2022
ANNUAL REPORT
Prodigy Gold NL
CORPORATE DIRECTORY
ABN 58 009 127 020 ACN 009 127 020
Directors
Secretary
Auditors
Bankers
Share Registry
Solicitors
Mr Gerard McMahon (Chairman)
Mr Mark Edwards (Managing Director)
Mr Brett Smith (Executive Director)
Mr Neale Edwards
Ms Jutta Zimmermann
BDO Audit (WA) Pty Ltd
Level 9, Mia Yellagonga Tower 2
5 Spring Street
PERTH WA 6000
Australia and New Zealand Banking Group Limited
Level 10, 77 St Georges Terrace
PERTH WA 6000
Automic Group
Level 5, 191 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, 67 Smith Street
DARWIN NT 0800
Principal Place of
Business
Level 1, 67 Smith Street
DARWIN NT 0800
Telephone: +61 8 9423 9777
Fax: + 61 8 9423 9733
Postal Address
GPO Box 988
DARWIN NT 0801
Website
Email
www.prodigygold.com.au
admin@prodigygold.com.au
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Prodigy Gold Annual Report 2022
CONTENTS
Chairman’s Report
Managing Director’s Report – Review of Operations
Summary of Mining Tenements and Areas of Interest
Directors’ Report
Corporate Governance Statement
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and Other
Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report to the Members
Additional Information for Listed Public Companies
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Prodigy Gold Annual Report 2022
MESSAGE FROM THE CHAIRMAN
Dear Shareholder,
Some of the highlights for the year include:
Over the last few years, the
Company has been
challenged by restrictions
placed upon it because of
the Covid-19 pandemic. In
particular, in the Northern
Territory, we have had
problems gaining access to remote areas, particularly in
the later parts of 2021 and early 2022.
Notwithstanding these challenges, Prodigy Gold has
managed to complete several high quality exploration
programs. The Company has also been active in working
with our Joint Venture (“JV”) partners across several
projects. We welcomed the opportunity to commence a
JV over the Monza project area (previouly know as Euro)
with Newmont Corporation. We have also worked hard
with IGO Limited on the Lake Mackay project, with a re-
adjustment of the agreement where Prodigy Gold gains
a larger holding in the gold tenements while maintaining
the status-quo on the base metal tenements.
Through this great working relationship with these two
Australian major mining companies, IGO Limited and
Newmont Corporation, Prodigy Gold has maintained its
position as the leading greenfields explorer in the
Tanami Region.
Recognising that the Company has a very large
tenement holding in the Tanami Region of the Northern
Territory, it has been decided that an agreement with
Stockton Mining on the Old Pirate project and
surrounding exploration tenements is the right strategic
move for the Company. Prodigy Gold is working with
Stockton Mining to complete the agreement and it is
envisaged that the the transaction will be closed in early
2023.
During the year we have seen the Board refreshed with
all directors bar one being replaced. Mark Edwards
commenced his role as the new Managing Director in
May. On behalf of the Board, I would like to thank the
previous Managing Director, Matt Briggs, for his work
with the Company and wish him well with his new role.
Summing up, it has been been an interesting year for
Prodigy Gold, with several projects explored and some
positive results delivered.
• Completing one successful diamond hole into
the Phreaker Prospect at Lake Mackay,
intersecting a zone of copper, zinc, gold and
silver mineralisation;
•
•
•
•
•
drilling of 25 RC holes across several gold
anomolies over the Lake Mackay tenements;
continuation of scoping study work at
Buccaneer, including communition and
column leach testwork;
aircore drilling at the Buccaneer Deposit,
highlighting the potential to grow the Mineral
Resource;
approval of co-funding for Boco North drilling
by the NT Government; and
drilling completed by Newmont on our JV
titles in close proximity to their Callie
operation.
Another highlight is the recently announced move of our
headquarters from Perth to Darwin. As Prodigy Gold is
focused on exploration in the Northern Territory, it is
considered logical to now have our head office in the
same jurisdiction, allowing the team to continue building
on the good relationships we hold with our regulators,
suppliers and other stakeholders.
The Company is also pleased to announce that it has
completed its Environment, Social and Goverenance
(ESG) reporting again for the year. This an important
guiding document for the Company moving into the
future. The report has been released on the ASX and can
be reviewed on our website. On the safety front, it was a
great year with no Lost Time Injuries reported for the
Company.
Whilst the last few years have been a challenge, the
Board would like to thank all our dedicated staff
members, for their commitment and work ethic. It has
been great to see the flexibility of our staff ensuring we
are able to get our programs completed while
restrictions on travel and movement were constantly
changing.
And lastly, and importantly, the Board would like to
thank our dedicated shareholders. While the last few
years have been a challenge for all, we are looking to
focus on the development of our highly ranked assets
for the benefit of shareholders.
G E R A R D M c M A H O N
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Prodigy Gold Annual Report 2022
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
EXPLORATION
Review Summary
Prodigy Gold NL (“Prodigy Gold” or the “Company”) maintained exploration momentum during the year with aircore,
reverse circulation (“RC”) and diamond drilling campaigns that were designed to extend mineralisation, improve the
understanding of existing resources and screen for new large scale gold deposits analogous to the 14Moz Callie Gold
Mine in the Tanami.
The 2021-2022 financial year has seen Prodigy Gold continue with its exploration focus within the Tanami, Hyperion,
Reynolds Range and Lake Mackay areas of its project portfolio. The Company also continued to advance other project
areas through significant joint ventures, whilst some project assets deemed non-core were divested.
Image 1: Prodigy Gold technical team during a lay of the land tour in June 2022
Over the course of the year, Prodigy Gold successfully completed substantial exploration programs, with results providing
significant advancements to understanding of both, existing resources and prospective underexplored targets. Prodigy
Gold’s significant tenement position comprises over 27,006km2 (at end of FY22), within the highly prospective Tanami
region of the Northern Territory (Figure 1). Prodigy Gold has continued throughout the year to be an active junior
explorer finalising several exploration programs including drilling programs at Buccaneer, PHD, Tregony, Lake Mackay and
Reynolds Range.
Aircore drilling results at Buccaneer provided knowledge of significant oxide gold mineralisation extending beyond the
current mineral resource into the sedimentary rocks along the mineralised trend. Results were also returned for
comminution testwork on core samples from earlier completed Buccaneer diamond drilling, including uniaxial
compressive strength (UCS), crushing work index (CWi) and abrasiveness index (Ai). The encouraging results received
allowed for the progression of the heap leach scoping study with an additional 8-hole diamond drilling program
completed for further metallurgical and geotechnical test work.
The first diamond drill hole was completed at the Tregony Prospect since Prodigy Gold’s acquisition of the Hyperion
Project. This hole confirmed the new stacked vein mineralisation model, the intersection of visible gold in the location of
a modelled vein providing encouragement for continued exploration and resource definition work at Tregony. Results
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Prodigy Gold Annual Report 2022
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
were also returned for aircore and diamond drilling completed last year at PHD, which is located to the north-west of
Tregony.
Diamond drilling was completed at the Reynolds Range Project area targeting an electromagnetic (EM) conductor down
plunge of the historical Reward Cu/Ag/Au Mine. No work was completed on the North Arunta Project, other than a site
visit by the senior exploration team in June 2022.
Figure 1 - Prodigy Gold Major Project Areas
Systematic exploration continued at the Lake Mackay JV Project with IGO Limited (ASX: IGO) (“IGO”). This year’s
exploration focussed on drill testing several never before drilled targets prospective for gold mineralisation. Additionally,
one diamond hole was drilled at the polymetallic Phreaker Prospect to follow up from last year’s intersection of
exceptional high-grade copper mineralisation. Drilling at Phreaker has now defined copper, gold and silver mineralisation
over 700m strike and 430m vertically, with mineralisation open along strike and down-dip with modelled conductive EM
plates extending in both directions.
Prodigy Gold currently has two joint ventures with Newmont Exploration Pty Ltd (“Newmont”) over the Monza and
Tobruk JV areas, several joint venture agreements with IGO over the Lake Mackay Project, and signed agreements for
part of the North Arunta Project with lithium focused explorer Australasian Metals Limited (“Australasian Metals”) (ASX:
A8G). Prodigy Gold has signed an agreement with private Company Stockton Mining Pty Ltd (“Stockton”) for the Old
Pirate Mining Lease (excluding Buccaneer) and the exploration ground around the Mining Lease. During the year, Prodigy
Gold and IGO restructured the Lake Mackay Joint Venture to provide Prodigy Gold with increased exposure to the gold
potential of the area whilst retaining its 30% interest in base metals.
COVID-19 Impacts on Exploration
COVID-19 measures were a constant consideration during FY22 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
the COVID-19 situation and ensures staff and contractors comply with all government and Central Land Council
directions.
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Prodigy Gold Annual Report 2022
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
100% PRODIGY GOLD PROJECTS
Refined Near-Term Priority Targets – Future work for FY23
Hyperion Project Area
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 surveys and limited drilling. Localised outcrop that occurs on
the PHD and Tregony Prospects has been the focus of historic exploration.
Five existing Deposits are known along the Suplejack Fault, the major structural control of the Project:
• Groundrush Deposit (10.5Mt @ 3.3g/t Au for 1.129Moz 1 - Northern Star / Tanami Gold Central Tanami Project
Joint Venture) is located 42km to the south with the same NW trend as PHD;
• Hyperion Deposit (4.93Mt @ 1.95g/t Au for 310koz2 above a 0.8g/t cut-off - 100% Prodigy Gold) located
•
•
•
approximately 18km north of Groundrush;
Crusade Deposit (1.4Mt @ 2.6g/t Au for 119koz1 - Northern Star / Tanami Gold Central Tanami Project Joint
Venture) is located 22km to the northeast;
Ripcord Deposit (1.1Mt @ 2.5g/t Au for 89koz1 - Northern Star / Tanami Gold Central Tanami Project Joint
Venture) is located adjacent to the Groundrush Deposit);
The Tregony Deposit (~0.64Mt @ 3.02g/t for 62.7koz3 ounce Deposit (JORC 2004), 100% Prodigy Gold) is located
11km to the east of the Suplejack Fault and forms part of the Hyperion Project.
Work planned at Hyperion over the coming 2 years will include a detailed review of the Mineral Resources, including
metallurgical testwork.
Hyperion Resource Project – 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 Resources (ORD) (now Vango Mining Limited) completed prefeasibility
studies on a JORC 2004 gold resource following diamond drilling in 2012.
The Tregony Deposit (~0.64Mt @ 3.02g/t for 62.7koz3 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 Tregony Deposit consists of what appears 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, 6m @ 28.7g/t Au, and 10m @ 16.2g/t Au4.
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 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 other prospects.
During FY21, the Company completed an in-house data review, updated the mineralisation model at Tregony and drill
tested the Deposit with one diamond hole to confirm the stacked vein model. This geological information, reinforced by
updated historical results and the visual gold in intercepts in the diamond hole, demonstrates the potential of the system
to extend under shallow sandstone cover, and beneath the shallow RAB drilling.
The Company also plans to further assess the scale potential of mineralisation at Tregony with directed historical spoil-
sampling programs to better control the geological understanding prior to further drilling. Additional on-ground programs
will be considered at Tregony following the receipt of historical spoils assay results.
1 2021 Tanami Gold Annual Report
2 ASX: 31 July 2018
3 ASX VAN (previously ORD): 26 November 2012 (see cautionary endnote)
4 ASX: 15 November 2021
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Prodigy Gold Annual Report 2022
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
New Tregony Deposit Model and Exploration Concept
The Tregony Deposit, and its likely northern extension undercover at Boco North, are a focus for 2022-2023 RC and
diamond drilling on the Hyperion Project area. To comply with current reporting requirements, work is underway to
review this historical resource for reporting under the JORC Code 2012. The 2021 data review further enhanced the
Company’s view of the Project and has highlighted additional drill targets for the next field season. Future drilling will
screen for a large, and potentially higher-grade, gold system where additional fault intersections are interpreted
undercover to the north of the historic Tregony Mineral Resource.
Hyperion Resource Project – Boco North Prospect
The Boco North Prospects is located on EL31331 and has been granted co-funding with the NTGS under the round 15
Resourcing the Territory grants. The Boco North drilling is aimed at opening up an unexplored greenfields area along the
significantly mineralised Suplejack Shear Zone (“SSZ”). Boco North has not been effectively drill tested and is a
geochemically blind target due to the presence of an overlying unmineralised cover. Magnetic imagery acquired in 2019,
highlights the prospective geological units at Hyperion and Tregony are present at Boco North along with several splay
features associated with the SSZ (Figure 2). The drill targets observed in magnetic imagery have not been drill tested
historically and the stratigraphic relationships between the prospective Tanami group and the unmineralised cover are
largely unknown. The aim of this planned drilling program is to determine the depth of cover and confirm the presence of
the prospective Tanami group. The SSZ is a major exploration focus for Prodigy Gold in the next few years.
Figure 2: Image showing the Total Magnetic Intensity (TMI) and structural interpretation of the Boco North Prospect with respect to
nearby gold deposits
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Prodigy Gold Annual Report 2022
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Buccaneer Resource Project
During FY23, the Company intends to build on scoping study work undertaken during FY22. This study work was
completed due to the sustained elevated gold price and has demonstrated that the heap leach processing route warrants
continued 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).
If the scoping study proves to be positive, the next phase of work will be around increasing the confidence in this study,
potentially to a pre-feasbility study level. This will include future work around additional geotechnical drilling to refine
slopes used in pit optimisations and additional resource definition drilling to increase the confidence of the mineral
resource towards indicated status.
Additional programs will be considered following completion of the scoping study metalurgical leach testwork currently
underway. Further details on work undertaken during FY22 on Buccaneer studies is located in the “Exploration Work
undertaken during FY22” section of this report. Additional work is planned to expand on targetable structural controls to
high-grade mineralisation following from structural measurements taken in the 2021 diamond drilling campaign. The
updated 3D model provides targeting availability for future drilling to unlock the high-grade upside potential at
Buccaneer.
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 dropped or reduced in size, and applications withdrawn following a review of
project prospectivity and tenement holding costs. Prodigy Gold will continue to review all tenement holdings and will
continue to work with other parties as part of this divestment process.
