2023
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
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 2023
CONTENTS
Chairman’s Report
Managing Director’s Report – Review of Operations
Summary of Mining Tenements and Areas of Interest
Directors’ Report
Corporate Governance Statement
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and Other
Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report to the Members
Additional Information for Listed Public Companies
Page
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63
64
68
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Prodigy Gold Annual Report 2023
MESSAGE FROM THE CHAIRMAN
Dear Shareholder,
Over the past year, Prodigy
Gold has renewed its focus
on gold exploration in the
Northern Territory. This
was highlighted by the
relocation of our corporate
headquarters to Darwin in
August 2022. We are now based in the juristiction that
we work and explore in. This has been a positive step for
the company which was highlighted by the Minister for
Mining and Industry, the Hon. Nicole Manison,
announcing the results of the Round 16 Resourcing the
Territory Grants from our Smith Street office in Darwin
during May this year. It was at this announcement that
Prodigy Gold was awarded two future grants, one for a
diamond hole at Tregony and one for a regional ground-
gravity survey around the Tanami North Project area.
The successful completion of a underwriten
renounceable pro rata rights issue (“Rights Issue”)
during October 2022, allowed the planning for and
execution of exploration works on our strategically
important prospects around the Tanami North, Lake
Mackay and Buccaneer Project areas. The Company
would like to thank its investors for their continued
financial support and in particular APAC Resources for
sub-underwriting the Rights Issue.
The completion of the Rights Issue provided funds to
complete a diamond hole into the Phreaker Prospect at
Lake Mackay, which allowed us to complete the sole
funding requirements of the re-stated Joint Ventures
with IGO. The results of this hole highlighted further
base metal mineralisation down plunge of previously
reported intercepts at this exciting project.
Prodigy Gold holds its Joint Ventures in very high regard,
and continues to work closely with IGO at Lake Mackay,
Newmont Corporation at the Monza and Tobruk
Projects and Australasian Metals at the Barrow Creek
Project. These Joint Ventures are important to Prodigy
Gold as they allow us to continue exploring our high
ranked exploration targets while maintaining our land
position in the significantly prospective Tanami Region.
This region hosts one of the world’s best performing
gold mines – Newmont Australia’s Tanami Operations.
Recognising the Company’s very large tenement holding
in the Tanami Region of the Northern Territory, Prodigy
Gold decided to advance the agreement with Stockton
Mining on the Old Pirate project and surrounding
exploration tenements, which was shareholder
approved at the Company’s last Annual General
Meeting. This continues to be the right strategic move
for the Company. Prodigy Gold is closely working with
Stockton Mining to complete the agreement towards
the end of 2023.
Some of the highlights for the year include:
• Relocation of the head office to Darwin in
August 2022;
• Completion of the Rights Issue raising gross
proceeds of $11.65 Million and repayment of
a $2.5 Million loan to Mount Sun Investments
Limited;
•
Successful diamond drilling into the Phreaker
Prospect at Lake Mackay, intersecting a zone
of copper, zinc, and silver mineralisation;
• Completion of sole funding requirements for
the re-stated Joint Venture Agreement at Lake
Mackay with IGO;
• Receipt of results of metallurgical testwork on
the Buccaneer Deposit, highlighting the
potential for CIL extraction;
• Completion of greenfields drilling at the Boco
North Prospect in the Tanami North project
area;
• Approval of co-funding for Tregony diamond
drilling and a regional ground gravity
geophysical survey by the NT Government;
and
• Newmont completed drilling on our JV titles in
close proximity to their Callie operation.
The Company is also pleased to announce that it has
completed its Environment, Social and Goverenance
(ESG) reporting for the year. This is 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.
It has been a particularly challenging start to the
exploration field season this year due to the extended
Northern Australian wet season, so the Board would like
to thank all our dedicated staff members, for their
commitment and work ethic. The flexibility of our staff
ensuring the completion of programs while restrictions
limited access, was inspiring.
And lastly, and importantly, the Board would like to
thank its dedicated shareholders and joint venture
partners. With our renewed focus on the development
of our highly ranked assets we look forward to reporting
future results and continuing the journey of discovery.
G E R A R D M c M A H O N
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Prodigy Gold Annual Report 2023
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
EXPLORATION
Review Summary
Prodigy Gold NL (“Prodigy Gold” or the “Company”) shifted exploration strategy during the last year directing its focus to
the Tanami North, Lake Mackay and Buccaneer Projects. The Company continues to work closely with its Joint Venture
partners, Newmont Exploration Pty Ltd, an indirect wholly owned subsidiary of Newmot Corporation (NYSE:NEM), IGO
Limited (ASX:IGO) and Australasian Metals Limited (ASX:A8G). As part of this shift the Company has re-established the
Tregony exploration camp as a base for works completed and to be completed in the Tanami North Project area.
The Company is actively looking at ways to reduce the current project holding costs through the sale of the Old Pirate
Project to Stockton Mining as well as looking at ways to divest other non-core projects, including the North Arunta and
Reynolds Range Projects, where possible. Prodigy Gold and its Joint Venture partners currently hold around 26,360km2
(2022: 27,006km2) of land under tenure . The area held under granted tenure is 11,277km2 with 15,084km2 held under
application.
The 2022-2023 financial year has seen Prodigy Gold focus on extending its current Mineral Resources at Hyperion and
Buccaneer and releasing its maiden Tregony Mineral Resource. Prodigy Gold has also continued looking at ways to
develop the Buccaneer Mineral Resource through the completion of further testwork, such as the detailed metallurgy
testwork on the Buccaneer Deposit as announced in March 2023. Greenfields exploration has advanced on projects like
Boco North and the Lake Mackay Gold Project in both, the Northern Territory and Western Australia.
Figure 1 - Sunrise over the Tregony Exploration Camp – June 2023
During the reporting period on-ground exploration continued at the Lake Mackay JV Projects with IGO Limited (ASX: IGO)
(“IGO”). This year’s exploration focussed on assessing the results of drilling completed over the previous year on the
various gold prospects and also on the diamond hole drilled at the Phreaker Prospect in the current and previous
reporting period. While the gold assays showed some encouraging results on the Western Australian tenement the
decision was made to relinquish the exploration licence E80/5001 during June 2023. The results for the FY2022 Phreaker
diamond hole showed the continuation of the base metal mineralisation at the project and allowed for targeting of a new
hole that was drilled in November 2022. The results received highlighted encouraging base metal mineralisation down
plunge from previously reported drilling. Prodigy Gold was excited to complete the sole funding requirements of the
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Prodigy Gold Annual Report 2023
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
restructured Joint Venture agreement with IGO through the completion of these two diamond holes into the Phreaker
Prospect.
Other significant on-ground exploration activity completed during the reporting period entailed co-funded RC drilling of
the Boco North propsect, located within the Tanami North Project area. The Boco North drilling was aimed at opening up
an unexplored greenfields area along the significantly mineralised Suplejack Shear Zone (“SSZ”). Boco North had not been
effectively drill tested and was seen as a geochemically blind target due to the presence of an overlying unmineralised
cover. The drilling showed a much thicker than expected overlying cover resulting in no holes penetrating through to the
underlying prospective Tanami Group rocks, this resulted in the program being curtailed which was supported by no
significant results being returned from this program. On completion the rig was mobilised to the Tregony Deposit with
drilling commencing in July 2023. Results are pending.
Figure 2 - Prodigy Gold Major Project Areas – June 2023
100% PRODIGY GOLD PROJECTS
Refined Near-Term Priority Targets – Work Completed FY23 & Future work for FY24
Tanami North Project Area
The Tanami North Project is underlain by sequences belonging to the favourable Tanami Group. It is poorly exposed, with
the majority of the geology interpreted from regional magnetic surveys and limited drilling. Localised outcrop that occurs
on the Tregony Prospect has been the focus of historic exploration.This Project area is a key strategic area for Prodigy
Gold to develop over the coming years with a focus on growing the mineral resource inventory around the Tregony and
Hyperion Deposits and to advance some greenfield targets around these Deposits.
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Prodigy Gold Annual Report 2023
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Five existing Deposits are known along the Suplejack Shear Zone (“SSZ"), the major structural control of the Project:
• Groundrush Deposit - 7.7Mt @ 4.3g/t Au for 1.1Moz1 (50% TAM : 50% NST) located 42km to the south of
Tregony;
• Hyperion Deposit - 4.4Mt @ 2.2g/t Au for 314koz2 (100% Prodigy Gold) located approximately 18km north of
•
•
•
Groundrush;
Crusade Deposit - 1.3Mt @ 2.3g/t Au for 94koz1 (50% TAM : 50% NST ) located 22km to the northeast of
Tregony;
Ripcord Deposit - 0.75Mt @ 2.1g/t Au for 51koz1 (50% TAM : 50% NST) located adjacent to the Groundrush
Deposit;
Tregony Deposit - 1.1Mt @ 1.3g/t Au for 49koz 3 (100% Prodigy Gold) located 11km to the east of the Suplejack
Fault and forms part of the Tanami North Project.
Work planned at the Tanami North Project over the next 2 years includes further resource drilling at Tregony and
Hyperion, greenfields exploration in and around these Deposits and also at the Boco North Prospect. A gravity
geophysical survey is planned over an extensive portion of the project area in the coming 12 months.
1
3
2
Figure 3 - Tanami North Project area
1
1 ASX: TAM 24 November 2022
2 ASX: 31 July 2018 Note: This estimate varies immaterially to the 31 July 2018 resource statement due to the use of a Wittle generated
open pit shell to constrain the Mineral Resource and a change in lower cut-off grade from 0.8g/t to 0.7g/t Au.
