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De Grey Mining Limited2021
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
Automic Group
Level 2, 267 St Georges Terrace
PERTH WA 6000
Telephone: 1300 288 664
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
2
Prodigy Gold Annual Report 2021
CONTENTS
Chairman’s Report
Managing Director’s Report – Review of Operations
Summary of Mining Tenements and Areas of Interest
Directors’ Report
Corporate Governance Statement
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and Other
Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report to the Members
Additional Information for Listed Public Companies
Page
4
5
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35
44
45
48
49
50
51
52
71
72
76
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Prodigy Gold Annual Report 2021
MESSAGE FROM THE CHAIRMAN
Dear Shareholder,
The reason there is such a
great opportunity for
discovery in the Northern
Territory is the challenge of
working there. This means
the intensive exploration
that has been conducted in
Western Australia, Victoria and New South Wales has
not been applied in the Tanami and adjacent mineral
provinces. Over the last year the Company has worked
through periods of time with limited access to the
majority of our tenure, frequent travel restrictions
across state borders, supply chain disruptions.
Notwithstanding the challenges Prodigy Gold completed
quality exploration programs across its projects, ensured
the health and safety of its employees and local
communities, and, managed the cost pressures
efficiently. Entering the new financial year, the
Company is optimistic that restrictions due to the
pandemic will reduce and a clear exploration strategy
aimed at delivering value to shareholders will be
executed. Financial stimulus by governments to bolster
the pandemic affected economies together with
effective vaccine rollout is fuelling strong demand for
most metals.
Through perserverance and robust relationships with
key local stakeholders Prodigy Gold together with its
joint venture partners IGO Limited and Newmont
Corporation is the leading greenfields explorer in the
Tanami.
During the year the Company re-examined its strategy to
realise the potential of its landholding and its top class
exploration team. The Company reviewed numerous
drill-ready opportunities in Western Australia however
the robust market for gold projects has made finding
value opportunities difficult. The Company will continue
to review projects and maintain its focus to identify
quality opportuntities that will provide value to
shareholders.
The Board would like to sincerely recognise and thank
Managing Director Matt Briggs and the team for their
extraordinary hard work in what proved to be very
difficult circumstances.
Highlights for the year include:
keeping our team safe and supporting our
local communities during the COVID-19
restrictions;
the discovery of a third copper gold deposit on
the Lake Mackay JV;
4
commencement of study work at Buccaneer,
including diamond drilling to obtain samples
for communition and column leach testwork;
numerous reviews of projects in Western
Australia;
completion of drilling programs in the North
Arunta and Reynolds Range Projects;
completion of drilling programs at the West
Bonanza and Bluehart Prospects;
commencement of drilling at the PHD Target
on the Hyperion Project for the first time since
the target was acquired; and,
Inaugural Sustainability and ESG reporting.
In addition to increasing work on the 100% owned
targets, the Company looks forward to continuing work
with its joint venture partners IGO Limited, at the Lake
Mackay Project, and Newmont, at the Tobruk Project.
Davidson Gold continue to progress mining studies to
bring the Old Pirate Project back into production under
the operator agreement.
Prodigy Gold and its partners are committed to
environmentally responsible exploration and
rehabilitates disturbances on an ongoing basis. The
team has worked to increase the transparency of its
environmental, social and governance reporting and
remains committed to our values.
On behalf of the Board I would like to again thank the
team for its drive and focus in delivering the strategy
and look forward to supporting them with renewed
energy and effort. I would also like to thank my fellow
Directors for their support and strategic guidance over
the last year.
And lastly, as always, the Board would like to thank our
valued shareholders for your support and look forward
to rewarding you through discovery. On behalf of the
Board I am pleased to present you with the Company’s
2021 Annual Report. I am optimistic that 2022 will
present fewer challenges and that the strategy of the
Company will deliver exceptional results.
T H O M A S M C K E I T H
Prodigy Gold Annual Report 2021
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
EXPLORATION
Strategy & Target Generation
Prodigy Gold continues to systematically explore the Company’s 100%-owned project portfolio with aircore, reverse
circulation (“RC”) and diamond drilling to screen for new large scale gold deposits analogous to the 14Moz Callie Gold
Mine in the Tanami.
During the year, Prodigy Gold completed a considerable amount of exploration work across key targets, with results
received from these programs providing significant technical insight into these targets and helping to refine future
exploration campaigns.
Early during FY21, drilling commenced in the North Arunta and Tanami regions of the Northern Territory. The campaign
comprised 195 aircore holes which were designed to test seven targets across three prospects. Targets drilled included
the first bedrock testing of a historic BLEG Au target at the Tulsa Prospect and several structural targets at the Bonanza
West Prospect highlighted in a previously completed prospectivity analysis.
Following the completion of drilling at North Arunta, Prodigy Gold’s exploration focus shifted to the highly prospective,
yet underexplored, Reynolds Range Project. Initial exploration, led by a moving loop electromagnetic (MLEM) survey,
successfully identified a large, strong 2km EM conductor at the Scimitar Target which was coincident with a large scale
3km copper, lead, zinc, silver, gold and arsenic anomaly. A follow-up exploration program to further investigate the
Scimitar Target was subsequently completed and included a 400m diamond drillhole which was co-funded by the NT
Government as part of the Resourcing the Territory Initiative.
Prodigy Gold maintained its focus on the Reynolds Range Project area throughout the remainder of FY21, with a strategic
RC drilling program undertaken to test the Reward, Scimitar, and Sabre Targets.
A 151m HQ diamond hole was completed at the Buccaneer Deposit to produce samples for heap leach study work and
crushing cost estimation.
Reynolds Range continues to advance as an exciting copper-gold opportunity, and testing of several areas of interest,
including the Reward EM Target located down plunge of a historic copper mine that averaged 11% Cu, is required.
Encouraging progress continued at the Lake Mackay JV Project with IGO Limited (ASX: IGO). A key focus during the year
was on drill testing several targets prospective for nickel-cobalt, copper-gold, and gold mineralisation. A highlight was the
intersection of exceptional high-grade copper mineralisation at the Phreaker Prospect. Drilling at Phreaker has now
defined copper, gold and silver mineralisation over 650m strike and 430m vertically, with mineralisation open along strike
and down dip.
The Tobruk JV was slow with meetings to allow access and heritage clearances delayed due to COVID-19 control
measures. In spite of this Newmont completed airborne geophysics and geochemical sampling, in particular over the
north of the project area.
Prodigy Gold enters FY22 with solid momentum and a clear near-term focus across several targets within the Hyperion
and Tanami Project areas. Further work will also focus on advancing the Company’s heap leach processing scenario for
the Buccaneer Resource.
COVID-19 Impacts on Exploration
COVID-19 measures and considerations were a constant consideration during FY21 and continue to raise challenges in
regards to the availability of staff, contractors and supplies. The Company does its upmost to mitigate coronavirus
transmission to Traditional Owners and ensure health protocols for remote communities are in place.
Prodigy Gold has implemented and frequently reviews its robust COVID-19 management plan, which has allowed the
Company to continue undertaking exploration work across several priority targets. The Company continues to monitor
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Prodigy Gold Annual Report 2021
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
the COVID-19 situation and ensures staff and contractors comply with all government and Central Land Council
directions.
Figure 1 - Prodigy Gold project areas, gold deposits, and major infrastructure
Figure 2 - Prodigy Gold Projects
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Prodigy Gold Annual Report 2021
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
100% PRODIGY GOLD PROJECTS
Refined Near-Term Priority Targets – Future work for FY2022
Reynolds Range Project – Reward Copper Gold Prospect
Post FY21-end1, the Company commenced and completed a 260m diamond drillhole to test a 400m long EM conductor
located 350m to the southeast of the historic Reward Copper Mine that averaged 11% Cu2.
Further details on the Prospect are located in the “Exploration Work undertaken during FY2021” section of this report.
Figure 3 - Matt Briggs inspecting core at diamond drilling completed at the Reward Target, July 2021
1 ASX: 26 July 2021
2 Refer to cautionary statement on page 30
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Prodigy Gold Annual Report 2021
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Hyperion Project
The area of interest is underlain by sequences belonging to the favourable Tanami Group. It is poorly exposed, with the
majority of the geology interpreted from regional magnetics and limited drilling. Localised outcrop that occurs on the
PHD and Tregony Prospects has been the focus of historic exploration.
Five existing deposits (Figure 15) are known along the Suplejack Fault, the major structural control of the project:
Groundrush Deposit (10.5Mt @ 3.3g/t Au for 1.129Moz3 - 60% Tanami Gold, 40% Northern Star) is located 42km
to the south with the same NW trend as PHD;
Hyperion Deposit (4.93Mt @ 1.95g/t Au for 310koz above a 0.8g/t cut off - 100% Prodigy Gold) located 27km to
the south;
Crusade Deposit (1.4Mt @ 2.6g/t Au for 119koz3 - 60% Tanami Gold, 40% Northern Star) is located 22km to the
northeast;
Ripcord Deposit (1.1Mt @ 2.5g/t Au for 89koz3 - 60% Tanami Gold, 40% Northern Star) is located adjacent to the
Groundrush Deposit);
The Tregony Deposit (~0.64Mt @ 3.02g/t for 62.7koz4 ounce deposit (JORC 2004), 100% Prodigy Gold) is located
11km to the east of the Suplejack Fault and forms part of the Hyperion Project.
PHD Gold Target
PHD is an 11km soil gold anomaly within the Hyperion Project, located 30km northwest of the existing 4.93Mt @ 1.95g/t
310koz gold resource5 and 40km north of Northern Star’s 1.1Moz Groundrush Resource. Shallow RC drilling by previous
owner Ord River Resources in 2005 and 2006 defined gold within two zones over 3.5km of strike at PHD. Sampling along
strike of the historic anomalism extended the soil gold anomaly over the structure to 11km in length. Airborne magnetic
surveying completed in 2019 highlighted the extensions of the structure along strike and the potential for parallel
structures.
Figure 4 - Diamond drilling at PHD Gold Target, August 2021
3 2020 Tanami Gold Annual Report
4 ORD ASX: 22 November 2012 (see cautionary statement on page 30)
5 ASX: 31 July 2018
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Prodigy Gold Annual Report 2021
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Post FYH21-end6, Prodigy Gold completed a 80 hole aircore drilling program at the PHD Gold Target (“PHD”), located
within the Company’s Hyperion Project in the Northern Territory on a 1,000 line-spacing along 7km of strike.