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Prodigy Gold Annual Report 2022
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Exploration Work undertaken during FY22 to date
Hyperion Gold Project (PRX 100%)
The Hyperion Project area contains the Hyperion Mineral Resource which is stated as 4.93Mt @ 1.95g/t Au for 309,500
ounces above a 0.8g/t Au lower cut-off grade5. The resource cut-off grade is based on processing at a mill the scale of the
Northern Star / Tanami Gold Central Tanami Project Joint Venture Processing Plant. The Hyperion Mineral Resource
(located on EL9250) was previously called Suplejack, the name has since been changed at the request of the local
community.
The mineralisation at the Hyperion Mineral Resource is associated with a structural break between regional north-south
trending thrust faults. At the Hyperion Deposit, this is a shear zone hosted in differentiated dolerite, typically intruded by
granitic dykes. The shear zone generally trends at approximately 106 degrees and dips towards the south at 60-80
degrees. The structure is typically between 4m and 13m thick, with an average true width of approximately 6m.
Within the Hyperion Project are other defined prospects such as the Tregony, Boco and Boco North Prospects (located on
EL31331). The Tregony Prospect has a historical Inferred Mineral Resource previously reported by Ord River Resources
(now Vango Mining Limited) in 20126 of 101,300 ounces of gold (2.44Mt @ 1.29g/t using a 0.5g/t Au low cut-off grade),
this was classified using the JORC Code 2004. To comply with current reporting requirements, work is underway to review
this historical resource for reporting in accordance with the JORC Code 2012.
No drilling or sampling was completed on the Hyperion Mineral Resource area during the reporting period.
A site visit was conducted to the Hyperion Project during June 2022 with all Company geologists and the Managing
Director visiting Boco North, Tregony and the Hyperion Mineral Resources area.
Image 2: Hyperion Mineral Resource Area
5 ASX: 31 July 2018
6 ASX VAN (previously ORD): 26 November 2012
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Prodigy Gold Annual Report 2022
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Figure 3 - Hyperion Project location on 100% owned Tenements
PHD Gold Prospect
PHD is an 11km soil gold anomaly within the Hyperion Project, Northern Territory. It is located 30km northwest of the
existing Hyperion Mineral Resource and 40km north of the Northern Star / Tanami Gold 1.1Moz Groundrush Resource
(Figure 3). 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.
PHD - Aircore Drilling
Results for a program of aircore drilling at the PHD Gold Prospect comprising 80 aircore holes drilling on 1,000m line
spacing along 7km of strike were received during the reporting period. Drill holes were sampled and assayed using 3m
composites, or shorter intervals for visible mineralisation. No significant results (over 0.5g/t Au) were reported7. Results
of aircore drilling at the PHD Prospect defined the structure consistently along strike.
7 ASX: 6 October 2021
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Prodigy Gold Annual Report 2022
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
PHD - Co-Funded Diamond Drilling
Following notification that Prodigy Gold’s application for co-funding for a planned diamond drill hole at PHD under the
Northern Territory Government’s “Resourcing the Territory” initiative was successful, the Company completed a 240.7m
stratigraphic diamond drillhole.
The drillhole was designed to provide insight into the structural context and stratigraphic controls of gold mineralisation
within the PHD Prospect. The drillhole intersected highly fractured sediments for most of the hole. Much of the structure
was trending parallel to the drilling. Brecciated sediments, at the depth of the target structure, did not yield results of
interest8. An alternate interpretation of the historical RC drilling could be for two structures to dip to the east, rather than
a single west dipping structure.
Due to the scale of the target and previous positive drilling, RC drilling to test the east dipping orientation is being
considered along with a larger scale program at the Tregony Deposit.
Tregony Deposit
Tregony is a structurally controlled vein-hosted gold deposit within the Hyperion Project, located 30km northwest of the
Company’s 100% owned Hyperion Mineral Resource and 40km north of the Northern Star /Tanami Gold 1.1Moz
Groundrush Resource.
Tregony – Diamond Drilling
During the financial year, a 210.7m diamond drill hole at the Tregony Deposit intersected visible gold9.
Image 3: Coarse visible gold in quartz veining at ~58.5m in TGDD2101
The drillhole was designed to provide insight into the structural context and stratigraphic controls of gold mineralisation
within the Tregony Prospect. The hole intersected veining as shallow as 16.7m. Due to the stacked nature of the veins
and shallow depth only some of the identified structures were intersected.
8 ASX: 29 November 2021
9 ASX: 15 September 2021
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Prodigy Gold Annual Report 2022
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Highlight results from TGDD2101 are10:
•
•
•
•
•
4.5m interval from 14.3m with 2.4m @ 1.1g/t Au recovered;
2.4m interval from 43.8m with 1m @ 1.7g/t Au recovered;
6.5m interval from 53.3m with 5.15m @ 2.5g/t Au recovered;
7.7m interval from 70.3m with 7.5m @ 0.4g/t Au recovered; and
1m @ 0.7g/t Au from 93.9m.
The intersection of multiple structures supports the new geological model and highlights the potential for plunge and dip
extensions to the mineralisation. Higher grade shoots occur proximal to the intersection between northwest striking
faults, and stratigraphy in the hanging wall of the north-south trending Suplejack Fault.
Future drilling will screen for a large gold system where additional fault intersections are interpreted undercover to the
north of Tregony. The same stratigraphy that hosts Tregony extends for over 9km to the north under shallow cover and is
completely undrilled.
Figure 4 - Map showing drill collars at the Tregony Deposit11
Tregony - New Deposit Model and Exploration Concept
In-house re-modelling of historical logging and gold assays from Tregony identified a stacked shear vein system within the
hanging wall of the regional-scale Suplejack Fault12. Stacked shear vein arrays are common in orogenic gold deposits and
often are continuous down-dip of the major controlling structure and economically significant. Modelling of the deposit
relied heavily on assay data, as the geological logging of historical drillholes was not consistent throughout. Field
inspection of the core identified visual gold in several core samples left on site.
The Tregony Deposit, and its likely northern extension undercover to the north at Boco Prospect, are to be a focus for
FY23 RC and diamond drilling at the Hyperion Project area.
10 ASX: 17 December 2021
11 ASX: 15 November 2021 and 29 November 2021
12 ASX: 15 November 2021
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Prodigy Gold Annual Report 2022
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Buccaneer Mineral Resource (PRX 100%)
The Buccaneer Mineral Resource is currently estimated to be 10Mt @ 1.8g/t Au for 585koz above a 1g/t cut-off grade 13.
The resource cut-off grade is based on processing at a mill the scale of the Northern Star / Tanami Gold Central Tanami
Project Joint Venture 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 2,300m by 800m. The deposit remains open at depth, and aircore and RAB drilling suggest the
potential for further strike extensions.
Buccaneer - Aircore Drilling
At the Buccaneer Mineral Resource, a program of 17 aircore holes for 1,124m was completed to test the potential for
shallow oxide mineralisation south of the resource and south of the current pit design.
The aircore drill holes were sampled and assayed over 3m composites. The results include14:
•
•
•
6m @ 1.4 g/t Au from 12m (BCAC21007);
9m @ 0.5 g/t Au from 21m (BCAC21012); and
6m @ 0.7 g/t Au from 9m (BCAC21016).
Five of the 17 holes drilled intersected significant oxide mineralisation. The resource model is currently restricted to the
monzogranite intrusion. These result show that oxide mineralisation extends for over 150m to the south of the current
Buccaneer Mineral Resource. The oxide extensions to the south have the potential to be included in the resource under a
heap leach processing scenario.
Figure 5 – Results highlight potential extensions to oxide mineralisation to the south of the monzogranite (pink).
The current resource is restricted to the monzogranite15
13 ASX: 1 September 2017
14 ASX: 6 October 2021
15 ASX: 6 October 2021
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Prodigy Gold Annual Report 2022
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Buccaneer – Metallurgical Diamond Drilling16
An 8-hole program of geotechnical and metallurgical diamond drilling was completed to provide samples for metallurgical
recovery testwork to optimise the crush size for heap leach extraction of the gold. The program also aimed to provide
core to allow the Company geologists to generate a predictive model of high grade structures within the thicker
mineralised intervals.
Results released during the financial year are an update for holes BCDD2102, BCDD2104 and BCDD2105, from which
additional samples were collected for assaying and subsequent metallurgical testwork.
Figure 6: North-South cross section through recent metallurgical holes highlighting notable results17
Buccaneer Scoping Study Continues
The Company’s focus is on advancing the heap leach processing scenario for the Buccaneer Mineral Resource. Scoping
study activities advanced during the year including the diamond drilling program providing both, geotechnical data and
samples for metallurgical recovery testwork to optimise the crush size for heap leach extraction of the gold.
During the financial year results of testing to estimate unconfined compressive strength, crushing work index (CWi) and
bond abrasion index (Ai) were returned . These results are more favourable than had been considered in the concept
study and support the acceleration of study work.
Studies undertaken to date 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
region results in softer weathered rocks, and sulphide is often completely oxidised up to 100m below surface.
16 ASX: 29 Nov 2021, 17 December 2021, and 11 February 2022
17 ASX: 17 December 2021
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Prodigy Gold Annual Report 2022
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Image 4: Buccaneer assessment by Prodigy Gold geologists during a recent reconnaissance trip
Golden Hind Deposit
The Golden Hind Mineral Resource is located approximately 600m south of the Company's Old Pirate high-grade gold
open pit. The project consists of gold bearing quartz veins hosted by sandstone and shale. Gold is hosted in quartz veins
as well as ferruginous sheared sediments at Golden Hind. The Golden Hind Mineral Resource forms part of the Old Pirate
Gold Deposit, which is currently under a sales agreement with Stockton Mining18. The Company acquired the project
from Newmont in March 2010 and conducted extensive surface sampling, reverse circulation (RC) drilling, diamond
drilling (DD), trial mining and mapping prior to the commencement of open cut mining in late 2014. Mining activities
ceased in March 2016, and the project was placed on care and maintenance.
Assay of Historically Drilled Golden Hind Diamond Core
During the financial year the Company submitted diamond hole GHDD100001 (twin of the previously reported RC hole
GHRC100014) and GHDD100002 for assay. Both holes were drilled during 2012. The two-hole observation and assay
program was completed to provide results for possible future re-modelling of the resource and renewed understanding
of the controls to the previously mined mineralisation at the Golden Hind Deposit. The program also aimed to provide the
Company geologists ability to generate an improved model of the high-grade structures within the broader Old Pirate
mineralised system with a view to better predict possible mineralisation extensions and generate new drill targets. Whilst
high grade results assay were returned, the vicinity of the drilling area of GHDD100001 and GHDD100002 has been
completely mined out prior to March of 201619.
18 Refer to section “Old Pirate Project and Tanami Exploration Project”
19 ASX: 25 January 2022
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Prodigy Gold Annual Report 2022
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
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.
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.
Image 5: Sunset at Aileron
Reynolds Range Exploration
In May 2021, Prodigy Gold reported the completion of 11 RC holes for 1,549m at the Reward, Scimitar, and Sabre Targets
(all located on EL23888) with results announced during this financial year20. A key outcome from the program was the
extension of mineralisation at the Sabre Target by over 450m along strike.
Figure 7: Reynolds Range targets
20 ASX: 14 July 2021
17
Prodigy Gold Annual Report 2022
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
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, including results of 17m @ 3.93g/t Au21, 26m @ 2.73g/t Au and 24m @ 2.59g/t Au22.
Sabre Prospect Drilling
Seven RC holes for 1,081m returned results at the Sabre Prospect. The program at Sabre drilled the extensions 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. Hole SBRC2107 significantly deviated to the north and appears to have intersected
the upper margin of the north plunging shoot23. The drilling has confirmed the interpreted plunge and highlights
potential for extensions below existing drilling.
Figure 8: Sabre drilling plan highlighting significant results from 2021 drilling at Reynolds Range (Historical results (black background)
21 ASX: 24 May 2010
22 ASX: 18 January 2010
23 ASX: 14 July 2021
18
Prodigy Gold Annual Report 2022
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Reward Prospect
The Reward Prospect is considered prospective for copper, gold and silver mineralisation and is located approximately
63km west of the Stuart Highway. Reward hosts 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 Au24.
Reward – Diamond Drilling
In late July 2021, Prodigy Gold commenced diamond drilling at the Reward Copper Gold Prospect. The 260m diamond
drillhole was designed to test an EM conductor 50m below surface and 400m long located 350m southeast from the
historic Reward Copper Mine that averaged 11% Cu. The hole intersected biotite and andalusite schists with narrow
intervals of pyrrhotite and chalcopyrite. No significant assays were returned for hole RWDD202125. There is potential the
conductor has not been intersected and DHEM of the diamond hole is being considered. A revised target position
generated from DHEM would warrant future drilling.
Scimitar Prospect
The Scimitar Au-Cu Prospect is a 1.5km long north-south trending high-grade Cu-Au soil and rock chip anomaly. Au-Cu
anomalism is associated with surface quartz veining and alteration halo including malachite.
Scimitar Prospect Drilling
Three RC holes were drilled in the June 2021 to test the bedrock source of this anomaly at the southern end of the
prospect. While quartz veining and trace sulphides were intersected in the 3 holes drilled, no clear source of the elevated
results at surface has been identified. Narrow intervals of low-grade copper mineralisation were intersected in all three
holes. The project does not appear to demonstrate scale potential required to warrant future drilling26.
24 ASX: KGL: 2 December 2020
25 ASX: 29 November 2021
26 ASX: 14 July 2021
19
Prodigy Gold Annual Report 2022
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
Base Metal JV
IGO 70% / PRX
30%
Gold JV
PRX 70% / IGO
30%
IGO (IGO: ASX)
Castile Resources (CST:
ASX)
Gold JV
PRX 60% / IGO
26%/ Castile 14%
Monza Gold Project
Tobruk Gold Project
Newmont Exploration
Pty Ltd, an indirect,
wholly owned
subsidiary of Newmont
Corporation (NEM.
NYSE)
Barrow Creek Project
Australasian Metals
Limited (ASX: A8G)
Old Pirate Gold Project
and surrounding
exploration ground
Stockton Mining Pty
Ltd (Private)
Lake Mackay JV Project
Project Background
Newmont to spend
$6M to earn up to
51% / additional
29% on a decision
to mine
$12M in-ground
earn-in to 70% /
$2.5M cash +
financing option
Cash consideration
of $150,000 for
90%. PRX free
carried until
completion of a
PFS
Various staged
payments & +
2.5% NSR
Current Status
Agreement amended, excising Gold
Tenements from the existing JV.