3 ASX: 15 February 2023 Note: This estimate varies immaterially to the 15 February 2023 resource statement due to the use of a slightly
higher lower cut-off grade compared to what was reported then.
1
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Prodigy Gold Annual Report 2023
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Tregony Deposit
The Tregony Project is located on EL31331 in the Tanami North area and falls within the same structural trend that
includes the Groundrush (1.1Moz Au), Hyperion (314koz Au), and Crusade (94koz Au) Deposits. Previous prefeasibility
studies on a JORC 2004 gold resource have been completed on the project following diamond drilling in 2012. This
information is now being used by Prodigy Gold to guide further exploration on the project moving forward. Prodigy Gold
historically completed one hole into the Tregony Deposit in 2021, which was included in the recent maiden mineral
resource for the 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 Au 4.
Early systematic exploration recorded 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 observed in the diamond hole, demonstrates the potential of the system to
extend under shallow sandstone cover, and beneath the shallow RAB drilling.
Using this data review and the drill hole from 2021, a maiden resource estimation was completed by Prodigy Gold and
released in February 2023. This resource has highlighted areas requiring further drilling to advance the project, which is
planned to be completed in early FY24.
The reported maiden mineral resource for Tregony was in the inferred category and totals 5:
•
•
1.44Mt @ 1.16g/t Au for 54.0koz @ 0.6g/t Au lower cut-off
0.61Mt @ 1.71g/t Au for 33.7koz @ 1.0g/t Au lower cut-off
A review of the Tregony mineral resource resulted in a change in the lower cut-off for reporting to match the cut-off used
on other deposits. The latest annual mineral resource statement uses a lower cut-off grade of 0.7g/t Au with reported
resources for Tregony now at:
•
1.1Mt @ 1.3g/t Au for 49Koz
On completion of the Boco North program the drill rig mobilised to the Tregony Deposit to drill test the mineralisation,
aiming to grow the resource base and add confidence in the recently reported mineral resources.
Boco North Prospect
The Boco North drilling was aimed at opening up an unexplored greenfields area along the significantly mineralised SSZ.
Boco North had not been effectively drill tested and was seen as a geochemically blind target due to the presence of an
overlying unmineralised cover. The Company completed 9 RC holes for a total of 1,647m on the program, which was co-
funded under the NT Government’s Round 15 Resourcing the Territory Grants. The drilling at the Boco North Prospect
returned a much thicker than expected overlying cover resulting in no holes penetrating through to the underlying
prospective Tanami Group rocks. The program was terminated before drilling all holes originally planned. Results of the
Boco North drilling program were released in July with no significant results returned for any of the drilled holes6.
The Company will continue to explore in this area of interest on the Boco prospect as well as the Tregony Deposit.
4 ASX: 15 November 2021
5 ASX: 15 February 2023
6 ASX: 6 July 2023
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Prodigy Gold Annual Report 2023
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Figure 4 - Prodigy Gold’s board of directors observing drilling at the Boco Prospect
Hyperion Prospect
The Hyperion Project area contains the Hyperion Mineral Resource, which is stated as 4.4Mt @ 2.2g/t Au for 314Koz
above a 0.7g/t Au lower cut-off grade7. The resource cut-off grade is based on processing at a mill the scale of the historic
Central Tanami Processing Plant that is located on the neighboring tenments held by Northern Star and Tanami Gold. The
Hyperion Mineral Resource 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.
7 ASX: 31 July 2018 Note: This estimate varies immaterially to the 31 July 2018 resource statement due to the use of a Wittle generated
open pit shell to constrain the Mineral Resource and a change in lower cut-off grade from 0.8g/t to 0.7g/t Au.
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Prodigy Gold Annual Report 2023
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
It is planned to complete further RC drilling at the Hyperion Project in the FY24 period with samples used to add
confidence in the current mineral resource estimate as well as to provide material for metallurgical testwork on the
mineralisation at the Deposit. This will be critical information when looking at the potential for further development of
the project moving forward. Some drilling will be used to test areas outside the current mineral resource to attempt to
grow the overall endowment of the Deposit.
Buccaneer Resource Project
In August 2023, an updated mineral resource was completed on the Buccaneer Deposit. While not a large amount of new
data has been added to the project since the previous model in 2017 this new model has used updated resource
domaining, which is supported by the geological understanding of the Deposit. The update also included results of some
new diamond holes drilled in 2021.
The updated mineral resource for Buccaneer 8 is in the indicated and inferred categories and totals:
• At a 0.7g/t Au lower cut off:
o 3.9Mt @ 1.2g/t Au for 157koz Indicated
o 5.3Mt @ 1.2g/t Au for 201koz Inferred
Figure 5 Mineral Resource Classification for Buccaneer – Plan view for Domain 1
In March 2023, Prodigy Gold released detailed results of the Buccaneer Project metallurgical testwork program
completed by Independent Metallurgical Operations (“IMO”)9. A summary of the results includes:
•
Comminution testwork showed that the three composites analysed (oxide, transition and fresh material) are
amenable to conventional crushing and grinding processes
• Gravity gold and cyanide leach testwork returned recoveries of 95.1%, 96.7% and 84.6% for the three
composites, respectively with gravity gold recoveries averaging 18.6%
o
o
fastest kinetics achieved for the oxide and transition composites
low cyanide and lime consumption for each of the oxide, transition and fresh composites
•
Low overall gold recoveries in the column leach testwork showed that heap leaching is not a viable processing
option.
8 ASX: 11 August 2023
9 ASX: 10 March 2023
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Prodigy Gold Annual Report 2023
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
The study to evaluate processing and mining scenarios for the Buccaneer Mineral Resource continues, including the
assessment of IMO’s recommendations outlined in their technical report. This information will be used in the
development of a mining study to determine the most appropriate methodology to advance the project using the latest
mineral resource just completed. This will also highlight areas for future drilling and any other testwork required to
advance the understanding of the Buccaneer Project.
Aircore drilling is being planned on the project to look at potentially extending the mineral resource as recently defined,
with this drilling likely to be completed in late FY24 or early FY25.
Receipt of Exploration Grants – Tanami North Project
The Hon. Nicole Manison – Minister for Mining and Industry, announced the results of the grants program under the
Round 16 of the Geophysics and Drilling Collaborations (GDC) program funded by the Resourcing the Territory initiative at
Prodigy Gold’s office in Darwin10.
Figure 6 Photo of Minister Manison at Prodigy Gold’s Darwin office
Prodigy Gold was the successful recipient of two exploration grants for the Tanami North project area with the NT
Government co-contributing a total of $158,148. The first successful application was the Tanami North Regional Scale
Gravity Survey covering a large portion of EL9250 that hosts the Hyperion gold deposit and EL31331 that hosts the
Tregony gold deposit. The second approved application was for a single diamond core hole into the Tregony gold deposit
to provide structural and stratigraphic context to the recently released maiden mineral resource11. It is planned to
commence these programs in the second half of 2023 depending on the availability of contractors.
10 ASX: 31 May 2023
11 ASX: 15 February 2023
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Prodigy Gold Annual Report 2023
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)
Monza Gold Project
Tobruk Gold Project
IGO (IGO: ASX)
Castile Resources
(CST: ASX)
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
Limited (Public
company)
Lake Mackay JV Project
Project Background
JV Terms
Base Metal JV
IGO 70% / PRX
30%
Gold JV
PRX 70% / IGO
30%
Gold JV
PRX 60% / IGO
26%/ Castile 14%
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
Prodigy Gold completed its sole
funding commitment of $850,000
under the Agreement, by completing
Diamond drilling at the Phreaker
Prospect.
Prodigy Gold completed its sole
funding commitment of $500,000
under the Agreement, by completing
a 25 hole RC program for these
tenements.
Agreement signed in November
2021.
Surface geochemical survey and
Horizontal to Vertical component
Spectral Ratio (“HVSR”) passive
seismic survey undertaken.
Results of 8-hole RC drilling program
received and district Magnetotellurics
survey completed.
A8G undertaking early stage
exploration including soil and rock
chip sampling on the Barrow Creek
Lithium Project.
Several variations signed to original
agreement executed in April 2022.
Completion is subject to the
statisfaction of various conditions
precedent some of which are still
outstanding but are progressing.
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,
12
Prodigy Gold Annual Report 2023
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
0.5% Pb, 1.1% Zn & 0.1% Co in 17GRDD00112.
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/t Au13, and Goldbug Prospect -
16m @ 1.15g/t Au and 4m @ 1.54g/t Au14.
Lake Mackay JV (IGO and IGO/Castile) – Agreement Status
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 Project15:
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
Following the completion of sole funding obligations of $500,000 of expenditure, Prodigy Gold now owns
70% of this project.
Following a prospectivity assessment, WA tenement EL80/5001 has been surrendered.
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
Prodigy Gold holds a 60% interest, IGO a 26% interest and Castile a 14% interest in the tenement.
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 funded $850,000 of JV expenditure under this agreement and owns 30% of this project.
Whilst formal notification is pending, IGO advised that it is likely to dilute rather than contribute to exploration programs
on all three projects, which will minimally change ownership percentages.
Lake Mackay JV’s – Rehabilitation Status
Rehabilitation work was completed at Lake Mackay with the exception of one hole, which was left open as a future water
source.
