2019
ANNUAL REPORT
Prodigy Gold NL
CORPORATE DIRECTORY
ABN 58 009 127 020 ACN 009 127 020
Directors
Secretary
Auditors
Bankers
Share Registry
Solicitors
Mr Thomas McKeith (Chairman)
Mr Matthew Briggs (Managing Director)
Mr Brett Smith
Mr Michael Stirzaker
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
Stock Exchange
Australian Securities Exchange Limited
ASX Code: PRX
Registered Office
Level 1, 141 Broadway
NEDLANDS WA 6009
Principal Place of
Business
Level 1, 141 Broadway
NEDLANDS WA 6009
Telephone: +61 8 9423 9777
Fax: + 61 8 9423 9733
Postal Address
Level 1, 141 Broadway
NEDLANDS WA 6009
Website
Email
www.prodigygold.com.au
admin@prodigygold.com.au
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Prodigy Gold Annual Report 2019
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
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Prodigy Gold Annual Report 2019
At the North Arunta Project, Gladiator Resources Ltd has
undertaken an IP survey identifying gold drill targets at
the Kroda Prospect. Initial drilling at Kroda delivered
promising results.
Prodigy Gold and our partners are 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 energy and focus in delivering our strategy and
look forward to hopefully successful results from the
very active program. 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 you, Prodigy Gold’s
shareholders, for your support and look forward to
rewarding you when our very active program delivers
results.
Again, on behalf of the Board I am pleased to present
you with the Company’s 2019 Annual Report and expect
2020 to be a very 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
MESSAGE FROM THE CHAIRMAN
Dear Shareholder,
Our strategy of securing joint
venture partners as well as
expanding exploration on our
100% owned tenements has
resulted in Prodigy Gold
having one of the most active
greenfields exploration
programs in Australia. 2019 saw a number of targets
generated and drill-testing is underway for a significant
gold or base metal discovery in the Tanami Region.
“
The Company is well funded and together with our joint
venture partners is ready to make a significant discovery
and deliver value for our shareholders.
Matt Briggs and the team were very busy during the
year with the following highlights:
Exploration at the Capstan Prospect within the
Company’s 100% owned Bluebush Gold
Project is generating robust anomalies;
A $12 million farm-in agreement with
Newcrest Mining (ASX: NCM) over the Euro
tenements;
A $14.5 million joint venture agreement with
Newmont Goldcorp over the Tobruk
tenements;
Identification of 63 targets in airborne EM at
the Lake Mackay JV Project, a joint venture
with Independence Group NL; and
A rights issue raising $3.6 million;
The Company will take advantage of the higher gold
price and seek to secure funding through the divestment
of resources at our Twin Bonanza Project. At the same
time we will actively look to add to resources at the
Suplejack Project.
Our partner at the Lake Mackay Project, Independence
Group NL, has undertaken a project scale airborne EM
survey, soil sampling and commenced a 9,600m RC
drilling program. 63 targets were identified through the
airborne EM and drilling has led to the discovery of
various prospects including Grimlock, Blaze, Swoop and
Phreaker.
Our partner at the Euro Project, Newcrest Mining, has
undertaken an IP survey and undertook drilling
programs at Dune and Vivitar.
At the Tobruk Project, our partner Newmont Goldcorp,
is ready to commence exploration as soon as final
permits are received.
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Prodigy Gold Annual Report 2019
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
and expanded these activites during the year.
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. Rehabilitation of AC
drill access tracks is minimised with innovative clearing where the Prodigy Gold team in partnership with its drill
contractors seek to leave the smallest of drill footprints. Our exploration team has instigated on-site recylcling to prevent
waste going to landfill with the recyclable items transported ~700km to Alice Springs for recycling. There were no
significant environmental incidents reported.
Strategy
Prodigy Gold is focussed on exploration in the Tanami region in the Northern Territory. The Tanami is one of Australia’s
most prospective gold regions. This prospective terrain has had limited previous work completed with the majority of
discoveries to date in areas of outcrop. 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 building on previous years
successes in the Bluebush Project located to the west of Newmont’s world class 14.2Moz Callie Gold Mine, and the
Suplejack Project 15km to the north of Northern Star’s 1.6Moz Groundrush gold deposit.
During the year Prodigy Gold undertook:
Aggressive exploration on 100% Prodigy Gold Projects with 34,355m drilled on priority targets
Fast-tracked exploration via joint ventures (IGO, Newcrest and Newmont)
Innovative research in partnership with CSIRO to unlock the geology of the Tanami
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 to the northeast of the Central Tanami processing plant. Suplejack, including Hyperion, Tethys and Seuss, contains a
Mineral Resource Estimate of 4.9Mt at 1.9g/t for 309.5koz gold (ASX: 31 July 2018). Details of the Suplejack Mineral
Resource Estimate are in the Company’s 2019 Mineral Resource Statement. In 2018 the team continued to test targets
within a prospective trend that extends for over 50km in a northsouth direction and hosts numerous areas of gold
anomalism that appear to be associated with eastwest striking structures. Ongoing work is aimed at growing resources at
Suplejack and progressing the discovery of new standalone targets.
Exploration
The 2018 drilling program comprised 5 RC holes for a total of 1,002m at Suplejack. The program targeted to drill the
strike extensions of the favourable mafic sediments at the intersection with the Suplejack Fault, a major regional
structure (Figure 1) (ASX: 20 December 2018). Two holes drilled to the south intersected broad zones of mineralisation
within the Suplejack Fault, and demonstrate the Suplejack Fault is a wide structure with strong gold mineralisation.
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Prodigy Gold Annual Report 2019
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The RC results are:
89m @ 0.3g/t Au from 67m to EOH (SJRC0058) incl. 11m @ 0.7g/t Au from 143m to EOH
43m @ 0.4g/t Au from 137m to EOH (SJRC0056) incl. 7m @ 0.7g/t Au from 149m to EOH
Both holes intersected brecciated siltstone and carbonaceous shale with significant quartz veining and associated pyrite
alteration.
Two holes were drilled to confirm the plunge extension of the sediment beneath the existing resource at Seuss (Figure 2).
SJRC0055 intersected and confirmed the lower sediment and mineralisation with intersections of 15m @ 0.8g/t Au from
243m and 4m @ 1.4g/t Au from 264m. A second hole, SJRC0054 confirmed the fault offset between the upper and lower
sediment at Seuss results in a break in the mineralisation. These holes are both outside the existing resource area.
Figure 1 – Suplejack RC drilling collar map with 2018 Suplejack Fault results highlighted in black
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Figure 2 – Seuss North-South long section (ASX: 20 December 2018)
Other Suplejack targets
The Company intends to expand activities to Tregony, Boco, and Old 8 Mile Fault. 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.
Future work includes testing the broad gold bearing structure at Suplejack with a 350m diamond drillhole which is co-
funded by the NT Government under Resourcing the Territory Initiative (Figure 3). The diamond drillhole is designed to
confirm if the brecciated sediment is the control of mineralisation and if higher grade zones can be defined. The
brecciated sediment is a new style of mineralisation that could unlock a new generation of targets at the Suplejack
Project. There is potential for additional shoots and exploration along the 75km strike length of the Suplejack Fault. The
Company aims to define additional near surface resources for a standalone mining area. The diamond drillhole is planned
to be completed during the September 2019 quarter.
Figure 3 – Suplejack planned co-funded diamond drillhole and interpreted mineralisation
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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 rock of 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 drilling programs, lithogeochemistry mapping and
structural interpretation. Activites for 2019 focused on the Capstan area where aircore drilling has outlined large scale
gold anomalism and first pass aircore drilling at the Galaxy and Apertawonga Prospects (Figure 4).
Figure 4 – Prodigy Gold Bluebush Projects and work programs
Exploration
The initial first pass aircore drilling which commmenced in 2018 was aimed at testing anomalous geochemical and
structural targets at the Capstan, Indefatigable, Hornblower and Wild Turkey Prospects. Drilling results highlighted
bedrock anomalism extending over a 8km area at the Capstan Prospect which was subsequently infilled.
Capstan
Capstan is a 22km x 8km sub-area of the Bluebush Project, falling within the Trans-Tanami Fault Zone and located 50km
northwest of the world-class Callie Gold Mine. The interpreted folding and faulting complexity and geochemical
anomalism within the Dead Bullock Formation (host rocks of Callie) highlight the prospectivity of the area. Approximately
95% of Capstan is undercover and surface sampling has only been effective in very limited areas in the north and south of
the Prospect. Drilling in the second half of 2017 defined bedrock gold anomalism over an area 8km long which included
the five key target areas. These areas were targeted for infill aircore drilling during the Q1 2019.