Diamond drilling (1 successful hole)
completed by Prodigy Gold at the
Phreaker Prospect. Prodigy Gold
currently sole funding exploration to
$850,000.
Gold Tenements excised from the
orginal JV agreement with IGO with an
obligation for Prodigy Gold to sole fund
$500,000.
Prodigy Gold completed a 25 hole RC
program and reached its sole funding
commitment for these tenements.
Gold tenement EL31794 excised from
original agreement with IGO and
Castile. No work was completed on this
tenement in FY22.
Agreement signed in November 2021.
No on-ground exploration during the
financial year.
Collection of deep sensing
geochemistry survey points along with
a passive seismic survey as well as a 8-
hole RC drilling program were
completed.
A8G undertaking early stage
exploration including soil and rock chip
sampling on the Barrow Creek Lithium
Project.
Agreement signed with Stockton Mining
Pty Ltd in April 2022. Various conditions
precedent are pending completion.
The Lake Mackay Project is located 400km northwest of Alice Springs, adjacent to the Western Australian border, and has
consolidated tenure over the favourable Proterozoic margin between the Aileron and Warumpi Provinces. This area 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.
IGO Limited (“IGO”) commenced activity on the Lake Mackay JV area in 2013. 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 17GRDD00127.
27 ASX: 18 September 2017
20
Prodigy Gold Annual Report 2022
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
During 2018, IGO completed the $6M earn-in and the JV Project was thereafter funded 70:30. Subsequent drilling has
discovered high-grade base metal mineralisation at the Phreaker Prospect (see intercepts quoted later in this report), and
bedrock gold mineralisation in RC drilling, including at the Arcee Prospect - 12m @ 3.5g/t28, and Goldbug Prospect - 16m
@ 1.15g/t Au and 4m @ 1.54g/t Au29.
Agreement Amendments
During May 2022 IGO and Prodigy Gold executed a deed of excision, transfer and amendment (“Deed”) in relation to the
Lake Mackay Agreement. There are now three unincorporated exploration joint venture (“JV”) agreements covering the
Lake Mackay Project30 (Figure 9):
Lake Mackay Gold JV Agreement – covering most of the Gold Tenements
•
•
•
transfers tenements EL25146, EL31234, ELA31913 and EL80/5001 (“Gold Tenements”) from the original Lake
Mackay Agreement into a new unincorporated exploration JV
IGO transfers a 40% interest in the Gold Tenements to Prodigy Gold whereby Prodigy Gold holds a 70% interest
and IGO a 30% interest in the tenements
Prodigy Gold sole funds $500,000 of expenditure to drill 24 RC holes on the JV area; following the completion of
the recent drilling campaign this commitment has been met
Castile JV Agreement – covering Gold Tenement EL31794
•
•
transfers tenement EL31794 (“Gold Tenement”) into a new unincorporated exploration JV between Castile
Resources Limited (“Castile”), IGO and Prodigy Gold
IGO transfers 34% of EL31794 to Prodigy Gold whereby Prodigy Gold holds a 60% interest, IGO a 26% interest
and Castile a 14% interest
Lake Mackay JV Agreement – covering the Base Metal Tenements
•
•
amends and restates the terms of the original Lake Mackay Agreement and no longer covers the Gold
Tenements
Prodigy Gold sole funds $850,000 of JV expenditure to drill 3 diamond holes on the JV area within 24 months of
signing of the amended Lake Mackay Agreement; following the completion of the recent drilling campaign
fulfillment of this commitment is well underway
Figure 9: Lake Mackay Project Map
28 ASX: 16 October 2019
29 ASX: 18 January 2021
30 ASX: 18 May 2022
21
Prodigy Gold Annual Report 2022
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Exploration Summary
Exploration on the Gold and Base Metal Tenements was undertaken during the last quarter of the financial year with
results received and reported post year-end.
Phreaker Prospect Diamond Drilling – Base Metal Tenement
The Phreaker Prospect is located within the Lake Mackay JV on EL30731, 42km east of Kintore and 400km west of Alice
Springs. The polymetallic mineralisation at the Phreaker Prospect was initially discovered by IGO using airborne and
follow-up ground electromagnetic (EM) surveys in 2018 and 2019. Follow-up RC drilling completed at the prospect by IGO
in August 2019 confirmed that the mineralised system extends for over 750 metres of strike.
IGO drilled three diamond drill holes at the prospect in 2021. All three holes successfully intercepted high-grade copper
(gold-silver) sulphide mineralisation 75m to 430m below previous RC drilling. The best two recorded intersections were in
drill hole 21PHDD00231:
•
•
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.
The 2022 drilling program aimed to intersect the modelled EM plate down-plunge of the high-grade mineralisation
reported in 21PHDD002. Drill hole PRDD2202 was completed to 639.9m, however due to substantial uncontrolled lift the
hole did not intersect the target plate down plunge of the high-grade intersections in 21PHDD002.
The hole intersected the plate up-dip and along strike of the high-grade zone. The hole contained encouraging results
including32:
•
5.6m @ 0.23% Cu, 0.35% Zn, 1.2 g/t Ag and 0.18 g/t Au from 545m; including
o
0.45m @ 1.15% Cu, 1.08% Zn, 6.0 g/t Ag and 0.2 g/t Au from 547.25m;
•
•
•
0.4m @ 2.59 g/t Au from 368.5m;
1.0m @ 0.54 g/t Au from 391m; and
5.7m @ 0.35 g/t Au from 396.9m.
The anomalous gold results at Phreaker may indicate additional zones of gold enrichment away from the conductive EM
plate and closer to surface. A downhole EM (DHEM) survey completed by IGO in PRDD2202 confirmed that the drillhole
intersected the same continuous conductive plate containing the high-grade intersection from drill hole 21PHDD002
(Figure 10), however with the main conductive portion being southwest and below the hole.
Figure 10: Phreaker Prospect in plan view showing drill hole traces and modelled EM plates
31 ASX: 26 May 2021
32 ASX: 8 August 2022
22
Prodigy Gold Annual Report 2022
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
RC Drilling - Gold Tenements
Prodigy Gold completed 25 holes for 3,412 m comprising 13 holes within Western Australia and 12 holes within the
Northern Territory. The drilling program was supported by co-funding under both the Western Australian Government’s
Exploration Incentive Scheme (EIS) and the Northern Territory Government’s Geophysics and Drilling Collaborations
(GDC) Program.
Image 6: Lake Mackay RC drilling
Drilling was designed to test at depth, beneath coherent gold-in-soil anomalies generated from previous soil sampling by
IGO. The drill targets had similar gold-in-soil anomalies to those that led to the discovery of the nearby Arcee and
Goldbug prospects within the project area.
Drill holes located on EL80/5001 intersected intervals of low-grade gold mineralisation with best intervals reported at33:
•
•
•
16m @ 0.39g/t Au, 0.13% Cu and 1.0g/t Ag from 84m in SGRC2007; including
o 4m @ 0.54g/t Au, 0.39% Cu and 2.8g/t Ag from 84m;
4m @ 0.47g/t Au from 84m in SGRC2208; and
4m @ 0.74g/t Au from surface in RCRC2201.
Prodigy Gold is encouraged by these results representing the first drilling undertaken on these gold targets.
Future Work
Further diamond drilling at the Phreaker Prospect is planned to better understand the spatial relationship between gold
and base metal mineralisation and to test the original 2022 target down-dip from drill hole 21PHDD02.
33 ASX: 8 August 2022
23
Prodigy Gold Annual Report 2022
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
The Company is currently assessing results from RC drilling on the Gold Tenements with a view to planning follow-up
sampling and drilling. Additional untested gold-in-soil targets remain to be systematically assessed with drilling and will
be included in future drilling planned for Lake Mackay.
In addition, IGO and Prodigy Gold have applied for a significant area of applications covering the Warumpi terrane to the
south of the current granted tenements. This tenure may host mineralisation similar in age and character to the
mineralisation discovered within the granted tenements to the north. The same approach to screening the granted
tenements is proposed for the applications, including airborne EM, moving loop EM and RC/diamond drilling. Before
exploration can commence an agreement is required with the Tradional Owners.
Figure 11: Location map for Lake Mackay project highlighting the 2022 Phreaker diamond and gold RC drill holes
Tobruk and Monza Farm-in Projects
Tobruk Project Background
The Tobruk Project is interpreted to have occurrences of the similar prospective lithologies to those that host Newmont
Callie Gold Deposit and several smaller deposits including Groundrush and Oberon. The Tobruk 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.
Tobruk Exploration
Covid-19 related issues significantly hampered exploration activity until August 2021. More than 75 deep sensing
geochemistry survey points were collected when field activity resumed along with a passive seismic survey. Results for
the surface geochemical surveys were received and interpreted.
A reverse circulation (RC) drilling program comprising eight drillholes for 848 metres on the eastern project area was
completed towards the end of the reporting period. This program tested where anomalous responses were highlighted in
the 2021 surface geochemical survey. Results are pending.
24
Prodigy Gold Annual Report 2022
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Monza Project Background
During November 202134, Newmont Exploration Pty Ltd, an indirect, wholly owned subsidiary of Newmont Corporation
(“Newmont”) and Prodigy Gold signed a binding Exploration and Farm-in and Joint Venture Agreement (“Agreement”) to
advance exploration at the Monza Project located in the Northern Territory (the “Monza Project”).
Under the Agreement, Newmont can earn an initial 51% interest in the Monza Project by either incurring expenditure of
A$6,000,000 or defining a JORC 2012 Inferred Mineral Resource. If the joint venture elects to proceed with the
development of a mining operation, Newmont will automatically earn an additional 29% interest in the Monza Project.
Following Newmont earning a 80% interest, Prodigy Gold may elect to bring Newmont’s interest in the joint venture to
85% with Newmont funding Prodigy Gold’s share of future joint venture costs (including feasibility study costs) until the
commencement of commercial production, co-fund all future exploration and development or dilute its interest in the
Monza Project.
The Monza Project includes over 3,000km² of exploration licences and applications in the Tanami Region of the Northern
Territory along strike of and containing structures parallel to, the Trans-Tanami Fault trend. Previous exploration has
primarily been soil sampling and patchy reconnaissance drilling with 10 of the 18 tenements in the Monza Project having
no drilling in the last 20 years.
A previous JV partner completed RC drilling within the project area and defined significant gold anomalies in oxide at
Dune over a strike length of 1.4 kilometres. Within this area results included35:
•
•
•
•
•
2 metres @ 12.0 g/t Au from 105 metres (EUR0006)
8 metres @ 1.9 g/t Au from 94 metres (EUR0003)
36 metres @ 0.6 g/t Au from 104 metres, including 20 metres @ 0.95 g/t Au from 105 metres (EUR0010)
18 metres @ 0.4 g/t Au from 126 metres, including 2 metres @ 1.24 g/t Au from 126 metres (EUR0019)
10 metres @ 0.3 g/t Au from 146 metres (EUR0021).
Figure 12 - Tanami Region tenement map showing the Monza JV and adjacent Prodigy Gold and Newmont tenements
as at 30 November 2021
Monza Exploration
No on-ground exploration work was completed on the Monza Project during the financial year.
34 ASX: 30 November 2021
35 ASX: 22 January 2019, 19 August 2019 and 28 November 2019
25
Prodigy Gold Annual Report 2022
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Future Work
Target generation is continuing on the Tobruk Project.
Surface geochemical sampling is planned to commence on the Monza Project prior to year-end.
Barrow Creek JV Project
Prodigy Gold finalised the sale of 90% of the Barrow Creek Project (EL28515, EL29724, EL29725, EL30507 and EL30470)
to Australasian Metals (A8G)36 for a cash consideration of $150,000 with Prodigy Gold free carried until the completion of
a pre-feasibility study.
During the reporting period A8G has identified high-grade tantalum plus tin mineralisation at the Barrow Creek Lithium
Project in the prospective Northern Arunta pegmatite province, Northern Territory37. Highlights of this work are:
•
•
•
•
Strong Lithium-Cesium-Tantalum pegmatite signatures have been confirmed through geochemical assays
1018 ppm and 554 ppm Ta returned from ongoing rock chip sampling at EL28515
Several rock chips with elevated lithium (up to 0.26% Li2O) shows lithium mineralisation potential for EL29724
Follow up soil sampling, pending results, has been completed to expand the potential mineralised footprint.
Old Pirate Project and Tanami Exploration Project
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 Territory38 . This
agreement was terminated in October 202139.
On 29 Apri 2022, Prodigy Gold announced that it has entered into a new Agreement with privately owned Stockton
Mining Pty Ltd (“Stockton”) for the divestment of the Company’s Old Pirate Gold Project and 23 surrounding exploration
tenements located in the Tanami Region of the Northern Territory.
Stockton and Prodigy Gold are currently progressing work on the completion of conditions precedent. Full details of the
transaction have been released in the original announcement40.
Figure 13: Sales tenements
36 ASX: 12 January 2022
37 ASX A8G: 1 July 2022
38 ASX: 3 October 2019
39 ASX: 19 October 2021
40 ASX: 29 April 2022
26
Prodigy Gold Annual Report 2022
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
MINERAL RESOURCES
Prodigy Gold’s Mineral Resources for 30 June 2022 are summarised below. See the 2022 Annual Mineral Resource
Statement41 and the individual announcements referenced below for additional information.
Prodigy Gold's Mineral Resource governance includes systems and procedures that ensure:
• All persons responsible for preparing and reporting Prodigy Gold estimates qualify as a Competent Person as
•
•
defined by the JORC Code (2012 Edition), and the Competent Persons have provided written sign-off on publicly
reported estimates
Estimates are prepared using accepted industry methods
Competent Persons prepare and provide Prodigy Gold with the supporting documentation for each estimate,
and before being reported to the Board, estimates are either reviewed by Prodigy Gold senior technical staff or
by a suitably qualified external reviewer
• Any material changes or updates to estimates are reviewed and approved by the Prodigy Gold's Board before
being promptly announced to the market
Consolidated Resource Summary
Table 1 – Prodigy Gold Mineral Resource Summary as at 30 June 2022
Indicated
Inferred
Total
Project
Date
Hyperion
July-18
Cut-Off
Grade
(g/t)
0.8
Buccaneer Sept-17
Old Pirate Aug-16
1.0
1.0
Tonnes
(Mt)
Grade
(g/t Gold)
Metal
(Koz)
Tonnes
(Mt)
0.92
1.19
0.04
2.35
1.67
4.58
69
65
7
4.02
8.77
0.72
Total
Note: Totals may vary due to rounding. Tonnages reported as dry metric tonnes.