Lake Mackay Exploration Progress
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 (copper-gold-silver) mineralisation at the Phreaker Prospect was initially discovered by IGO
using airborne electromagnetic (EM) surveying and follow-up ground 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 21PHDD00216:
•
4.5m @ 3.03% Cu, 1.78g/t Au and 14g/t Ag from 562m; and
12 ASX: 18 September 2017
13 ASX: 16 October 2019
14 ASX: 18 January 2021
15 ASX: 18 May 2022
16 ASX: 26 May 2021
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Prodigy Gold Annual Report 2023
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
•
17.47m @ 2.13% Cu, 0.21g/t Au and 9g/t Ag from 575.23m.
The Company completed a diamond drilling program at Phreaker during June 2022 with results received during the
reporting period. The 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, with the hole intersecting the EM
plate up-dip and along strike of the high-grade zone, and contained encouraging results including 17:
•
•
•
•
5.6m @ 0.23% Cu, 0.35% Zn, 1.2g/t Ag and 0.18g/t Au from 545m;
o
including 0.45m @ 1.15% Cu, 1.08% Zn, 6.0g/t Ag and 0.2g/t Au from 547.25m;
0.4m @ 2.59g/t Au from 368.5m;
1.0m @ 0.54g/t Au from 391m; and
5.7m @ 0.35g/t Au from 396.9m.
The Company subsequently followed up on the drill results of PRDD2202 by drilling one additional diamond core drill hole
into the Phreaker prospect. This hole also formed part of the sole funding arrangement of the restructured Joint Venture
agreements with IGO.
The results of diamond hole PRDD2203 were returned highlighting further encouraging results of18;
Figure 7 – Diamond Drilling at Phreaker in November 2022
•
•
•
2.3m @ 1.14% Cu, 0.97% Zn, 9.1g/t Ag and 0.11g/t Au from 739.8m;
o
including 0.3m @ 5.65% Cu, 3.64% Zn, 45.0g/t Ag and 0.70g/t Au from 741.5m;
3.3m @ 0.42% Cu, 0.57% Zn, 3.7g/t Ag, and 0.26 g/t Au from 697m; and
3.5m @ 0.57% Cu, 0.34% Zn and 3.8g/t Ag from 718.5m.
PRDD2203 completed the sole funding requirement under the restructured Joint Venture Agreements with IGO, resulting
in Prodigy Gold consolidating its interest in the Lake Mackay Gold Joint Venture at 70%.
17 ASX: 8 August 2022
18 ASX: 6 February 2023
14
Prodigy Gold Annual Report 2023
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Figure 8 - Phreaker Schematic Cross Section looking south-west highlighting significant intercepts from diamond drilling19
RC Drilling - Gold Tenements
Prodigy Gold completed 25 holes for 3,412m comprising 13 holes within Western Australia and 12 holes within the
Northern Territory during the 2022FY with results reported during the reporting period.
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.
Figure 9 - Lake Mackay RC drilling
19 Historical results first presented: 1: ASX 26/05/2021 & 2: ASX 8/8/2022
15
Prodigy Gold Annual Report 2023
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
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 as20:
•
•
•
16m @ 0.39g/t Au, 0.13% Cu and 1.0g/t Ag from 84m in SGRC2007;
o
including 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.
While Prodigy Gold was encouraged by these initial results representing the first drilling undertaken on these gold
targets, the decision was made to relinquish WA exploration licence E80/5001 in June 2023, due to better gold results
elsewhere on the project.
Future Work
Any future works on the JV projects will require a new Mine Management Plan to be submitted and approved by the NT
Department of Industry, Tourism and Trade (“DITT”) and clearances from the Traditional Owners via the Central Land
Council will need to be received.
It is unlikely that any on-ground work will commence on this project prior to the end of the 2023/2024 wet season,
however further assessments will be undertaken and programs designed.
Tobruk JV and Monza JV (Newmont)
Tobruk Exploration
Newmont met its minimum expenditure commitment of $2,500,000 within the specified four-year timeframe during the
reporting period.
•
The RC drilling program completed on the Niffler project during Q2 2022, comprised eight drillholes (NFRC001 –
NFRC008), along one northwest trending traverse for a total of 848m.
o 1m samples were collected off the RC rig, with these made into 4m composite samples at ALS and
analysed for gold by fire assay. Every fifth 1m sample was assayed for multi-element analysis (ME-
MS61).
o The assay results were received during the reporting period and the evaluation of results is on-going.
No significant results were returned.
• A district Magnetotellurics (“MT”) survey was completed during the reporting period.
o The MT survey comprised one generally northeast trending line through the centre of the Tobruk
Project area.
o MT readings were collected at 1,000m station spacing, for a total of 34-line kilometres within the
Tobruk Project area.
o The 3D modelling results of the Magnetotelluric (MT) survey data remain subject to evaluation.
Monza Exploration
• A surface geochemical survey utilising Newmont’s proprietary Deep Sensing Geochemistry (“DSG”) technique
was undertaken to gain coverage across the Project area and target a number of geophysical anomalies.
o The survey had been designed at various spacing including 1km x 1km to provide broad coverage across
the Project area, with a more detailed survey completed at a nominal spacing of 500m x 500m at
selected locations.
o A total of 1,513 survey points were collected during the year.
o Results from the 877 samples collected in the first half of the financial year have highlighted a number
of localised anomalous responses.
o Results for the remaining 636 samples collected in the second half of the reporting period are pending.
20 ASX: 8 August 2022
16
Prodigy Gold Annual Report 2023
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
• A Horizontal to Vertical component Spectral Ratio (“HVSR”) passive seismic survey was carried out coincidently
with the surface geochemical survey during the reporting period. Results are pending.
Future Work
Target generation is continuing on the Tobruk and Monza Projects.
A ground gravity survey at Newmont’s Officer Hill project is scheduled in the September quarter 2023; a small portion of
this survey extends onto the Tobruk JV.
Barrow Creek JV (Australasian Metals) - 10% Prodigy Gold
As announced in January 2022, Prodigy Gold finalised the sale of 90% of the Barrow Creek Project to Australasian Metals
(A8G)21. During the reporting period A8G identified high-grade tantalum plus tin mineralisation at the Barrow Creek
Lithium Project in the prospective Northern Arunta pegmatite province, Northern Territory22. Highlights of this work are:
•
•
•
•
Strong Lithium-Cesium-Tantalum (“LCT”) pegmatite signatures have been confirmed through geochemical
assays
1018ppm and 554ppm tantalum returned from ongoing rock chip sampling at EL28515
Several rock chips on EL29724 with elevated lithium up to 0.26% of lithium oxide, highlight the lithium
mineralisation potential of this tenement
Follow up soil sampling has been completed with no significant results reported
Future Work
A8G is working towards updating their land access agreement with the new local station owners for a planned RAB
drilling program.
Old Pirate Project and Tanami Exploration Project
During the reporting period the Company continued to work with public company Stockton Mining Limited (“Stockton”)
on the divestment of the Company’s Old Pirate Gold Project and 23 surrounding exploration tenements located in the
Tanami Region of the Northern Territory23.
During the first half of the reporting period two variations were announced, the first 24 replacing the Contingent
Consideration on two Exploration Lease Applications (EL30944 and EL30814) with a net smelter royalty of 2.5% payable
on any minerals recovered from these titles. Additionally, adjustments were made to holding costs allocations moving
forward due to the extension of the agreement to the end of 2022.
The second variation extended the agreement25 to 30 June 2023, requiring Stockton to pay the ‘Pre-IPO payment’ (under
escrow) of $750,000 to Prodigy Gold within 5 business days of Prodigy Gold obtaining shareholder approval for the
transaction in accordance with ASX Listing Rule 11.4. This variation also considered how the holding costs would be
shared between the Company and Stockton during this extension particularly in relation to the Mining Leases. Prodigy
Gold received shareholder approval for the transaction at the Company’s AGM held in November 2022.
During the final quarter of the reporting period a further variation to the agreement26 was announced where the
Company and Stockton agreed to extend the end date of the transaction, as well as the payment conditions for holding
costs, from 30 June 2023 to 30 November 2023. It is noted that the ‘Pre-IPO payment’ of $750,000 was received by the
Company on 1 May 2023.
21 ASX: 12 January 2022
22 ASX A8G: 1 July 2022
23 ASX: 29 April 2022
24 ASX: 5 September 2022
25 ASX: 23 December 2022
26 ASX: 13 June 2023
17
Prodigy Gold Annual Report 2023
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
The Company and Stockton are currently progressing the completion of several conditions precedent including the
assignment of agreements. The splitting of Mineral Lease ML29822, as required under the sale agreement and approved
by DITT, has occurred with ML29822 now covering the Buccaneer deposit and the new Mineral Lease, ML33459, covering
the Old Pirate deposit and associated mining infrastructure. The required surveying work to peg these new leases has
been completed.
MINERAL RESOURCES
Figure 10 - Stockton Sales tenements
Prodigy Gold’s Mineral Resources for 15 August 2023 are summarised below. See the 2023 Annual Mineral Resource
Statement27 and the individual announcements referenced below for additional information.
Prodigy Gold's Mineral Resource governance includes systems and procedures that ensure:
•
•
The Company’s Mineral Resource estimates are reported in accordance with the 2012 Edition of the
Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the “2012 JORC
Code”) and are based on documentation compiled by a Competent Person as defined by the 2012 JORC Code.
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.
27 ASX: 15 August 2023.
18
Prodigy Gold Annual Report 2023
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Consolidated Resource Summary
Table 1 Prodigy Gold Mineral Resource Summary as at 15 August 2023.
