The tables below analyse the Group’s and the Parent Entity’s financial liabilities into relevant maturity periods based on the remaining
period at balance date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash
flows.
< 6 months
$
6 - 12
months
$
1 - 2 years
$
2 - 5 years
$
> 5 years
$
Total
Contractual
Cash Flows
$
Carrying
Amount
$
30 June 2018
Non-derivatives
Non-interest bearing
671,193
Interest bearing
-
Total non-
derivatives
30 June 2017
Non-derivatives
671,193
Non-interest bearing
539,698
Interest bearing
-
Total non-
derivatives
539,698
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
671,193
671,193
-
-
671,193
671,193
539,698
539,698
-
-
539,698
539,698
49
Prodigy Gold Annual Report 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018
NOTE 12:
AUDITOR’S REMUNERATION
a)
Audit services
BDO
Total remuneration of audit services
b)
Non-audit services
BDO – Tax compliance services
Total remuneration of non-audit services
NOTE 13:
CONTINGENCIES
Environmental
Consolidated
2018
$
2017
$
30,574
30,574
26,832
26,832
36,719
36,719
27,781
27,781
The Group provides for all known environmental liabilities. While the Directors believe that, based upon current information, its current
provisions for the environmental rehabilitation are adequate, there can be no assurance that material new provisions will not be
required as a result of new information or regulatory requirements with respect to known sites or identification of new remedial
obligations at other sites.
Bank guarantees totaling $2,326,588 (2017: $2,427,937) have been provided. Term deposits of $2,326,588 (2017: $2,427,937) secure
these guarantees. Per Note 8 a restoration provision of $1,688,251 (2017: $1,755,472) has been recognised for all known required
restoration costs.
NOTE 14:
SHARE-BASED PAYMENTS
During the financial year ended 30 June 2016, the Group granted 7 Million options as an equity incentive to Mr T McKeith (Non-
Executive Chairman), which were approved by shareholders at the Company’s Annual General Meeting in November 2016 and issued on
3 November 2016. The term of the options is 4 years from 27 June 2016, with an exercise price of $0.095 calculated at a premium of
45% to the 5 day VWAP of Prodigy Gold’s share price on the day immediately prior to the date of signing the letter of appointment.
Tommy McKeith
Number of options granted
Number of options vested
Fair value at grant date
Exercise price
Price at agreement date
Grant date
Exercise period
Tranche 1
Tranche 2
Tranche 3
3,000,000
3,000,000
$0.066
$0.095
$0.066
2,000,000
2,000,000
$0.066
$0.095
$0.066
2,000,000
2,000,000
$0.066
$0.095
$0.066
3 November 2016
3 November 2016
3 November 2016
Vesting date (subject to option issue)
3 November 2016
Expected price volatility of options
Risk free interest rate
110%
1.64%
48 months
48 months
27 June 2017
110%
1.64%
48 months
27 June 2018
110%
1.64%
During the financial-year ended 30 June 2017, the Group granted 11 Million options as an equity incentive to Mr M Briggs (Managing
Director), which were shareholder approved at the Company’s Annual General Meeting in November 2016 and issued on 3 November
2016. The term of the options is 4 years from 23 August 2016 with an exercise price to be calculated at a premium of 45% to the 5 day
VWAP of Prodigy Gold’s share price on:
•
•
the day immediately prior to the date of signing the letter of appointment for Tranche 1 and
the day immediately prior to the date the options vest for Tranche 2 and Tranche 3.
50
Prodigy Gold Annual Report 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018
NOTE 14:
SHARE-BASED PAYMENTS cont’d
Matthew Briggs
Number of options granted
Number of options vested
Fair value at grant date
Exercise price
Price at agreement date
Grant date
Exercise period
Tranche 1
Tranche 2
Tranche 3
5,000,000
5,000,000
$0.063
$0.090
$0.062
3,000,000
3,000,000
$0.060
$0.189
$0.062
3,000,000
Nil
$0.060
$0.112
$0.062
3 November 2016
3 November 2016
3 November 2016
48 months
48 months
48 months
Vesting date (subject to option issue)
3 November 2016
23 August 2017
23 August 2018
Expected price volatility of options
Risk free interest rate
110%
1.69%
110%
1.69%
110%
1.69%
The vesting of the above Tranche 3 options remain subject to continuing service conditions.