2.02
2.15
141
13.5
Grade
(g/t
Gold)
1.86
1.84
4.71
2.00
Metal
(Koz)
Tonnes
(Mt)
Grade
(g/t Gold)
Metal
(Koz)
Resource
Author
240
520
109
869
4.93
10.0
0.76
15.7
1.95
1.82
4.71
310
585
115
2.00
1,010
2
2
1
•
•
1 CSA Global
2 Optiro Pty Ltd
Old Pirate Mineral Resource
Table 2 – Old Pirate Mineral Resource Estimate
Old Pirate Gold Deposit – 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
0.01
0.28
0.02
0.42
0.002
0.01
0.005
0.01
0.04
0.72
7.44
5.46
3.07
4.21
7.56
4.85
3.50
4.06
4.58
4.71
Indicated + Inferred
Note: Totals may vary due to rounding. The above Mineral Resource Estimate was first reported in 201642
Total
0.76
4.71
3
50
2
56
1
2
1
1
7
109
115
41 ASX: 24 August 2022
42 ASX: 19 August 2016
27
Prodigy Gold Annual Report 2022
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Buccaneer Mineral Resource
Table 3 – Buccaneer Mineral Resource Estimate
Buccaneer Gold Deposit - Mineral Resource Estimate – August 2017
Indicated
Inferred
Oxide
Metal
(koz)
4
22
494
520
Note: Totals may vary due to rounding. The above Mineral Resource Estimate was first reported in 201743
Oxidised
Transitional
Fresh
Total
Grade
(Au g/t)
1.83
1.53
1.86
1.84
Grade
(Au g/t)
1.70
1.69
1.59
1.67
Tonnes
(Mt)
0.07
0.45
8.24
8.77
Tonnes
(Mt)
0.21
0.73
0.26
1.19
Metal
(koz)
12
40
13
64.7
Total
Grade
(Au g/t)
1.74
1.63
1.85
1.82
Metal
(koz)
16
62
507
585
Tonnes
(Mt)
0.28
1.18
8.50
10.0
Hyperion Mineral Resource
Table 4 – Hyperion 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
15
53
69
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
77
142
240
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)
23
92
195
310
Note: Reported above 0.8g/t Au cut-off and above the 230mRL (180m below surface). Resources may not sum to equal totals due to rounding. The above
Mineral Resource Estimate was first reported in 201844
The Hyperion Project was formerly known as the Suplejack Project however it was renamed at the request of the local
community.
43 ASX: 1 September 2017
44 ASX: 31 July 2018
28
Prodigy Gold Annual Report 2022
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Competent Persons Statement for the Mineral Resources
The information in this report that relates to Mineral Resource for Old Pirate was previously released to the ASX on the 19 August 2016 – Old
Pirate Updated Mineral Resource Estimate. This document can be found at www.asx.com.au (Stock Code: PRX) and at www.prodigygold.com.au.
The 19 August 2016 release fairly represents information reviewed by Mr. David Williams, a Competent Person who is a member of the
Australasian Institute of Mining and Metallurgy. At the time of the 19 August 2016 release Mr. Williams was a full-time employee of CSA Global
Pty Ltd. Mr. Williams had previously provided written consent for the 19 August 2016 release.
The information in this report that relates to Mineral Resource for Buccaneer was previously released to the ASX on the 1 September 2017 – Twin
Bonanza – Buccaneer Resource Update. This document can be found at www.asx.com.au (Stock Code: PRX) and at www.prodigygold.com.au. It
fairly represents information compiled by Mr. Matt Briggs who is a member of the Australasian Institute of Mining and Metallurgy and reviewed
by Mr. Paul Blackney who is a member of the Australasian Institute of Mining and Metallurgy. At the time of the 1 September 2017 release Mr.
Briggs was a full-time employee of ABM Resources NL (now called Prodigy Gold NL) and Mr. Blackney was a full-time employee of Optiro Pty Ltd.
Mr. Briggs and Mr. Blackney had previously provided written consent for the 1 September 2017 release.
The information in this report that relates to Mineral Resource for Hyperion (previously called Suplejack) was previously released to the ASX on
the 31 July 2018 – Suplejack Resource Update. This document can be found at www.asx.com.au (Stock Code: PRX) and at
www.prodigygold.com.au. The 31 July 2018 release fairly represents data and geological modelling reviewed by Mr. Matt Briggs who is a
member of the Australasian Institute of Mining and Metallurgy and grade estimation and Mineral Resource estimates reviewed by Mr. Ian
Glacken who is a Fellow of the Australian Institute of Geoscientists. At the time of the 31 July 2018 release Mr. Biggs was a full-time employee of
Prodigy Gold NL and Mr. Glacken was a full-time employee of Optiro Pty Ltd. Mr. Biggs and Mr. Glacken had previously provided written consent
for the 31 July 2018 release.
The Company confirms that it is not aware of any new information or data that materially affects the Mineral Resources as reported on the 19
August 2016, 1 September 2017 and 31 July 2018, and the assumptions and technical parameters underpinning the estimates in the 19 August
2016, 1 September 2017 and 31 July 2018 releases continue to apply and have not materially changed.
The information in this announcement relating to Mineral Resources from Old Pirate, Buccaneer and Hyperion is based on information reviewed
and checked by Mr. Mark Edwards. Mr. Edwards is a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM) and has sufficient
experience relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a
Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves (the “JORC Code”). Mr. Edwards is a full-time employee of the Company in the position of Managing Director and consents to the
inclusion of the Mineral Resources in the form and context in which they appear.
Cautionary Statements Relating to Historical Data
The Company cautions that the previous 2004 Tregony Mineral Resource is not reported in accordance with the JORC Code 2012. A Competent
Person has not yet done sufficient work to classify the estimates of Mineral Resources in accordance with the JORC Code 2012. Prodigy Gold
notes that nothing has come to its attention that causes it to question the accuracy or reliability of the former owner's estimate as first
announced by Ord River Resources in ASX release dated 26 November2012, however the Company is in the process of independently validating
the former owner's data and estimates and therefore cannot be regarded as reporting, adopting, or endorsing those estimates.
Competent Persons Statement for the Exploration Results
The information in this report relating to exploration targets and exploration results is based on information reviewed and checked by Mr. Mark
Edwards, FAusIMM, MAIG. Mr. Edwards is a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM) and a Member of the
Australasian Institute of Geoscientists (AIG). Mr. Edwards is a full-time employee of Prodigy Gold NL and has sufficient experience which is
relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a
Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting Exploration Results, Mineral Resources and Ore
Reserves”. Mr. Edwards consents to the inclusion in the documents of the matters based on this information in the form and context in which it
appears.
The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market
announcement and, in the case of estimates of Mineral Resources that all material assumptions and technical parameters underpinning the
estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and
context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.
Refer to previous Company ASX announcements for full resource estimation details, drill hole details, and intercept calculations. 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.
The information in this report that relates to previous ASX announcements relating to ASX Exploration Result and Exploration Targets. The
relevant announcements are noted below:
29
Prodigy Gold Annual Report 2022
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Announcement
Date
Releasing
Compay ASX
Ticker
Announcement Title
Competent Person
At the time of release
full-time employee of
Membership
Membership
Status
8/08/2022
PRX
Lake Mackay Drilling Results
Edward Keys
Prodigy Gold
AIG
Member
1/07/2022
A8G
High grade tantalum mineralisation and lithium
signatures identified at Barrow Creek lithium Project, NT
Qingtao Zeng
Australasian Metals (A8G)
AusIMM
Member
Lake Mackay JV - Agreement and Exploration Update
Mark Edwards
Prodigy Gold
AusIMM
Fellow
18/05/2022
29/04/2022
11/02/2022
25/01/2022
PRX
PRX
PRX
PRX
12/01/2022
A8G
17/12/2021
30/11/2021
29/11/2021
15/11/2021
19/10/2021
6/10/2021
15/09/2021
24/08/2021
14/07/2021
26/05/2021
18/01/2021
2/12/2020
28/11/2019
16/10/2019
3/10/2019
19/08/2019
22/01/2019
31/07/2018
18/09/2017
1/09/2017
19/08/2016
PRX
PRX
PRX
PRX
PRX
PRX
PRX
PRX
PRX
PRX
PRX
KGL
PRX
PRX
PRX
PRX
PRX
PRX
PRX
PRX
PRX
Agreement Signed over Old Pirate Project & Tanami
Tenements
Edward Keys
Prodigy Gold
Buccaneer Gold Project Update
Adriaan van Herk
Prodigy Gold
High Grade Intercepts of Historical Golden Hind Diamond
Core
A8G:Acquisition of 90% Interest in Large Lithium Project,
NT
Edward Keys
Prodigy Gold
AIG
AIG
AIG
Member
Member
Member
Qingtao Zeng
Australasian Metals (A8G)
AusIMM
Member
Exceptional Results in Buccaneer Diamond Drilling
Matt Briggs
Prodigy Gold
AusIMM
Member
Major JV with Newmont for Monza Gold Project
Matt Briggs
Prodigy Gold
AusIMM
Member
Progress Results for Buccaneer Diamond Drilling
Matt Briggs
Prodigy Gold
AusIMM
Member
Historic High Grades Confirm Potential of Tregony
System
Adriaan van Herk
Prodigy Gold
AIG
Member
Prodigy Gold Terminates Old Pirate Operator Agreement Matt Briggs
Prodigy Gold
AusIMM
Member
Drilling Extends Shallow Gold Mineralisation at Buccaneer Matt Briggs
Prodigy Gold
AusIMM
Member
Multiple Structures intersected in Hyperion Diamond
Drilling
Matt Briggs
Prodigy Gold
AusIMM
Member
Annual Mineral Resource Statement
Matt Briggs
Prodigy Gold
AusIMM
Member
AIG
AIG
AIG
Member
Member
Member
Broad Gold Intersections at the Sabre Target
Edward Keys
Prodigy Gold
High Grade Copper Intersections at the Phreaker Prospect Doug Winzar
IGO Limited (IGO)
Lake Mackay JV-Bedrock gold intersected at Goldbug
Prospect
JORC Reserve & Pre-Feasibility Study of KGL's Jervois
Copper Project
Euro JV Drilling Update- Dune Prospect Gold Anomaly
Extended
Doug Winzar
IGO Limited (IGO)
Iain Ross
KGL Resources (KGL)
AusIMM
Member
Matt Briggs
Prodigy Gold
AusIMM
Member
Lake Mackay JV Update - New Gold Prospect Identified
Doug Winzar
IGO Limited (IGO)
AIG
Member
Prodigy Gold Signs Operator Agreement on Old Pirate
Project
Euro JV Project Drilling Update- Additional gold
intersected
Matt Briggs
Prodigy Gold
AusIMM
Member
Matt Briggs
Prodigy Gold
AusIMM
Member
Drilling intersects 2m @ 12g/t Au at Euro JV Project
Matt Briggs
Prodigy Gold
AusIMM
Member
Suplejack Resource Update
Ian Glacken
Optiro Pty Ltd
AusIMM
Member
Lake Mackay JV - Grapple Prospect Drilling Update
Doug Winzar
IGO Limited (IGO)
AIG
Member
Twin Bonanza – Buccaneer Resource Update
Paul Blackney
Optiro Pty Ltd
AusIMM
Member
Old Pirate Updated Mineral Resource Estimate
David Williams
CSA Global Pty Ltd
AusIMM
Member
26/11/2012
VAN (Prev ORD)
ORD reports substantial increase in JORC resource at
Suplejack Project to 101,300 AU ounces
Murray Hutton
Ord River Resources (now
Vango Mining Limited VAN)
AIG
Member
24/05/2010
18/01/2010
PRX
PRX
First Drill Results - High Grade Intercepts Extends Sabre
Darren Holden
Prodigy Gold
AusIMM
Member
Exploration Update for Reynolds Range Project Area
Darren Holden
Prodigy Gold
AusIMM
Member
30
Prodigy Gold Annual Report 2022
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
TENEMENT MANAGEMENT
The total area of 27,006km2 (2021: 33,323km2) 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 12,227km2 with 14,779km2 held
under exploration licence application.
To address the costs associated with maintaining such a large land holding and to better focus exploration activities, the
Company continues to actively seek to reduce its tenure costs through joint venture and divestment.
A map showing the location of the Company’s current tenement holding is presented in Figure 1 of the review of
operations report and a complete list of tenements follows this report.
CORPORATE
Board and Management Changes
The Board underwent a full renewal process during the financial year with Thomas McKeith, Mike Stirzaker and Matt
Briggs departing and Gerard McMahon and Neale Edwards joining the board. Brett Smith stepped in the interim up to the
role of executive director and Mark Edwards joined as managing director at the beginning of May 2022. Trish Farr
covered the role of alternate secretary for a short period of time.
Capital Structure
Prodigy Gold issued 4,600,000 options to employees under the terms and conditions of the Company’s Employee Share
Option Plan during the financial year, 2,000,000 options were exercised and 25,725,000 options expired.
As at 30 June 2022, Prodigy Gold has a total of 582,627,606 shares and 6,725,000 million unlisted options on issue.
Pacific Road Capital ceased to be a substantial holder and APAC Resourcess increased its stake to 19.9% of Prodigy Gold’s
shares on issue. Jetosea Pty Ltd and Jayleaf Holdings Pty Ltd were added to the substantial shareholder list.
Loan Facility
Prodigy Gold entered initially into a six-month A$2.5 Million unsecured loan facility agreement with Mount Sun Investments
Limited, which was subsequently extended for an additional three months. The funds have been fully drawn and are used
to finance operations and cover working capital until the completion of an equity raising45.
Share Registry
The Company’s share registry Automic Pty Ltd relocated to Level 5, 191 St Georges Terrace in Perth.