Infill aircore program: A total of 179 aircore holes were completed, targeting five areas outlined in Q2 2018 drilling. This
program was generally drilled on a 320 x 80m spacing. The drilling was successful in upgrading and extending the
previously defined gold anomalies. Highlights above 0.5g/t Au for the full infill program, are (ASX: 2 August 2018 and
15 October 2018):
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Prodigy Gold Annual Report 2019
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9m @ 1.4g/t Au from 36m including 3m @ 2.8g/t Au from 36m (BL0412) Capstan Anticline
1m @ 4.0g/t Au at 89m - EOH (BL440) Capstan North
3m @ 1.8g/t Au from 69m (BL0480) Top Hat
6m @ 0.6g/t Au from 27m (BL0490) Top Hat
3m @ 0.6g/t Au from 54m (BL0491) Top Hat
3m @ 0.6g/t Au from 48m (BL0415) Capstan Anticline
6m @ 0.5g/t Au from 48m (BL0445) Capstan North
Infill drilling extended the northsouth gold trend at Top Hat/Hat to over 4km long, coincident with a flexure in the contact
between the Killi Killi Formation and the Dead Bullock Formation. At Capstan Anticline, the gold trend was extended over
1.5km long and remains open to the southeast. The largest gold trend, at Capstan North, extends for over 4.5km with the
highest grades and widest part of the anomaly coincident with massive siltstones interpreted to correlate with the Dead
Bullock Formation.
Diamond Drilling: Two diamond holes were drilled for a combined total of 951.4m. The holes were drilled to gain accurate
structural information and commence determining the orientation of the bedrock source of gold anomalism delineated
by aircore drilling (ASX: 15 October 2018). The Company has received funding from the Northern Territory Government
as part of the ‘Resourcing the Territory’ initiative for this program.
BLDD001 was designed to test under a 300m wide zone of gold anomalism including BL0384 (3m @ 0.3g/t Au) (ASX:
2 August 2018). The predicted stratigraphic units were intersected and a 20m zone of shearing, disrupted by late faulting,
was intersected at 176m-192m. The hole was completed at 539.4m.
Diamond hole BLDD002 hole was designed to drill under aircore hole BL0412 (9m @ 1.4g/t Au including 3m @ 2.8g/t Au
(ASX: 2 August 2018)). The hole intersected multiple quartz porphyry intrusions from 90m-189m. Between 132m-189m
the hole intersected a zone containing quartz veining, disseminated sulphide and albite alteration and brecciation of the
quartz-porphyry and surrounding sediments. The hole was completed at 412m.
Highest grade results from the diamond drilling were 1.3m @ 0.44g/t Au from 186.7m from BLDD002 (ASX: 26 October
2018). Both holes provided stratigraphic and structural information used to optimise the design of the Capstan RC drilling
program.
RC Drilling: 26 RC holes for 4,368m of drilling were completed at Capstan North and at Hat. Drilling targeted anomalism
defined in the infill aircore and diamond drilling.
Capstan North: RC drilling has defined a 1.2km long zone of interest in bedrock within the Capstan North Project
(Figure 5). Best results include 4m @ 6.1g/t Au from 128m (BLRC001), and 9m @ 1.3g/t Au from 31m (BLRC021) (ASX: 18
December 2018). Both holes are coincident with quartz veining and alteration. The holes are from two RC lines drilled
640m apart and represent the first RC drilling in the Capstan Prospect area. Aircore drilling indicates the mineralisation is
open along strike at Capstan North extending for over 1.2km.
Hat: The Hat Prospect is located 4km to the south of Capstan North. Aircore drilling has defined a corridor of gold
mineralisation 4.5km long. Two lines of 320m spaced RC drilling are the first RC holes drilled at Hat. These holes
intersected 4m @ 1.2g/t Au from 111m and 1m @ 2.0g/t Au from 102m (ASX: 18 December 2018). These intersections
were associated with quartz veining within a steeply west dipping structure in the Killi Killi Formation.
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Prodigy Gold Annual Report 2019
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Figure 5 – Capstan Prospect showing significant results from 2018 RC drilling and anomalous aircore gold trends (red)
Galaxy
The Galaxy Prospect is located on the southern extension of the Central Tanami Trend which produced 2.2M ozs of gold
between 1997 and 2002 from a number of deposits, all hosted within the Mt Charles Formation. Jims Pit, located 5km
northwest of Galaxy, is part of the Central Tanami Trend and produced ~120kozs between 1998 and 2001.
Aircore Drilling: 95 holes for 6,550m of reconnaissance RAB drilling were completed at the Galaxy Prospect (ASX: 31
October 2018). Drilling tested a 9.5km long section of the prospective Mt Charles and Dead Bullock Formation along
strike of Jims and the Galifrey mineralised shears. Drill holes were spaced on broad 640m X 160m and 1,280m X 320m
grids. Results extended the mineralised trend to 6km south of the Jims Pit. Best results from drilling include 12m @ 0.5g/t
Au from 27m incl. 3m @ 1.3g/t Au from 33m (BL0558), 12m @ 0.2g/t Au from 42m incl. 3m @ 0.4g/t Au from 42m
(BL0569) and 3m @ 0.4g/t Au from 99m (BL0597).
Aircore drilling of Callie style targets recommenced in May 2019. The lithogeochemical study completed with the CSIRO
identified that the intermediate sediments, interpreted to be the control on mineralisation in the Tanami are more
prevalent at Capstan East, the northsouth trend at Top Hat and at Apertawonga. These sediments in combination with
the gold in previous aircore drilling support these areas being priority targets.
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Prodigy Gold Annual Report 2019
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Capstan East Target
The Capstan East gold trend remains underexplored with a strike length of 7km identified as a priority target for 2019.
Drilling in 2018 included results of 1m @ 4.0g/t Au at EOH and 6m @ 0.5g/t Au at the north end of the 7km trend (ASX: 2
August 2018). Anomalism is defined on 640m spaced lines with hole BL0336A returning 3m @ 0.18g/t Au (ASX: 9 July
2018). Gold anomalism is coincident with arsenic anomalism and a northsouth fault.
39 holes for 2,338m of infill aircore targeted an area of 4km x 2km only tested with 13 historic drill holes >20m depth.
Drilling aimed to intersect gold in bedrock anomalism and the intersection of prospective units of the Dead Bullock
Formation with a mineralising structure. The recent program intercepted sulphides and veining in the holes overlying the
interpreted position of the northsouth fault. All samples are currently being processed at the laboratory.
Apertawonga Target
Apertawonga is located 47km to the northwest of the 14.2Moz Callie Gold Mine. The area contains magnetic Dead
Bullock Formation adjacent to the Tanami Fault and has shallow cover with limited RAB drilling. The historic drilling
intersected anomalous arsenic. Arsenic is often associated with gold mineralisation in the Tanami Region.
Results from 54 holes for 3,316m of reconnaissance drilling at Apertawonga defined gold and pathfinder anomalism over
4.5km with potential extensions to the southeast (ASX: 16 July 2019). The anomalism has been intersected within the
interpreted Dead Bullock Formation on the margin of a small intrusion, including highlights of 1m @ 0.7g/t Au from 36m
(BL0668) and 3m @ 0.14g/t Au from 36m (BL0655).
A second anomalous area has been identified which is open to the southeast with the multi-element samples from this
area pending. Follow up aircore drilling is scheduled for August 2019.
Co-funded NTGS Geophysics
Prodigy Gold co-funded part of an extensive aeromagnetic survey undertaken by the NT Geological Survey. This survey
covered the Euro Project and part of the Bluebush Project including the Capstan Prospect (Figure 6). The magnetic data
will allow the Company to enhance the location of drillholes during the 2019/2020 drilling seasons.
Figure 6 – Northern Territory Geological Survey airborne magnetics survey areas
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Future Work
Geochemical data will be assessed with the gold results to finalise future drill plans. Approximately 40 aircore holes are
proposed to further define the gold anomaly at Apertawonga and these will be included as part of a larger campaign
within Capstan. RC drilling is planned to infill the mineralised trend that is open along strike at Capstan North extending
for over 1.2km. Further RC drilling is planned at Hat, Apertawonga and Capstan East.
The southern half of the Capstan Project, Capstan South (~120km2) remains significantly unexplored and is interpreted to
be underlain by the same favourable folded stratigraphic package; the Dead Bullock Formation. The area has seen limited
exploration by North Flinders Mines (shallow VAC holes) and Newmont who completed a single AC line as part of their
Tanami Regional Framework Study. The highly prospective area has been a priority target for Prodigy Gold since
completing 1km x 1km drilling over part of the southern area in 2017 (ASX: 21 November 2017). Regional spoil collection
has highlighted potential in the area for the favourable intermediate rock unit, interpreted to host mineralisation at
Callie.