During the financial-year ended 30 June 2017, the Group granted 2 Million options as an equity incentive to Mr N Jones (Exploration
Manager). The term of the options is 4 years from 20 March 2017, with an exercise price to be calculated at a premium of 45% to the 5
day VWAP of Prodigy Gold’s share price on:
•
•
the date of commencement of employment for Tranche 1 and
the day immediately prior to the date the options vest for Tranche 2 and Tranche 3.
Neil Jones
Number of options granted
Number of options vested
Fair value at grant date
Exercise price
Price at agreement date
Grant date
Exercise period
Tranche 1
Tranche 2
Tranche 3
1,000,000
1,000,000
$0.073
$0.153
$0.106
500,000
500,000
$0.071
$0.157
$0.106
500,000
Nil
$0.069
$0.193
$0.106
20 March 2017
20 March 2017
20 March 2017
48 months
48 months
48 months
Vesting date (subject to option issue)
20 March 2017
20 March 2018
20 March 2019
Expected price volatility of options
Risk free interest rate
110%
1.69%
110%
1.69%
110%
1.69%
The vesting of the above Tranche 3 options is subject to continuing service conditions. The options were issued on 20 March 2017.
Share-based payments expense reconciliation
Share-based payments expense:
Options
Consolidated
2018
$
2017
$
221,349
221,349
1,151,378
1,151,378
51
Prodigy Gold Annual Report 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018
NOTE 15:
RELATED PARTY TRANSACTIONS
Transactions between related parties occur on normal commercial terms and conditions and are no more favourable than those
available to other parties unless otherwise stated. The details of transactions with related parties of key management personnel are set
out in page 29 of the Remuneration Report (Other transactions with Directors and other key management personnel).
During the year transactions occurred by the Parent Entity for exploration expenditure of its wholly owned subsidiaries. Any expenditure
incurred by the Parent Entity on behalf of its wholly owned subsidiaries is written off and eliminated on consolidation.
NOTE 16:
SUBSEQUENT EVENTS
No matters or circumstances have arisen since the end of the financial year which significantly affected or may 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 17:
CASH FLOW INFORMATION
Reconciliation of Cash Flow from Operations with Loss after Income Tax
Loss after income tax
Non cash investing and financing activities
Depreciation
Gain/(loss) on disposal of property, plant and equipment (net)
Impairment of capitalised exploration expenditures
Share-based payments
Changes in assets and liabilities
(Increase)/decrease in term deposits and other receivables
(increase)/decrease in inventories
(increase)/decrease in other assets
(Decrease)/increase in trade and other payables and accruals
(Decrease)/increase in employee entitlements
(Decrease)/increase in provisions
Cash flow/(outflow) from operations
NOTE 18:
LOSS PER SHARE
Consolidated
2018
$
2017
$
(5,693,350)
(7,012,190)
96,626
(58,374)
-
279,995
(24,387)
12,303
221,349
1,151,378
(87,120)
1,134,176
32,916
10,289
313,180
41,301
131,495
(1,944,513)
76
(67,221)
(261,781)
(216,720)
(5,413,314)
(6,527,258)
Consolidated
2018
$
2017
$
a)
Basic loss per share
Basic loss per share attributable to the ordinary equity holders of the Company
(1.45)
(1.87)
b)
Reconciliation of loss used in calculated loss per share
Loss attributable to owners of Prodigy Gold NL used to calculate basic loss
per share – Loss from continuing operations
(5,693,350)
(7,012,190)
(5,693,350)
(7,012,190)
52
Prodigy Gold Annual Report 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018
NOTE 18:
LOSS PER SHARE cont’d
Consolidated
2018
$
2017
$
c)
Weighted average number of shares used as denominator
Weighted average number of ordinary shares used as the denominator in
calculating basic earnings per share
392,876,866
375,157,803
The Group made a loss, therefore the diluted EPS is not shown as it is not dilutive.
Accounting Policy
Basic earnings/(loss) per share is calculated by dividing the profit attributable to equity holders of the Company, excluding any costs of
servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year,
adjusted for bonus elements in ordinary shares issued during the year.
NOTE 19:
PARENT ENTITY INFORMATION
The following information relates to the Parent Entity Prodigy Gold NL. The information presented has been prepared using accounting
policies that are consistent with those presented in Note 22.