Project
Date
Buccaneer Aug-23
Tregony
Feb-23
Hyperion
July-18
Old Pirate Aug-16
Total
Cut-Off
Grade
(g/t)
0.7
0.7
0.7
1.0
Indicated
Inferred
Total
Tonnes
(Mt)
Grade
(g/t Gold)
Metal
(Koz)
Tonnes
(Mt)
Grade
(g/t Gold)
Metal
(Koz)
Tonnes
(Mt)
Grade
(g/t Gold)
Metal
(Koz)
Resource
Author
3.9
1.2
157
0.89
0.04
4.9
2.3
4.6
1.5
66
7
230
5.3
1.1
3.6
0.72
10.7
1.2
1.3
2.2
4.7
1.8
201
49
248
109
607
9.2
1.1
4.4
0.76
15.6
1.2
1.3
2.2
4.7
1.7
359
49
314
115
837
1
1
2
3
All Mineral Resources are reported in accordance with the 2012 JORC Code
Notes:
•
• Mineral Resource estimates are not precise calculations, being dependent on the interpretation of limited information on the location, shape and
continuity of the occurrence and on the available sampling results. The quantities contained in the above table have been rounded to two
significant figures to reflect the relative uncertainty of the estimate for tonnes and grade. Rounding may cause values in the table to appear to
have errors.
Authors are noted as 1 – Prodigy Gold (Mark Edwards): 2 – Optiro Pty Ltd: 3 – CSA Global
Tonnes are reported as dry metric tonnes
The are no Ore Reserves reported for any of Prodigy Gold’s projects
All projects are owned 100% by Prodigy Gold
•
•
•
•
o
The Old Pirate project is currently part of a sales agreement with public company Stockton Mining Limited. As this sale is still subject
to several conditions precedent the Old Pirate Mineral Resources are still reported as part of Prodigy Gold’s inventory.
•
Buccaneer, Tregony and Hyperion Mineral Resources are determined using an optimised pit shell with these parameters;
o
Gold price of A$2,960/oz which represents a 120% factoring of the 3-year forecast of gold price based on data from the Energy &
Metals Consensus Forecast at US$1,832/oz and exchange rate of $0.74 dated June 2023.
o Mining, processing and G&A costs of around $56/ore tonne mined
o
Recoveries have been used specific for each project of;
Buccaneer – 95.1% for oxide, 96.7% transitional and 84.6% for fresh based on metallurgical testwork completed by
metallurgical consultants IMO Pty Ltd in 202328
Tregony - 95% for oxide and 90% for transitional and fresh based on historic metallurgical testwork performed by Metcom
Laboratories for Acacia Resources
Hyperion - 95% for oxide and 90% for transitional and fresh based on historic metallurgical testwork performed at Tregony,
while no specific studies have been completed at Hyperion the Tregony Deposit is in close proximity to Hyperion so it is
deemed appropriate to use these results.
o
Pit wall angles of 45o in oxide and 39o in fresh and transitional are based on reported work completed by Tanami Gold29 and is seen
as being appropriate for use at Tregony and Hyperion due to the proximity of the deposits. Wall angles at Buccaneer 45o in oxide and
39o in fresh and transitional are based on geotechnical work completed on the 2021 diamond drilling.
Buccaneer Mineral Resource
Table 2 – Buccaneer Mineral Resource Estimate
Material
Type
Oxidised
Transitional
Fresh
Total
Buccaneer Gold Deposit – Mineral Resource Estimate August 2023
Indicated
Inferred
Tonnes
(Mt)
Grade
Au (g/t)
Metal
(koz)
Tonnes
(Mt)
Grade
Au (g/t)
Metal
(koz)
Tonnes
(Mt)
0.28
1.7
1.9
3.9
1.4
1.2
1.3
1.2
12
66
79
157
0.46
1.3
3.5
5.3
1.3
1.1
1.2
1.2
20
45
136
201
0.74
3.0
5.4
9.2
Total
Grade
Au (g/t)
1.3
1.1
1.2
1.2
Metal
(koz )
32
111
215
359
Note: Reported above 0.7g/t Au cut-off and above Whittle generated shell. Totals may vary due to rounding. The above Mineral Resource Estimate was
first announced in 2023 (ASX: 11 August 202330)
28 ASX: 10 March 2023
29 ASX: TAM 24 November 2022
30 ASX: 11 August 2023
19
Prodigy Gold Annual Report 2023
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Tregony Mineral Resource
Table 3 – Tregony Mineral Resource Estimate
Tregony Gold Deposit – Mineral Resource Estimate February 2023
Material
Type
Oxidised
Transitional
Fresh
Total
Indicated
Tonnes
(Mt)
Grade
Au (g/t)
Metal
(koz)
Tonnes
(Mt)
0
0
0
0
0
0
0
0
0
0
0
0
0.61
0.27
0.26
1.1
Inferred
Grade
Au (g/t)
1.3
1.3
1.5
1.3
Total
Metal
(koz)
Tonnes
(Mt)
Grade
Au (g/t)
Metal
(koz )
25
11
12
49
0.61
0.27
0.26
1.1
1.3
1.3
1.5
1.3
25
11
12
49
Note: Note: Reported above 0.7g/t Au cut-off and above Whittle generated shell. Totals may vary due to rounding. The above Mineral Resource Estimate
was first announced in 2023 (ASX: 15 February 202331) This estimates varies immaterially to previous statements due to the use of a slightly higher lower
cut-off grade compared to what was reported on 15 February 2023.
Hyperion Mineral Resource
Table 4 – Hyperion Mineral Resource Estimate
Hyperion Project - Mineral Resource Estimate July 2018
Material
Type
Oxide
Transitional
Fresh
Total
Tonnes
Grade
(Mt)
(Au g/t)
Metal
(Koz)
Indicated
0.04
0.27
0.58
0.89
1.4
1.8
2.6
2.3
2
16
49
66
Tonnes
Grade
(Mt)
0.37
1.2
2.0
3.6
(Au g/t)
Inferred
2.2
2.1
2.2
2.2
Metal
(Koz)
Tonnes
Grade
Metal
(Mt)
(Au g/t)
(Koz)
26
80
142
248
0.41
1.5
2.6
4.4
Total
2.1
2.0
2.3
2.2
28
96
191
314
Note: Reported above 0.7g/t Au cut-off and above Whittle generated shell (previously constrained to 230mRL). Resources may not sum to equal totals due
to rounding. The Mineral Resource estimate was first reported in 2018 (ASX: 31 July 201832). This estimates varies immaterially to previous resource
statements due to the use of a whittle generated open pit shell to constrain the Mineral Resource and a change in lower cut-off grade from 0.8g/t to
0.7g/t Au.
The Hyperion Project was formerly known as the Suplejack Project however it was renamed at the request of the local
community.
31 ASX: 15 February 2023
32 ASX: 31 July 2018
20
Prodigy Gold Annual Report 2023
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Old Pirate Mineral Resource
Table 5 – Old Pirate Mineral Resource Estimate
Old Pirate Gold Deposit – Mineral Resource Estimate August 2016
Domain
Classification
Tonnes (Mt)
Grade (g/t)
Metal (Koz)
Western Limb
Central
East
Golden Hind
Sub-Total
Total
Indicated
Inferred
Indicated
Inferred
Indicated
Inferred
Indicated
Inferred
Indicated
Inferred
Indicated +
Inferred
0.01
0.28
0.02
0.42
0.005
0.01
0.005
0.005
0.04
0.72
0.76
7.5
5.5
3.1
4.2
7.6
4.9
3.5
4.1
4.6
4.7
4.7
Note: Totals may vary due to rounding. The above Mineral Resource Estimate was first reported in 201633
3
50
2
56
1
2
1
1
7
109
115
33 ASX: 19 August 2016
21
Prodigy Gold Annual Report 2023
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Competent Persons Statement for the Mineral Resources
The information in this announcement relating to Mineral Resources from Buccaneer, Tregony, Hyperion and Old Pirate 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 –
Membership number 220787) and Member of the Australian Institute of Geoscientists (AIG – Membership number 3655) 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 “2012 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. Mr. Edwards also visited each project site during July-2023.
The Company confirms that it is not aware of any new information or data that materially affects the Mineral Resources as reported on the 11
August 2023, 15 February 2023, 31 July 2018 and 19 August 2016, and the assumptions and technical parameters underpinning the estimates in
the 11 August 2023, 15 February 2023, 31 July 2018 and 19 August 2016 releases continue to apply and have not materially changed.
The information in this statement that relates to the Mineral Resource for Buccaneer was previously released to the ASX on the 11 August 2023 –
Buccaneer Mineral 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. Shaun Searle who is a member of the Australasian Institute of Geoscientists and reviewed by Mr.
Mark Edwards who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr. Edwards is the Mineral Resource Competent Person for
this estimate and consents to the release of this information in the form and context in which it appears. At this time of publication Mr. Edwards
was a full-time employee of Prodigy Gold NL and Mr. Searle is a full-time employee of Ashmore Advisory Pty Ltd. Mr. Edwards had previously
provided written consent for the 11 August 2023 release.
The information in this statement that relates to the Mineral Resource for Tregony was previously released to the ASX on the 15 February 2023 –
Maiden Mineral Resource for Tregony Deposit. 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. Mark Edwards who is a Fellow of the Australasian Institute of Mining
and Metallurgy. At the time of the 15 February 2023 release Mr. Edwards was a full-time employee of Prodigy Gold NL. Mr. Edwards had
previously provided written consent for the 15 February 2023 release.