Recently released, preliminary magnetic data from the co-funded NTGS Tanami survey has highlighted folding
coincidental with historical anomalism (Figure 3). Six reconnaissance/framework traverses are currently underway at
Capstan South for 61 holes.
A co-funded gravity survey has been planned to cover an area of structural complexity in the south of the Capstan
Prospect. The area has shallow sand cover and limited prior drilling. The co-funded gravity survey will allow a trial for
lower cost geophysical techniques to be used prior to aircore drilling. The survey is planned to be completed during the
2019 field season.
JOINT VENTURE PROJECTS
Lake Mackay JV Project
Independence Group NL (”IGO”) commenced activity on the current Lake Mackay JV area in 2015. Systematic exploration
lead to the discovery of gold and base metal mineralisation at Bumblebee in 2015 and Grapple in 2016. Diamond drilling of
Grapple in 2017 defined gold and copper mineralisation over 800m of plunge including a result of 11m @ 7.9g/t Au,
20.7g/t Ag, 0.8% Cu, 0.5% Pb, 1.1% Zn & 0.1% Co in 17GRDD001 (ASX: 18 September 2017). In 2018 further work identified
Ni, Co, and Mn mineralisation at Grimlock while a 14,951 line-kilometre airborne EM survey was being completed. During
2018 IGO completed the $6M earn-in and the JV project is now funded 70/30.
Project Background
The Lake Mackay Project is 400km northwest of Alice Springs, adjacent to the Western Australian border, and comprises
approximately 18,680km2 of exploration licences and applications (17,780km2 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
that exploration has the potential to unlock a new metallogenic province hosting multiple styles of precious and base
metals mineralisation (Figure 7).
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Figure 7 – Lake Mackay JV Project Location
Spectrem AEM Survey
The Spectrem airborne electromagnetics (“AEM”) survey was completed on 11 January 2019 with a total of 14,951 line-
km flown for the entire survey (Figure 8). 63 targets have been recognised consisting of 19 Priority 1 targets, 35 Priority 2
targets and 9 Priority 3 targets. This included an area that was co-funded by the Northern Territory Government under
the Geophysics & Drilling Collaboration Program.
Figure 8 – Lake Mackay Project Location and Spectrem airborne EM survey status
Drilling
In April 2019, managing JV partner IGO commenced a nominal 9,600m reverse circulation (“RC”) drilling program to test
bedrock conductors generated from Moving Loop Electromagnetic (“MLEM”) surveys, which were undertaken to
characterise 63 conductive targets identified by the Spectrem AEM survey completed in January 2019. A total of 42 holes
for 8,544 metres were completed by the end of June 2019 testing 26 targets across the Lake Mackay Project.
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Prodigy Gold Annual Report 2019
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Base Metal EM Targets
Two EM targets had anomalous results with Scuba and Phreaker Prospects containing base metals.
Three RC holes (for 930m of drilling) were drilled (ASX: 17 July 2019) on a single section into a 1km-long modelled EM
conductor at the Phreaker Prospect. Results from these holes include sulphide intersections of:
14m @ 0.84% Cu, 0.15g/t Au, 4.1g/t Ag from 353m in hole 19LMRC028
10m @ 0.98% Cu, 0.06g/t Au, 13.9g/t Ag from 146m in hole 19LMRC031
11m @ 1.15% Cu, 0.07g/t Au, 7.9g/t Ag from 189m in hole 19LMRC032
Higher grade copper intervals were also intersected, with 19LMRC032 returning an interval of 2m @ 2.45% Cu from
189m.
The modelling of EM anomalies and drilling outlined sulphide mineralisation over 250m of vertical extent, but still open at
depth, and 1,000m of strike. Follow-up drilling is planned during the September 2019 Quarter to test the strike length of
Phreaker on a 200m-spacing to determine the scale of the system and to define thicker and/or higher-grade zones
(Figure 9).
Figure 9 – Schematic Cross Section of Phreaker Prospect. Section facing west
A second large EM conductor at the Scuba Prospect has returned elevated Zn and Pb results. Two RC holes totaling 572m
were drilled into this target in the west of the Lake Mackay Project. The results from drilling at Scuba were:
2m @ 1.21% Zn, 0.35% Pb, 0.12% Cu, 9.4g/t Ag from 186m in hole 19LMRC015
1m @ 0.43% Zn, 0.05% Pb, 0.06% Cu, 2.3g/t Ag from 278m in hole 19LMRC017
The results at Scuba are insufficient to upgrade this target and so no further work is currently planned.
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Grimlock Target
The first three RC holes completed at the Grimlock Co-Ni Prospect all intersected a dark manganese-rich duricrust
horizon. Assay results included (ASX: 30 May 2019):
4m @ 0.6% Co and 0.49% Ni from 2m in hole 19LMRC003
1m @ 1.86% Co and 0.84% Ni from 8m and 4m @ 0.22% Co and 0.64% Ni from 20m in hole 19LMRC004
4m @ 0.13% Co and 0.32% Ni from 2m and 5m @ 0.15% Co and 0.41% Ni from 13m in hole 19LMRC005
An additional seven holes (for 262m) were then drilled to confirm the presence of the shallow Co-Ni mineralisation in
other areas of duricrust mapped or interpreted to continue under shallow cover.
Best results for these additional seven holes (ASX: 17 July 2019) (Figure 10) included:
4m @ 0.17% Co and 0.78% Ni from 13m in hole 19LMRC018
5m @ 0.28% Co and 0.85% Ni from 18m in hole 19LMRC020
1m @ 0.42% Co and 0.17% Ni from 4m in hole 19LMRC022
Figure 10 – Grimlock Prospect collar map labelled with best intersection per hole
Soil and Rock Chip Programs
Reconnaissance and selective infill soil sampling were completed over several phases for a total 1,582 samples. Results
identified eight high priority, new, multi-element anomalies, including Grapple-style anomalies, for follow-up sampling in
addition to the recently identified Blaze Prospect (ASX: 25 October 2018).
Future Work
Continue with ground geophysical (moving loop EM) surveys
Continuing 5,000m of RC drilling planned for FY2020 including:
o Drilling priority conductors and soil anomalies
o Drilling strike extent of Phreaker Prospect on a 200m spacing
Metallurgical testing of high-grade Grimlock material
Soil sampling
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North Arunta JV Project
Gladiator Resources entered into a JV agreement with Prodigy Gold to spend $6.5M to earn into 70% of the North Arunta
Project. The Project covers ~4,500km2 of exploration licenses. 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.
Project Background
The Kroda Gold Prospect, which is the most advanced prospect in the Project area, is located on EL29896, 18 kilometres
west of the Stuart Highway, 30 kilometres north of the town of Barrow Creek and 200 kilometres south of Tennant Creek.
Kroda consists of 4 individual prospects (Kroda 1 to 4) with a combined anomalous strike length of 14 kilometres. 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.
At Kroda 3, high-grade gold is hosted by breccia pipes that are near surface, steeply plunging and are confirmed by
drilling to extend beyond 200 metres depth. Significant historic drill intercepts from Kroda 3 include 57m @ 3.8g/t gold
and 29m @ 6.4g/t gold (ASX: 27 September 2011).
Exploration
During 2018 Gladiator Resources completed an IP survey and defined a large sulphide shell spanning the Kroda 3 and
Kroda 4 targets. This sulphide was interpreted to correlate with shallowly plunging extensions to the system. A 2,204m RC
and diamond drilling program successfully intersected sulphide; however the results reported demonstrate the sulphide
was not mineralised with gold.
Two RC drillholes with diamond tails were drilled in the Kroda 3 Prospect as part of this program. Kroda 3 is an eastwest
striking structure with gold results of 1g/t or more in RC and diamond drilling extending over 400m. Within the 400m
strike is a 50-100m long >5g/t Au steeply dipping shoot. The diamond tail results of 5m @ 15g/t Au and 9m @ 11.5g/t Au
(ASX: 28 February 2019) support this interpretation and correlate well with previous intersections (Figure 11). The high
grade shoot is drilled to 150m below surface and is open down dip.
Figure 11 – Northsouth section 382630mE through Kroda 3
16
Prodigy Gold Annual Report 2019
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Future Work
The North Arunta Project extends for over 200km. There is potential for multiple deposits such as Kroda, or large systems
to be discovered under shallow cover to the west. Gladiator has withdrawn several tenements from the JV Agreement
during the financial year and is continuing its review of the project area to identify potential areas of exploration focus
within the broader tenement package. Gladiator is yet to advise the work programs for 2019.