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Contributed equity
Reserves
Accumulated losses
Total equity
Profit/(loss) for the year
Other comprehensive income/(loss) for the year
Total comprehensive (loss)
Consolidated
2018
$
6,388,057
12,635,605
19,023,662
849,895
1,746,636
2,596,531
2017
$
5,568,965
12,833,577
18,402,542
719,972
1,812,209
2,532,181
16,427,131
15,870,361
172,403,391
166,226,514
3,310,340
3,088,991
(159,286,600)
(153,445,144)
16,427,131
15,870,361
(5,693,350)
(7,012,190)
-
-
(5,693,350)
(7,012,190)
53
Prodigy Gold Annual Report 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018
NOTE 20:
SUBSIDIARIES
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with
Prodigy Gold’s accounting policies:
Equity Holding
2018
2017
%
Australia
Ordinary
-
%
-
Australia
Ordinary
100
100
100
100
Investment
2018
$
2017
$
-
-
-
-
-
-
-
-
Parent Entity
Prodigy Gold NL
Controlled entities
Rare Resources NL
Australian Tenement Holdings Pty Ltd
Australia
Ordinary
NOTE 21:
COMPANY DETAILS
The registered office of the Group and principal place of business is:
Prodigy Gold NL
Level 1, 141 Broadway
NEDLANDS WA 6009
NOTE 22:
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - not reported elsewhere
(a)
Basis of Preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards, other
authoritative pronouncements of the Australian Accounting Standards Board, Australian Accounting Interpretations and the
Corporations Act 2001. Prodigy Gold NL is a for-profit entity domiciled in Australia for the purpose of preparing the financial statements.
The principal accounting policies not reported elsewhere and adopted in the preparation of these consolidated financial statements are
set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Compliance with IFRS
The financial statement of Prodigy Gold NL also complies with International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board (IASB).
Historical cost convention
These financial statements have been prepared under the historical cost convention.
Critical accounting estimates
The preparation of financial statements in conformity with International Financial Reporting Standards as adopted in Australia requires
the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the
economic entity’s accounting policies. Refer to Note 3 (Income Tax Expense), Note 6 (Exploration, Evaluation and Development
Expenditure) and Note 8 (Provisions).
54
Prodigy Gold Annual Report 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018
NOTE 22:
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES cont’d
Financial statement presentation
In accordance to the Corporations Act 2001, there are no separate financial statements for Prodigy Gold NL as an individual entity
presented. However, limited financial information for Prodigy Gold NL as an individual entity’s is included in Note 19.
Going concern
The financial statements have been prepared on the going concern basis of accounting which assumes that the Group will be able to
meet its commitments, complete rehabilitation, realise its assets and discharge its liabilities in the ordinary course of business.
The Group has approved a budget that contemplates an equity raising during the next financial year to fund an extensive exploration
program in excess of its current cash reserves. However, the Group has the ability to defer exploration expenditure or divest assets in
the event that the terms of an equity raising are not considered suitable to the Group.
(b)
Principles of Consolidation
Subsidiaries
The consolidated financial statements incorporate the assets and liabilities of all controlled entities of Prodigy Gold NL as at 30 June
2018 and the results of all controlled entities for the year then ended.
Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the
Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns
through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred
to the Group. They are deconsolidated from the date that control ceases. The acquisition method of accounting is used to account for
the acquisition of subsidiaries by the Group.
Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses
are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of
subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.
(c)
New Accounting Standards for Application in Future Periods
Accounting Standards issued by the AASB that are not yet mandatorily applicable to the Group, together with an assessment of the
potential impact of such pronouncements on the Group when adopted in future periods, are discussed below:
Reference
Title
Nature of Change
AASB 9
Financial
Instruments
and associated
Amending
Standards
The Standard will be applicable
retrospectively (subject to the
provisions on hedge accounting
outlined below) and includes revised
requirements for the classification and
measurement of financial instruments,
revised recognition and de-recognition
requirements for financial instruments
and simplified requirements for hedge
accounting.
Application
Date for the
Group
1 July 2018
Application
Date of
Standard
Annual
reporting
periods
beginning on
or after 1
January 2018
Impact on the Group
Financial Statements
Adoption of AASB 9 is
only mandatory for the
year ending 30 June
2019. The Directors
anticipate that the
adoption of AASB 9
may only have a
minimal impact on the
Group’s financial
instruments, in
particular as the Group
does not undertake
any hedging activity.