The information in this report that relates to the 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. Briggs was a full-time employee of
Prodigy Gold NL and Mr. Glacken was a full-time employee of Optiro Pty Ltd. Mr. Briggs and Mr. Glacken had previously provided written consent
for the 31 July 2018 release.
The information in this statement that relates to the 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.
22
Prodigy Gold Annual Report 2023
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
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:
Announcement Date
Announcement Title
24.11.2022
ASX:TAM
15.11.2021
Mineral Resource updates completed for five gold
deposits on the Central Tanami Project Joint
Venture Yields 1.5M ounces
Historic High Grades Confirm Upside Potential of
Tregony System
06.07.2023
Drilling Update for Tanami North Project
10.03.2023
Buccaneer Gold Project – Metallurgical Update
Competent
Person
At the time of release
full-time employee of
Membership
Membership
status
Mr
Graeme
Thompson
Mr
Adriaan
van Herk
Mr Mark
Edwards
Mr Mark
Edwards
Mr Doug
Winzar
Mr Doug
Winzar
Mr Doug
Winzar
Mr
Edward
Keys
MoJoe Mining Pty Ltd AusIMM
Member
Prodigy Gold
AIG
Member
Prodigy Gold NL
Prodigy Gold NL
IGO Limited
IGO Limited
IGO Limited
AusIMM
AIG
AusIMM
AIG
AusIMM
AIG
AIG
AIG
AIG
Fellow
Member
Fellow
Member
Fellow
Member
Member
Member
Member
Prodigy Gold NL
AIG
Member
31.05.2023
Prodigy Gold Successfully Receives Two Exploration
Grants under the Resourcing the Territory Initiative
Mr Mark
Edwards
Prodigy Gold NL
18.09.2017
Lake Mackay JV – Grapple Prospect Drilling Update
Lake Mackay JV Update: New Gold Prospect
Identified
Lake Mackay JV: First bedrock gold intersected at
Goldbug Prospect
Lake Mackay JV – Agreement and Exploration
Update
16.10.2019
18.01.2021
18.05.2022
26.05.2021
Exceptional high grade copper intersections at the
Phreaker Prospect within Lake Mackay JV
Mr Doug
Winzar
IGO Limited
AIG
Member
08.08.2022
Lake Mackay Drilling Results
06.02.2023
12.01.2022
01.07.2022
29.04.2022
Lake Mackay Drilling Results Prodigy Gold’s sole
funding requirements now complete
A8G to acquire a 90% interest in a substantial
lithium exploration package within the Northern
Arunta LCT pegmatite province
High grade tantalum mineralisation and lithium
signatures identified at Barrow Creek lithium
Project, NT
Prodigy Gold Signs Agreement over Old Pirate
Project and Tanami Exploration Tenements
Mr
Edward
Keys
Mr
Edward
Keys
Prodigy Gold NL
AIG
Member
Prodigy Gold NL
AIG
Member
Dr Qingtao
Zeng
Australasian Metals
Limited
AusIMM
Member
Mr
Graeme
Fraser
Mr
Edward
Keys
Australasian Metals
Limited
AusIMM
Member
Prodigy Gold NL
AIG
Member
15.08.2023
Annual Mineral Resource Statement
Mr Mark
Edwards
Prodigy Gold NL
AusIMM
AIG
Fellow
Member
23
Prodigy Gold Annual Report 2023
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
Tenement Management
The total area of 26,360km2 (2022: 27,006km2) held under tenure by Prodigy Gold and its joint venture partners has
decreased during the financial year. The area held under tenure is 11,277km2 with 15,084km2 held under 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 2 of the review of
operations report and a complete list of tenements follows this report.
CORPORATE
Change of Registered Office and Principal Place of Business
During August 2022, Prodigy Gold moved its Registered Office and Principal Place of Business to Level 1, 67 Smith Street
Darwin NT 080034.
Capital Structure
During the year, the Company completed an underwritten two for one renounceable pro rate rights issue at a price of
$0.01 raising gross proceeds of approximately $11.65 million (before costs and expenses)35. The Company issued a total
of 1,165,255,212 shares on completion of the raising.
Following shareholder approval at the Company’s AGM held on 29 November 2022, the Company issued 2 Million
unlisted options at an exercise price of $0.038 with an expiry date of 1 May 2026 to managing director Mark Edwards.
A total of 3,225,000 unlisted options with a zero exercise price were exercised by employees during the financial year. All
outstanding unvested options, following the satisfaction of retention and change of control vesting conditions, vested
during the financial year.
As at 30 June 2023, Prodigy Gold had a total of 1,751,107,818 shares and 5,500,000 unlisted options on issue.
Substantial Shareholders
Following the completion of the rights issue, IGO Limited and Jayleaf Holdings ceased to be substantial holders due to
dilution.
APAC Resources Limited (“APAC”) and Allied Properties Investments (1) Company Limited increased their holding in
Prodigy Gold to 871,681,907 shares, which at 30 June 2023 amounts to a voting power of 49.78% (2022: 19.83%). APAC
now considers Prodigy Gold a controlled entity of APAC and consolidates Prodigy Gold’s results for their reporting
purposes.
Jetosea Pty Ltd, lodged for the first time substantial holder notices during the year and held a voting power of 6.26% as at
30 June 2023.
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 repaid
following the completion of the Rights Issue36.
34 ASX: 18 August 2022
35 ASX: 7 September 2022; 24 October 2022
36 ASX: 17 October 2022
24
Prodigy Gold Annual Report 2023
SUMMARY OF MINING TENEMENTS AND AREAS OF INTEREST
Summary of Mining Tenements as at 30 June 2023
Area of Interest
Tenement
Group’s
Interest
Tenement
Status
Status Changes
During the Year
NORTHERN TERRITORY
TANAMI
Birrindudu
Bluebush(1)
Bonanza(1)
Bonanza (Buccaneer)
Hyperion
Abroholos
Tobruk (2)
EL31332
EL23659
EL24436
EL26610
EL27127
EL27589
EL28327
EL29860
EL31288
EL31290
EL31291
EL30944
EL25194
EL26608
EL27378
EL28322
EL28324
EL28325
EL28328
EL28394
EL31289
ML33459
EL30814
ML29822
EL09250
EL27125
EL27979
EL31331
EL31530
EL32055
EL26623
EL29833
EL32056
EL33487
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
ceased
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
application
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
application
granted
granted
granted
granted
granted
granted
granted
application
application
application
application
granted
granted
granted
granted
granted
granted
application
application
application
Expired
Tenement split from ML29822
Tenement split into ML29822 and ML33459
New application
25
Prodigy Gold Annual Report 2023
SUMMARY OF MINING TENEMENTS AND AREAS OF INTEREST
Area of Interest
Tenement
Monza JV (3)
Tanami Ngungaju JV (4)
LAKE MACKAY
Tekapo
Lake Mackay Gold JV (5)
Castile JV (6)
Warumpi (7)
EL25845
EL26590
EL26591
EL26592
EL26593
EL26613
EL26615
EL26618
EL26620
EL26621
EL26622
EL26673
EL27604
EL29834
EL30271
EL30272
EL30273
EL30283
EL26628
EL29828
EL26627
EL28682
EL25146
EL31234
E80/5001
EL31913
EL31974
EL24915
EL30730
EL30731
EL30739
EL31720
EL31721
EL31722
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
100
70
70
70
70
60
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
granted
granted
application
application
granted
granted
ceased
application
granted
granted
granted
granted
ceased
application
application
application
application
application
application
application
application
application
application
application
application
IGO Limited
Surrendered
IGO Limited
Castile Resources Pty Ltd
Surrendered
IGO Limited
IGO Limited
IGO Limited
IGO Limited
IGO Limited
IGO Limited
IGO Limited
IGO Limited
IGO Limited
IGO Limited
IGO Limited
IGO Limited
26
Prodigy Gold Annual Report 2023
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 (8)
Reynolds Range
EL8766
EL23880
EL23883
EL23884
EL23885
EL23886
EL26825
EL29723
EL29896
EL30637
EL28515
EL29724
EL29725
EL30470
EL30507
EL23655(1)
EL23888(1)
EL28083
100
100
100
100
100
100
100
100
100
100
10
10
10
10
10
80(9)
100
100
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
granted
1)
2)
3)
4)
5)
6)
7)
8)
9)
Tenements subject to a conditional sales agreement with Stockton Mining signed in April 2022
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
27
Prodigy Gold Annual Report 2023
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 2023.
Director
Role
Mr Gerard McMahon
Non-Executive Chairman
Mr Mark Edwards
Managing Director
Mr Brett Smith
Non-Executive Director
Mr Neale Edwards
Non-Executive Director
Directors have been in office since the start of the financial year to the date of this report.
Principal Activities
The principal activities of the Company during the year consisted of exploration and evaluation of mineral resources.
There was no significant change in the nature of the Company’s activities during the year.
Dividends
There were no dividends paid or declared during the year (2022: NIL).
Operating Results
The consolidated loss for the Group after providing for income tax amounted to $5,218,298 (2022: loss of $7,620,360).
Financial Position
The net assets of the Group have increased by $5,773,513 from 30 June 2022 to $14,563,230 in 2023. The increase is due
to the Group completing an underwritten two for one renounceable pro rata rights issue during the reporting period.