Euro Farm-in Agreement
On 4 July 2018 a subsidiary of Newcrest Mining Ltd (“Newcrest”) and Prodigy Gold signed 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 Project includes ~3,478km2 of exploration licenses and applications in the Tanami Region of the Northern Territory
along strike of, or contains structures parallel to, the Trans-Tanami Trend. This is the regional control of major gold
deposits in the area, including Newmont Mining’s 14.2Moz Callie Gold Mine. Previous exploration has primarily been soil
sampling and patchy reconnaissance drilling with 10 of the 17 tenements in the Euro JV Project having no drilling in the
last 20 years.
Exploration
Dune Prospect
The Dune Prospect is located 1.5km to the south of the Newmont Oberon Deposit. Three targets have been drilled at the
Dune Prospect. The targets have coincident geochemical anomalism and IP or magnetic geophysical anomalies. In late
2018, 8 holes for a total of 1,466m of RC drilling were completed as the first bedrock drilling into these targets. The holes
ended prior to reaching the target depth due to the intersection of water in the holes. Although not reaching target
depth the initial program produced encouraging results from these drillholes including 2m @ 12g/t Au, 8m at 1.9g/t Au,
and 2m at 3.0g/t Au (ASX: 22 January 2019).
Figure 12 – Dune Prospect 2019 drilling program (ASX: 10 July 2019) Anomaly
The recently completed RC/diamond program has tested the target position for Anomaly 1 and Anomaly 2 (Figure 12).
Target 3, a magnetic high now demonstrated to be Dead Bullock Formation, has also had a diamond hole drilled. This
hole was co-funded by the Northern Territory Government as part of its Resourcing the Territory Initiative. The samples
for these three targets are at the assay laboratory with final results pending.
17
Prodigy Gold Annual Report 2019
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Vivitar Prospect
The Vivitar Prospect is located 7km northeast of the Tanami Track. The target is a 1km long As-Mo anomaly with a
coincident IP geophysical anomaly in altered sediments. Previous RAB drilling is interpreted to have not effectively tested
the target.
8 RC holes for 2,199m of RC drilling at Vivitar were completed during the June 2019 Quarter. Low level gold anomalism
was intersected in EUR0028 with a best result of 1m @ 1.3g/t Au from 141m (ASX: 10 July 19). Weak alteration was
observed in the drilling. No further work is currently planned for the IP geophysical target at Vivitar.
Future Work
Drilling is planned to expand to targets to the northwest with reconnaissance aircore drilling scheduled at Anomaly 16,
Anomaly 14, and Prospero. Targeted RC and diamond drilling has being proposed.
Tobruk Farm-in Agreement
During May 2019 Prodigy Gold signed a A$14.5M Exploration Farm-in and Joint Venture Agreement (“Agreement”) with
Newmont Exploration Pty Ltd (now known as Newmont Goldcorp Exploration Pty Ltd), a wholly owned subsidiary of
Newmont Goldcorp Corporation (“Newmont Goldcorp”) (ASX: 16 May 2019). Under the Agreement, Newmont Goldcorp
is to sole fund up to A$12M in exploration expenditure to earn up to a 70% interest in the Tobruk Project and provide a
total of A$2.5M cash payments to Prodigy Gold (with A$1M being contingent on Newmont Goldcorp electing to proceed
to phase 2 of the earn-in).
The Agreement covers the Company’s tenements and tenement applications at the Tobruk Project, adjacent to Newmont
Goldcorp’s 14.2 Moz Callie Gold Mine.
Tobruk Project Background
The Tobruk Project is interpreted to have occurrences of the same prospective lithologies that host Newmont Goldcorp’s
Callie Gold deposit and several smaller deposits including Groundrush and Titania-Oberon. The Project’s potential is
further enhanced by having analogous structural settings to known Tanami deposits, including tightly folded stratigraphy,
Trans Tanami parallel faults and drill defined anomalous geochemistry positioned on the margins of magnetic features.
Most of the historical exploration work in the Tobruk area was undertaken by North Flinders Mines Limited
(NFM)/Normandy Mining Limited (NML) in the late 1980s and 1990s and subsequently by Newmont and AngloGold
Australia (AngloGold) in the early 2000s. Previous exploration has comprised field mapping, aeromagnetic/detailed
ground magnetic surveys and targeted soil, rock chip and lag sampling. Drilling (RAB and aircore) was primarily directed
at testing magnetic features supported by anomalous surface geochemistry at targets identified in Dead Bullock
Formation sediments, considered the most prospective sequence in the Tanami group. Key logistical advantages include
the 450km gas pipeline to the Newmont Goldcorp Granites Plant recently constructed and the Federal Government’s
commitment to upgrade the Tanami Track, which will improve the economics of any future discoveries.
Future Work
Permitting of heritage clearances is well advanced. On-ground work, including geochemistry is scheduled to commence
later in 2019.
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: 17 April 2018). Prodigy Gold received the $50,000 non-refundable deposit.
Ark Mines and the Company agreed to terminate the letter agreement during October 2018. Prodigy Gold continues to
assess opportunities with the aim of maximising the value from this asset.
18
Prodigy Gold Annual Report 2019
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
MINERAL RESOURCES
Prodigy Gold’s Mineral Resources for 30 June 2019 are summarised below. See the 2019 Annual Mineral Resource
Statement (ASX: 9 August 2019) 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
Consolidated Resource Summary
Table 1 – Prodigy Gold Mineral Resource Summary as at 30 June 2019.
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 2 – Old Pirate August 2016 Mineral Resource Estimate (ASX: 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
19
Prodigy Gold Annual Report 2019
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Buccaneer Mineral Resource
Table 3 – Buccaneer August 2017 Mineral Resource Estimate (ASX: 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.
Suplejack Mineral Resource
Table 4 – Suplejack July 2018 Mineral Resource Estimate (ASX: 31 July 2018)
Suplejack Project - Mineral Resource Estimate July 2018
Oxide
Oxide
Transitional
Fresh
Total
Indicated
Grade
Au (g/t)
1.48
1.79
2.62
2.35
Tonnes
(Mt)
0.03
0.26
0.63
0.92
Metal
(koz)
1.3
14.8
53.1
69.3
Tonnes
(Mt)
0.29
1.16
2.57
4.02
Inferred
Grade
Au (g/t)
2.28
2.08
1.72
1.86
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
Note: Reported above 0.8g/t cut-off and above the 230mRL. Totals may vary due to rounding.
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 42,577km2 (2018: 37,855km2) held under tenure by Prodigy Gold and its joint venture partners has
increased during the financial year. The area held under granted mineral tenements is 19,826km2 with 22,751km2 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.
20
Prodigy Gold Annual Report 2019
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
The Company relinquished two granted tenements during the year, withdrew one tenement application and applied for
12 additional tenements. Joint venture interests in the Lake Mackay JV with IGO changed to 70% IGO and 30% Prodigy
Gold during the year and in the Lake Mackay JV with IGO and Castile changed to 49% Castile, 35.7% IGO and 15.3%
Prodigy Gold.
A map showing the location of the Company’s current tenement holding is presented in Figure 13 below and a complete
list of tenements follows this report.
Figure 13 – Prodigy Gold’s Central Desert mineral tenements and applications as at 30 June 2019
CORPORATE
Shares on Issue and Unlisted Options
Prodigy Gold placed 45,026,272 shares at an issue price of $0.082 per share for total proceeds of $3,692,155 during
December 2018. The shares were issued following the completion of a non-renounceable rights issue announced on 16
November 2018 comprising subscriptions and shortfall applications.
The Company issued 2,325,000 options to employees under the terms and conditions of the Company’s Employee Share
Option Plan during June 2019.
Prodigy Gold has a total of 480,627,606 shares on issue and 26,325,000 million unlisted options.
Board Changes
Prodigy Gold’s largest shareholder Pacific Road Capital has substituted Mark Faul with Mike Strizaker as their
replacement nominee director.