Following completion of this initial program of aircore drilling, Prodigy Gold commenced to test the most prospective
parts of the PHD structure with a 241m diamond drillhole co-funded by the NT government as part of the “Resourcing
the Territory” initiative7. Additional programs will be considered following the receipt of assay results.
Tregony Deposit
The Tregony Project falls within the same structural trend that includes the Groundrush (1.1Moz Au), Hyperion (310koz
Au), and Crusade (119koz) deposits. Ord River completed prefeasibility studies on a JORC 2004 gold resource following
diamond drilling in 2012.
The Tregony Deposit (~0.64Mt @ 3.02g/t for 62.7koz8 ounce deposit (JORC 2004), 100% Prodigy Gold) is located 11km to
the east of the Suplejack Fault and forms part of the Hyperion Project. The deposit consists of what appear to be shallow
dipping quartz vein arrays within the Killi Killi Formation with some exceptionally high historic gold grades including
3m@106.3g/t Au, 1.7m@64.2g/t Au, and 3m@44.6g/t Au.
Figure 5 - Tregony cross section 7860,220mN showing the interpreted stacked vein sets and historic high-grade results
6 ASX: 19 July 2021
7 ASX: 11 August 2021
8 ORD ASX: 22 November 2012 (see cautionary statement on page 30)
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Prodigy Gold Annual Report 2021
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
The first and only systematic exploration to occur over the tenement was completed by AngloGold Ashanti (AGA) and
Acacia Resources between 1995 – 2000, following up on work (soils, rock chip and limited post hole campaigns)
completed by Messenger and Dominion Mining in the early 1990’s. AGA’s strategy involved a first phase of regional soils
and/or shallow VAC holes, with anomalous areas quickly followed up on with a second phase of shallow RAB drilling
combined with several regional stratigraphic traverses. With this strategy they discovered the Tregony Deposit and
identified several prospects.
The Company has been relogging diamond drillholes and is planning drilling to assess the scale potential of mineralisation
at Tregony.
Buccaneer Project
During FY22, the Company intends to build on study work undertaken during FY21. This study work was completed due to
the sustained elevated gold price and has demonstrated the heap leach processing route warrants further investigation.
While the lower operating cost of heap leaching can reduce the cut-off grade, and increase reported tonnages and
contained metal, the focus of the study seeks to identify the project scenario that generates the highest value (cashflow
and return on capital).
Future work planned includes geotechnical drilling to refine slopes used in pit optimisations, metallurgical samples for
crush size/metal recovery optimisation and column leach testwork. Further details on work undertaken during FY21 on
Buccaneer studies is located in the “Exploration Work undertaken during FY2021” section of this report.
Project Divestment
To address the costs associated with maintaining the Company’s large land holding and to better focus exploration activities,
the Company continues to actively seek to reduce its tenure costs through joint venture and divestment. A number of
exploration licences were reduced in size, and applications withdrawn following a review of prospectivity and holding costs.
Assessment of Western-Australian Projects
With ongoing exposure to pandemic related lockdowns and extended timeframes for permitting in the Northern
Territory, the Company is continuing due diligence on projects in Western Australia.
Exploration Work undertaken during FY2021
Reynolds Range Project
The Reynolds Range Project is accessed from the Stuart Highway 90km north of Alice Springs. Proximity to infrastructure
is good, with targets located between 20km and 120km off the NT highway, railway line (Ghan) and the NT gas pipeline.
Figure 6: Drilling at Reynolds Range, April 2021
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Prodigy Gold Annual Report 2021
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
This project has excellent access and is located on pastoral lease. Prodigy Gold has negotiated access and permits to the
land. The Project comprises three exploration licences, EL23655, EL23888 and EL28083. All activity in the current
program is located on EL23888, wholly owned by Prodigy Gold.
In May 2021, Prodigy Gold reported the completion of 11 RC holes for 1,549m at the Reward, Scimitar, and Sabre Targets
with results announced post FY21-end9. A detailed review of all recent and historical data is currently underway before
any follow-up exploration plans are finalised.
Figure 7: Reynolds Range targets
Reynolds Range Exploration
Reward Prospect
Reward is considered prospective for copper, gold and silver mineralisation and has some shallow copper oxide workings
from the 1950’s era and abundant malachite, azurite and chalcocite occurs associated with a brecciated shear zone and
sulphidic sediments. This style of polymetallic mineralisation has similarities to the nearby Jervois Deposit, 350km to the
east, which hosts 0.43 Mt copper and 21.4 Moz silver, 0.16 Mt lead/zinc and 176 koz Au10.
RC and AC drilling under the Reward workings by McMahon Construction11 in 1988 returned 4m at 1.4% Cu, 71.2g/t Ag,
1.2g/t Au and 1.8% Zn from 16m (hole I, Figure 8); and 6m at 2.10g/t Au from 15m (hole C, Figure 8). This historic assay
data should be treated with caution as no original data records are available. Confirmatory rock chip and soil sampling by
Prodigy Gold in the vicinity of the workings returned results including >20% Cu, 200g/t Ag and 2g/t Au12 supporting the
original drill results and the presence of these metals in system.
9 ASX: 14 July 2021
10 ASX KGL: 2 December 2020
11 Report on E.L. 5288 Program and Expenditure for Year 1 23.10.1987 to 22.10.1988 CR89/007
https://geoscience.nt.gov.au/gemis/ntgsjspui/bitstream/1/65942/1/CR19890007.pdf
12 ASX: 13 May 2010
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Prodigy Gold Annual Report 2021
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
An EM survey by Prodigy Gold indicated a conductor 50m below the surface and 400m long located 350m to the
southeast of the Reward workings. The Prospect was opportunistically drilled with a single RC hole (RWRC2101 Figure 8)
in May 2021 while RC drilling was completed on other targets at Reynolds Range. Subsequent downhole EM completed
on the RC hole defined a high priority off-hole conductor. Subsequently13, the Company commenced a 260m diamond
drillhole to test a 400m long EM conductor located 350m to the southeast of the historic Reward Copper Mine that
averaged 11% Cu14.
Figure 8 -Map of Reward showing historic mine workings with best assay results, EM plate to the south and July 2021 diamond hole15
Sabre Prospect
The Sabre Prospect is part of the 14km long Stafford Gold Trend and contains shallow gold workings associated with the
Lander Shear Zone. RAB drilling and surface sampling defined gold mineralisation over 500m of strike and there is
evidence of antimony also being intersected in the area. Previous RC and diamond drilling intersected high-grade gold
mineralisation in weathered rocks. The last RC drilling, which was completed in 2010, includes results of 17m @ 3.93g/t
Au16, 26m @ 2.73g/t Au and 24m @ 2.59g/t Au17. This program confirms the presence of two subparallel zones of
mineralisation.
Seven RC holes for 1,081m were completed during the June 2021 quarter at the Sabre Prospect. The program at Sabre
drilled the plunge extension of the oxide mineralisation (3 holes), the direct extension 100m to the south of previous RC
drilling (2 holes), and drill traverse 480m along strike to the south of previous RC drilling. These most southern 2 RC holes
drilled under gold anomalism previously intersected in RAB drilling.
13 ASX: 26 July 2021
14 Refer to cautionary statement on page 30
15 ASX: 13 May 2010
16 ASX: 24 May 2010
17 ASX: 18 January 2010
12
Prodigy Gold Annual Report 2021
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Figure 9 - Sabre drilling plan highlighting significant results from 2021 drilling at Reynolds Range18.
Drilling successfully extended the historically defined significant gold mineralisation trend at Sabre by over 450m with
mineralisation remaining open - best results include19:
23m @ 0.6g/t Au including 7m @ 1.5 g/t Au (SBRC2101)
15m @ 0.4 g/t Au (SBRC2102)
3m @ 0.7 g/t Au (SBRC2103)
5m @ 0.5 g/t Au (SBRC2104)
18 Historical results (black background) ASX: 18 January 2010
19 ASX: 14 July 2021
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Prodigy Gold Annual Report 2021
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Scimitar Prospect
The Scimitar Au-Cu Prospect is a 1.5km long north-south trending high-grade Cu-Au soil and rock chip anomaly and forms
part of the Reynolds Range Project. Au-Cu anomalism is associated with surface quartz veining and alteration halo
including malachite.
In October 2020 the Company undertook a moving loop electromagnetic (MLEM) survey over the Scimitar Target.
Detailed mapping identified evidence of Cu mineralisation at surface within a 3km long geochemical anomaly.
Of 127 surface samples collected in late 2020, 39 returned significant anomalism of up to 7.5g/t Au, 1,950g/t Ag, 19.3%
Cu, and 21.3% Pb (Figure 10)20. Within the larger 3km long geochemical anomaly, separate Cu-Au and Ag-Pb zonation is
observed. Elevated Cu-Au rock chips are exposed for 1.5km in a north-south trend, where east-west structures are
exposed on a topographic high.
Figure 10 - Lag and rock chip Cu, Pb, Zn, Ag and As anomalism coincident with the Scimitar EM Conductor. Modelled EM plates targeted
for diamond drilling are also shown in the centre of the anomalies. Highlight results are labelled.20
A 400m diamond drillhole, co-funded by the Northern Territory Geological Survey (‘NTGS’) as part of the Resourcing the
Territory initiative, was designed to confirm a base metal association with the 2km long southwest dipping MLEM
conductor, located in the center of the geochemical anomaly21.
Results from the co-funded drillhole22 correlate with sulphidic sediments intersected in the hole, however the source of
the high-grade Cu and Au soil and rock chip anomaly (1km long) was not confirmed by this hole.
During 2021, three RC holes were completed to test the bedrock source of this anomaly at the southern end of the
prospect. While quartz veining and trace sulphides have been intersected in the 3 holes drilled, no clear source of the
elevated results at surface has been identified23. Narrow intervals of low-grade copper mineralisation were intersected in
all three holes. The project does not appear to demonstrate the scale potential required.
20 ASX: 24 November 2020
21 ASX: 16 November 2020
22 ASX: 29 January 2021
23 ASX: 14 July 2021
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Prodigy Gold Annual Report 2021
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Figure 11 – Samples containing malachite (green) at the Scimitar Target indicating the presence of copper.
North Arunta Project (PRX 100%)
The North Arunta Project covers ~3,190km² of exploration licences which are 100% owned by Prodigy Gold. The project
consists of a 200km long gravity trend with associated metamorphosed sedimentary rocks, dolerite intrusions and large
granite intrusions.