Registered Address
Subsequent to year end, the Company and its fully owned subsidiaries relocated their registered address to Level 1, 67
Smith Street in Darwin.
45 ASX: 22 March 2022 and 28 July 2022
31
Prodigy Gold Annual Report 2022
SUMMARY OF MINING TENEMENTS AND AREAS OF INTEREST
Summary of Mining Tenements as at 30 June 2022
Area of Interest
Tenement
Group’s
Interest
Tenement
Status
Status Changes
During the Year
Surrendered during the year
Surrendered during the year
Expired during the year
Surrendered during the year
Surrendered during the year
Surrendered during the year
Expired during the year
Surrendered during the year
NORTHERN TERRITORY
TANAMI
Birrindudu
Bluebush
Bonanza
Hyperion
Abroholos
Tobruk (1)
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
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
ceased
ceased
ceased
granted
granted
granted
granted
ceased
ceased
granted
granted
granted
granted
granted
granted
granted
application
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
application
granted
ceased
granted
ceased
granted
ceased
granted
granted
granted
application
application
application
granted
granted
granted
granted
granted
granted
application
application
application
32
Prodigy Gold Annual Report 2022
SUMMARY OF MINING TENEMENTS AND AREAS OF INTEREST
Area of Interest
Tenement
Monza JV (2)
Tanami Ngungaju JV (3)
LAKE MACKAY
Tekapo
Lake Mackay Gold JV (4)
Castile JV (5)
Warumpi (6)
EL25845
EL26590
EL26591
EL26592
EL26593
EL26613
EL26615
EL26618
EL26620
EL26621
EL26622
EL26673
EL27604
EL29834
EL30271
EL30272
EL30273
EL30283
EL26626
EL26628
EL29828
EL26627
EL28682
EL25146
EL31234
E80/5001
EL31913
EL31974
EL24915
EL30729
EL30730
EL30731
EL30732
EL30733
EL30739
EL30740
EL27947 (4)
EL25147
EL31718
EL31719
EL31720
EL31721
EL31722
EL31723
EL32095
EL32096
EL32097
EL32098
EL32099
EL32100
EL32101
EL32102
EL32103
Group’s
Interest
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
90
90
90
90
100
70
70
70
70
60
30
30
30
30
30
30
30
30
15.3
30
30
30
30
30
30
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
application
ceased
granted
granted
application
application
granted
granted
granted
application
granted
granted
ceased
granted
granted
ceased
ceased
granted
ceased
ceased
application
application
application
application
application
application
application
application
application
application
application
application
application
application
application
application
Surrendered during the year
IGO Limited
IGO Limited
IGO Limited
Castile Resources Pty Ltd
Surrendered during the year
Surrendered during the year
Surrendered during the year
Surrendered during the year
Castile Resources - surrendered during the year
Withdrawn during the year
IGO Limited Withdrawn during the year
IGO Limited Withdrawn during the year
IGO Limited
IGO Limited
IGO Limited
IGO Limited Withdrawn during the year
IGO Limited
IGO Limited
IGO Limited
IGO Limited
IGO Limited
IGO Limited
IGO Limited
IGO Limited
IGO Limited
33
Prodigy Gold Annual Report 2022
SUMMARY OF MINING TENEMENTS AND AREAS OF INTEREST
Area of Interest
Tenement
Group’s
Interest
Tenement
Status
Status Changes
During the Year
NORTH ARUNTA
Barrow Creek
Australasian Gold JV (7)
Reynolds Range
EL8766
EL23880
EL23883
EL23884
EL23885
EL23886
EL25031
EL25033
EL25034
EL25035
EL25041
EL25042
EL25044
EL26825
EL29723
EL29896
EL30637
EL28515
EL29724
EL29725
EL30470
EL30507
EL23655
EL23888
EL28083
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
10
10
10
10
10
80(8)
100
100
granted
granted
granted
granted
granted
granted
ceased
ceased
ceased
ceased
ceased
ceased
ceased
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
Surrendered during the year
Surrendered during the year
Surrendered during the year
Surrendered during the year
Surrendered during the year
Surrendered during the year
Surrendered during the year
1)
2)
3)
4)
5)
6)
7)
8)
Farm-in and Joint Venture Agreement with Newmont Exploration Pty Ltd earning up to a 70% interest in the tenements
Farm-in and Joint Venture Agreement with Newmont Exploration Pty Ltd earning up to an 80% interest in the tenements
Joint Venture with Ngungaju Lithium Operations Pty Ltd 10% / Prodigy Gold 90%
Joint Venture with Prodigy Gold 70% / IGO Limited 30%
Joint Venture between Castile Resources Pty Ltd (14%), IGO Limited (26%) and Prodigy Gold (60%)
Joint Venture with IGO Limited 70% / Prodigy Gold 30%
Joint Venture with Australasian Metals Limited 90% / Prodigy Gold 10%
Joint Venture with Select Resources Pty Ltd / Prodigy Gold holds an 80% beneficial interest with 60% interest currently registered on title
34
Prodigy Gold Annual Report 2022
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 2022.
Director
Role
Period in office during the financial year
Mr Gerard McMahon
Non-Executive Chairman
29/11/2021 – 30/06/2022
Mr Mark Edwards
Mr Brett Smith
Managing Director
Executive Director
01/05/2022 – 30/06/2022
01/07/2021 – 30/06/2022
Mr Neale Edwards
Non-Executive Director
29/11/2021 – 30/06/2022
Mr Thomas McKeith
Non-Executive Chairman
01/07/2021 – 27/09/2021
Mr Matthew Briggs
Managing Director
01/07/2021 – 07/01/2022
Mr Michael Stirzaker
Non-Executive Director
01/07/2021 – 01/12/2021
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 (2021: NIL).
Operating Results
The consolidated loss for the Group after providing for income tax amounted to $7,620,360 (2021: loss of $4,807,264).
Financial Position
The net assets of the Group have decreased by $7,504,167 from 30 June 2021 to $8,789,717 in 2022. The decrease is due
to the Group undertaking exploration activity during the year and recognising a significant amount of impairments of
$1,665,197 (2021: $368,041).
Significant Changes in the State of Affairs
The Group has undergone a complete board renewal process during the financial year and has moved it’s registered
office (subsequent to financial year end) to the Northern Territory. The Company has entered into several new joint
venture and divestment agreements and restructed current joint venture agreements. Exploration continued during the
year.
Matters Subsequent to the End of the Financial Year
Subsequent to year-end the Company changed its registered office to the Northern Territory and extended a short-term
loan facility for a period of three months.
Likely Developments
•
•
•
•
Continued regional exploration;
Completion of a capital raising to pay back the short-term loan facility and finance ongoing exploration;
Further rationalisation of tenement holdings in the Northern Territory through divestment or joint venture; and
Systematic evaluation of resources including Tregony, Hyperion and Buccaneer.
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 2022
DIRECTORS’ REPORT
INFORMATION ON DIRECTORS
Mr Gerard McMahon
Status: Independent
Position: Non-Executive Chairman
Qualifications and Experience:
Over the past 30 years, Mr McMahon has been a Director of many other listed companies in the Asia Pacific region which
are involved in the banking, manufacturing, retailing, information technology, medical, telecoms & mining industries. Mr
McMahon’s past experience includes extensive involvement in Hong Kong’s Securities and Futures Commission as Chief
Counsel, Member and Executive Director and has specialised in Hong Kong company law, securities and banking law and
takeovers and mergers regulations.
Mr McMahon was a Non-Executive Director of Tanami Gold NL (to 2021) (ASX:TAM), having formerly been Chairman
from 2013 to 2018 and he is Non-Executive Director and Chairman of the Audit Committee of Hong Kong listed GDH
Guangnan (Holdings) Limited (since 2000). Mr McMahon is also a Director of ZZCI Corporate Finance Limited, a Hong
Kong based corporate finance and advisory firm which he co-founded (formerly known as Asian Capital (Corporate
Finance) Limited).
Mr Mark Edwards
BSc Hons (Geology), MBA, MAICD, MAIG, FAusIMM
Status: Not independent
Position: Executive Director
Qualifications and Experience:
Mr Edwards is an accredited and experienced geologist with over 25 years’ of experience working primarily as a
manager/mine geologist responsible for the definition and replacement of resources and reserves on gold projects
throughout the Northern Territory, Western Australia and Botswana. Amongst other companies, he worked for Otter
Gold Mines, Sons of Gwalia, IAM Gold, Troy Resources and, most recently as Project Director for Agnico Eagle Mines
(formerly Kirkland Lake Gold), working at the Tanami Gold Mine and Pine Creek projects in the Northern Territory (NT).
Mr Edwards has strong community, business and government ties in the Northern Territory as well as being a NT
committee member for the Minerals Council of Australia, which will benefit the Company greatly.
Mr Brett Smith
BEng Hons (Chem), MBA, MA
Status: Not independent
Position: 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.
36
Prodigy Gold Annual Report 2022
DIRECTORS’ REPORT
Mr Neale Edwards
BSc Hons (Applied Geology), Member AusIMM, Fellow AIG
Status: Not Independent
Position: Executive Director
Qualifications and Experience:
Mr Neale Edwards has over 30 years’ experience in the mineral exploration and mining industry. Mr Edwards holds a
Bachelor of Applied Science in Applied Geology and Bachelor of Science with Honours and is a Fellow of the Australian
Institute of Geoscientists. Mr Edwards’ experience covers projects ranging from grassroots level through to mine
development and mining in major geological provinces in Australia, the Pacific Rim, northern Africa and northern Europe.
Mr Edwards was responsible for the discovery of significant gold resources in the Southern Cross Province of Western
Australia for Samantha Gold and the identification of project opportunities that resulted in Dragon Mining becoming an
established gold producer in the Nordic Region. Mr Edwards is currently Chief Geologist for HKEX listed Dragon Mining
Limited and Non-Executive Director for Tanami Gold NL (ASX: TAM).
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 2022, and the number of meetings attended by each Director were:
Directors
Mr Gerard McMahon
Mr Mark Edwards
Mr Brett Smith
Mr Neale Edwards
Mr Thomas McKeith
Mr Matthew Briggs
Mr Michael Stirzaker
Board Meetings
Eligible to Attend
Attended
4
1
10
4
3
7
6
4
1
10
4
3
7
6
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 G McMahon
Mr M Edwards
Mr B Smith
Mr N Edwards
37
Fully Paid Ordinary Shares
Unlisted Options
-
-
660,714
-
-
-
1,500,000
-
Prodigy Gold Annual Report 2022
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.
Voting at the Company’s 2021 Annual General Meeting
The Company received 49.15% of votes against its remunertion report for the 2021 financial year at the 2021 AGM. The
resolution was not passed, as more than 25% of the votes were cast against the resolution. This constitutes a first strike
for the purposes of the Corporations Act 2001 (Cth). A full board renewal process was completed following the AGM.
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 2022 the Company utilised $120,000
(2021: $124,846) 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. No
review of the Board’s performance for the year was undertaken due the completion of a Board renewal process and time
periods being considered too short for such a review to be undertaken.
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 Board’s discretion
Long-term incentives at the Board’s 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
10% during the reporting period, and do not receive any other retirement benefits. Other benefits include personal
accident (working directors) insurance and other fringe benefits.
Use of Remuneration Consultants
Due to the size of the Company’s operations, the Company has not engaged remuneration consultants to review and
measure its remuneration policy and strategy. However, the Board reviews remuneration strategy periodically and, if
required, will engage remunertion consultants in the future to assits with this process.
38
Prodigy Gold Annual Report 2022
DIRECTORS’ REPORT
Short-Term Incentives
The objective of short-term incentives is to align the interests of Executive Directors, key management personnel and
employees with those of the shareholders through the payment of short-term incentives linked to pre-agreed targets.
The targets include, where appropriate meeting budget forecasts, occupational health and safety measures, relationship
management, exploration success, staff retention, compliance and formulating company strategies. Short-term
incentives are designed to incentivise and reward individual contribution to achieving overall performance. No
discretionary short-term incentive cash bonuses have been granted during the year, or the preceding five years.
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 17, 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 17), 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 five 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
Loss per share (cents)
Key Management Personnel
2018
141,739
2019
168,037
2020
205,300
2021
82,419
2022
17,535
5,693,350
5,004,727
5,620,204
4,807,264
7,620,360
0.087
-
(1.45)
0.089
-
(1.09)
0.045
-
(1.00)
0.04
-
(0.83)
0.013
-
(1.31)
The following persons were key management personnel of the Group during the financial year:
Key Management Personnel
Position
Commencement and Resignation of Position
Mr G McMahon
Mr M Edwards
Mr B Smith
Mr N Edwards
Mr T McKeith
Mr M Briggs
Mr M Stirzaker
Non-Executive Chairman
29 November 2021
Managing Director
Executive Director
1 May 2022
9 May 2016
Non-Executive Director
29 November 2021
Non-Executive Chairman
27 June 2016 to 27 September 2021
Managing Director
3 October 2016 to 7 January 2022
Non-Executive Director
3 December 2018 to 1 December 2021
Ms J Zimmermann
CFO / Company Secretary
1 June 2005
39
Prodigy Gold Annual Report 2022
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
$
2022
Directors
Mr G McMahon
Mr M Edwards
Mr B Smith
Mr N Edwards
Mr T McKeith
Mr M Briggs
Mr M Stirzaker
Total Directors
Other KMP
31,818
54,167
36,363
15,909
13,636
164,663
11,363
327,919
Jutta Zimmermann
220,000
Total Other
Total
220,000
547,919
-
-
-
-
-
-
-
-
-
-
-
Proportion
of
Remune-
ration that
is at Risk
0%
0%
19.6%
0%
0%
0%
0%
Total
$
35,000
59,583
49,759
17,500
15,000
-
-
-
-
-
57,542
241,936
-
12,500
-
-
-
-
-
3,182
5,416
3,637
1,591
1,364
-
-
-
-
-
2,484
14,591
2,656
-
1,137
-
-
-
9,759
-
-
-
-
2,484
30,918
2,656
9,759
57,542
431,278
2,555
2,555
5,039
27,119
27,119
58,037
3,520
3,520
6,176
54,854
54,854
64,613
-
-
308,048
17.8%
308,048
57,542
739,326
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 17 in the consolidated financial statements).