Significant Changes in the State of Affairs
The Group has undertaken a significant underwritten rights issue during the year, with APAC Resources Limited (“APAC”)
now considering the Group a controlled entity of APAC and consolidating the results or the Group for their reporting
purposes. Exploration continued during the year, however was disrupted by weather events shortening the field season
significantly.
Matters Subsequent to the End of the Financial Year
The Company released a resource update for its Buccaneer resource 37. No other matter or circumstance has arisen since
30 June 2023 that has significantly affected, or may significantly affect the Group's operations, the results of those
operations, or the Group's state of affairs in future financial years.
Likely Developments
•
•
•
Continued regional exploration on the Tanami North Project areas;
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.
37 ASX: 11 August 2023
28
Prodigy Gold Annual Report 2023
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 Mark Edwards
BSc Hons (Geology), MBA, GAICD, 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 Edwards commeced his role as Managing Director of Prodigy Gold NL in May 2022.
Mr Brett Smith
BEng Hons (Chem), MBA, MA
Status: Not independent
Position: Non-Executive Director
Qualifications and Experience:
Mr Smith has participated in the development and delivery of a number of mining and mineral processing projects
including coal, iron ore, base and precious metals. He has also managed engineering and construction companies in
Australia and internationally. Mr Smith has served on boards of both private and public mining and exploration
companies. He is currently executive director of Hong Kong listed Dragon Mining Limited (since February 2014), deputy
executive Chairman of Hong Kong listed APAC Resources Limited (since May 2016), executive director of Metals X Limited
(board member since December 2019), non-executive director of Tanami Gold NL (since November 2018) and was non-
executive director of Elementos Limited (January 2020 to May 2023). Overall, Mr Smith has over 30 years’ international
experience in the engineering, project development and organisational change management.
29
Prodigy Gold Annual Report 2023
DIRECTORS’ REPORT
Mr Neale Edwards
BAppSc AppGeo, BSc Hons, Fellow AIG
Status: Not Independent
Position: Non-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 2023, and the number of meetings attended by each Director were:
Directors
Mr Gerard McMahon
Mr Mark Edwards
Mr Brett Smith
Mr Neale Edwards
Board Meetings
Eligible to Attend
Attended
5
5
5
5
5
5
5
5
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
Fully Paid Ordinary Shares
Unlisted Options
-
-
1,982,142
-
-
2,000,000
1,500,000
-
30
Prodigy Gold Annual Report 2023
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 2022 Annual General Meeting
The Company received 0.52% (2021: 49.15%) of votes against its remuneration report for the 2022 financial year at the
2022 AGM. The resolution was passed (2021: not passed), as more than 75% of the votes were cast in favor of the
resolution.
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 2023 the Company utilised $141,117
(2022: $120,000) of the pool.
Performance evaluations of the Board are usually undertaken annually with a view to comparing the performance of the
Board and Directors against their relevant Charters and their interactions with and performance of management. A
internal self-assessment of the Board’s performance for the year was finalised during June 2023.
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
10.5% during the reporting period, and do not receive any other retirement benefits. Other benefits include personal
accident (working directors) insurance and other fringe benefits.
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.
31
Prodigy Gold Annual Report 2023
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 six 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 all vested
during the financial year due to a change of control.
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 six 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
2019
168,037
2020
205,300
2021
82,419
2022
17,535
2023
240,297
5,004,727
5,620,204
4,807,264
7,620,360
5,218,298
0.089
-
(1.09)
0.045
-
(1.00)
0.04
-
(0.83)
0.013
-
(1.31)
0.008
-
(0.37)
The following persons were key management personnel of the Group during the financial year:
Key Management Personnel
Position
Commencement of Position
Mr G McMahon
Mr M Edwards
Mr B Smith
Mr N Edwards
Non-Executive Chairman
29 November 2021
Managing Director
Executive Director
1 May 2022
9 May 2016
Non-Executive Director
29 November 2021
Ms J Zimmermann
CFO / Company Secretary
1 June 2005
32
Prodigy Gold Annual Report 2023
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
$
2023
Directors
Mr G McMahon
57,625
Mr M Edwards
325,000
Mr B Smith4)
Mr N Edwards
38,416
28,812
Total Directors
449,853
Other KMP
Jutta Zimmermann
220,000
Total Other
Total
220,000
669,853
-
-
-
-
-
-
-
-
-
6,050
-
15,000
27,500
5,200
-
-
4,034
3,026
-
-
-
6,6585
3,154
-
15,000
40,610
5,200
9,812
16,711
23,100
16,711
23,100
31,711
63,710
3,520
3,520
8,720
29,422
29,422
39,234
Proportion
of
Remune-
ration that
is at Risk
0%
0%
6.9%
0%
10%
Total
$
63,675
379,358
45,604
31,838
520,475
292,753
292,753
813,228
-
-
-
-
-
-
-
-
1)
2)
3)
4)
Annual leave relates to movements in annual leave provisions during the year.
Long service leave relates to movements in long service leave provisions during the year.
These amounts are accounting accruals 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).
Mr Smith held the role of executive director to 29 November 2022. His role reverted to the position of non-executive director on that
date.
5) M Edwards received executive options which are not classified as remuneration at risk.
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
$
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
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.
1)
2)
33
Prodigy Gold Annual Report 2023
DIRECTORS’ REPORT
Options and Shares Issued as Part of Remuneration
Options valued at $39,234 (2022: $64,613) were issued to KMP during the year ended 30 June 2023 and all remaining
prior year options vested during the financial year. 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 reverted back to a non-
executive director role on 29 November 2022. Mr Smith will receive a $30,000 base fee commencing 1 July 2023.
Base fees for directors (other than the managing director) were including superannuation until 30 November 2022 and,
commencing 1 December 2022, superannuation was added to the base fee.
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 options equal to 145% of the 5 day VWAP prior to 8 February 2022 – these executive options were
shareholder approved 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.
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.
34
Prodigy Gold Annual Report 2023
DIRECTORS’ REPORT
Options issue to KMP’s during the Reporting Period
The Group agreed to issue 2 million option equal to 145% of the 5 day VWAP prior to 8 February 2022 to a KMP, which were
subsequently approved by shareholders at the 2022 AGM.
During the reporting period, the Group issued 2,000,000 Options to the managing director following shareholder approval at the AGM
held on 29 November 2022. The exercise price of the Options was to be calculated at a premium of 145% to the 5 day VWAP of Prodigy
Gold’s share price immediately prior to 8 March 2022. The Options vested on the grant date.
Employee Options
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
Tranche 1
2,000,000
2,000,000
$0.003
$0.038
$0.026
29 November 2022
1 May 2026
Vesting date (subject to Option issue)
29 November 2022
Expected price volatility of Options
Risk free interest rate
82.4%
3.24%
During the period $6,658 of expense was recorded relating to these key management personnel options.
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
Exercise of
Options
Balance at the
End of the Year
-
100,000
660,714
-
2,001,145
2,761,859
-
-
-
-
-
-
-
-
1,321,428
-
600,000
1,921,428
-
-
-
-
2,350,000
2,350,000
-
100,000
1,982,142
-
4,951,145
7,033,287
1) Mr Smith is a nominee of APAC Resources Limited who are a substantial shareholder of Prodigy Gold.
Option Holding
Directors and other KMP of the Group, including their personally related parties, hold options over ordinary shares in the
Company.
Name
Mr G McMahon
Mr M Edwards
Mr B Smith
Mr N Edwards
Balance at the
Start of the
Year
Received as
Part of
Remuneration
Additions
Disposals /
Exercise of
Options
Balance at the
End of the
Year
Vested at the
End of the
Year
-
-
-
2,000,000
1,500,000
-
-
-
-
3,850,000
2,000,000
-
-
-
-
-
-
-
-
-
-
(2,350,000)
-
-
2,000,000
2,000,000
1,500,000
1,500,000
-
-
-
-
(2,350,000)
3,500,000
3,500,000
Ms J Zimmermann
2,350,000
35
Prodigy Gold Annual Report 2023
DIRECTORS’ REPORT
Loans to Directors and Other Key Management Personnel
No loans to Directors and other key management personnel of the Group were provided in 2023 (2022: NIL).
Other Transactions with Directors and Other Key Management Personnel
The terms and conditions of transactions with Directors, other key management personnel and their related parties and
entities were no more favourable than those available, or which might reasonably be expected to be available, on similar
transactions with non-Director related parties and entities on an arm’s length basis.
This concludes the Remuneration Report, which has been audited.
36
Prodigy Gold Annual Report 2023
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 $21,365 (2022: $18,536) 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 39.
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 15th day of August 2023
Perth, Western Australia
37
Prodigy Gold Annual Report 2023
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 2023.
The Group’s Corporate Governance Statement for the year ended 30 June 2023 (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 2023 may also be
accessed from the Company’s website at www.prodigygold.com.au/about-prodigy-gold/corporate-governance.
38
Prodigy Gold Annual Report 2023
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 2023, 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
15 August 2023
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.
39
Prodigy Gold Annual Report 2023
ANNUAL FINANCIAL REPORT
The financial statements of Prodigy Gold NL for the year ended 30 June 2023 were authorised for issue in accordance
with a resolution of the Directors on 15 August 2023 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 24 and in the Directors’ Report on pages 28 to 37, 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
40
Prodigy Gold Annual Report 2023
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
40
42
43
44
45
46
63
64
68
41
Prodigy Gold Annual Report 2023
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 30 JUNE 2023
Consolidated
Notes
2023
$
2022
$
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
240,297
71,242
17,535
343,726
(602,760)
(44,200)
(13,538)
(607,130)
(3,705,717)
(556,492)
(5,218,298)
-
(5,218,298)
(5,218,298)
-
-
(475,207)
(68,368)
(10,575)
(658,982)
(5,103,292)
(1,665,197)
(7,620,360)
-
(7,620,360)
(7,620,360)
-
-
(5,218,298)
(7,620,360)
(5,218,298)
(7,620,360)
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
(0.37)
(1.31)
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the
accompanying notes.