The region has several known mineral occurrences including gold, copper, nickel, zinc, tin and tantalum. The project is
well serviced with infrastructure and is located close to the Stuart Highway, the Ghan Rail Line, and the Northern
Territory Gas Pipeline. Many targets previously identified by Newmont remain undrilled.
Table 1 - Summary of 100% owned North Arunta Project Targets24
Prospect
Target Anomaly
Best Historic Results
Target
Harrison
4.2km by 1km
Au-in-soil
Eleanor
Lennon
Waldron’s
6km by 4km
Au-As-in-soil
7km by 3km
Au-Cu-Mo-in-soil
4km by 1.5km
Au-As-Sb-Mo-Ag-Cu
12m @ 1.03g/t Au from 36m
incl 4m @ 2.27g/t Au from 36m
20m @ 0.7g/t Au from 28m
incl 4m @ 2.67g/t Au from 40m
untested by drilling
untested by drilling
historical workings with rock chips up to 15g/t Au,
and historical drilling results of
1m @ 29.5g/t Au, 7m @ 1.5g/t Au, 2m @ 4.4g/t
Au
Mineralisation untested for 1,200m
west of 4m @ 2.27g/t Au result
untested by drilling
untested by drilling
Previous drilling too shallow to
effectively test potential
Tulsa
Kroda
5km x 3km Au-in-soil untested by drilling
untested by drilling
400m strike >1g/t Au
including a shoot of
50m+ at >5g/t Au
57m @ 3.8g/t Au and 6m @ 26g/t Au
Depth extensions and additional shoots
on strike
24 ASX GLA: 7 March 2018, 18 June 2018, ASX PRX: 19 March 2013
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Prodigy Gold Annual Report 2021
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Figure 12 - North Arunta Prospects on 1vd magnetic image.
Tulsa Target
The Tulsa Target is located within a regional NW-trending structural corridor. Tulsa was a priority target based on highly
anomalous soil geochemistry.
Furthermore, it is along strike from the Kroda deposit 17km to the south east. Although the rocks at Tulsa are slightly
younger, they remain highly prospective for both intrusion hosted and orogenic gold mineralisation. Regional
reconnaissance aircore drilling was completed to test the interpreted extension of the mineralisation seen along the
Kroda trend.
During the reporting period drilling was completed on 7 lines testing the full 5km strike length of the 5km x 3km soil gold
anomaly. A 28 hole (1,551m) aircore drill program successfully tested the extension of the favourable horizon that hosts
the Kroda Project. This horizon, defined by arsenic anomalism of over 50ppm, was intersected on 4 lines extending for
over 4.4km. Gold anomalism was intersected in a single hole with best result of 3m @ 0.15g/t Au from 48m in
TSAC2002525. The absence of a large scale bedrock gold or pathfinder multi-element anomaly has downgraded this
target.
Bonanza Project (PRX 100%)
The Tanami Region is host to multiple 1Moz+ gold deposits (Figure 13). The Company is using broad spaced RAB and
aircore drilling to screen for the alteration and geochemical footprints associated with large scale deposits. Drilling is
prioritised on targets with the same rocks as the known gold deposits, occurring in similar structural settings.
Bonanza West Prospect
The Bonanza West Prospect is located to the west of the Old Pirate Gold Mine and Buccaneer Gold Deposit. The majority
of the prospect area was not previously drill tested, although soil sampling was conducted over most of the region.
Previous surface sampling campaigns across the targets have generated significant surficial gold and arsenic anomalies.
Only portions of the existing surface anomalies had follow up drill-testing via vertical vacuum or RAB drilling. These
shallow drilling techniques often failed to penetrate the cover sequence or the leached/depleted zone and where this has
occurred, these techniques are not considered effective.
25 ASX: 7 October 2020
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Prodigy Gold Annual Report 2021
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Figure 13 - Tanami Target areas
During the September 2020 quarter, Prodigy Gold completed aircore drilling of 110 holes for 9,288m at the Bonanza West
Prospect testing three target areas. The areas drilled include the Beluga Target, a 3.5km long soil gold anomaly, and two
structural targets.
The best result from this round of drilling returned an intersection of 1m @ 0.27g/t Au from 107m in hole BZAC20012026.
The result is associated with a highly silicified fine grained sandstone with quartz veinlets within a shear. The drill result is
50m to the southeast of a historic (1998) rock chip sample of 0.11g/t Au. Adjacent drilling does not appear supportive of
a large scale gold system in this location. Surface gold enrichment at Beluga has failed to extend into bedrock and does
not warrant further work at this time.
Bluehart Prospect
The Bluehart Prospect is located 53km along strike of the 14Moz Callie Gold Mine (Figure 13) and is associated with a
1,000m long high-grade soil and rock chip gold anomaly.
Bluehart is associated with a northwest trending splay off the Trans-Tanami Fault Zone, similar to Callie. This northwest
splay is coincident with soil and rockchip gold anomalism. Similar to the Callie deposit, sinistral shearing and east-west
aligned anticlines are present within the three target areas at Bluehart with graphitic reduced sediments mapped in
outcrop.
Aircore drilling, comprising 57 holes for 1,869m, was completed in the second half of 2020, testing three targets at the
Bluehart Prospect. Low level gold results with no significant assays were returned from the aircore program27. The
thickness of Dead Bullock Formation, the target stratigraphic horizon, is thinned in the area limiting the potential for gold
deposits of the scale targeted by the Company.
26 ASX: 7 October 2020
27 ASX: 14 January 2021
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Prodigy Gold Annual Report 2021
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Buccaneer Resource – Heap Leach Study Work
The Buccaneer Resource is currently estimated to be 10Mt @ 1.8g/t Au for 585koz above a 1g/t cut-off grade28. The
resource cut-off grade is based on processing at a mill the scale of Northern Star’s Central Tanami JV Processing Plant or a
similar mill built on the Twin Bonanza Mineral Lease.
Gold mineralisation is disseminated within a monzogranite intrusion, and typically associated with quartz veins, visible
gold is seen in the quartz stockwork veining. Mineralisation extends from near surface to a depth of over 500m and has
been defined in several zones over an area of 2,200m by 800m. The deposit remains open at depth, and aircore and RAB
drilling suggest the potential for further strike extensions.
Studies undertaken during FY21 have evaluated a heap leach processing scenario for the Buccaneer Deposit. When the
type of mineralisation is appropriate, heap leaching is a simple, low-cost process that can result in significant savings in
capital expenditures and operating costs, which can significantly improve a project's economics. Deep weathering in the
Tanami results in softer weathered rocks, and sulphide is often completely oxidised up to 100m below surface.
A 151m diamond hole was completed during the year to provide samples for unixial compressive strength (UCS), crushing
work index (CWi), and abrasiveness index (Ai) testwork. This testwork gives an indication of the energy required to crush
the rocks, and abrasiveness. These factors and the cost of energy generation are major cost drivers for heap leach
processing and to be included in ongoing studies.
Figure 14 - HQ diamond core from BCDD2101 containing quartz veining with sulphide and visible gold in altered monzonite at 92m
downhole
The completed diamond hole29 intersected 27m of strong mineralisation from 91m to 103m and 120m to 135m including
visible gold, quartz veining, pyrite, arsenopyrite, hematite and epidote (Figure 14). Prodigy Gold reported positive
comminution results, with planning for follow-up work well advanced.
28 ASX: 1 September 2017
29 ASX: 20 May 2021
18
Prodigy Gold Annual Report 2021
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Hyperion Gold Project (PRX 100%)
The Hyperion Project is located 19km to the north of the 1.1Moz Groundrush Pit (Figure 15) and 58km to the northeast
of the Central Tanami Processing Plant. The area has historically received sporadic shallow drilling.
The Hyperion gold camp contains an indicated and inferred resource of 4.93Mt at 1.95g/t Au for 310koz30. As part of its
broader exploration strategy, Prodigy Gold is focused on growing the existing resource base at Hyperion and progressing
the discovery of new standalone projects.
During the year the Company engaged a structural geologist to complete a review of the Hyperion Resource
interpretation and to build a predictive interpretation of the area. The study supported the targets and priority in the
Company’s target ranking matrix. The project shows potential for discovery of open pit and underground resources. The
focus is currently the north of the Hyperion Project at PHD and Tregony in an area that has shallow scale and high-grade
discovery potential.
Figure 15 - Hyperion Project location on 100% owned Tenements.
30 ASX: 31 July 2018
19
Prodigy Gold Annual Report 2021
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
PHD Target
PHD is an 11km soil gold anomaly within the Hyperion Project, located 30km northwest of the existing Hyperion gold
resource. Shallow RC drilling by previous owner Ord River Resources in 2005 defined gold within two zones over 3.5km of
strike at PHD. Sampling along strike of the historic anomalism extended the soil anomaly over the structure to 11km in
length. Airborne magnetic surveying completed in 2019 highlighted the extensions of the structure along strike and the
potential for parallel structures.
In November 2020 sampling and mapping was undertaken in preparation for the planned aircore drilling program. A total
of 147 samples were collected on an irregular 600x50m spacing infilling areas not previously sampled along strike of
previous RC drilling. Soil sampling results support the continuity of the anomaly interpreted from airborne magnetics data
(Figure 16)31.
Figure 16: 1VD aeromagnetic image of the PHD Target showing recent surface sampling (opaque) and previous surface sampling
(transparent) (left image); the main PHD gold anomaly and existing drilling with planned AC traverses (right image).
31 ASX: 14 January 2021
20
Prodigy Gold Annual Report 2021
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
JOINT VENTURE PROJECTS
Joint Venture Portfolio Overview
Project
Lake Mackay (Cu-Au, Ni-
Co and Orogenic Au
potential)
JV Partner
IGO (IGO: ASX)
JV Terms
IGO 70% / PRX
30%
Euro Gold Project
Newcrest (NCM: ASX)
Tobruk Gold Project
Newmont Exploration
Pty Ltd, a wholly
owned subsidiary of
Newmont Corporation
(NEM. NYSE)
NCM to spend
$12M on the Euro
Project to
ultimately earn a
75% interest
$12M in-ground
earn-in to 70% /
$2.5M cash +
financing option
Old Pirate Gold Project
Davidson Gold
(Private)
Operator
agreement $2.3M
+ 2.5% NSR
Current Status
RC drilling completed by IGO in late
2020 returned 16m @ 1.15g/t Au from
48m from the Goldbug Gold Prospect.