Short-Term Employee Benefits
Cash Salary
and Fees
$
Cash Bonus
$
Annual
Leave 1)
$
Post-
Employ-
ment
Super-
annuation
$
Long-Term
Benefits
Long
Service
Leave 2)
$
Share-
based
Payments
Options 3)
$
Termina-
tion
Benefits
$
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
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
-
-
-
-
-
-
-
-
1)
2)
3)
4)
40
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 17 in the consolidated financial statements).
Cash Salary and Fees includes JobKeeper top-up payments.
Prodigy Gold Annual Report 2022
DIRECTORS’ REPORT
Options and Shares Issued as Part of Remuneration
Options valued at $64,613 (2021: $117,841) were issued to KMP during the year ended 30 June 2022 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 17.
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 six 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 non-executive Directors is $30,000
per year. The base fee for a temporary exectuive role by Brett Smith is $40,000 per year. This role is scheduled to revert
back to a non-executive director role on completion of an equity raising.
Mr M Edwards, Managing Director
•
•
•
•
Term of agreement – 4 year contract commencing 1 May 2022;
Base salary, exclusive of superannuation (capped at concessional contriubution cap), $325,000 per year;
2 Million option equal to 145% of the 5 day VWAP prior to 8 February 2022 – these options are subject to
shareholder approval at the 2022 AGM;
Payment of a termination benefit on early termination by the Company, other than for gross misconduct, equals
3 month salary, or for termination without reason 6 months salary;
• Notice period varies between no notice if mutually agreed and six 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 17);
•
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 probability of achievement, 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 2022
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 $549,161 (2021:
$1,165,712) of previously recognised share-based payment options have been transferred to accumulated 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 previously recognised as remuneration.
Refer to Note 17 of the financial statements for more information on options provided as part of remuneration to the
Directors and key management personnel.
Options issue to KMP’s during the Reporting Period
The Group granted Zepos to KMP’s during the reporting period on the terms and conditions of the Employee Share Option Plan as
follows (for further details refer to Note 17):
Zepos issued during the reporting period
KMP Tranche A
KMP Tranche B
KMP Tranche C
KMP Tranche D
Incentive Type
Number of Zepos granted
Fair value at grant date
Number of Zepos vested and exercisable at 30
June 2022
Exercise price
Underlying share price
Grant date
Expected price volatility
Risk free interest rate
LTI
750,000
$0.04
NIL
NIL
$0.04
LTI
750,000
$0.04
NIL
NIL
$0.04
LTI
225,000
$0.04
NIL
NIL
$0.04
LTI
225,000
$0.04
NIL
NIL
$0.04
28-July 2021
28-July 2021
28-July 2021
28-July 2021
94%
1.14%
100%
1.14%
100%
0.13%
100%
0.13%
Vesting date (subject to performance conditions
and service period)
Expiry date
1 July 2022
1 July 2030
1 July 2023
1 July 2030
1 July 2023
1 July 2025
1 July 2024
1 July 2025
In addition, the Group agreed to issue 2 million option equal to 145% of the 5 day VWAP prior to 8 February 2022 to a KMP, however,
these options are subject to shareholder approval at the 2022 AGM.
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 G McMahon
Mr M Edwards
Mr B Smith 1)
Mr N Edwards
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
-
-
375,000
-
2,001,145
2,376,145
-
-
-
-
-
-
-
-
285,714
-
-
285,714
-
-
-
-
-
-
-
-
660,714
-
2,001,145
2,661,859
1) Mr Smith is a nominee of APAC Resources Limited who are a substantial shareholder of Prodigy Gold.
42
Prodigy Gold Annual Report 2022
DIRECTORS’ REPORT
Option Holding
Directors and other KMP of the Group, including their personally related parties, hold options over ordinary shares in the
Company.
Balance at the
Start of the
Year
Received as
Part of
Remuneration
Additions
Disposals /
Other
Name
Mr G McMahon
Mr M Edwards
Mr B Smith1)
Mr N Edwards2)
-
-
3,000,000
-
-
-
-
-
Ms J Zimmermann
400,000
1,950,000
3,400,000
1,950,000
Balance at the
End of the
Year
Vested at the
End of the
Year
-
-
-
-
-
-
(1,500,000)
1,500,000
1,000,000
-
-
-
2,235,000
-
-
(1,500,000)
3,735,000
1,000,000
-
-
-
-
-
-
1)
2)
option expired unexercised
agreed to issue 2 million options subject to shareholder approval at the 2022 AGM
Loans to Directors and Other Key Management Personnel
No loans to Directors and other key management personnel of the Group were provided in 2022 (2021: 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. Following his resignation, the
Company paid a total fee of $60,000 (2021: NIL) to a related party of Mr Matt Briggs (a company Mr Briggs is a director
of) for advisory services provided to Prodigy Gold.
This concludes the Remuneration Report, which has been audited.
43
Prodigy Gold Annual Report 2022
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 $18,536 (2021: $16,683) and are detailed in Note 15.
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 46.
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
MARK EDWARDS
Managing Director
Dated this 24th day of August 2022
Perth, Western Australia
44
Prodigy Gold Annual Report 2022
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 took effect for an entity’s first full financial year
commencing on or after 1 January 2021. The Company has undergone a full review of its corporate governance
policies during the financial year ended 30 June 2021 and amended its disclosures in compliance with the new ASX
Principles effective 1 July 2021. An annual review has been undertaken during June 2022.
The Group’s Corporate Governance Statement for the year ended 30 June 2022 (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 2022 may also be
accessed from the Company’s website at www.prodigygold.com.au/about-prodigy-gold/corporate-governance.
45
Prodigy Gold Annual Report 2022
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth WA 6000
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 2022, 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 2022
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 2022 were authorised for issue in accordance
with a resolution of the Directors on 24 August 2022 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 22.
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, 67 Smith Street
DARWIN NT 0800
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 44, 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
47
Prodigy Gold Annual Report 2022
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
47
49
50
51
52
53
71
72
76
48
Prodigy Gold Annual Report 2022
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 30 JUNE 2022
Consolidated
Notes
2022
$
2021
$
2
3
3
3
3
8
4(a)
Interest
Other income
Administrative expenses
Employee and Directors benefits expenses
Share-based payments
Depreciation
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
17,535
343,726
82,419
702,664
(475,207)
(68,368)
(10,575)
(658,982)
(5,103,292)
(1,665,197)
(7,620,360)
-
(7,620,360)
(7,620,360)
-
-
(575,884)
(118,779)
-
(355,481)
(4,174,162)
(368,041)
(4,807,264)
-
(4,807,264)
(4,807,264)
-
-
(7,620,360)
(4,807,264)
(7,620,360)
(4,807,264)
Basic and diluted loss per share attributable to the ordinary equity
holders of the Company
Basic and diluted loss per share (cents per share)
21
(1.31)
(0.83)
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the
accompanying notes.
49
Prodigy Gold Annual Report 2022
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2022
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Other receivables
Inventories
Available for Sale Assets
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
Borrowings
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
2022
$
2021
$
5
6
7
6
8
10
9
11
2,395,333
629,845
4,306
5,623,950
131,954
8,785,388
2,509,484
108,702
2,291,985
4,910,171
13,695,559
666,261
2,500,000
175,921
3,342,182
-
1,563,660
1,563,660
4,905,842
8,789,717
6,257,884
258,485
15,488
-
106,412
6,638,269
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
16,293,884
12
13(a)
187,260,818
187,262,068
1,955,984
2,412,399
(180,427,085)
(173,380,583)
8,789,717
16,293,884
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
50
Prodigy Gold Annual Report 2022
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Contribution from Joint Ventures (JV)
Expense re-imbursements from JV Partners
Payments to suppliers and employees
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 exploration and evaluation assets
Net cash inflow / (outflow) from investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings
(Placement) / (refund) of security deposits (cash-back)
Borrowing cost
Share issue costs
Net cash inflow / (outflow) from financing activities
Net (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Consolidated
Notes
2022
$
2021
$
-
90,909
100,000
540,643
(1,106,305)
(924,151)
16,477
45,632
92,211
406,159
(4,957,385)
(3,474,163)
(509,734)
(950,520)
20
(6,420,406)
(4,209,821)
(36,198)
200,000
163,802
(103,345)
-
(103,345)
2,500,000
-
-
(128,894)
(104,697)
(1,250)
-
2,394,053
(128,894)
(3,862,551)
(4,442,060)
6,257,884
2,395,333
10,699,944
6,257,884
5
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
51
Prodigy Gold Annual Report 2022
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2022
Contributed
Equity
$
Share-based Payment
Reserve
$
Accumulated
Losses
$
Notes
Total
$
Balance at 1 July 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 costs
Share-based payments transfer
Share-based payments
Total transactions with owners
Balance at 30 June 2021
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 2022
12(a)
12(a)
13(a)
13(a)
12(a)
12(a)
13(a)
13(a)
187,262,068
3,462,495
(169,768,873)
20,955,690
-
-
-
-
-
-
-
-
-
-
-
-
-
(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
-
-
-
-
(1,250)
-
-
(1,250)
187,260,818
-
-
-
-
-
(573,858)
117,443
(456,415)
(7,620,360)
(7,620,360)
-
-
(7,620,360)
(7,620,360)
-
-
573,858
-
573,858
-
(1,250)
-
117,443
116,193
1,955,984
(180,427,085)
8,789,717
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
52
Prodigy Gold Annual Report 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
CONTENTS OF THE NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1.
Segment Information
2. Other Income
3.
4.
5.
6.
Expenses
Income Tax Expense
Cash and Cash Equivalents
Term Deposits and Other Receivables
7. Available for Sale Assets
8.
9.
Exploration, Evaluation and Development Expenditure
Borrowings
10. Trade and Other Payables
11. Provisions
12. Contributed Equity
13. Reserves
14. Financial Risk Management
15. Auditor’s Remuneration
16. Contingencies
17. Share-Based Payments
18. Related Party Transactions
19. Subsequent Events
20. Cash Flow Information
21. Loss per Share
22. Parent Entity Information
23. Subsidiaries
24. Company Details
25. Summary of Significant Accounting Policies
Page
54
54
54
55
56
57
57
58
58
59
59
60
61
61
64
64
64
66
66
67
67
68
69
69
69
53
Prodigy Gold Annual Report 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1:
SEGMENT INFORMATION
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 Exploration Interests
Government Grants
Consolidated
2022
$
2021
$
-
29,353
150,000
164,373
343,726
301,412
28,557
-
372,695
702,664
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
2022
$
2021
$
1,571,765
1,887,993
(1,096,558)
(1,312,109)
475,207
575,884
117,443
(49,075)
68,368
36,859
(26,284)
10,575
467,928
(467,928)
-
145,458
(26,679)
118,779
37,355
(37,355)
-
(404,802)
404,802
-
1,096,558
1,312,109
49,075
26,284
467,928
3,463,447
5,103,292
26,679
37,355
(404,802)
3,202,821
4,174,162
54
Prodigy Gold Annual Report 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
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 25% (2021: 26%)
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
2022
$
2021
$
-
-
-
-
-
-
(7,620,360)
(4,807,264)
(1,905,090)
(1,249,889)
-
29,361
749
(13,000)
30,883
450
(1,874,980)
(1,231,556)
1,874,980
1,231,556
-
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
637,638
31,747
669,385
2,356,407
31,778
2,388,185
(669,385)
(2,388,185)
-
-
38,982,886
37,523,672
551,744
80,207
1,874,302
122,410
39,614,837
39,520,384
(669,385)
(2,388,185)
38,945,452
37,132,199
No deferred tax assets have been recognised as it is not probable that future tax profits will be available to offset these balances.
55
Prodigy Gold Annual Report 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
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
2022
$
2021
$
2,395,333
-
2,395,333
2,257,884
4,000,000
6,257,884
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 three months or less that are readily convertible to
known amounts of cash and which are subject to an insignificant risk of changes in value.
56
Prodigy Gold Annual Report 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
NOTE 6:
TERM DEPOSITS AND OTHER RECEIVABLES
CURRENT
Other receivables (Note 6(a))
NON-CURRENT
Bond term deposit and DPIR Cash Bonds
(a)
Other receivables
Consolidated
2022
$
2021
$
629,845
629,845
258,485
258,485
2,509,484
2,509,484
2,509,484
2,509,484
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 and transactions relating to available for sale assets.
Accounting estimates and judgements
The Group’s other receivables and financial assets were subject an assessment under AASB 9 as at 30 June 2022. 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.
NOTE 7:
AVAILABLE FOR SALE ASSETS
CURRENT
Fixed assets held for sale
Exploration, evaluation and development assets held for sale
Consolidated
2022
$
2021
$
5,349
5,618,601
5,623,950
-
-
-
Fixed assets and exploration, evaluation and development assets
A multitude of tenements for the Bonanza area of interest are subject to a sales agreement with Stockton Mining signed in April 2022. As
part of the agreement various fixed assets will be transferred to Stockton Mining. Until such time as the agreement is completed and all
conditions precedent have been fulfilled, the written down value of these assets has been reclassified to current assets held for sale in
accordance with AASB 5.
On completion of the transaction with Stockton Mining the environmental liabilities of the Group are due to reduce by $1,410,995 and
the a total amount of $1,726,952 of restricted cash held in term deposits is due to become unrestricted cash.
Accounting Policy
Current and non-current classification Assets and liabilities are presented in the statement of financial position based on current and non-
current classification.
The Company classifies an asset as current available for sale assets when it is either expected to be realised or intended to be sold and is
expected to be realised within 12 months after the reporting period.
57
Prodigy Gold Annual Report 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
NOTE 8:
EXPLORATION, EVALUATION AND DEVELOPMENT EXPENDITURE
Carrying amount at the beginning of reporting period
Less: Impairment expense
Less: Re-classification to available for sale asset
Carrying amount at the end of reporting period
Accounting Policy
Consolidated
2022
$
2021
$
9,575,783
(1,665,197)
(5,618,601)
2,291,985
9,943,824
(368,041)
-
9,575,783
Acquired exploration and evaluation assets are carried at acquisition value less any subsequent impairment. All exploration and
evaluation expenditure, subsequent to initial acquisition, is expensed until the Directors conclude that the technical feasibility and
commercial viability of extracting a Mineral Resource are demonstrable and that future economic benefits are probable. In making this
determination, the Directors consider the extent of exploration, the proximity to existing mine or development properties as well as the
degree of confidence in the mineral resource.