21
Prodigy Gold Annual Report 2019
SUMMARY OF MINING TENEMENTS AND AREAS OF INTEREST
Summary of Mining Tenements as at 30 June 2019
Area of Interest
Tenement
Group’s
Interest
Tenement
Status
Status Changes
During the Year
NORTHERN TERRITORY
TANAMI
Birrindudu
Bluebush
Bonanza
Suplejack
Abroholos
Tobruk (1)
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
EL27980
EL32055
EL32056
EL29833
EL29834
EL25156
EL25191
EL25192
EL28785
EL29832
EL29859
EL30270
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
0
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
application
vetoed
application
application
application
application
granted
granted
granted
granted
granted
granted
application
Out of veto during the year
Withdrawn during the year
Applied for during the year
Applied for during the year
22
Prodigy Gold Annual Report 2019
SUMMARY OF MINING TENEMENTS AND AREAS OF INTEREST
Area of Interest
Tenement
Tobruk (1)
Euro (2)
Tanami Altura JV (3)
LAKE MACKAY
Tarawera
Lake Mackay North
Tekapo
Warumpi (4)
EL30274
EL32057
EL25845
EL26590
EL26591
EL26592
EL26593
EL26613
EL26615
EL26618
EL26620
EL26621
EL26622
EL26673
EL27604
EL30271
EL30272
EL30273
EL30283
EL26628
EL29828
EL26626
EL26627
EL23898
EL24473
EL27894
EL30552
EL30553
EL30554
EL30555
EL30556
EL28682
EL24915
EL25146
EL30729
EL30730
EL30731
EL30732
EL30733
EL30739
EL30740
EL31234
EL31723
E80/5001
EL27947 (5)
EL31974 (5)
EL25147
EL31718
EL31719
EL31720
EL31721
EL31722
Group’s
Interest
100
100
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
30
30
30
30
30
30
30
30
30
30
0
30
15.3
15.3
30
30
30
30
30
30
Tenement
Status
Status Changes
During the Year
application
application
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
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
application
application
application
application
application
application
Applied for during the year
Granted and relinquished during the
Independence Group NL
year / Independence Group NL
Independence Group NL
Castile Resources Pty Ltd
Castile Resources Pty Ltd
Independence Group NL
Independence Group NL
Independence Group NL
Independence Group NL
Independence Group NL
23
Prodigy Gold Annual Report 2019
SUMMARY OF MINING TENEMENTS AND AREAS OF INTEREST
Area of Interest
Tenement
Warumpi (4)
NORTH ARUNTA
North Arunta JV (6)
Barrow Creek
Reynolds Range
Walkeley
EL31723
EL31913
EL32095
EL32096
EL32097
EL32098
EL32099
EL32100
EL32101
EL32102
EL32103
EL8766
EL23880
EL23883
EL23884
EL23885
EL23886
EL25031
EL25033
EL25034
EL25035
EL25041
EL25042
EL25044
EL26825
EL28515
EL28748
EL29896
EL30470
EL25030
EL25036
EL29819
EL29820
EL28727
EL29723
EL29724
EL29725
EL30507
EL30637
EL23655
EL23888
EL28083
EL26903
Group’s
Interest
30
30
30
30
30
30
30
30
30
30
30
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
0
100
100
100
100
100
100
100
100
100
100
100
100
80 (7)
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
Independence Group NL
Independence Group NL
Independence Group NL
Independence Group NL
Relinquished during the year
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
granted
granted
granted
granted
application
application
application
application
granted
granted
granted
granted
granted
granted
granted
granted
granted
application
1)
2)
3)
4)
5)
6)
7)
24
Farm-in and Joint Venture Agreement with Newmont Goldcorp Exploration Pty Ltd earning up to a 70% interest in the tenements.
Farm-in and Joint Venture Agreement with Newcrest Operations Ltd earning up to a 75% interest in the tenements.
Joint Venture with Altura Lithium Operations Pty Ltd.
Joint Venture with Independence Group NL 70%/Prodigy Gold NL 30%.
Tenement is subject to a Joint Venture between with Castile Resources Pty Ltd (49%), Independence Group NL (35.7%) and Prodigy Gold
NL (15.3%).
Joint Venture Agreement with Gladiator Resources Ltd earning a 51% interest in the tenements.
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 2019
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 2019.
Directors
Mr Thomas McKeith
Non-Executive Chairman
Mr Matthew Briggs
Managing Director
Mr Brett Smith
Mr Mark Faul
Non-Executive Director
Non-Executive Director
Resigned 30 November 2018
Mr Michael Stirzaker
Non-Executive Director
Appointed 3 December 2018
Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.
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 $5,004,727 (2018: loss of $5,693,350).
Financial Position
The net assets of the Group have decreased by $1,354,599 from 30 June 2018 to $15,072,532 in 2019. The decrease is
largely due to an increase in current liabilities as at 30 June 2019.
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 Developments
Continued regional exploration; and
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.
25
Prodigy Gold Annual Report 2019
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 29 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), non-executive
chairman of Genesis Minerals Limited (since November 2018) and principal in various private resource investment
companies.
Mr Matthew Briggs
BSc Hons (Geol), Member AusIMM, Member AICD
Status: Not independent
Position: Executive Director
Qualifications and Experience:
Mr Briggs has more than 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), Deputy Executive
Chairman of APAC Resources Limited (since May 2016) and Non-Executive Director of Tanami Gold NL (since November
2018). Overall, Mr Smith has over 30 year’s international experience in the engineering, project development and
organisational change management.
Mr Michael Stirzaker
BCom, CA
Status: Not independent
Position: Non-Executive Director
Qualifications and Experience:
Mr Stirzaker has over 30 years’ commercial experience, mainly in mining finance and mining investment with KPMG, RFC
Group Limited, Tennant Metals and Finders Resources. In 2010, Mr Stirzaker joined the private equity mining fund
manager, Pacific Road Capital as a partner. Mr Stirzaker is currently non-executive director of Base Resources Limited and
Firestone Diamonds plc. Mr Stirzaker was appointed to the Board of Prodigy Gold on 3 December 2018.
26
Prodigy Gold Annual Report 2019
DIRECTORS’ REPORT
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 2019, and the number of meetings attended by each Director were:
Directors
Mr T McKeith
Mr M Briggs
Mr B Smith
Mr M Faul1
Mr M Stirzaker2
Board Meetings
Eligible to Attend
Attended
8
8
8
3
5
8
8
8
3
5
1 Mr M Faul resigned on 30 November 2018
2 Mr M Stirzaker joined the Board on 3 December 2018
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 Stirzaker
Fully Paid Ordinary Shares
Unlisted Options
2,158,586
500,000
175,000
-
7,000,000
11,000,000
1,500,000
-
27
Prodigy Gold Annual Report 2019
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.
The available Non-Executive Directors’ fees pool is currently $400,000. As at 30 June 2019 the Company utilised $60,000
(2018: $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:
Base salary and benefits
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.
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
28
Prodigy Gold Annual Report 2019
DIRECTORS’ REPORT
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 financial year with details provided in Note 15 and prior year options
continued to vest during the financial year ended 30 June 2019.
Performance Evaluation
There was no performance based cash 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 (refer to Note 15), 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
2015
2016
392,368
36,149,624
2017
180,138
2018
141,739
2019
168,037
11,202,318
21,616,759
7,012,190
5,693,350
5,004,727
0.250
-
0.065
-
0.095
-
0.087
-
0.089
-
The following persons were key management personnel of the Group during the financial year:
Key Management Personnel
Position
Commencement of Position
Mr T McKeith
Mr M Briggs
Mr B Smith
Mr M Faul 1)
Mr M Stirzaker
Non-Executive Chairman
Managing Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
27 June 2016
3 October 2016
9 May 2016
12 June 2017
3 December 2018
Ms J Zimmermann
CFO / Company Secretary
1 June 2005
1)
Mark Faul resigned on 30 November 2018.
29
Prodigy Gold Annual Report 2019
DIRECTORS’ REPORT
Details of Remuneration
Details of compensation for key management personnel (“KMP”) and Directors of the Group are set out below:
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
$
2019
Directors
Mr T McKeith
Mr M Briggs 4)
Mr B Smith
Mr M Stirzaker5)
Mr M Faul5)
54,795
315,000
-
-
-
Total Directors
369,795
Other KMP
J Zimmermann 4)
220,000
Total Other
Total
220,000
589,795
-
-
-
-
-
-
-
-
-
-
5,205
-
-
3,445
25,000
4,975
13,077
-
-
-
-
-
-
-
-
-
-
-
-
3,445
30,205
4,975
13,077
(1,675)
20,900
(1,675)
20,900
1,770
51,105
3,520
3,520
8,495
159
159
13,236
1)
2)
3)
4)
5)
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 15 in the consolidated financial statements).
Mark Faul resigned on 30 November 2018 and Mike Stirzaker was appointed director on 3 December 2018.
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
$
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
-
-
-
-
-
-
-
-
-
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)
30
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 15 in the consolidated financial statements).