Diamond drilling completed during
2021 returned 4.5m @ 3.03% copper
mineralisation from 562m at the
Phreaker Prospect.
Agreement terminated by Newcrest
during November 2020.
The Tobruk Project is interpreted to
have occurrences of similar prospective
lithologies that host Newmont’s Callie
Gold deposit and several smaller
deposits including Groundrush and
Oberon. An airborne gravity survey was
completed and 62 deep sensing
geochemical samples were collected.
Agreement continued with Davidson
Gold (previosly known as TRL Tanami)
to develop and mine the Old Pirate
Project under a strategic 10-year
Operator Agreement.
Lake Mackay JV Project
IGO Limited (”IGO”) commenced activity on the current Lake Mackay JV area in 2014. Systematic exploration led 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 17GRDD00132.
During 2018, IGO completed the $6M earn-in and the JV Project is funded 70/30. Subsequent drilling has defined base
metal mineralisation at the Phreaker Prospect, and bedrock gold mineralisation in RC drilling including at the Arcee
Prospect - 12m @ 3.5g/t33, and Goldbug Prospect - 16m @ 1.15g/t Au, 4m @ 0.78g/t Au and 4m @ 1.54g/t Au34.
Project Background
The Lake Mackay Project is 400km northwest of Alice Springs, adjacent to the Western Australian border, and comprises
approximately 15,630km2 of exploration licences and applications (14,886km2 IGO 70%/Prodigy Gold 30% JV, 744km2 IGO
59.3%/Prodigy Gold 25.4%/Castile 15.3%)(Figure 17).
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 have
demonstrated the emerging potential of the province to host multiple styles of precious and base metal mineralisation.
32 ASX: 18 September 2017
33 ASX: 19 October 2019
34 ASX: 18 January 2021
21
Prodigy Gold Annual Report 2021
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Figure 17 - Lake Mackay JV Project Location
Exploration Summary
Following delays in 2020 resulting from COVID-19 restrictions, Prodigy Gold worked with IGO to ensure field activities
could resume during the 2020-21 field season under restrictive health and permitting conditions. During the second half
of 2020, a drilling program targeting six high priority targets (65 RC and aircore holes for 1,944m) prospective for cobalt-
nickel-manganese, gold and copper mineralisation was completed at the Lake Mackay Project35.
A highlight of this program was the intersection of bedrock gold at the Goldbug Prospect36.
Table 2 - Summary of October 2020 Lake Mackay Project aircore / RC Drilling
Target
Grimlock
Swoop
Goldbug
Grapple
Cluster
Raw
Total
Holes Drilled
Metres
Target Commodity
JV Area
38
18
3
4
1
1 (incomplete)
65
993
342
278
235
84
12
1,944
Co, Ni, Mn
Co, Ni, Mn
Au
Au, Cu
Cu, Au, Ni, Co
Cu, Au
1
1
2
1
1
1
1IGO/PRX 2IGO/PRX/CST See background section for project ownership split
A follow-up RC / diamond drilling program commenced at the Phreaker, Raw and Customisable Targets in March 2021.
Table 3 - Summary of March 2021 Lake Mackay Project RC / Diamond Drilling
Target
Phreaker
Raw
Customisable
Total
Holes Drilled
3
6
2
11
Metres
1,941
895
478
3,314
1IGO/PRX See background section for project ownership split
Target Commodity
JV Area
Co, Ni, Mn
Cu, Au
Cu, Au
1
1
1
35 ASX: 22 October 2020
36 ASX: 18 January 2021
22
Prodigy Gold Annual Report 2021
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Phreaker Cu-Au-Ag Prospect
The Phreaker Prospect was discovered using ground EM surveys that followed-up on an original airborne EM anomaly. RC
drilling completed at the Phreaker Prospect in August 2019 confirmed that the mineralised system extends for over 750m
of strike (Figure 18). The drilling intersected copper mineralisation in 2019 with sulphide intersections including37:
19LMRC028
19LMRC031
19LMRC032
14m @ 0.84% Cu, 0.15g/t Au, 4.1g/t Ag from 353m
10m @ 0.98% Cu, 0.06g/t Au, 13.9g/t Ag from 146m
11m @ 1.15% Cu, 0.07g/t Au, 7.9g/t Ag from 189m
Figure 18 - Schematic Long Section of Phreaker Prospect showing RC and diamond drill results
Higher grade copper intervals were intersected in 19LMRC032 including an interval of 2m @ 2.45% Cu from 189m.
Copper and gold mineralisation at Phreaker occurs in a broad approximately 10m thick pyrrhotite-chalcopyrite zone
surrounded by garnet alteration. Results of DHEM suggested that the target had not been adequately tested and the
previous RC holes likely drilled up dip of the best mineralisation. The three diamond drillholes in March 2021 tested the
center of the two modelled larger EM plates and confirm high-grade mineralisation down dip of the existing RC drilling.
Phreaker Drill Program
The previous discovery of the Grapple, Bumblebee, Phreaker, Arcee and Goldbug Prospects since 2015 has upgraded the
prospectivity of the western Aileron Province, and possibly also the Warumpi Province, for base and precious metal
mineralisation.
The Phreaker drilling included diamond drilling of EM conductors believed to be associated with base metal
mineralisation previously identified in shallow RC drilling at the Phreaker Prospect. Three diamond drillholes were
completed at the Phreaker Prospect, with these holes all successfully intersecting Cu-Au mineralisation between 75m and
430m below previous RC drilling.
37 ASX: 17 July 2019
23
Prodigy Gold Annual Report 2021
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Diamond hole 21PHDD002, recorded two encouraging intersections of 4.5m @ 3.03% Cu, 1.78g/t Au and 14g/t Ag from
562m, and 17.47m @ 2.13% Cu, 0.21g/t Au and 9g/t Ag from 575.23m.
Wide intervals of sulphides including pyrrhotite, chalcopyrite, arsenopyrite, sphalerite and galena have been intersected
(Figure 19).
Figure 19 - 21PHDD002 Coarse-grained disseminated to blebby chalcopyrite and pyrrhotite in foreground and massive chalcopyrite and
pyrrhotite with lesser arsenopyrite in the background.
As outlined in Table 4, 21PHDD002 is the widest, highest grade intersection seen at the Phreaker Prospect. Drilling has so
far been designed to intersect modelled conductors based on DHEM and moving loop EM. EM is effective at identifying
massive to stringer style pyrrhotite and chalcopyrite in varying combinations. The diamond drilling is broad spaced and
the copper-gold-silver mineralisation remains open along strike and down dip. From the limited drilling to date, the
sulphide mineralisation appears to be subvertical, structurally-controlled and hosted in a garnet mica schist.
Table 4 - Results from Phreaker Prospect 2021 diamond drilling38
Hole ID
From
Interval
Au g/t
Ag g/t
Cu%
Pb %
Zn %
Bi %
Co %
21PHDD001
including
21PHDD002
21PHDD002
including
21PHDD002
477.67
479.95
562
575.23
576.42
595.1
21PHDD002
601.43
7.34
4.72
4.5
17.47
9.94
0.69
6.13
0.04
0.02
1.78
0.21
0.34
0.03
0.24
14
7.7
14
9
14.2
1.6
4.2
21PHDD003
Intervals greater than 0.5g/t Au or 0.4% Cu or 0.4% Zn cutoff with 2 m dilution except where geologically significant.
677.4
8.3
0.6
4.6
0.89
1.24
3.03
2.13
3.26
0.54
0.85
0.83
0.22
0.06
0.07
0.03
0.04
0
0.04
0.06
0.21
0.28
0.65
0.31
0.4
0.06
0.34
0.07
0.01
0
0.04
0
0
0
0
0.01
0.02
0.03
0.02
0.04
0
0
0.02
0.01
38 ASX: 26 May 2021
24
Prodigy Gold Annual Report 2021
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Goldbug Prospect39
The Goldbug Prospect is a soil gold anomaly over the Du Faur Orthoamphibolite that extends for 600m, is open to the
east and northwest and is located 50km to the east of the Arcee Gold Prospect (Figure 20). The prospect was originally
identified through systematic soil sampling.
Figure 20: Cross section highlighting first mineralised holes intersected at the Goldbug Prospect
The RC program of 3 holes for 278m drilled in late 2020 has successfully intersected bedrock gold mineralisation. Gold is
associated with pyrite and quartz veining in an orthoamphibolite. Best results are40:
20LMRC039
o 16m @ 1.15g/t Au from 48m
o 4m @ 0.78g/t Au from 76m
o 4m @ 1.54g/t Au from 92m
20LMRC041
o 8m @ 1.2g/t Au from 80m
Drillhole 20LMC040 was not drilled to a depth that would intersect the mineralisation now defined.
The strike of the structure is interpreted to be broadly east-west as suggested by the long axis of the soil anomaly. The
dip of the structure is unknown however is likely to be steep, as seen with other structures at Lake Mackay, or north
dipping. Soil gold anomalism extends for over 600m and is open to the east. The Goldbug Prospect has significant volume
potential and warrants further RC drilling in 2021. Further information on the Goldbug target and the intersection of
bedrock gold mineralisation is provided in Figure 20.
39 IGO 59.3%/Prodigy Gold 25.4%/Castile 15.3%
40 ASX: 18 January 2021
25
Prodigy Gold Annual Report 2021
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Grimlock Prospect
The Grimlock Prospect has shallow enrichment of cobalt and nickel developed over weathered ultramafic phases on the
margins of an intrusion. Initial surface rock sampling identified cobalt of over 2%. RC drilling confirmed the results of
surface sampling with elevated cobalt defined over 4km. Leach test work undertaken in 2019 demonstrated over 97% of
cobalt is extractable41.
Drilling completed in late 2020 aimed to define the scale potential of the prospect with a grid of RC holes on a 300-400m
spacing across a 3.5km long area. The 38 hole RC program of 993m successfully defined further nickel and cobalt
mineralisation at Grimlock. Best results from 2020 drilling are42:
20LMAC002
o 6m @ 0.02% Co and 0.57% Ni from 10m
o 12m @ 0.07% Co and 1.17% Ni from 20m including 4m @ 0.11% Co and 1.56% Ni from 24m
20LMAC003
o 12m @ 0.13% Co and 0.64% Ni from 8m
20LMAC006
o 6m @ 0.13% Co and 0.68% Ni including 2m @ 0.29% Co and 0.9% Ni from 20m
20LMAC011
o 2m @ 0.1% Co and 0.2% Ni from 26m
The abundant pyrolusite associated with high-grade cobalt in previous drilling was largely not intersected in the 2020
drilling program reducing the scale potential.