No amortisation is charged during the exploration and evaluation phase. Amortisation is charged upon commencement of commercial
production. Exploration and evaluation assets are tested for impairment triggers annually and if there is an indicator of impairment
under AASB 6 Exploration for and Evaluation of Mineral Resources, the area of interest is tested for impairment under AASB 136
Impairment of Assets. Upon establishment of commercially viable mineral resources, exploration and evaluation assets are tested for
impairment.
Accounting estimates and judgements
The Group undertook an assessment for impairment triggers of its exploration assets. Some non-core tenements were surrendered or
are scheduled to be surrendered and accordingly impaired on a simple area basis. In addition, a multitude of tenements for the Bonanza
area of interest are subject to a sales agreement with Stockton Mining signed in April 2022. The carried forward value of these tenements
has been assessed against the expected value of consideration receivable for these assets and the difference has been impaired. In
addition, the remaining value has been reclassified to a current asset held for sale in accordance with AASB 5.
The balances of the exploration assets as at 30 June 2022 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 or is planning for divestment.
Following this assessment, the Group recognised an impairment charge to exploration and evaluation expenditure for relinquished
tenements totaling $1,086,232 (2021: $368,041) and for the Stockton Mining transaction totaling $578,965 (2021: NIL).
NOTE 9:
BORROWINGS
CURRENT LIABILITIES (Unsecured)
Borrowings
Consolidated
2022
$
2021
$
2,500,000
2,500,000
-
-
The initial repayment term of the unsecured loan facility with Mount Sun Investments Limited was 6 months, which has been
subsequently extended by an additional 3-month period. The interest rate equals the BBSY (Bid) of Australia plus 1% p.a.
Information about the Group’s exposure to liquidity risk is provided in Note 14.
58
Prodigy Gold Annual Report 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
NOTE 9:
BORROWINGS cont’d
Accounting Policy
Loans and borrowings are initially recognised at the fair value of the consideration received. They are subsequently
measured at amortised cost using the effective interest method.
NOTE 10:
TRADE AND OTHER PAYABLES
CURRENT LIABILITIES (Unsecured)
Trade payables
Sundry payables and accrued expenses
Consolidated
2022
$
2021
$
248,027
418,234
666,261
532,592
37,121
569,713
Information about the Group’s exposure to liquidity risk is provided in Note 14.
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. Trade and other payables are recognised initially at fair value and subsequently
at amortised cost.
NOTE 11:
PROVISIONS
NON-CURRENT
Exploration and mine restoration
Movement in rehabilitation provisions
Movement in rehabilitation provisions during the current financial year are set out below:
Opening balance
Additional provisions
Less amounts reversed
Closing balance
Consolidated
2022
$
2021
$
1,563,660
1,563,660
1,694,521
1,694,521
Consolidated
2022
$
2021
$
1,694,521
1,686,230
12,966
(143,827)
8,291
-
1,563,660
1,694,521
59
Prodigy Gold Annual Report 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
NOTE 11:
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 12:
CONTRIBUTED EQUITY
(a)
Ordinary Shares
Details
Opening balance
Share placement
Transaction costs relating to share issues
Closing balance
Share placement1)
Transaction costs relating to share issues
Date
Number of Shares
Issue Price $ Value $
1 July 2020
580,627,606
187,262,068
-
-
-
-
30 June 2021
580,627,606
187,262,068
2,000,000
-
-
(1,250)
Closing balance
30 June 2022
582,627,606
187,260,818
1)
Conversion of employee share options to shares on exercise at a zero exercise price
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 2022 is 6,725,000 (2021: 29,850,000). For further details refer to Note 17.
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.
60
Prodigy Gold Annual Report 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
NOTE 13:
RESERVES
(a)
Reserves
Share-based payment reserve
Movements in reserves
Balance at 1 July 2020
Share-based payments expired and transferred to accumulated losses
Share-based payments expense (refer to Note 17)
Balance at 30 June 2021
Share-based payments expired and transferred to accumulated losses1)
Share-based payments expense (refer to Note 17)2)
Balance at 30 June 2022
Consolidated
2022
$
2021
$
1,955,984
1,955,984
2,412,399
2,412,399
Share-based
payment reserve
$
3,462,495
(1,195,554)
145,458
2,412,399
(573,858)
117,443
1,955,984
1)
2)
During the financial year, 25,725,000 options expired and a previously recognised amount of $573,858 was transferred to accumulated losses
During the financial year, 4,600,000 options were issued and 2,000,000 options were exercised
(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 17 to the financial statements for more information on options provided as part of remuneration to the Directors, key
management personnel and employees.
NOTE 14:
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.
Capital risk management
The Group’s objectives when managing capital is to safeguard its ability to continue as a going concern, so that it can provide returns for
shareholders and benefits for other stakeholders and to maintain an optimum capital structure to reduce the cost of capital.
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calculated as total
borrowings less cash and cash equivalents.
61
Prodigy Gold Annual Report 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
NOTE 14:
FINANCIAL RISK MANAGEMENT cont’d
In order to maintain or adjust the capital structure, the Group may issue new shares or sell assets to reduce debt.
The Group is subject to certain financing arrangement covenants, and meeting these is given priority in all capital risk management
decisions. There have been no events of default on the financing arrangements during the financial year.
Market Risk - Interest rate risk
Interest rate risk for the Group is considered to be minimal. The Group had no material interest attracting debts, other than the
borrowings, at 30 June 2022 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 2022
Financial Assets:
Cash and bonds
0.14%
2,395,333
Receivables
Total financial assets
-
2,395,333
-
-
Financial Liabilities:
Borrowings
Payables
Total financial liabilities
0.31%
-
-
-
2,500,000
-
2,500,000
30 June 2021
Financial Assets:
Cash and bonds
Receivables
Total financial assets
Financial Liabilities:
Payables
Total financial liabilities
0.6%
5.34%
2,257,884
4,000,000
258,485
-
2,516,369
4,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,395,333
629,845
629,845
629,845
3,025,178
-
2,500,000
666,261
666,261
666,261
3,166,261
-
-
-
6,257,884
258,485
6,516,369
569,713
569,713
569,713
569,713
Based on the financial instruments held at 30 June 2022, 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 $1,047 higher/$1,047 lower
(2021: $65,164 higher/$65,164 lower).
62
Prodigy Gold Annual Report 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
NOTE 14:
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 NIL (2021:
$404,802) for past due receivables.
Credit risk further arises in relation to financial guarantees given to certain parties (see Note 16 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
2022
$
2,395,333
2,509,484
629,845
2021
$
6,257,884
2,509,484
258,485
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 2022
Non-derivatives
Non-interest bearing
666,261
Interest bearing
2,500,000
3,166,261
Total non-
derivatives
30 June 2021
Non-derivatives
Non-interest bearing
569,713
Interest bearing
-
Total non-
derivatives
569,713
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
666,261
666,261
2,500,000
2,500,000
3,166,261
3,166,261
569,713
569,713
-
-
569,713
569,713
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.
63
Prodigy Gold Annual Report 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
NOTE 15:
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 16:
CONTINGENCIES
Environmental
Consolidated
2022
$
2021
$
42,567
42,567
18,536
18,536
37,177
37,177
16,683
16,683
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 (2021: $2,275,504) have been provided. Term deposits of $2,275,504 (2021: $2,275,504) and a
cash deposit of $128,894 (2021: 128,894) with the Department of Industry, Tourism and Trade – Northern Territory secure these
guarantees. Per Note 11 a restoration provision of $1,563,660 (2021: $1,694,521) has been recognised for all known required
restoration costs.
NOTE 17:
SHARE-BASED PAYMENTS
The fair value of all Zepos and Options subject to non-market conditions at grant date were determined using a Black-Scholes option
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 and Options, the expected dividend yield and the risk-free interest rate for the
term of the Zepos and Options.
ASX LR10.15.11 Statement
The Group has provided details of all securities issued under the Employee Share Option Plan in this annual report relating to the period
in which they were issued. Shareholder approval for the issue of securities to Directors, associates and their related parties was
obtained under Listing Rules 10.14. Any additional persons covered by Listing Rule 10.14 who become entitled to participate in an issue
of securities under the Employee Share Option Plan after the resolution is approved and who were not named in the notice of meeting
will not participate until approval is obtained under Listing Rule 10.14.
Zero exercise price options (“Zepos”)
During the reporting period ended 30 June 2022 the Group granted 2,600,000 Zepos as an equity incentive to employees which were
issued on 28 July 2021 subject to continuity of employment criteria. 175,000 of the Zepo’s were subsequently cancelled, with no
amount recognised, following resignation of an employee.
64
Prodigy Gold Annual Report 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
NOTE 17:
SHARE-BASED PAYMENTS cont’d
The Group granted the Zepos on the terms and conditions of the Employee Share Option Plan as follows:
Zepos issued during the reporting
period
KMP
Tranche A
KMP
Tranche B
KMP
Tranche C
KMP
Tranche D
Employees
Tranche A
Employees
Tranche B
Incentive Type
LTI
LTI
LTI
LTI
LTI
LTI
Number of Zepos granted
750,000
750,000
225,000
225,000
325,000
325,000
Fair value at grant date
$0.04
$0.04
$0.04
$0.04
$0.04
$0.04
Number of Zepos vested and exercisable
at 30 June 2022
Exercise price
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
Underlying share price
$0.04
$0.04
$0.04
$0.04
$0.04
$0.04
Grant date
28 July 2021
28 July 2021
28 July 2021
28 July 2021
28 July 2021
28 July 2021
Expected price volatility
Risk free interest rate
94%
1.14%
100%
1.14%
100%
0.13%
100%
0.13%
100%
0.13%
100%
0.13%
Vesting date (subject to performance
conditions and service period)
1 July 2022
1 July 2023
1 July 2023
1 July 2024
1 July 2023
1 July 2024
Expiry date
1 July 2030
1 July 2030
1 July 2025
1 July 2025
1 July 2025
1 July 2025
During the period $59,373 of expense was recorded relating to Zepos issued to KMP’s (other than directors) and employees. 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.
Options Exercisable at 145% of 5-day VWAP’s (“Option”)
During the reporting period ended 30 June 2022, 1,000,000 Options were issued to an employee on 11 October 2021 and 1,000,000
Options were issued to an employee on 17 March 2022. The exercise price of the Options is calculated at a premium of 145% to the 5
day VWAP of Prodigy Gold’s share price immediately prior to 7 October 2021 and 21 January 2022 respectively. The Options vested on
the grant date.
Employee Options
Employee 1
Employee 2
Number of Options to be granted
Number of Options vested
Fair Value at grant date
Exercise price
Price at agreement date
Issue date
Expiry date
1,000,000
1,000,000
$0.023
$0.055
$0.036
1,000,000
1,000,000
$0.015
$0.049
$0.034
11 October 2021
17 March 2022
7 October 2025
21 January 2026
Vesting date (subject to Option issue)
11 October 2021
17 March 2022
Expected price volatility of Options
Risk free interest rate
104.5%
0.39%
104.5%
0.39%
During the period $40,171 of expense was recorded relating to these employee options and an amount of $24,697 was recycled
through retained earnings following the resignation of an employee.
65
Prodigy Gold Annual Report 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
NOTE 17:
SHARE-BASED PAYMENTS cont’d
Accounting estimates and judgements
Share-based payments subject to non-market conditions are determined using a Black-Scholes option pricing model and share-based
payments subject to market conditions use a Monte Carlo pricing model. Both models take into account the exercise price, the
anticipated vesting period of the option, the impact of dilution, the share price at grant date and expected price volatility of the
underlying option, the expected dividend yield and the risk-free interest rate for the term of the option.
When estimating the fair value of the options at measurement date, the Group adjusts the number of equity instruments included in
the measurement of the transaction amount so that ultimately the amount recognised is based on the number of equity instruments
that eventually vest. The Group uses the best available estimate of the number of equity instruments expected to vest at the end of
each reporting period.
Share-based payments expense reconciliation
Share-based payments expense (refer to Note 3):
Options issued during the period 30 June 2019
Options issued during the period to 30 June 2021
Options issued during the period 30 June 2022
Consolidated
2022
$
2021
$
152
17,747
99,544
117,443
157
9,555
135,746
145,458
In addition, the Group agreed to issue 2 million option equal to 145% of the 5 day VWAP prior to 8 February 2022 to a KMP, however,
these options are subject to shareholder approval at the 2022 AGM.
NOTE 18:
RELATED PARTY TRANSACTIONS
Transactions between related parties occur on normal commercial terms and conditions and are no more favourable than those
available to other parties unless otherwise stated. The details of transactions with related parties of key management personnel are set
out on page 43 (Other Transactions with Directors and Other Key Management Personnel) of the Remuneration Report and in Note 17.
Following his resignation, the Company paid a total fee of $60,000 to a related party of Mr Matt Briggs (a company Mr Briggs is a
director of) for advisory services provided to Prodigy Gold.
During the year transactions occurred by the Parent Entity for exploration expenditure of its wholly owned subsidiaries. Any expenditure
incurred by the Parent Entity on behalf of its wholly owned subsidiaries is written off and eliminated on consolidation.
NOTE 19:
SUBSEQUENT EVENTS
Subsequent to year-end the Company
•
extended its loan facility with Mount Sun Investments Limited for an additional three months to 23 December 2022; and
• moved its registered office and principal place of business to Darwin.
66
Prodigy Gold Annual Report 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
NOTE 20:
CASH FLOW INFORMATION
(a) Reconciliation of Cash Flow from Operations with Loss after Income Tax
Loss after income tax
Non cash investing and financing activities
Depreciation
Gain/(loss) on disposal of exploration and evaluation assets (net)
Impairment of capitalised exploration expenditures
Share-based payments
Borrowing costs
Re-allocation of assets to available for sale assets
Environmental bonding JV Partners
Changes in assets and liabilities
(Increase)/decrease in term deposits and other receivables
(increase)/decrease in inventories
(increase)/decrease in other assets
(Decrease)/increase in trade and other payables and accruals
(Decrease)/increase in employee entitlements
(Decrease)/increase in provisions
Cash flow/(outflow) from operations
(b) Non-cash investing and financing activities
There were no non-cash investing and financing activities.