55
Prodigy Gold Annual Report 2018
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018
NOTE 22:
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES cont’d
Reference
Title
Nature of Change
AASB 15
Revenue from
Contracts with
Customers
AASB 16
Leases
When effective, this Standard will
replace the current accounting
requirements applicable to revenue
with a single, principles-based model.
Apart from a limited number of
exceptions, including leases, the new
revenue model in AASB 15 will apply to
all contracts with customers as well as
non-monetary exchanges between
entities in the same line of business to
facilitate sales to customers and
potential customers.
When effective, this Standard will
replace the current accounting
requirements applicable to leases in
AASB 117: Leases and related
Interpretations. AASB 16 introduces a
single lessee accounting model that
eliminates the requirement for leases
to be classified as operating or finance
leases.
Application
Date for the
Group
1 July 2018
1 July 2019
Application
Date of
Standard
Annual
reporting
periods
beginning on
or after 1
January 2018
Annual
reporting
periods
beginning on
or after 1
January 2019
Impact on the Group
Financial Statements
The Directors don’t
anticipate that the
adoption of AASB 15
will have an impact, or
only a minimal impact,
on the Group's
financial statements as
the Group does not
derive revenue from
Contracts with
Customers.
Although the Directors
anticipate that the
adoption of AASB 16
will impact the Group's
financial statements, it
is anticipated that the
impact will not be
material as the Group
does not have material
leases. Leases that may
be affected by the new
standard are the lease
of the premises in
Nedlands, a copier
lease and the lease of
fuel tanks on ML29822.
The full impact is yet to
be determined.
56
Prodigy Gold Annual Report 2018
DIRECTORS’ DECLARATION
The Directors of the Group declare that:
1.
the consolidated financial statements, comprising the Consolidated Statement of Profit or Loss and Other Comprehensive
Income, Consolidated Statement of Financial Position, Consolidated Statement of Cash Flows, Consolidated Statement of
Changes in Equity, and accompanying notes, as set out on pages 34 to 56 are in accordance with the Corporations Act 2001,
and:
(a)
(b)
comply with Accounting Standards and the Corporations Regulations 2001; and
give a true and fair view of the financial position as at 30 June 2018 and of the performance for the year ended on that
date of the Group;
2.
the Managing Director and the Chief Financial Officer of the Group have each declared as required by Section 295A that:
(a)
(b)
(c)
the financial records of the Group 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.
3.
4.
in the Directors’ opinion there are reasonable grounds to believe that the Group will be able to pay its debts as and when they
become due and payable.
The Group has included in the notes to the financial statements an explicit and unreserved statement of compliance with
International Financial Reporting Standards.
This declaration is made in accordance with a resolution of the Board of Directors.
Dated this 14th day of August 2018
MATTHEW BRIGGS
Managing Director
57
Prodigy Gold Annual Report 2018
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
INDEPENDENT AUDITOR'S REPORT
To the members of Prodigy Gold NL
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Prodigy Gold NL (the Company) and its subsidiaries (the
Group), which comprises the consolidated statement of financial position as at 30 June 2018, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
to the financial report, including a summary of significant accounting policies and the directors’
declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2018 and of its
financial 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 are independent of the Group in accordance with the Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance
with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275,
an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and
form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation other than for
the acts or omissions of financial services licensees
58
Recoverability of exploration and evaluation expenditure
Key audit matter
How the matter was addressed in our audit
As disclosed in Note 6 of the financial report,
the carrying value of capitalised exploration
and evaluation expenditure represents a
significant asset of the group.
Refer to Note 6 of the financial report for a
description of the accounting policy and
significant judgements applied to capitalised
exploration and evaluation expenditure.
In accordance with AASB 6 Exploration for and
Evaluation of Mineral Resources (“AASB 6”),
the recoverability of exploration and
evaluation expenditure requires significant
judgment by management in determining
whether there are any facts or circumstances
that exist to suggest that the carrying amount
of this asset may exceed its recoverable
amount. As a result, this is considered a key
audit matter.
Our procedures included, but were not limited to:
(cid:190) Confirming whether the rights to tenure of
the areas of interest remained current at
balance date;
(cid:190) Assessing the ability to finance any planned
future exploration and evaluation activity;
(cid:190) Making enquiries of management with
respect to the status of ongoing exploration
programs in the respective areas of interest
and assessing the Group's cashflow budget
for the level of budgeted spend on
exploration projects;
(cid:190) Considering whether any areas of interest
had reached a stage where a reasonable
assessment of economically recoverable
reserves existed;
(cid:190) Considering whether there are any other
facts or circumstances that existed to
indicate impairment testing was required;
and
(cid:190) Assessing the adequacy of the related
disclosures in Note 6 of the financial report.