Swoop Target
The Swoop Target displays a similar cobalt-nickel-manganese enrichment in lag samples as Grimlock. A total of 18 holes
were completed at Swoop in late 2020 to test the extent of enriched laterite and for the presence of cobaltiferous
pyrolusite (Mn). Drilling comprised 18 holes for 342m across the 1km long magnetic high. Best results included42:
20LMAC047 - 4m @ 0.15% Co and 0.67% Ni from 14m
20LMAC051 - 10m @ 0.13% Co and 0.51% Ni from 2m
20LMAC052 - 2m @ 0.02% Co and 0.52% Ni from 14m
20LMAC058 - 2m @ 0.11% Co and 0.22% Ni from 4m
The mafic/ultramafic intrusion at Swoop and surface enrichment appears similar to Grimlock. There is potential for
several other mafic/ultramafic intrusions identified at Lake Mackay to host further cobalt and nickel mineralisation.
Cluster Target
The Cluster Target is a very discrete magnetic high that was drilled to confirm the source of the magnetic response. No
base or precious metal mineralisation of interest was intersected in the hole.
Grapple Prospect
Gold and copper associated with sulphides had been defined at Grapple over a strike length of approximately 800m. The
FY21 program aimed to define shallow mineralisation up plunge of previous drilling. The 4 holes completed were drilled
along 300m of strike for a total of 235m drilled.
Results have returned with base metal intersections in 3 holes42:
20LMRC042 - 5m @ 0.2g/t Au, 46.1g/t Ag, 0.5% Cu, 0.9% Pb, 3.2% Zn and 0.2% Co
20LMRC043 - 1m @ 3.2g/t Au, 11.4g/t Ag, 2.6% Cu, 0.59% Zn
20LMRC044 - 2m @ 0.7g/t Au, 11g/t Ag, 0.34% Cu, 0.2% Pb, 0.6% Zn
No significant results were reported for 20LMRC045.
The mineralisation was intersected in the targeted position and limits the continuity of shallow mineralisation to the east.
The mineralisation remains open down plunge to the west.
41 ASX: 12 December 2019
42 ASX: 18 January 2021
26
Prodigy Gold Annual Report 2021
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Raw and Customisable Prospects
The Raw Prospect is a polymetallic (predominantly Au and Bi) soil and rock chip anomaly and a nearby deep EM
conductor. Drilling commenced as a part of the RC drilling campaign in late 2020, but was abandoned due to a
mechanical failure of the rig.
A follow-up drilling program was undertaken during the June 2021 quarter at Raw (552.9m diamond / 342m RC) and
Customisable (400.6m diamond/78m RC). These holes intersected sulphides with low grades of copper and zinc. No
further work is planned on these targets.
Future Work
The joint venture applied for a significant area of applications covering the Warumpi terrane to the south of the current
granted tenements. The applications may contain mineralisation similar in age and character to the mineralisation
discovered within the granted tenements. The same approach to screening the granted tenements is proposed for the
applications, including airborne EM, moving loop EM and RC/diamond drilling.
Additional drilling is being designed to test for extensions of the thick, high-grade mineralisation at Phreaker, and to test
the scale potential of Goldbug, Arcee and a third gold-in-soil target.
Euro Farm-in Agreement
In November 2020, Prodigy Gold advised that Newcrest Mining Ltd (“Newcrest”) had withdrawn from the Euro Project
Farm-in Agreement (the “Agreement”) established in July 201843. Under the Agreement Newcrest had the ability to earn
up to a 75% interest in the Project by sole funding up to $12M over seven years.
Given Newcrest did not meet the Stage 1 Expenditure requirement to earn a 51% interest ($6M spend within four-year
period), Prodigy Gold retains a 100% interest in the Project. Unfortunately delays in land access, further compounded by
COVID-19, have hampered the progress of the Euro Project when funds can be redeployed to competing projects.
The Euro Project remains an area of significant interest, as it hosts key targets along strike or parallel to the Trans-Tanami
Fault trend which have seen limited or no previous exploration and Prodigy Gold will provide further updates on
exploration plans in due course.
43 ASX: 4 July 2018
27
Prodigy Gold Annual Report 2021
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Tobruk Farm-in Agreement
In May 2019 Prodigy Gold signed a A$14.5M Exploration Farm-in and Joint Venture Agreement (“Agreement”) with
Newmont Exploration Pty Ltd (“Newmont Exploration”)44. Under the Agreement, Newmont Exploration can earn up to a
70% interest in the Tobruk Project by sole funding A$12M in exploration expenditure. The Agreement includes a total of
A$2.5M cash payments to Prodigy Gold (with A$1M being contingent on Newmont Exploration electing to proceed to
phase 2 of the earn-in).
The Agreement covers nine of the Company’s tenements and tenement applications, within the vicnity of Newmont’s
>14Moz Callie Gold Mine.
Project Background
The Tobruk Project is interpreted to have occurrences of the same prospective lithologies that host Newmont Callie Gold
deposit and several smaller deposits including Groundrush and Titania-Oberon. The Project’s potential is further
enhanced by having analogous structural setting to known Tanami deposits including tightly folded stratigraphy, Trans
Tanami parallel faults and drill defined anomalous geochemistry positioned on the margins of magnetic features.
Key logistical advantages include the 450km gas pipeline to the Newmont’s Granites Plant recently constructed and the
Federal Government’s commitment to upgrade the Tanami Track, which will improve the economics of any future
discoveries.
Exploration
Results of an airborne gravity survey completed during the September 2020 quarter were received in late 2020. A
protracted wet season delayed on ground activity on the Tobruk JV during 2021, however a total of 62 deep sensing
geochemical samples were collected.
Future Work
Target generation is continuing on the Tobruk JV.
Operator Agreement – Old Pirate
In October 2019, the Company signed a strategic 10-year operator agreement with private company TRL Tanami (now
Davidson Gold) over the Company’s Old Pirate Project located in the Tanami Region of the Northern Territory45. The Old
Pirate agreement includes staged cash payments totaling approximately $600,000, replacement of bonds totaling
approximately $1.7M and a 2.5% NSR.
The agreement is in line with Prodigy Gold’s strategy to monetise Twin Bonanza and significantly reduce portfolio holding
costs. Some payments due under the agreement are delayed. Study work and permitting is advancing on Old Pirate.
44 ASX: 16 May 2019
45 ASX: 3 October 2019
28
Prodigy Gold Annual Report 2021
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
MINERAL RESOURCES
Prodigy Gold’s Mineral Resources for 30 June 2021 are summarised below. See the 2021 Annual Mineral Resource
Statement46 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 5 – Prodigy Gold Mineral Resource Summary as at 30 June 2021
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
Hyperion
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 6 – Old Pirate August 2021 Mineral Resource Estimate
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
0.010
0.280
0.020
0.420
0.005
0.010
0.005
0.005
0.040
0.720
7.5
5.5
3.1
4.2
7.6
4.9
3.5
4.1
4.6
4.7
Indicated + Inferred
Note: Totals may vary due to rounding. The above Mineral Resource Estimate was first reported in 201647
0.760
Total
4.7
3.0
49.7
2.4
56.3
0.5
1.6
0.5
0.9
6.5
108.5
114.9
46 ASX: 24 August 2021
47 ASX: 19 August 2016
29
Prodigy Gold Annual Report 2021
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Buccaneer Mineral Resource
Table 7 – Buccaneer August 2021 Mineral Resource Estimate
Buccaneer Project - Mineral Resource Estimate – August 2017
Indicated
Inferred
Oxide
Metal
(koz)
4
22
494
521
Note: Totals may vary due to rounding. The above Mineral Resource Estimate was first reported in 201748
Oxidised
Transitional
Fresh
Total
Grade
(Au g/t)
1.82
1.52
1.86
1.84
Grade
(Au g/t)
1.69
1.69
1.59
1.67
Tonnes
(Mt)
0.1
0.5
8.3
8.8
Tonnes
(Mt)
0.2
0.7
0.3
1.2
Metal
(koz)
12
40
13
65
Total
Grade
(Au g/t)
1.73
1.63
1.85
1.82
Metal
(koz)
16
62
507
585
Tonnes
(Mt)
0.3
1.2
8.5
10.0
Hyperion Mineral Resource
Table 8 – Hyperion August 2021 Mineral Resource Estimate
Hyperion 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. The above Mineral Resource Estimate was first reported in
201849
The Hyperion Project was formerly known as the Suplejack Project however it was renamed at the request of the local
community.
Competent Persons Statements
The information in this report relating to exploration targets and exploration results is based on information reviewed and checked by Mr Matt
Briggs, and 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 and shareholder of Prodigy Gold NL
and has sufficient experience which is relevant to the style of mineralisation and type of deposit under 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.
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.
Cautionary Statement Relating to Reward Historical Production Data
The production details for the Reward Mine are referenced from publicly available data sources. The source and date of the production data
reported has been reported in the Northern Territory Geological Survey records reporting production from the Reward Gold Mine in 1953. DITT
digital records include open file Annual Reports and data pertaining to the exploration and development efforts of previous operators. The
historical production data have not been reported in accordance with the JORC Code 2012. A Competent Person has not done sufficient work to
disclose the historical production data in accordance with the JORC Code 2012.
48 ASX: 1 September 2017
49 ASX: 31 July 2018
30
Prodigy Gold Annual Report 2021
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
TENEMENT MANAGEMENT
The total area of 33,323km2 (2019: 38,848km2) held under tenure by Prodigy Gold and its joint venture partners has
decreased during the financial year. The area held under granted mineral tenements is 15,981km2 with 17,342km2 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.
The Company reduced the area of nine of its granted tenements during the year, withdrew eight tenement applications
and no additional tenements were applied for during the year. Joint venture interests in the Lake Mackay JV with IGO
remained at 70% IGO and 30% Prodigy Gold during the year and in the Lake Mackay JV with IGO and Castile joint venture
interests remained at 59.3% IGO, 25.4% Prodigy Gold and 15.3% Castile.