42
Prodigy Gold Annual Report 2023
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023
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
Provisions
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Reserves
Accumulated losses
TOTAL EQUITY
Consolidated
Notes
2023
$
2022
$
5
6
7
6
8
10
9
11
6,052,764
500,003
21,306
5,623,950
167,791
12,365,814
2,481,051
420,090
1,735,493
4,636,634
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
17,002,448
13,695,559
686,267
-
229,028
915,295
1,523,923
1,523,923
2,439,218
14,563,230
666,261
2,500,000
175,921
3,342,182
1,563,660
1,563,660
4,905,842
8,789,717
12
13(a)
198,197,192
187,260,818
1,893,413
1,955,984
(185,527,375)
(180,427,085)
14,563,230
8,789,717
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
43
Prodigy Gold Annual Report 2023
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
CASH FLOWS FROM OPERATING ACTIVITIES
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 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 / (Repayment of) borrowings
Refund of security deposits (cash-back)
Borrowing cost
Proceeds from issue of shares
Share issue costs
Net cash inflow from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Consolidated
Notes
2023
$
2022
$
751,980
90,909
(1,070,734)
(1,106,305)
199,623
163,992
16,477
45,632
(3,659,767)
(4,957,385)
(763,519)
(509,734)
20
(4,378,425)
(6,420,406)
(364,236)
(36,198)
682
-
(363,554)
-
200,000
163,802
(2,500,000)
2,500,000
28,433
(65,397)
11,652,552
(716,178)
8,399,410
3,657,431
2,395,333
6,052,764
-
(104,697)
-
(1,250)
2,394,053
(3,862,551)
6,257,884
2,395,333
5
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
44
Prodigy Gold Annual Report 2023
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
Contributed
Equity
$
Share-based Payment
Reserve
$
Accumulated
Losses
$
Notes
Total
$
187,262,068
2,412,399
(173,380,583)
16,293,884
12(a)
12(a)
13(a)
13(a)
-
-
-
-
(1,250)
-
-
(1,250)
187,260,818
-
-
-
12(a)
12(a)
13(a)
13(a)
11,652,552
(716,178)
-
-
10,936,374
198,197,192
-
-
-
-
-
(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
-
-
-
-
-
(118,008)
55,437
(62,571)
(5,218,298)
(5,218,298)
-
-
(5,218,298)
(5,218,298)
-
-
11,652,552
(716,178)
118,008
-
-
55,437
118,008
10,991,811
1,893,413
(185,527,375)
14,563,230
Balance at 1 July 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
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 2023
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
45
Prodigy Gold Annual Report 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
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
47
47
47
48
49
50
50
51
51
52
52
53
54
54
57
57
57
58
59
59
60
60
61
61
61
46
Prodigy Gold Annual Report 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
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
Expense re-imbursements from JV Partners
Sale of Exploration Interests
Sale of Fixed Assets
Government Grants
Consolidated
2023
$
2022
$
364
-
682
70,196
71,242
29,353
150,000
-
164,373
343,726
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
2023
$
2022
$
1,899,627
1,571,765
(1,296,867)
(1,096,558)
602,760
475,207
55,437
(11,237)
44,200
52,848
(39,310)
13,538
-
-
-
117,443
(49,075)
68,368
36,859
(26,284)
10,575
467,928
(467,928)
-
1,296,867
1,096,558
11,237
39,310
-
2,358,303
3,705,717
49,075
26,284
467,928
3,463,447
5,103,292
47
Prodigy Gold Annual Report 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
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% (2022: 25%)
Tax effect of amounts which are not deductible (taxable) in calculating
taxable income:
Non-assessable income
Share-based payments
Other permanent differences
Adjustment in respect of prior year
Deferred tax assets not brought to account
Income tax expense
The applicable weighted average effective tax rates
Consolidated
2023
$
2022
$
-
-
-
-
-
-
(5,218,298)
(7,620,360)
(1,304,574)
(1,905,090)
-
11,050
694
7,248
-
29,361
749
-
(1,285,582)
(1,874,980)
1,285,582
1,874,980
-
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
405,167
47,275
452,442
637,638
31,747
669,385
(452,442)
(669,385)
-
-
40,341,888
38,982,886
446,783
181,706
551,744
80,207
40,970,377
39,614,837
(452,442)
(669,385)
40,517,935
38,945,452
No deferred tax assets have been recognised as it is not probable that future tax profits will be available to offset these balances.
48
Prodigy Gold Annual Report 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
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
For cash flow statement presentation purposes, cash and cash equivalents includes cash on hand.
Consolidated
2023
$
2022
$
6,052,764
6,052,764
2,395,333
2,395,333
49
Prodigy Gold Annual Report 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
NOTE 6:
TERM DEPOSITS AND OTHER RECEIVABLES
CURRENT
Other receivables (Note 6(a))
NON-CURRENT
Bond term deposit and DITT Cash Bonds
(a)
Other receivables
Consolidated
2023
$
2022
$
500,003
500,003
629,845
629,845
2,481,051
2,481,051
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 2023. 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
2023
$
2022
$
5,349
5,618,601
5,623,950
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 classified 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 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.
50
Prodigy Gold Annual Report 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
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
2023
$
2022
$
2,291,985
(556,492)
-
1,735,493
9,575,783
(1,665,197)
(5,618,601)
2,291,985
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 impaired in
accordance with AASB 6 due to the Group not intending to undertake further exploration on the tenements and divestment efforts to
date not resulting in any serious offers.
The balances of the exploration assets as at 30 June 2023 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 remaining exploration assets. Following this
assessment, the Group recognised an impairment charge to exploration and evaluation expenditure totaling $556,492 (2022: $1,086,232)
and for the Stockton Mining transaction totaling NIL (2022: $578,965).
NOTE 9:
BORROWINGS
CURRENT LIABILITIES (Unsecured)
Borrowings
Consolidated
2023
$
2022
$
-
-
2,500,000
2,500,000
The initial repayment term of the unsecured loan facility with Mount Sun Investments Limited was 6 months, which was subsequently
extended by an additional 3-month period. The interest rate equals the BBSY (Bid) of Australia plus 1% p.a. The loan was fully repaid during
October 2022. Information about the Group’s exposure to liquidity risk is provided in Note 14.
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.
51
Prodigy Gold Annual Report 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
NOTE 10:
TRADE AND OTHER PAYABLES
CURRENT LIABILITIES (Unsecured)
Trade payables
Sundry payables and accrued expenses
Consolidated
2023
$
2022
$
506,750
179,517
686,267
248,027
418,234
666,261
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
Accounting Policy
Consolidated
2023
$
2022
$
1,523,923
1,523,923
1,563,660
1,563,660
Consolidated
2023
$
2022
$
1,563,660
1,694,521
7,163
(46,900)
12,966
(143,827)
1,523,923
1,563,660
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.
52
Prodigy Gold Annual Report 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
NOTE 11:
PROVISIONS cont’d
Accounting estimates and judgements
Rehabilitation obligation
The Group estimates the future rehabilitation costs of the site and exploration locations taking into consideration facts and circumstances
available at statement of financial position date. A provision has been recognised for the cost to be incurred for the restoration of mine
and exploration sites based on the estimated cost. The estimated cost is determined to be the equivalent to the bonds provided to the
relevant government departments, reduced by restoration work completed and then increased by a correction factor. The bonds provided
are calculated by the government by allocating rehabilitation cost to activities proposed in a mine management plan submitted to the
department. Restoration work is completed on an ongoing basis.
Transaction costs relating to share issues
-
NOTE 12:
CONTRIBUTED EQUITY
(a)
Ordinary Shares
Details
Opening balance
Share placement1)
Closing balance
Share placement
Share placement
Share placement
Share placement1)
Share placement1)
Transaction costs relating to share issues
Date
Number of Shares
Issue Price $ Value $
1 July 2021
580,627,606
187,262,068
28 September 2021
2,000,000
-
(1,250)
30 June 2022
582,627,606
187,260,818
3 October 2022
17 October 2022
24 October 2022
4 May 2023
15 May 2023
447,707,987
626,347,225
91,200,000
2,725,000
500,000
-
0.01
0.01
0.01
4,477,080
6,263,472
912,000
-
-
(716,178)
198,197,192
Closing balance
30 June 2023
1,751,107,818
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 2023 is 5,500,000 (2022: 6,725,000). 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.
53
Prodigy Gold Annual Report 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
NOTE 13:
RESERVES
(a)
Reserves
Share-based payment reserve
Movements in reserves
Balance at 1 July 2021
Share-based payments expired and transferred to accumulated losses
Share-based payments expense (refer to Note 17)
Balance at 30 June 2022
Share-based payments transferred to accumulated losses on exercise1)
Share-based payments expense (refer to Note 17)2)
Balance at 30 June 2023
Consolidated
2023
$
2022
$
1,893,413
1,893,413
1,955,984
1,955,984
Share-based
payment reserve
$
2,412,399
(573,858)
117,443
1,955,984
(118,008)
55,437
1,893,413
1)
2)
During the financial year, 3,225,000 options were exercised and a previously recognised amount of $118,008 was transferred to accumulated
losses
During the financial year, 2,000,000 options were issued and all remaining outstanding options vested on a change of control following the
share placements in October 2022
(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.