Prodigy Gold Annual Report 2019
Proportion
of
Remune-
ration that
is at Risk
0%
3.6%
0%
0%
0%
0.1%
Total
$
60,000
361,497
-
-
-
421,497
242,904
242,904
664,401
-
-
-
-
-
-
-
-
-
Proportion
of
Remune-
ration that
is at Risk
51.0%
24.5%
0%
0%
0%
Total
$
122,401
475,442
-
-
597,843
253,745
253,745
851,588
-
-
-
-
-
-
-
-
DIRECTORS’ REPORT
Performance Bonuses
No discretionary cash performance bonuses have been granted to executive management for performance to 30 June
2019 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
Options valued at $159 were issued to one KMP and prior year options continued to vest during the financial year ended
30 June 2019. For further detail refer to Note 15.
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
Term of agreement – 3 year contract commencing 3 October 2016;
Base salary, inclusive of superannuation, $340,000 per year;
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;
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
Term of agreement – 2 year contract commencing 1 July 2012, contract extended automatically;
Base salary, exclusive of superannuation, $220,000 per year;
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;
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 to KMP’s as remuneration 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:
31
Prodigy Gold Annual Report 2019
DIRECTORS’ REPORT
Name
Mr T McKeith
Mr M Briggs
Mr B Smith 1)
Mr M Stirzaker 2)
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
-
140,000
-
-
1,331,996
3,198,865
-
-
-
-
-
-
-
431,717
500,000
35,000
-
-
669,149
1,635,866
-
-
-
-
-
-
-
2,158,586
500,000
175,000
-
-
2,001,145
4,834,731
1)
2)
Mr Smith is a nominee of APAC Resources Limited who are a substantial shareholder of Prodigy Gold.
Mr Faul (resigned 30 November 2018) was and Mr Stirzaker (appointed 3 December 2018) 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
-
-
-
-
-
550,000
550,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
7,000,000
11,000,000
1,500,000
-
-
1,550,000
21,050,000
Name
Mr T McKeith
Mr M Briggs
Mr B Smith
Mr M Stirzaker
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 15 to the financial statements for more information on options provided as part of remuneration to the
Directors and key management personnel.
Loans to Directors and Other Key Management Personnel
No loans to Directors and other key management personnel of the Group were provided in 2019 (2018: 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.
32
Prodigy Gold Annual Report 2019
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 were $28,181 (2018: $26,832) and are detailed in Note 13.
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:
all non-audit services have been reviewed by the Board to ensure they do not impact the impartiality and
objectivity of the auditor; and
none of the services undermine the general principles relating to auditor independence as set out in APES 110
Code of Ethics for Professional Accountants.
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 35.
Auditor
BDO Audit (WA) Pty Ltd 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 9th day of August 2019
Perth, Western Australia
33
Prodigy Gold Annual Report 2019
CORPORATE GOVERNANCE STATEMENT
In February 2019, the ASX Corporate Governance Council released a fourth edition of the ASX Corporate Governance
Council’s Principles and Recommendations (ASX Principles) which takes effect for an entity’s first full financial year
commencing on or after 1 January 2020. The Company will undergo a full review of its corporate governance policies
during the financial year ending 30 June 2020 and will continue to report under the third edition ASX Principles for
the current financial year.
The Group’s Corporate Governance Statement for the year ended 30 June 2019 (which reports against these ASX
Principles) may be accessed from the Company’s website at www.prodigygold.com.au/about-prodigy-
gold/corporate-governance.
34
Prodigy Gold Annual Report 2019
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 2019, 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
Director
BDO Audit (WA) Pty Ltd
Perth, 9 August 2019
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.
35 ANNUAL FINANCIAL REPORT
The financial statements of Prodigy Gold NL for the year ended 30 June 2019 were authorised for issue in accordance
with a resolution of the Directors on 9 August 2019 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 20.
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 21 and in the Directors’ Report on pages 25 to 33, 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
36
Prodigy Gold Annual Report 2019
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
38
40
41
42
43
44
59
60
63
37
Prodigy Gold Annual Report 2019
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 30 JUNE 2019
Revenue
Other income
Administrative expenses
Employee and Directors benefits expenses
Share-based payments
Depreciation expenses
Other expenses
Exploration expenses
Impairment of property, plant and equipment
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
Notes
2
3
3
3
3
7
4(a)
Consolidated
2019
$
168,037
1,650,410
(530,559)
(13,256)
-
(455,041)
(5,703,721)
(15,670)
(104,927)
2018
$
141,739
133,121
(498,778)
(178,670)
(15,981)
(493,332)
(4,781,449)
-
-
(5,004,727)
(5,693,350)
-
(5,004,727)
(5,004,727)
-
(5,693,350)
(5,693,350)
-
-
-
-
(5,004,727)
(5,693,350)
(5,004,727)
(5,693,350)
Basic and diluted loss per share attributable to the ordinary equity holders
of the Company
Basic and diluted loss per share (cents per share)
19
(1.09)
(1.45)
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the
accompanying notes.
38
Prodigy Gold Annual Report 2019
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2019
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
2019
$
2018
$
5
6
6
7
8
9
6,356,062
6,136,652
907,803
143,525
110,010
110,995
15,003
125,408
7,517,400
6,388,058
2,427,490
84,256
9,943,824
12,455,570
19,972,970
2,921,645
234,178
3,155,823
58,385
1,686,230
1,744,615
4,900,438
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
15,072,532
16,427,131
10
11(a)
176,027,723
172,403,391
3,336,136
3,310,340
(164,291,327)
(159,286,600)
15,072,532
16,427,131
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
39
Prodigy Gold Annual Report 2019
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Contribution from joint venturers
Expense re-imbursements from JV Partners
Payments to suppliers and employees (excludes payments for exploration)
Interest received
R&D uplift refund
Payments for exploration
Payments for JV Projects
Net cash (outflow) from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of property, plant and equipment
Net cash inflow from investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares
Placement / Refund of security deposits (cash-back)
Share issue costs
Net cash inflow from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Consolidated
Notes
2019
$
2018
$
1,500,000
1,944,348
(810,160)
177,270
-
3,679
-
(921,725)
138,105
71,069
(4,446,423)
(4,704,442)
(1,821,044)
(3,456,009)
-
(5,413,314)
-
-
58,374
58,374
3,692,155
6,044,353
51,087
(67,823)
3,675,419
219,410
6,136,652
6,356,062
101,346
(15,582)
6,130,117
775,177
5,361,475
6,136,652
18
5
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
40
Prodigy Gold Annual Report 2019
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2019
Contributed
Equity
$
Share-based Payment
Reserve
$
Accumulated
Losses
$
Notes
Total
$
166,374,620
3,088,991
(153,593,250)
15,870,361
-
-
-
-
-
-
(5,693,350)
(5,693,350)
-
-
(5,693,350)
(5,693,350)
10(a)
10(a)
15
6,044,353
(15,582)
-
6,028,771
172,403,391
221,349
221,349
6,044,353
(15,582)
221,349
-
6,250,120
3,310,340
(159,286,600)
16,427,131
-
-
-
10(a)
10(a)
15
3,692,155
(67,823)
-
3,624,332
176,027,723
-
-
-
-
-
25,796
25,796
(5,004,727)
(5,004,727)
-
-
(5,004,727)
(5,004,727)
-
-
-
-
3,692,155
(67,823)
25,796
3,650,128
3,336,136
(164,291,327)
15,072,532
Balance at 1 July 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 costs
Share-based payments
Total transactions with owners
Balance at 30 June 2018
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 2019
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
41
Prodigy Gold Annual Report 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019
CONTENTS OF THE NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1.
Segment Information
2. Other Income
3.
4.
5.
6.
7.
8.
9.
Expenses
Income Tax Expense
Cash and Cash Equivalents
Term Deposits and Other Receivables
Exploration, Evaluation and Development Expenditure
Trade and Other Payables
Provisions
10. Contributed Equity
11. Reserves
12. Financial Risk Management
13. Auditor’s Remuneration
14. Contingencies
15. Share-Based Payments
16. Related Party Transactions
17. Subsequent Events
18. Cash Flow Information
19. Loss per Share
20. Parent Entity Information
21. Subsidiaries
22. Company Details
23. Summary of Significant Accounting Policies
Page
43
43
43
44
45
46
46
47
47
48
49
49
52
52
52
54
54
55
55
56
56
57
57
42
Prodigy Gold Annual Report 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019
NOTE 1:
SEGMENT INFORMATION
Commencing 1 July 2018 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 2018 the Company additionally reported on the Mining and Processing segment.
NOTE 2:
OTHER INCOME
Contribution from joint venturers
Expense re-imbursements from JV Partners
Sale of Fixed Assets
R&D Refund
Other Income
NOTE 3:
EXPENSES
Employee and Directors’ benefits expense
Less: Amounts included in exploration expenses
Share-based payment expense
Less: Amounts included in exploration expenses
Depreciation expense
Less: Amounts included in exploration expenses
Exploration expenses:
Employee benefit expense
Share-based payment expense
Depreciation expense
Other exploration expenses
Consolidated
2019
$
1,500,000
64,567
-
85,843
-
1,650,410
2018
$
-
-
34,462
71,069
27,590
133,121
Consolidated
2019
$
2018
$
2,028,851
1,629,665
(1,498,292)
(1,130,887)
530,559
498,778
25,796
(12,540)
13,256
55,250
(55,250)
-
221,349
(42,679)
178,670
96,626
(80,645)
15,981
1,498,292
1,130,887
12,540
55,250
4,137,639
5,703,721
42,679
80,645
3,527,238
4,781,449
43
Prodigy Gold Annual Report 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019
NOTE 4:
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% (2018: 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
2019
$
2018
$
-
-
-
-
-
-
(5,004,727)
(5,693,350)
(1,376,300)
(1,565,671)
(23,607)
7,094
483
(19,544)
60,871
633
(1,392,330)
(1,523,711)
1,392,330
1,523,711
-
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
2,683,542
2,707,538
71,096
42,886
2,754,638
2,750,424
(2,754,638)
(2,750,424)
-
-
40,439,731
39,020,923
2,104,479
2,090,875
17,844
76,017
42,562,054
41,187,815
(2,754,638)
(2,750,424)
39,807,416
38,437,391
No deferred tax assets have been recognised as it is not probable that future tax profits will be available to offset these balances.