A map showing the location of the Company’s current tenement holding is presented in Figure 2 of the review of
operations report and a complete list of tenements follows this report.
CORPORATE
Shares on Issue and Unlisted Options
Prodigy Gold issued 12,650,000 options to employees under the terms and conditions of the Company’s Employee Share
Option Plan during the financial year and 21,950,000 options expired.
As at 30 June 2021, Prodigy Gold has a total of 580,627,606 shares and 29,850,000 million unlisted options on issue.
31
Prodigy Gold Annual Report 2021
SUMMARY OF MINING TENEMENTS AND AREAS OF INTEREST
Summary of Mining Tenements as at 30 June 2021
Area of Interest
Tenement
Group’s
Interest
Tenement
Status
Status Changes
During the Year
NORTHERN TERRITORY
TANAMI
Birrindudu
Bluebush
Bonanza
Hyperion
Abroholos
EL5889
EL23523
EL28326
EL31332
EL23659
EL24436
EL26610
EL26634
EL27119
EL27127
EL27589
EL28327
EL29860
EL31288
EL31290
EL31291
EL30944
EL25194
EL26608
EL27378
EL28322
EL28324
EL28325
EL28328
EL28394
EL31289
ML29822
EL30814
EL9250
EL26619
EL27125
EL27126
EL27979
EL31330
EL31331
EL31530
EL32055
EL26623
EL32056
EL29833
EL29834
EL25156
EL25191
EL25192
EL28785
EL29832
EL29859
EL30270
EL30274
EL32057
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
application
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
application
granted
granted
granted
granted
granted
granted
granted
granted
granted
application
application
application
application
granted
granted
granted
granted
granted
granted
application
application
application
32
Prodigy Gold Annual Report 2021
SUMMARY OF MINING TENEMENTS AND AREAS OF INTEREST
Area of Interest
Tenement
Euro
Tanami Altura JV (2)
LAKE MACKAY
Tarawera
Lake Mackay North
Tekapo
Warumpi (3)
EL25845
EL26590
EL26591
EL26592
EL26593
EL26613
EL26615
EL26618
EL26620
EL26621
EL26622
EL26673
EL27604
EL30271
EL30272
EL30273
EL30283
EL26626
EL26628
EL29828
EL26627
EL23898
EL24473
EL27894
EL30552
EL30553
EL30554
EL30555
EL30556
EL28682
EL24915
EL25146
EL30729
EL30730
EL30731
EL30732
EL30733
EL30739
EL30740
EL31234
E80/5001
EL27947 (4)
EL31974 (4)
EL25147
EL31718
EL31719
EL31720
EL31721
EL31722
EL31723
EL31913
EL32095
EL32096
Group’s
Interest
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
90
90
90
90
100
100
100
100
100
100
100
100
100
30
30
30
30
30
30
30
30
30
30
30
15.3
15.3
30
30
30
30
30
30
30
30
30
30
Tenement
Status
Status Changes
During the Year
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
application
application
application
application
granted
granted
granted
application
application
application
application
application
application
application
application
application
application
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
application
application
application
application
application
application
application
application
application
application
Withdrawn during the year
Withdrawn during the year
Withdrawn during the year
Withdrawn during the year
Withdrawn during the year
Withdrawn during the year
Withdrawn during the year
Withdrawn during the year
IGO Limited
IGO Limited
Castile Resources Pty Ltd
Castile Resources Pty Ltd
IGO Limited
IGO Limited
IGO Limited
IGO Limited
IGO Limited
IGO Limited
IGO Limited
IGO Limited
IGO Limited
33
Prodigy Gold Annual Report 2021
SUMMARY OF MINING TENEMENTS AND AREAS OF INTEREST
Area of Interest
Tenement
Warumpi (3)
NORTH ARUNTA
Barrow Creek
Reynolds Range
EL32097
EL32098
EL32099
EL32100
EL32101
EL32102
EL32103
EL8766
EL23880
EL23883
EL23884
EL23885
EL23886
EL25031
EL25033
EL25034
EL25035
EL25041
EL25042
EL25044
EL26825
EL28515
EL29723
EL29724
EL29725
EL29896
EL30470
EL30507
EL30637
EL23655
EL23888
EL28083
Group’s
Interest
30
30
30
30
30
30
30
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
80 (5)
100
100
Tenement
Status
Status Changes
During the Year
application
application
application
application
application
application
application
IGO Limited
IGO Limited
IGO Limited
IGO Limited
IGO Limited
IGO Limited
IGO Limited
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
1)
2)
3)
4)
5)
34
Farm-in and Joint Venture Agreement with Newmont Exploration Pty Ltd earning up to a 70% interest in the tenements.
Joint Venture with Altura Lithium Operations Pty Ltd.
Joint Venture with IGO Limited 70% / Prodigy Gold NL 30%.
Tenement is subject to a Joint Venture between with Castile Resources Pty Ltd (15.3%), IGO Limited (59.3%) and Prodigy Gold NL (25.4%).
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 2021
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 2021.
Mr Thomas McKeith
Non-Executive Chairman
Mr Matthew Briggs
Managing Director
Mr Brett Smith
Non-Executive Director
Mr Michael Stirzaker
Non-Executive Director
Directors have been in office since the start of the financial year to the date of this report.
Principal Activities
The principal activities of the Company during the year consisted of exploration and evaluation of mineral resources.
There was no significant change in the nature of the Company’s activities during the year.
Dividends
There were no dividends paid or declared during the year.
Operating Results
The consolidated loss for the Group after providing for income tax amounted to $4,807,264 (2020: loss of $5,620,204).
Financial Position
The net assets of the Group have decreased by $4,661,807 from 30 June 2020 to $16,293,884 in 2021. The decrease is
due to the Group undertaking exploration activity during the year.
Significant Changes in the State of Affairs
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
The impact of the Coronavirus (COVID-19) pandemic is ongoing and it is not practicable to estimate the potential impact
after the reporting date. The situation is rapidly developing and is dependent on measures imposed by the State,
Territory and Commonwealth Governments as well as the Central Land Council. Such measures include, but are not
limited to, social distancing and quarantine requirements, travel restriction, land access restrictions, ability to undertake
land clearances and any economic stimulus that may be provided.
Subsequent to year-end the Company issued 2,600,000 and cancelled 6,400,000 unlisted options. Additionally the
Company agreed to issue 450,000 unlisted options to the Company’s Managing Director, subject to shareholder approval
at the next AGM (for details refer to Note 17).
Likely Developments
Continued regional exploration;
Further rationalisation of tenement holdings in the Northern Territory through divestment or joint venture; and
Systematic evaluation of high potential early stage targets in Western Australia.
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.
35
Prodigy Gold Annual Report 2021
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 over 30 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), non-executive director of Arrow Minerals
Limited (since August 2019) and principal in various private resource investment companies.
Mr Matthew Briggs
BSc Hons (Geol), Member AusIMM
Status: Not independent
Position: Executive Director
Qualifications and Experience:
Mr Briggs has 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 Hong Kong listed Dragon Mining Limited (since February 2014), deputy
executive Chairman of Hong Kong listed APAC Resources Limited (since May 2016), executive director of Metals X Limited
(board member since December 2019), non-executive director of Tanami Gold NL (since November 2018) and non-
executive director of Elementos Limited (since January 2020). Overall, Mr Smith has over 30 years’ 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,
HSBC Group, Kleinwort Benson Limited, RFC Group Limited, Tennant Metals and Finders Resources. From 2010 to 2019,
Mr Stirzaker was a partner at the private equity mining fund manager, Pacific Road Capital. Mr Stirzaker is currently non-
executive director of Base Resources Limited and non-executive chairman of Akora Resources Limited.
36
Prodigy Gold Annual Report 2021
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 30 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 2021, and the number of meetings attended by each Director were:
Directors
Mr T McKeith
Mr M Briggs
Mr B Smith
Mr M Stirzaker
Board Meetings
Eligible to Attend
Attended
8
8
8
8
8
8
7
8
Interests in Shares and Share Rights of the Company
At the date of this report, the interests of the Directors in the shares and share rights of the Group were as follows:
Directors
Mr T McKeith
Mr M Briggs
Mr B Smith
Mr M Stirzaker
Fully Paid Ordinary Shares
Unlisted Options
2,158,586
500,000
375,000
-
7,000,000
8,650,000
3,000,000
1,500,000
37
Prodigy Gold Annual Report 2021
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.
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 2021 the Company utilised $124,846
(2020: $94,310) 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. A
review of the Board’s performance for the year was finalized during June 2021.
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
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, or the preceding four years.
38
Prodigy Gold Annual Report 2021
DIRECTORS’ REPORT
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 high calibre 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.
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. No
performance based cash remuneration has been granted during the year, or the preceding four years.
Company Performance
The following table shows the gross revenue and interest, 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 and interest
Net loss
Share price at year-end
Dividend paid
Key Management Personnel
2017
180,138
2018
141,739
2019
168,037
2020
205,300
2021
82,419
7,012,190
5,693,350
5,004,727
5,620,204
4,807,264
0.095
-
0.087
-
0.089
-
0.045
-
0.04
-
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 Stirzaker
Non-Executive Chairman
Managing Director
Non-Executive Director
Non-Executive Director
27 June 2016
3 October 2016
9 May 2016
3 December 2018
Ms J Zimmermann
CFO / Company Secretary
1 June 2005
39
Prodigy Gold Annual Report 2021
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
$
2021
Directors
Mr T McKeith
Mr M Briggs
Mr B Smith4)
Mr M Stirzaker4)
54,795
315,000
29,820
29,820
Total Directors
429,435
Other KMP
Jutta Zimmermann
220,000
Total Other
Total
220,000
649,435
-
-
-
-
-
-
-
-
-
5,205
-
12,233
25,000
5,059
-
-
2,603
2,603
-
-
71,672
12,215
15,415
15,415
12,233
35,411
5,059
114,717
(7,956)
20,900
(7,956)
20,900
3,534
3,534
3,124
3,124
4,277
56,311
8,593
117,841
1)
2)
3)
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 required under accounting standards and have not actually been paid during the year, nor do they
reflect the benefit (if any) that KMP may ultimately receive. The share-based payments are options expensed based on vesting conditions
(refer to Note 15 in the consolidated financial statements).
4)
Cash Salary and Fees includes JobKeeper top-up payments.