NOTE 21:
LOSS PER SHARE
Consolidated
2022
$
2021
$
(7,620,360)
(4,807,264)
36,859
(200,000)
1,665,197
117,443
104,697
5,623,950
37,355
-
368,041
145,458
-
-
-
46,900
(371,361)
11,182
(5,649,492)
96,548
(104,208)
(130,861)
(9,620)
30,492
60,261
(113,937)
24,202
8,291
(6,420,406)
(4,209,821)
Consolidated
2022
$
2021
$
a)
Basic loss per share
Basic loss per share attributable to the ordinary equity holders of the Company
(1.31)
(0.83)
b)
Reconciliation of loss used in calculated loss per share
Loss attributable to owners of Prodigy Gold NL used to calculate basic loss
per share – Loss from continuing operations
(7,620,360)
(4,807,264)
(7,620,360)
(4,807,264)
c)
Weighted average number of shares used as denominator
Weighted average number of ordinary shares used as the denominator in
calculating basic earnings per share
582,134,455
580,627,606
The Group made a loss, therefore the diluted EPS is not shown as it is not dilutive.
67
Prodigy Gold Annual Report 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
NOTE 21:
LOSS PER SHARE cont’d
Accounting Policy
Basic earnings/(loss) per share is calculated by dividing the profit/(loss) attributable to equity holders of the Company, excluding any
costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the
financial year, adjusted for bonus elements in ordinary shares issued during the year.
NOTE 22:
PARENT ENTITY INFORMATION
The following information relates to the Parent Entity Prodigy Gold NL. The information presented has been prepared using accounting
policies that are consistent with those presented in Note 25 and throughout.
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Contributed equity
Reserves
Accumulated losses
Total equity
Profit/(loss) for the year
Other comprehensive income/(loss) for the year
Total comprehensive (loss)
Parent Entity
2022
$
8,785,387
4,910,172
13,695,559
3,342,182
1,563,660
4,905,842
8,789,717
2021
$
6,638,268
12,199,980
18,838,248
777,572
1,766,792
2,544,364
16,293,884
187,260,818
187,262,068
1,955,984
2,412,399
(180,427,085)
(173,380,583)
8,789,717
16,293,884
Parent Entity
2022
$
2021
$
(7,620,360)
(4,807,264)
-
-
(7,620,360)
(4,807,264)
68
Prodigy Gold Annual Report 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
NOTE 23:
SUBSIDIARIES
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with
Prodigy Gold’s accounting policies:
Equity Holding
2022
%
2021
%
Parent Entity
Prodigy Gold NL Australia Ordinary
-
-
Controlled entities
Rare Resources NL Australia Ordinary
Australian Tenement Holdings Pty Ltd Australia Ordinary
100
100
100
100
NOTE 24:
COMPANY DETAILS
The registered office of the Group and principal place of business is:
Prodigy Gold NL
Level 1, 67 Smith Street
DARWIN NT 0800
NOTE 25:
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - not reported elsewhere
(a)
Basis of Preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards, other
authoritative pronouncements of the Australian Accounting Standards Board, Australian Accounting Interpretations and the
Corporations Act 2001. Prodigy Gold NL is a for-profit entity domiciled in Australia for the purpose of preparing the financial statements.
The principal accounting policies not reported elsewhere and adopted in the preparation of these consolidated financial statements are
set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Compliance with AASB
The financial statement of Prodigy Gold NL also complies with Australian Accounting Standards (AASB) as issued by the Australian
Accounting Standards Board (AASB).
Historical cost convention
These financial statements have been prepared under the historical cost convention.
Critical accounting estimates
The preparation of financial statements in conformity with International Financial Reporting Standards as adopted in Australia requires
the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the
economic entity’s accounting policies. Refer to Note 4 (Income Tax Expense), Note 8 (Exploration and Evaluation Expenditure) and Note
11 (Provisions).
Financial statement presentation
In accordance to the Corporations Act 2001, there are no separate financial statements for Prodigy Gold NL as an individual entity
presented. However, limited financial information for Prodigy Gold NL as an individual entity’s is included in Note 22.
69
Prodigy Gold Annual Report 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
NOTE 25:
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES cont’d
Going concern
This report has been prepared on the going concern basis, which contemplates the continuity of normal business activity and the
realisation of assets and settlement of liabilities in the normal course of business.
The Company incurred a loss after tax of $7,620,360 (2021: $4,807,264) and experienced net cash outflows from operating activities of
$6,420,406 (2021: $4,209,821).
The ability of the group to continue as a going concern is dependent on the Group being able to raise additional funds as required to
meet ongoing and budgeted exploration commitments and for working capital. These conditions indicate a material uncertainty that
may cast significant doubt about the Group’s ability to continue as a going concern and, therefore, it may be unable to realise its assets
and discharge its liabilities in the normal course of business. The Directors believe that they will be able to raise additional capital as
required and are in the process of evaluating the Group’s cash requirements. The Directors believe that the Group will continue as a
going concern.
Should the Group be unable to continue as a going concern, it may be required to realise its assets and discharge its liabilities other than
in the ordinary course of business, and at amounts that differ from those stated in the financial statements. The financial report does
not include any adjustments relating to the recoverability and classification of recorded asset amounts or liabilities that might be
necessary should the entity not continue as a going concern.
(b)
Principles of Consolidation
Subsidiaries
The consolidated financial statements incorporate the assets and liabilities of all controlled entities of Prodigy Gold NL as at 30 June
2022 and the results of all controlled entities for the year then ended.
Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the
Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns
through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred
to the Group. They are deconsolidated from the date that control ceases. The acquisition method of accounting is used to account for
the acquisition of subsidiaries by the Group.
Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses
are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of
subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.
(c)
New accounting standards and interpretations
The Group has adopted all of the new or amended Accounting Standards and Interpretations issues by the Accounting Standards Board
(AASB) that are mandatory for the current reporting period.
The Group has not elected to early adopt any new standards or amendments during the current financial year.
70
Prodigy Gold Annual Report 2022
DIRECTORS’ DECLARATION
The Directors of the Group declare that:
1.
the consolidated financial statements, comprising the Consolidated Statement of Profit or Loss and Other Comprehensive
Income, Consolidated Statement of Financial Position, Consolidated Statement of Cash Flows, Consolidated Statement of
Changes in Equity, and accompanying notes, as set out on pages 48 to 70 are in accordance with the Corporations Act 2001,
and:
(a)
(b)
comply with Accounting Standards and the Corporations Regulations 2001; and
give a true and fair view of the financial position as at 30 June 2022 and of the performance for the year ended on that
date of the Group;
2.
the Managing Director and the Chief Financial Officer of the Group have each declared as required by Section 295A that:
(a)
(b)
(c)
the financial records of the Group for the financial year have been properly maintained in accordance with Section 286
of the Corporations Act 2001;
the financial statements and notes for the financial year comply with the Accounting Standards; and
the financial statements and notes for the financial year give a true and fair view.
3.
4.
in the Directors’ opinion there are reasonable grounds to believe that the Group will be able to pay its debts as and when they
become due and payable.
The Group has included in the notes to the financial statements an explicit and unreserved statement of compliance with
International Financial Reporting Standards.
This declaration is made in accordance with a resolution of the Board of Directors.
Dated this 24th day of August 2022
MARK EDWARDS
Managing Director
71
Prodigy Gold Annual Report 2022
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth WA 6000
PO Box 700 West Perth WA 6872
Australia
INDEPENDENT AUDITOR’S REPORT
To the members of Prodigy Gold NL
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Prodigy Gold NL (the Company) and its subsidiaries (the
Group), which comprises the consolidated statement of financial position as at 30 June 2022, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
to the financial report, including a summary of significant accounting policies and the directors’
declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its
financial performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Group in accordance with the Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Material uncertainty related to going concern
We draw attention to Note 25 in the financial report which describes the events and/or conditions
which give rise to the existence of a material uncertainty that may cast significant doubt about the
group’s ability to continue as a going concern and therefore the group may be unable to realise its
assets and discharge its liabilities in the normal course of business. Our opinion is not modified in
respect of this matter.
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
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters. In addition to the matter described in the Material uncertainty
related to going concern section, we have determined the matters described below to be the key audit
matters to be communicated in our report.
Recoverability of Exploration and Evaluation Expenditure
Key audit matter
How the matter was addressed in our audit
As disclosed in Note 8 of the financial report, the
Our procedures included, but were not limited to:
carrying value of capitalised exploration and evaluation
expenditure represents a significant asset of the
Group.
(cid:127)
Obtaining a schedule of the areas of interest
held by the Group and assessing whether the
rights to tenure of those areas of interest
Refer to Note 8 of the financial report for a description
remained current at balance date;
of the accounting policy and significant judgements
applied to capitalised exploration and evaluation
expenditure.
In accordance with AASB 6 Exploration for and
Evaluation of Mineral Resources (“AASB 6”), the
recoverability of exploration and evaluation
expenditure requires significant judgement by
management in determining whether there are any
facts or circumstances that exist to suggest that the
carrying amount of this asset may exceed its
recoverable amount. As a result, this is considered a
key audit matter.
(cid:127)
(cid:127)
Assessing the ability to finance any planned
future exploration and evaluation activity;
Considering the status of the ongoing
exploration programmes in the respective
areas of interest by holding discussions with
management, and reviewing the Group’s
exploration budgets, ASX announcements and
director’s minutes;
(cid:127)
Considering whether any areas of interest
had reached a stage where a reasonable
assessment of economically recoverable
reserves existed;
(cid:127)
Evaluating management’s support and
calculations for the impairment expense of
$1,665,197 by checking:
(cid:127)
(cid:127)
The allocation of the expenditure
across the relevant tenements
The mathematical accuracy of the
amount written down; and
(cid:127)
Assessing the adequacy of the related
disclosures in Note 8 of the financial report.
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2022, but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 38 to 43 of the directors’ report for the
year ended 30 June 2022.
In our opinion, the Remuneration Report of Prodigy Gold NL, for the year ended 30 June 2022, complies
with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO Audit (WA) Pty Ltd
Glyn O'Brien
Director
Perth, 24 August 2022
ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES
Additional information required by the Australian Securities Exchange Limited and not shown elsewhere in this report is set out below.
The information was prepared based on share registry information processed up to 22 August 2022.
1.
Shareholdings
(a)
Distribution of shareholders
Size of holding category (number of shares held)
Number of Holders
Ordinary Shares
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
678
974
554
1348
419
3,973
(b)
The number of shareholders holding less than a marketable parcel
The number of shareholders holding less than a marketable parcel is nil.
(c)
The names of the substantial shareholders
The name of the substantial shareholders listed in the holding Company’s register are:
Shareholders
Number of Ordinary
Shares
% Held of Issued
Ordinary Capital
APAC Resources Limited & Allied Properties Investments (1) Company
Limited
IGO Limited
Jetosea Pty Ltd
Jayleaf Holdings Pty Ltd
(d)
Voting rights
115,544,894
49,254,285
48,329,697
30,000,000
19.83
8.45
8.30
5.15
The voting rights attached to each class of equity security are as follows:
Ordinary shares
Each ordinary share is entitled to one vote when a poll is called, otherwise each member present at a meeting or by proxy has one vote
on a show of hands.
76
Prodigy Gold Annual Report 2022
ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES
1.
(e)
Name
1.
2.
3.
4.
5.
6.
7.
8.
9.
Shareholdings cont’d
20 largest shareholders – Ordinary shares
NATIONAL NOMINEES LIMITED
115,794,361
19.87
Number of Ordinary
Fully Paid Shares Held
% Held of Issued
Ordinary Capital
ZERO NOMINEES PTY LTD
*JETOSEA PTY LTD
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
JAYLEAF HOLDINGS PTY LTD
SUPER SEED PTY LTD
DELPHI UNTERNEHMENSBERATUNG AKTIENGESELLSCHAFT
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
BNP PARIBAS NOMS PTY LTD
10.
CITICORP NOMINEES PTY LIMITED
11. MR GORDON CHAN
12.
13.
14.
15.
16.
P G COLEMAN PTY LTD
GECKO RESOURCES PTY LTD
DR PAUL FRANCIS MORTON
*JEMAYA PTY LTD
BNP PARIBAS NOMINEES PTY LTD
17. MR NEIL ANDREW ALLSOPP & MRS RHONDA ELLEN ALLSOPP
18. MR MATTHEW SIMON BRIGGS
19. MR ONSY SELIM
20.
DEUTSCHE BALATON AKTIENGESELLSCHAFT
* Denotes merged holders
2.
Company Secretary
The name of the Company Secretary is Ms Jutta Zimmermann.
3.
Registered and Principal Place of Business
Prodigy Gold NL
Level 1, 67 Smith Street
DARWIN NT 0800
Phone: +61 8 9423 9777
Fax: +61 8 9423 9733
4.
Register of Securities
Registers of securities are held at the following address:
Automic Group
Level 5, 191 St Georges Terrace
PERTH WA 6000
77
49,254,285
48,329,697
39,286,717
30,000,000
20,000,000
11,394,000
9,833,334
6,360,173
5,941,140
4,768,512
4,015,571
4,000,000
3,712,500
3,500,000
3,410,295
3,000,000
2,500,000
2,300,000
2,222,306
369,622,891
8.45
8.30
6.74
5.15
3.43
1.96
1.69
1.09
1.02
0.82
0.69
0.69
0.64
0.60
0.59
0.51
0.43
0.39
0.38
63.44
Prodigy Gold Annual Report 2022
ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES
5.
Stock Exchange Listing
Quotation has been granted for all the ordinary shares of the Company on all Member Exchanges of the Australian Securities Exchange
Limited.
6.
Unquoted Securities
As at 22 August 2022, the Company has 6,725,000 unlisted options, which were issued to a total of 5 holders under the terms and
conditions of the Company’s Employee Share Option Plan.
Option Holders > 5% of options on issue
Number of Unlisted
Options
% Held of Unlisted
Options
Jutta Zimmermann
Brett Smith
Edward Keys
Gary Ferris
Julie Alessandrino
7.
On-Market Buy Back
The Company does not have a current on-market buy back.
2,350,000
1,500,000
1,500,000
1,000,000
375,000
34.94%
22.31%
22.31%
14.87%
5.57%
78
Prodigy Gold Annual Report 2022
Level 1, 67 Smith Street, Darwin NT 0800
www.prodigygold.com.au