44
Prodigy Gold Annual Report 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019
NOTE 4:
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 or 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 5:
CASH AND CASH EQUIVALENTS
Cash at bank and in hand
Short-term bank deposits
Consolidated
2019
$
2018
$
4,106,062
2,250,000
6,356,062
1,146,652
4,990,000
6,136,652
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.
45
Prodigy Gold Annual Report 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019
NOTE 6:
TERM DEPOSITS AND OTHER RECEIVABLES
CURRENT
Trade receivables
Other receivables (Note 6(a))
NON-CURRENT
Bond term deposit and DPIR Cash Bonds
(a)
Other receivables
Consolidated
2019
$
2018
$
-
907,803
907,803
85,457
25,538
110,995
2,427,490
2,427,490
2,431,677
2,431,677
These amounts generally arise from transactions outside the usual operating activities of the Group and are predominantly receivables
from joint venture partners for expense re-imbursements. These amounts do not contain any past due assets that are not impaired and
therefore nil expected credit losses have been recognised for the year ended 30 June 2019 as considered insignificant.
Accounting Policy
The Group measures trade and other receivables at amortised cost, less any allowance for expected credit losses.
NOTE 7:
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
2019
$
2018
$
10,048,751
10,048,751
(104,927)
-
9,943,824
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 Exploration for and Evaluation of Mineral Resources, the area of interest is tested for impairment under AASB 136
Impairment of Assets. Upon establishment of commercially viable mineral resources, exploration and evaluation assets are tested for
impairment.
Accounting estimates and judgements
The Group undertook an assessment for impairment triggers of its exploration assets. Some non-core tenements were partially
surrendered and accordingly impaired on a simple area basis. The balances for the remainder of the exploration assets are considered to
be recoverable on the basis that the Group holds rights to tenure and has undertaken, and will continue to undertake, significant
exploration on the exploration assets. Following this assessment, the Group recognised an impairment charge to exploration and
evaluation expenditure totaling $104,927 (2018: $-).
46
Prodigy Gold Annual Report 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019
NOTE 8:
TRADE AND OTHER PAYABLES
CURRENT LIABILITIES (Unsecured)
Trade payables
Sundry payables and accrued expenses
Consolidated
2019
$
2018
$
1,846,559
1,075,086
2,921,645
172,237
498,956
671,193
Information about the Group’s exposure to liquidity risk is provided in Note 12.
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 9:
PROVISIONS
NON-CURRENT
Exploration and mine restoration
Movement in provisions
Consolidated
2019
$
2018
$
1,686,230
1,686,230
1,688,251
1,688,251
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
2019
$
2018
$
1,688,251
1,755,472
46,900
(48,921)
164,403
(231,624)
1,686,230
1,688,251
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.
47
Prodigy Gold Annual Report 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019
NOTE 9:
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 10:
CONTRIBUTED EQUITY
(a)
Ordinary Shares
Details
Opening balance
Share placement
Date
Number of Shares
Issue Price
$
Value
$
1 July 2017
15 March 2018
375,157,803
60,443,531
166,374,620
0.10
6,044,353
Transaction costs relating to share issues
Closing balance
30 June 2018
435,601,334
(15,582)
172,403,391
Share placement
14 December 18
45,026,272
0.082
3,692,155
Transaction costs relating to share issues
Closing balance
30 June 2019
480,627,606
(67,823)
176,027,723
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 2019 is 26,325,000 (2018: 24,000,000). For further details refer to Note 15.
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.
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.
48
Prodigy Gold Annual Report 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019
NOTE 11:
RESERVES
(a)
Reserves
Share-based payment reserve
Movements in reserves
Balance at 1 July 2017
Share-based payments expense
Balance at 30 June 2018
Share-based payments expense
Balance at 30 June 2019
Consolidated
2019
$
2018
$
3,336,136
3,336,136
3,310,340
3,310,340
Share-based
payment reserve
$
3,088,991
221,349
3,310,340
25,796
3,336,136
(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 12:
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.
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 2019 and assets are
managed with a mixture of short term and at call investments. All other receivables are non-interest bearing.
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:
49
Prodigy Gold Annual Report 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019
NOTE 12:
FINANCIAL RISK MANAGEMENT cont’d
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 2019
Financial Assets:
Cash and bonds
Receivables
2.10%
4,106,062
2,250,000
-
-
Total financial assets
4,106,062
2,250,000
Financial Liabilities:
Payables
Total financial liabilities
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
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6,356,062
907,803
907,803
907,803
7,263,865
2,921,645
2,921,645
2,921,645
2,921,645
-
6,136,652
110,995
110,995
110,995
6,247,647
671,193
671,193
671,193
671,193
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 2019, 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 $63,561 higher/$63,561 lower
(2018: $61,367 higher/$61,367 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 14 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.
50
Prodigy Gold Annual Report 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019
NOTE 12:
FINANCIAL RISK MANAGEMENT cont’d
Cash at bank
Bonds term deposit
Receivables
Bank guarantees
Liquidity Risk
Consolidated
2019
$
2018
$
6,356,062
2,427,490
907,803
2,427,490
6,136,652
2,431,667
110,995
2,431,667
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 2019
Non-derivatives
Non-interest bearing
2,921,645
Interest bearing
-
2,921,645
Total non-
derivatives
30 June 2018
Non-derivatives
Non-interest bearing
671,193
Interest bearing
-
Total non-
derivatives
671,193
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,921,645
2,921,645
-
-
2,921,645
2,921,645
671,193
671,193
-
-
671,193
671,193
51
Prodigy Gold Annual Report 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019
NOTE 13:
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 14:
CONTINGENCIES
Environmental
Consolidated
2019
$
2018
$
32,362
32,362
28,181
28,181
30,574
30,574
26,832
26,832
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 $2,275,504 (2018: $2,326,588) have been provided. Term deposits of $2,275,504 (2018: $2,326,588) and a
cash deposit of $46,900 with the Department of Primary Industry and Resources secure these guarantees. Per Note 9 a restoration
provision of $1,686,230 (2018: $1,688,251) has been recognised for all known required restoration costs.
NOTE 15:
SHARE-BASED PAYMENTS
During the financial year ended 30 June 2019, the Group granted 2,325,000 zero exercise price options (“ZEPO” or “Option”) as an
equity incentive to employees of the Company which were issued on 28 June 2019. The term of the ZEPO’s is 2 years for employees
employed for more than 1 year and 3 years for employees employed for less than 1 year. The final number of ZEPO’s vesting is at the
full discretion of the board and subject to employee KPI’s and Company performance criteria with the overriding KPI being environment
and safety and the secondary KPI’s being resource discovery and shareholder return.
The fair value of the ZEPO’s at grant date were determined using a Black-Scholes option pricing model that takes into account the
exercise price, the anticipated vesting period of the Option, the impact of dilution, the share price at grant date and expected price
volatility of the underlying Option, the expected dividend yield and the risk-free interest rate for the term of the Option.
Employee ZEPO’s
2 year ZEPO’s
3 year ZEPO’s
Number of ZEPO’s granted (issued as per Appendix 3B on the ASX)
Adjusted number of ZEPO’s (ZEPO’s estimated to vest)
Number of ZEPO’s vested
Fair value at grant date
Exercise price
Share price at grant date
Grant date
Exercise period
Vesting date (subject to option issue)
Expected price volatility of ZEPO’s
Risk free interest rate
2,050,000
250,000
NIL
$0.094
NIL
$0.094
21 June 2019
60 months
27 June 2021
110%
1.69%
275,000
25,000
NIL
$0.094
NIL
$0.094
21 June 2019
60 months
27 June 2022
110%
1.69%
52
Prodigy Gold Annual Report 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019
NOTE 15:
SHARE-BASED PAYMENTS cont’d
For the purpose of measurement the board estimated that 25% of ZEPO’s are likely to vest, that the anticipated vesting periods aligns
with the vesting periods communicated to the relevant staff member and that employees will only be entitled to their ZEPO’s if still
employed at the vesting date.