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
$
2020
Directors
Mr T McKeith
Mr M Briggs
Mr B Smith4)
Mr M Stirzaker4)
54,795
315,000
15,849
15,849
Total Directors
401,493
Other KMP
Jutta Zimmermann
220,000
Total Other
Total
220,000
621,493
-
-
-
-
-
-
-
-
-
5,205
-
53,660
9,903
25,000
5,073
151,517
-
-
1,306
1,306
-
-
16,921
16,921
9,903
32,817
5,073
239,019
6,705
6,705
20,900
20,900
3,543
3,543
-
-
16,608
53,717
8,616
239,019
1)
2)
3)
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 required under accounting standards and have not actually been paid during the year, nor do they
reflect the benefit (if any) that KMP may ultimately receive. The share-based payments are options expensed based on vesting conditions
(refer to Note 15 in the consolidated financial statements).
4)
Cash Salary and Fees includes JobKeeper top-up payments.
40
Prodigy Gold Annual Report 2021
Proportion
of
Remune-
ration that
is at Risk
54.4%
3.3%
32.2%
32.2%
1.3%
Total
$
131,672
369,507
47,838
47,838
596,855
239,602
239,602
836,457
-
-
-
-
-
-
-
-
Proportion
of
Remune-
ration that
is at Risk
47.2%
29.9%
49.7%
49.7%
0%
Total
$
113,660
506,493
34,076
34,076
688,305
251,148
251,148
939,453
-
-
-
-
-
-
-
-
DIRECTORS’ REPORT
Options and Shares Issued as Part of Remuneration
Options valued at $117,841 (2020: $239,019) were issued to KMP during the year ended 30 June 2021 and prior year
options continued to vest during the financial year. These amounts are accounting accruals required under accounting
standards and have not actually been paid during the year, nor do they reflect the benefit (if any) that KMP may
ultimately receive. 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 KMP 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. The base fee for shareholder nominee Directors is
$30,000 per year. The Commonwealth Government introduced the JobKeeper payment of $1,500 per employee per
fortnight which led to an increased payment to the shareholder nominee Directors as required by JobKeeper legislation.
Mr M Briggs, Managing Director
Term of agreement – 3 year contract commencing 3 October 2019;
Base salary, inclusive of superannuation, $340,000 per year;
Options may be issued at the discretion of the Directors and subject to shareholder approval (see Note 15);
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;
Options may be issued at the discretion of the Directors (see Note 15);
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
Share-Based Payments
Fair values at grant date are independently determined using a Black-Scholes option pricing model for non-market
conditions 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.
The fair value of all zero exercise price options (“Zepos”) subject to market conditions use a Monte Carlo pricing model
that takes into account the exercise price, the anticipated vesting period, the impact of dilution, the share price at grant
date and expected price volatility of the underlying Zepos, the expected dividend yield and the risk-free interest rate for
the term of the Zepos.
41
Prodigy Gold Annual Report 2021
DIRECTORS’ REPORT
These amounts are accounting accruals required under accounting standards and have not actually been paid during the
year, nor do they reflect the benefit (if any) that KMP may ultimately receive. It is of note that a total of $1,165,712 of
previously recognised share-based payment options have been transferred to accululated losses for options issued to
KMP’s that expired. The accounting standards do not allow for a remuneration adjustment to KMP’s for these amounts
even though they have been previoulsy recognised as remuneration.
Refer to Note 15 of the financial statements for more information on options provided as part of remuneration to the
Directors and key management personnel.
Shareholding
No shares were issued by the Company to KMP as remuneration during the financial year. Details of shares held directly,
indirectly or beneficially by Directors and KMP and their related parties are as follows:
Name
Mr T McKeith
Mr M Briggs
Mr B Smith 1)
Mr M Stirzaker 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
2,158,586
500,000
175,000
-
2,001,145
4,834,731
-
-
-
-
-
-
-
-
200,000
-
-
200,000
-
-
-
-
-
-
2,158,586
500,000
375,000
-
2,001,145
5,034,731
1)
2)
Mr Smith is a nominee of APAC Resources Limited who are a substantial shareholder of Prodigy Gold.
Mr Stirzaker is a nominee of Pacific Road Capital Management who are a substantial shareholder of Prodigy Gold.
Option Holding
Directors and other KMP of the Group, including their personally related parties, hold options over ordinary shares in the
Company.
Name
Mr T McKeith1)
Mr M Briggs
Mr B Smith1)
Mr M Stirzaker1)
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
7,000,000
26,000,000
1,500,000
-
1,550,000
7,000,000
400,000
1,500,000
1,500,000
400,000
36,050,000
10,800,000
-
-
-
-
-
-
(7,000,000)
(11,500,000)
-
-
(1,550,000)
7,000,000
14,900,000
3,000,000
1,500,000
400,000
(20,050,000)
26,800,000
1)
Non-Executive Director options (10 Million) were agreed during the previous financial year and shareholder approved on 2 November
2020.
Loans to Directors and Other Key Management Personnel
No loans to Directors and other key management personnel of the Group were provided in 2021 (2020: 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.
42
Prodigy Gold Annual Report 2021
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 $16,683 (2020: $19,593) 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 45.
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 24th day of August 2021
Perth, Western Australia
43
Prodigy Gold Annual Report 2021
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 has undergone a full review of its corporate governance
policies during the financial year ended 30 June 2021 and amended its disclosures effective 1 July 2021.
The Group’s Corporate Governance Statement for the year ended 30 June 2021 (which reports against these ASX
Principles) may be accessed from the Company’s website at www.prodigygold.com.au/about-prodigy-
gold/corporate-governance.
The Group’s ESG (Environmental Social Governance) Statement for the year ended 30 June 2021 may also be
accessed from the Company’s website at www.prodigygold.com.au/about-prodigy-gold/corporate-governance.
44
Prodigy Gold Annual Report 2021
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 GLYN O'BRIEN TO THE DIRECTORS OF PRODIGY GOLD NL
As lead auditor of Prodigy Gold NL for the year ended 30 June 2021, 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.
Glyn O’Brien
Director
BDO Audit (WA) Pty Ltd
Perth, 24 August 2021
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.
ANNUAL FINANCIAL REPORT
The financial statements of Prodigy Gold NL for the year ended 30 June 2021 were authorised for issue in accordance
with a resolution of the Directors on 24 August 2021 and cover the consolidated entity consisting of Prodigy Gold NL and
its subsidiaries as required by the Corporations Act 2001. 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 31 and in the Directors’ Report on pages 35 to 43, 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
46
Prodigy Gold Annual Report 2021
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
46
48
49
50
51
52
71
72
76
47
Prodigy Gold Annual Report 2021
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 30 JUNE 2021
Consolidated
Notes
2021
$
2020
$
2
3
3
3
7
4(a)
Interest
Other income
Administrative expenses
Employee and Directors benefits expenses
Share-based payments
Other expenses
Exploration expenses
Impairment of capitalised exploration and evaluation expenditure
Loss before income tax expense
Income tax expense
Loss for the year
Loss attributable to members of Prodigy Gold NL
Other comprehensive income
Total other comprehensive income for the year
Total comprehensive loss for the year
Total comprehensive loss for the year attributable
to members of Prodigy Gold NL
82,419
702,664
205,300
550,944
(575,884)
(118,779)
(355,481)
(4,174,162)
(368,041)
(4,807,264)
-
(4,807,264)
(4,807,264)
-
-
(567,317)
(239,176)
(412,605)
(5,157,350)
-
(5,620,204)
-
(5,620,204)
(5,620,204)
-
-
(4,807,264)
(5,620,204)
(4,807,264)
(5,620,204)
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
(0.83)
(1.00)
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the
accompanying notes.
48
Prodigy Gold Annual Report 2021
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2021
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
2021
$
2020
$
5
6
6
7
8
9
6,257,884
10,699,944
258,485
15,488
106,412
248,865
45,980
166,673
6,638,269
11,161,462
2,509,484
114,712
9,575,783
12,199,979
18,838,248
569,713
207,859
777,572
72,271
1,694,521
1,766,792
2,544,364
2,427,490
48,722
9,943,824
12,420,036
23,581,498
683,649
197,543
881,192
58,385
1,686,230
1,744,615
2,625,807
16,293,884
20,955,691
10
11(a)
187,262,068
187,262,068
2,412,399
3,462,495
(173,380,583)
(169,768,872)
16,293,884
20,955,691
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
49
Prodigy Gold Annual Report 2021
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Contribution from Joint Ventures (JV)
Expense re-imbursements from JV Partners
Payments to suppliers and employees (excludes payments for exploration)
Interest received
Government Grants
Payments for exploration
Payments for JV Projects
Net cash (outflow) from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Net cash inflow / (outflow) 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 / (outflow) from financing activities
Net increase / (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Consolidated
Notes
2021
$
2020
$
100,000
540,643
250,000
2,215,044
(924,151)
(1,158,060)
92,211
406,159
192,993
218,117
(3,474,163)
(4,423,800)
(950,520)
(4,187,939)
18
(4,209,821)
(6,893,645)
(103,345)
-
(103,345)
-
3,182
3,182
-
12,000,000
(128,894)
-
-
(765,655)
(128,894)
11,234,345
(4,442,060)
10,699,944
4,343,882
6,356,062
5
6,257,884
10,699,944
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
50
Prodigy Gold Annual Report 2021
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2021
Contributed
Equity
$
Share-based Payment
Reserve
$
Accumulated
Losses
$
Notes
Total
$
176,027,723
3,336,136
(164,291,328)
15,072,531
-
-
-
10(a)
10(a)
15
12,000,000
(765,655)
-
-
11,234,345
187,262,068
-
-
-
-
-
(142,659)
269,018
126,359
(5,620,204)
(5,620,204)
-
-
(5,620,204)
(5,620,204)
-
-
142,659
12,000,000
(765,655)
-
-
269,018
142,659
11,503,363
3,462,495
(169,768,873)
20,955,690
-
-
-
-
-
-
-
-
10(a)
10(a)
15
(4,807,264)
(4,807,264)
-
-
(4,807,264)
(4,807,264)
-
-
-
-
(1,195,554)
1,195,554
145,458
-
(1,050,096)
1,195,554
-
-
-
-
-
145,458
145,458
187,262,068
2,412,399
(173,380,583)
16,293,884
Balance at 1 July 2019
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 transfer
Share-based payments
Total transactions with owners
Balance at 30 June 2020
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 transfer
Share-based payments
Total transactions with owners
Balance at 30 June 2021
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
51
Prodigy Gold Annual Report 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
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
53
53
53
54
55
56
56
57
57
58
59
60
62
62
62
66
66
67
67
68
68
69
69
52
Prodigy Gold Annual Report 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
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.