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2018, but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
59
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the group 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 Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at:
http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 25 to 29 of the directors’ report for the
year ended 30 June 2018.
In our opinion, the Remuneration Report of Prodigy Gold NL, for the year ended 30 June 2018, complies
with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001.
60
Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted
in accordance with Australian Auditing Standards.
BDO Audit (WA) Pty Ltd
Wayne Basford
Partner
Perth, 14 August 2018
61
ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES
Additional information required by the Australian Securities Exchange Limited and not shown elsewhere in this report is set out below.
The information was prepared based on share registry information processed up to 10 August 2018.
1.
Shareholdings
(a)
Distribution of shareholders
Size of holding category (number of shares held)
Number of Holders
Ordinary Shares
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
690
1,117
563
1,050
321
3,741
(b)
The number of shareholders holding less than a marketable parcel
The number of shareholders holding less than a marketable parcel is nil.
(c)
The names of the substantial shareholders
The name of the substantial shareholders listed in the holding Company’s register are:
Shareholders
Number of Ordinary
Shares
% Held of Issued
Ordinary Capital
Pacific Road Capital Management Pty Ltd
68,080,809
15.63
APAC Resources Limited & Allied Properties Investments (1) Company
Limited
St Barbara Limited
Independence Group NL
Craton Capital Precious Metal Fund
(d)
Voting rights
The voting rights attached to each class of equity security are as follows:
(e)
Ordinary shares
59,067,914
43,560,000
39,403,428
26,000,000
13.56
10.00
9.05
5.97
Each ordinary share is entitled to one vote when a poll is called, otherwise each member present at a meeting or by proxy has one vote
on a show of hands.
62
Prodigy Gold Annual Report 2018
ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES
1.
Shareholdings cont’d
(e)
20 largest shareholders – Ordinary shares
Number of Ordinary
Fully Paid Shares Held
% Held of Issued
Ordinary Capital
68,080,809
59,317,381
43,560,000
39,403,428
31,157,198
9,133,334
7,140,502
6,718,344
4,341,828
4,000,000
3,325,000
2,902,862
2,500,000
2,000,000
1,777,597
1,732,761
1,630,000
1,476,869
1,450,000
1,333,334
15.63
13.62
10.00
9.05
7.15
2.10
1.64
1.54
1.00
0.92
0.76
0.67
0.57
0.46
0.41
0.40
0.37
0.34
0.33
0.31
292,981,247
67.27
Name
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
PACIFIC ROAD CAP MGNT PL
NATIONAL NOM LTD
ST BARBARA LTD
INDEPENDENCE GRP NL
J P MORGAN NOM AUST LTD
PERTH SELECT SEAFOODS PL
CITICORP NOM PL
HSBC CUSTODY NOM AUST LTD
SANDHURST TTEES LTD
SOUTHERN CROSS CAP PL
CEN PL
12. WYLIE STEPHEN ROBERT
13.
14.
15.
16.
JEMAYA PL
FRESHWATER RES PL
REXFAM TRADING PL
DOBBIN ANGELA
17. MAIOLO VINCENT ANDREW
18. MCKEITH THOMAS DAVID
19.
BUDWORTH CAP PL
20. MUSCON PL
2.
Company Secretary
The name of the Company Secretary is Ms Jutta Zimmermann.
3.
Registered and Principal Place of Business
Prodigy Gold NL
Level 1, 141 Broadway
NEDLANDS WA 6009
Phone: +61 8 9423 9777
Fax: +61 8 9423 9733
4.
Register of Securities
Registers of securities are held at the following address:
Security Transfer Registrars Pty Ltd
770 Canning Highway
APPLECROSS WA 6153
63
Prodigy Gold Annual Report 2018
ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES
5.
Stock Exchange Listing
Quotation has been granted for all the ordinary shares of the Company on all Member Exchanges of the Australian Securities Exchange
Limited.
6.
Unquoted Securities
The Company has 24 Million unlisted options.
64
Prodigy Gold Annual Report 2018
Level 1, 141 Broadway, Nedlands WA 6009
www.prodigygold.com.au