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.
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
3,000,000
$0.060
$0.122
$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
500,000
$0.069
$0.125
$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.
53
Prodigy Gold Annual Report 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019
NOTE 15:
SHARE-BASED PAYMENTS cont’d
Accounting estimates and judgements
Share-based payments are determined using a Black-Scholes option pricing model that takes into account the exercise price, the
anticipated vesting period of the option, the impact of dilution, the share price at grant date and expected price volatility of the
underlying option, the expected dividend yield and the risk-free interest rate for the term of the option.
When estimating the fair value of the options at measurement date, the Group adjusts the number of equity instruments included in
the measurement of the transaction amount so that ultimately the amount recognised is based on the number of equity instruments
that eventually vest. The Group uses the best available estimate of the number of equity instruments expected to vest at the end of
each reporting period.
Share-based payments expense reconciliation
Share-based payments expense:
Options (refer to Note 3)
Consolidated
2019
$
2018
$
25,796
25,796
221,349
221,349
NOTE 16:
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 32 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 17:
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.
54
Prodigy Gold Annual Report 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019
NOTE 18:
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 property, plant and equipment
Impairment of capitalised exploration expenditures
Share-based payments
Environmental bonding JV Partners
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 19:
LOSS PER SHARE
Consolidated
2019
$
2018
$
(5,004,727)
(5,693,350)
55,250
-
15,670
104,927
25,796
(46,900)
(796,807)
(128,522)
15,397
2,250,452
55,476
(2,021)
96,626
(58,374)
-
-
221,349
-
(87,120)
32,916
10,289
131,495
76
(67,221)
(3,456,009)
(5,413,314)
Consolidated
2019
$
2018
$
a)
Basic loss per share
Basic loss per share attributable to the ordinary equity holders of the Company
(1.09)
(1.45)
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
(5,004,727)
(5,693,350)
(5,004,727)
(5,693,350)
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
460,026,545
392,876,866
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/loss 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.
55
Prodigy Gold Annual Report 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019
NOTE 20:
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 23 and throughout.
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)
NOTE 21:
SUBSIDIARIES
Parent Entity
2019
$
7,517,399
12,455,571
19,972,970
3,155,823
1,744,615
4,900,438
2018
$
6,388,057
12,635,605
19,023,662
849,895
1,746,636
2,596,531
15,072,532
16,427,131
176,027,723
172,403,391
3,336,136
3,310,340
(164,291,327)
(159,286,600)
15,072,532
16,427,131
(5,004,727)
(5,693,350)
-
-
(5,004,727)
(5,693,350)
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with
Prodigy Gold’s accounting policies:
Equity Holding
2019
2018
%
Australia
Ordinary
-
%
-
Parent Entity
Prodigy Gold NL
Controlled entities
Rare Resources NL
Australian Tenement Holdings Pty Ltd
Australia
Ordinary
Australia
Ordinary
100
100
100
100
Investment
2019
$
2018
$
-
-
-
-
-
-
-
-
56
Prodigy Gold Annual Report 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019
NOTE 22:
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 23:
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 4 (Income Tax Expense), Note 7 (Exploration and Evaluation Expenditure) and Note
9 (Provisions).
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 20.
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
2019 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
57
Prodigy Gold Annual Report 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019
NOTE 23:
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES cont’d
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 and Amended Accounting Standards Adopted by the Group
A number of new or amended standards became applicable for the current reporting period and the Group has changed its accounting
policies as a result of the adoption of the following standards:
AASB 9 Financial Instruments; and
AASB 15 Revenue from Contracts with Customers.
The impact of the adoption of these standards and the new accounting policies are disclosed below. The impact of these standards, and
the other new and amended standards adopted by the Group, has not had a material impact on the amounts presented in the Group's
financial statements.
AASB 9 Financial Instruments - Impact of Adoption
AASB 9 replaces the provisions of AASB 139 Financial Instruments that relate to the recognitions, classification and measurement of
financial assets and financial liabilities, derecognition of financial instruments, impairment of financial assets and hedge accounting.
The adoption of AASB 9 from 1 July 2018 resulted in no material changes in accounting policies and adjustments to the amounts recognised
in the financial statements. The Company assessed which business models apply to the financial assets held by the Group and has classified
its financial instruments into the appropriate AASB 9 categories.
There was no impact on the amounts recognised in the financial statements as a result of adoption.
AASB 15 Revenue from Contracts with Customers - Impact of Adoption
The Group has adopted AASB 15 from 1 July 2018 which has no material impact to the amounts recognised in the financial statements.
(d)
New Accounting Standards for Application in Future Periods
Reference
Title
Nature of Change
AASB 16
Leases
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 2020
Application
Date of
Standard
Annual
reporting
periods
beginning on
or after 1
January 2020
Impact on the Group
Financial Statements
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.
58
Prodigy Gold Annual Report 2019
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 36 to 58 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 2019 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 9th day of August 2019
MATTHEW BRIGGS
Managing Director
59
Prodigy Gold Annual Report 2019
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 2019, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, 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 2019 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.
60 Recoverability of Exploration and Evaluation Expenditure
Key audit matter
How the matter was addressed in our audit
As disclosed in Note 7 of the financial report, the
Our procedures included, but were not limited to:
carrying value of capitalised exploration and evaluation
expenditure represents a significant asset of the group.
·
Obtaining a schedule of the areas of interest held
by the Group and assessing whether the rights to
Refer to Note 7 of the financial report for a description
tenure of those areas of interest remained
of the accounting policy and significant judgements
current at balance date;
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 judgement 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.
·
·
Assessing the ability to finance any planned
future exploration and evaluation activity;
Considering the status of the ongoing exploration
programmes in the respective areas of interest by
holding discussions with management, and
reviewing the Group’s exploration budgets, ASX
announcements and director’s minutes;
·
Considering whether any areas of interest had
reached a stage where a reasonable assessment
of economically recoverable reserves existed;
·
Considering whether there are any other facts or
circumstances that existed to indicate
impairment testing was required; and
·
Assessing the adequacy of the related disclosures
in Note 7 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 2019, 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.
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.
61 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 28 to 32 of the directors’ report for the
year ended 30 June 2019.
In our opinion, the Remuneration Report of Prodigy Gold NL, for the year ended 30 June 2019, complies
with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO Audit (WA) Pty Ltd
Wayne Basford
Director
Perth, 9 August 2019
62 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 6 August 2019.
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
673
1,108
733
1,319
322
4,155
(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
95,880,809
19.95
APAC Resources Limited & Allied Properties Investments (1) Company
Limited
Independence Group NL
St Barbara Limited
Craton Capital Precious Metal Fund
(d)
Voting rights
The voting rights attached to each class of equity security are as follows:
Ordinary shares
59,067,914
49,254,285
47,110,000
26,000,000
12.29
10.25
9.80
5.41
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.
63
Prodigy Gold Annual Report 2019
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
95,880,809
59,317,381
49,254,285
47,110,000
31,403,436
9,602,992
8,565,701
8,533,334
4,000,000
3,000,000
2,114,000
2,000,000
2,000,000
1,964,629
1,956,145
1,846,086
1,777,597
1,732,761
1,500,000
1,422,306
19.95
12.34
10.25
9.80
6.53
2.00
1.78
1.78
0.83
0.62
0.44
0.42
0.42
0.41
0.41
0.38
0.37
0.36
0.31
0.30
334,981,462
69.70
Name
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
PACIFIC ROAD CAP MGNT PL
NATIONAL NOM LTD
ZERO NOM PL
ST BARBARA LTD
J P MORGAN NOM AUST LTD
CITICORP NOM PL
BNP PARIBAS NOMS PL
PERTH SELECT SEAFOODS PL
SOUTHERN CROSS CAP PL
NORDSTROM STEPHEN GARTH
AKTIENGESELLSCHAFT D U
PASAGEAN PL
FRESHWATER RES PL
HSBC CUSTODY NOM AUST LTD
JUTTA Z PL
16. MCKEITH THOMAS DAVID
17.
18.
19.
20.
REXFAM TRADING PL
DOBBIN ANGELA
JEPS NOM PL
AKTIENGESELLSCHAFT D B
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
64
Prodigy Gold Annual Report 2019
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 26,325,000 unlisted options, which were issued to a total of 10 holders under the terms and conditions of the
Company’s Employee Share Option Plan.
Option Holders
Matthew Briggs
Thomas McKeith
7.
On-Market Buy Back
The Company does not have a current on-market buy back.
Number of Unlisted
Options
% Held of Unlisted
Options
11,000,000
7,000,000
41.79%
26.59%
65
Prodigy Gold Annual Report 2019
Level 1, 141 Broadway, Nedlands WA 6009
www.prodigygold.com.au