NOTE 2:
OTHER INCOME
Contribution from joint ventures
Expense re-imbursements from JV Partners
Sale of Fixed Assets
Government Grants
Other Income
Consolidated
2021
$
2020
$
301,412
28,557
-
372,695
-
702,664
250,000
13,533
2,744
251,349
33,318
550,944
Accounting Policy: Other income revenue is recognised when it is received or when the right to receive payment is established.
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
Allowance for expected credit loss
Less: Amounts included in exploration expenses
Exploration expenses:
Employee benefit expense
Share-based payment expense
Depreciation expense
Allowance for expected credit loss
Other exploration expenses
Consolidated
2021
$
2020
$
1,887,993
1,913,756
(1,312,109)
(1,346,439)
575,884
567,317
145,458
(26,679)
118,779
37,355
(37,355)
-
(404,802)
404,802
-
269,018
(29,842)
239,176
35,096
(35,096)
-
404,802
(404,802)
-
1,312,109
1,346,439
26,679
37,355
(404,802)
3,202,821
4,174,162
29,842
35,096
404,802
3,341,171
5,157,350
53
Prodigy Gold Annual Report 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
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 26% (2020: 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
2021
$
2020
$
-
-
-
-
-
-
(4,807,264)
(5,620,204)
(1,249,889)
(1,545,556)
(13,000)
30,883
450
(37,596)
65,774
327
(1,231,556)
(1,517,051)
1,231,556
1,517,051
-
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
2,356,407
2,444,000
31,778
57,817
2,388,185
2,501,817
(2,388,185)
(2,501,817)
-
-
37,523,672
37,151,988
1,874,302
122,410
1,970,830
164,863
39,520,384
39,287,681
(2,388,185)
(2,501,817)
37,132,199
36,785,864
No deferred tax assets have been recognised as it is not probable that future tax profits will be available to offset these balances.
54
Prodigy Gold Annual Report 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
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
2021
$
2020
$
2,257,884
4,000,000
6,257,884
1,399,944
9,300,000
10,699,944
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.
55
Prodigy Gold Annual Report 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
NOTE 6:
TERM DEPOSITS AND OTHER RECEIVABLES
CURRENT
Other receivables (Note 6(a))
Provisions for Allowance for expected credit loss (Note 6(a))
NON-CURRENT
Bond term deposit and DPIR Cash Bonds
(a)
Other receivables
Consolidated
2021
$
2020
$
258,485
-
258,485
653,667
(404,802)
248,865
2,509,484
2,509,484
2,427,490
2,427,490
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.
Accounting Policy
The Group measures other receivables at amortised cost, less any allowance for expected credit losses.
Accounting estimates and judgements
The Group’s other receivables and financial assets were subject an assessment under AASB 9 as at 30 June 2021. The assessment took
into account the likelihood of an impairment event occurring in the future for Prodigy Gold’s debtors and other debtor. This assumption
includes the assessment of the ability of other debtors to pay. The amounts contain some past due assets that have been provided for
and a total of $0 (2020: $404,802) of likely future credit losses have been recognised for the year ended 30 June 2021.
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
2021
$
2020
$
9,943,824
(368,041)
9,575,783
9,943,824
-
9,943,824
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.
56
Prodigy Gold Annual Report 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
NOTE 7:
EXPLORATION, EVALUATION AND DEVELOPMENT EXPENDITURE cont’d
Accounting estimates and judgements
The Group undertook an assessment for impairment triggers of its exploration assets. Some non-core tenements were partially
surrendered or are scheduled to be surrendered and accordingly impaired on a simple area basis. The balances 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 $368,041 (2020: $-).
NOTE 8:
TRADE AND OTHER PAYABLES
CURRENT LIABILITIES (Unsecured)
Trade payables
Sundry payables and accrued expenses
Consolidated
2021
$
2020
$
532,592
37,121
569,713
526,661
156,988
683,649
Information about the Group’s exposure to liquidity risk is provided in Note 12.
Accounting Policy
These amounts represent unpaid liabilities for goods and services provided to the Group prior to the end of financial year and liabilities
to government departments offset by government grants for COVID-19 measures. 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
2021
$
2020
$
1,694,521
1,694,521
1,686,230
1,686,230
Movement in provisions during the current financial year, other than employee benefits, are set out below:
Opening balance
Additional provisions
Amounts reversed
Closing balance
Consolidated
2021
$
2020
$
1,686,230
1,686,230
8,291
-
-
-
1,694,521
1,686,230
57
Prodigy Gold Annual Report 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
NOTE 9:
PROVISIONS cont’d
Accounting Policy
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.
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 2019
29 August 2019
480,627,606
100,000,000
176,027,723
0.12
12,000,000
Transaction costs relating to share issues
Closing balance
30 June 2020
580,627,606
Share placement
Transaction costs relating to share issues
-
-
(765,655)
187,262,068
-
-
Closing balance
30 June 2021
580,627,606
187,262,068
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 2021 is 29,850,000 (2020: 39,150,000). For further details refer to Note 15.
58
Prodigy Gold Annual Report 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
NOTE 10:
CONTRIBUTED EQUITY cont’d
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 re-acquires its own equity instruments, for example as the result of a share buy-back, those instruments are deducted from
equity and the associated shares are cancelled. No gain or loss is recognised in the profit or loss and the consideration paid including
any directly attributable incremental costs (net of income taxes) is recognised directly in equity.
NOTE 11:
RESERVES
(a)
Reserves
Share-based payment reserve
Movements in reserves
Balance at 1 July 2019
Share-based payments expired and transferred to accumulated losses
Share-based payments expense (refer to Note 15)
Balance at 30 June 2020
Share-based payments expired and transferred to accumulated losses1)
Share-based payments expense (refer to Note 15)2)
Balance at 30 June 2021
Consolidated
2021
$
2020
$
2,412,399
2,412,399
3,462,495
3,462,495
Share-based
payment reserve
$
3,336,136
(142,659)
269,018
3,462,495
(1,195,554)
145,458
2,412,399
1)
2)
During the financial year, 21,950,000 options expired and a previously recognised amount of $1,195,554 was transferred to accumulated losses
During the financial year, 12,650,000 options were issued
(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. These
amounts are accounting accruals required under accounting standards and have not actually been paid during the year, nor do they
reflect the benefit (if any) that may ultimately be received.
Refer to Note 15 to the financial statements for more information on options provided as part of remuneration to the Directors, key
management personnel and employees.
59
Prodigy Gold Annual Report 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
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 material interest attracting debts at 30 June 2021 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 relates primarily to the Group’s cash and cash equivalents as detailed in the table below. 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.
The Group’s exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a result of changes in
market interest rates and the effective weighted average interest rates on classes of financial assets and financial liabilities, is as follows:
Weighted
Average
Effective
Interest
Rate %
Floating
Interest Rate
$
Fixed Interest Rate Maturing
< 1 year
$
1 - 5 year
$
> 5 years
$
Non-Interest
Bearing
$
Total
$
30 June 2021
Financial Assets:
Cash and bonds
Receivables
Total financial assets
Financial Liabilities:
Payables
Total financial liabilities
30 June 2020
Financial Assets:
Cash and bonds
Receivables
0.6%
5.34%
2,257,884
4,000,000
258,485
-
2,516,369
4,000,000
-
-
-
-
1.44%
1,399,944
9,300,000
-
-
Total financial assets
1,399,944
9,300,000
Financial Liabilities:
Payables
Total financial liabilities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6,257,884
258,485
6,516,369
569,713
569,713
569,713
569,713
-
10,699,944
248,865
248,865
248,865
10,948,809
683,649
683,649
683,649
683,649
Based on the financial instruments held at 30 June 2021, 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 $65,164 higher/$65,164 lower
(2020: $106,999 higher/$106,999 lower).
60
Prodigy Gold Annual Report 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
NOTE 12:
FINANCIAL RISK MANAGEMENT cont’d
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. The Group has provided for a total of $0 (2020:
$404,802) for past due receivables past due (see Note 6 for details).
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.
Cash at bank
Bonds term deposit and DPIR bonds
Receivables
Liquidity Risk
Consolidated
2021
$
2020
$
6,257,884
2,509,484
258,485
10,699,944
2,427,490
248,865
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 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
< 6 months
$
6 - 12
months
$
1 - 2 years
$
2 - 5 years
$
> 5 years
$
Total
Contractual
Cash Flows
$
Carrying
Amount
$
30 June 2021
Non-derivatives
Non-interest bearing
569,713
Interest bearing
-
Total non-
derivatives
30 June 2020
Non-derivatives
569,713
Non-interest bearing
683,649
Interest bearing
-
Total non-
derivatives
683,649
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
569,713
569,713
-
-
569,713
569,713
683,649
683,649
-
-
683,649
683,649
61
Prodigy Gold Annual Report 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
NOTE 12:
FINANCIAL RISK MANAGEMENT cont’d
The table above analyses 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.
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
2021
$
2020
$
37,177
37,177
16,683
16,683
32,490
32,490
19,593
19,593
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 (2020: $2,275,504) have been provided. Term deposits of $2,275,504 (2020: $2,275,504) and a
cash deposit of $128,894 (2020: 46,900) with the Department of Primary Industry and Resources secure these guarantees. Per Note 9 a
restoration provision of $1,694,521 (2020: $1,686,230) has been recognised for all known required restoration costs.
NOTE 15:
SHARE-BASED PAYMENTS
Zero exercise price options (“Zepos”)
During the reporting period ended 30 June 2021, the Group granted 1,050,000 Zepos as an equity incentive to employees which were
issued on 1 July 2020 and 400,000 Zepos to Matt Briggs, which were issued on 2 November 2020 following approval by shareholders at
the AGM. The final number of these Zepos vesting is subject to KPI’s and Company performance criteria (Zepos Type 1).
The Group granted and additional 200,000 Zepos as an equity incentive to an employee which were issued on 3 May 2021 subject to
continuity of employment criteria (Zepos Type 2).
The performance conditions attached to the Zepos Type 1 means the achievement of KPIs, comprising the discovery and definition of a
substantial new deposit of >1Moz JORC Resource, category inferred or better, within an optimised design and having an average cost of
production of
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