54
Prodigy Gold Annual Report 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
NOTE 14:
FINANCIAL RISK MANAGEMENT cont’d
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.
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 which were repaid during October 2022. 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 2023
Financial Assets:
Cash and bonds
3.01%
6,052,764
Receivables
Total financial assets
-
6,052,764
Financial Liabilities:
Payables
Total financial liabilities
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
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6,052,764
500,003
500,003
500,003
6,552,767
686,267
686,267
686,267
686,267
-
2,395,333
629,845
629,845
629,845
3,025,178
-
2,500,000
666,261
666,261
666,261
3,166,261
55
Prodigy Gold Annual Report 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
NOTE 14:
FINANCIAL RISK MANAGEMENT cont’d
Based on the financial instruments held at 30 June 2023, 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 $60,528 higher/$60,528 lower
(2022: $23,953 higher/$23,953 lower).
Credit Risk
Credit risk is managed on a Group basis. Credit risk is a risk of financial loss if the Group’s counterparties are failing to discharge their
obligation in respect to the Group’s financial instruments held in those counterparties. Credit risk mainly arises from cash, cash
equivalents, deposits with banks and receivables. The Group deposits its fund only with prudent banks with the minimum rating of “A”,
and the management believes they are fully recoverable from the banks when due. The Group has provided for a total of NIL (2022: NIL)
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 bonds
Receivables
Liquidity Risk
Consolidated
2023
$
6,052,764
2,481,051
500,003
2022
$
2,395,333
2,509,484
629,845
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 2023
Non-derivatives
Non-interest bearing
686,267
Interest bearing
-
Total non-
derivatives
30 June 2022
Non-derivatives
686,267
Non-interest bearing
666,261
Interest bearing
2,500,000
Total non-
derivatives
3,166,261
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
686,267
686,267
-
-
686,267
686,267
666,261
666,261
2,500,000
2,500,000
3,166,261
3,166,261
56
Prodigy Gold Annual Report 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
NOTE 14:
FINANCIAL RISK MANAGEMENT cont’d
The table above analyses the Group’s and the Parent Entity’s financial liabilities into relevant maturity periods based on the remaining
period at balance date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash
flows.
NOTE 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
2023
$
2022
$
47,811
47,811
21,365
21,365
42,567
42,567
18,536
18,536
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 (2022: $2,275,504) have been provided. Term deposits of $2,275,504 (2022: $2,275,504) and a
cash deposit of $93,111 (2022: $128,894) with the Department of Industry, Tourism and Trade – Northern Territory secure these
guarantees. Per Note 11 a restoration provision of $1,523,923 (2022: $1,563,660) 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.
Options Exercisable at 145% of 5-day VWAP’s (“Option”)
During the reporting period, the Group issued 2,000,000 Options to the managing director following shareholder approval at the AGM
held on 29 November 2022. The exercise price of the Options is to be calculated at a premium of 145% to the 5 day VWAP of Prodigy
Gold’s share price immediately prior to 8 March 2022. The Options vested on the grant date.
During the period $6,658 of expense was recorded relating to these key management personnel options.
57
Prodigy Gold Annual Report 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
NOTE 17:
SHARE-BASED PAYMENTS cont’d
Employee Options
Tranche 1
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
2,000,000
2,000,000
$0.003
$0.038
$0.026
29 November 2022
1 May 2026
Vesting date (subject to Option issue)
29 November 2022
Expected price volatility of Options
Risk free interest rate
82.4%
3.24%
During the period an additional $48,779 (2022: $117,443) of expense was recorded relating to historical employee options and an
amount of $118,008 (2022: $573,858) was recycled through retained earnings following the exercise of options.
Accounting estimates and judgements
Share-based payments subject to non-market conditions are determined using a Black-Scholes option pricing model. The model takes
into account the exercise price, the anticipated vesting period of the option, the impact of dilution, the share price at grant date and
expected price volatility of the underlying option, the expected dividend yield and the risk-free interest rate for the term of the option.
When estimating the fair value of the options at measurement date, the Group adjusts the number of equity instruments included in
the measurement of the transaction amount so that ultimately the amount recognised is based on the number of equity instruments
that eventually vest. The Group uses the best available estimate of the number of equity instruments expected to vest at the end of
each reporting period.
Share-based payments expense reconciliation
Share-based payments expense (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
Options issued during the period 30 June 2023
Consolidated
2023
$
2022
$
-
11,152
37,627
6,658
55,437
152
17,747
99,544
-
117,443
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 36 (Other Transactions with Directors and Other Key Management Personnel) of the Remuneration Report and in Note 17.
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.
58
Prodigy Gold Annual Report 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
NOTE 19:
SUBSEQUENT EVENTS
The Company released a resource update for its Buccaneer resource. No other matter or circumstance has arisen since 30 June 2023
that has significantly affected, or may significantly affect the Group's operations, the results of those operations, or the Group's state of
affairs in future financial years.
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)
(Gain)/loss on disposal of fixed 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.
Consolidated
2023
$
2022
$
(5,218,298)
(7,620,360)
52,848
-
(682)
556,492
55,437
65,397
-
-
129,842
(17,000)
(35,837)
20,006
53,107
(39,737)
36,859
(200,000)
1,665,197
117,443
104,697
5,623,950
-
(371,361)
11,182
(5,649,492)
96,548
(104,208)
(130,861)
(4,378,425)
(6,420,406)
59
Prodigy Gold Annual Report 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
NOTE 21:
LOSS PER SHARE
Consolidated
2023
$
2022
$
a)
Basic loss per share
Basic loss per share attributable to the ordinary equity holders of the Company
(0.37)
(1.31)
b)
Reconciliation of loss used in calculated loss per share
Loss attributable to owners of Prodigy Gold NL used to calculate basic loss
per share – Loss from continuing operations
(5,218,298)
(7,620,360)
(5,218,298)
(7,620,360)
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
1,415,814,376
582,134,455
The Group made a loss, therefore the diluted EPS is not shown as it is not dilutive.
Accounting Policy
Basic earnings/(loss) per share is calculated by dividing the profit/(loss) attributable to equity holders of the Company, excluding any
costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the
financial year, adjusted for bonus elements in ordinary shares issued during the year.
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
Parent Entity
2023
$
2022
$
12,365,813
4,636,635
8,785,387
4,910,172
17,002,448
13,695,559
915,295
1,523,923
2,439,218
14,563,230
3,342,182
1,563,660
4,905,842
8,789,717
198,197,192
187,260,818
1,893,413
1,955,984
(185,527,375)
(180,427,085)
14,563,230
8,789,717
60
Prodigy Gold Annual Report 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
NOTE 22:
PARENT ENTITY INFORMATION cont’d
Loss for the year
Other comprehensive income/(loss) for the year
Total comprehensive (loss)
NOTE 23:
SUBSIDIARIES
Parent Entity
2023
$
2022
$
(5,218,298)
(7,620,360)
-
-
(5,218,298)
(7,620,360)
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with
Prodigy Gold’s accounting policies:
Equity Holding
2023
%
2022
%
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).
61
Prodigy Gold Annual Report 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
NOTE 25:
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - not reported elsewhere cont’d
Historical cost convention
These financial statements have been prepared under the historical cost convention. The Company is of a kind referred to in
Corporations Instrument 2016/191, issued by the Australian Securities and Investments Commission, relating to 'rounding-off'. Amounts
in this report have been rounded off in accordance with that Corporations Instrument to the nearest dollar.
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 is included in Note 22.
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 $5,218,298 (2022: $7,620,360) and experienced net cash outflows from operating activities of
$4,378,425 (2022: $6,420,406).
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. The Directors believe that they will be able to raise
additional capital as required. The Directors believe that the Group will 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
2023 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.
62
Prodigy Gold Annual Report 2023
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 42 to 62 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 2023 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 15th day of August 2023
MARK EDWARDS
Managing Director
63
Prodigy Gold Annual Report 2023
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 2023, 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 2023 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.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd
ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International
Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme
approved under Professional Standards Legislation.
64
Prodigy Gold Annual Report 2023
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 carrying value
of capitalised exploration and
evaluation expenditure represents a
significant asset of the Group.
Refer to Note 8 of the financial
report for a description of the
accounting policy and significant
judgements applied to capitalised
exploration and evaluation
expenditure.
In accordance with AASB 6
Exploration for and Evaluation of
Mineral Resources (“AASB 6”), the
recoverability of exploration and
evaluation expenditure requires
significant 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.
Our procedures included, but were not limited to:
(cid:127)
(cid:127)
(cid:127)
(cid:127)
(cid:127)
(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 remained current at
balance date;
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 directors’ minutes;
Considering whether any areas of interest had
reached a stage where a reasonable assessment of
economically recoverable reserves existed;
Evaluating management’s support and calculations
for the impairment expense of $556,492 by checking:
(cid:127)
(cid:127)
The allocation of the expenditure across the
relevant tenements
The mathematical accuracy of the amount
written down; and
Assessing the adequacy of the related disclosures in
Note 8 of the financial report.
65
Prodigy Gold Annual Report 2023
2
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 2023, 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 (http://www.auasb.gov.au/Home.aspx) at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
66
Prodigy Gold Annual Report 2023
3
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 31 to 36 of the directors’ report for the
year ended 30 June 2023.
In our opinion, the Remuneration Report of Prodigy Gold NL, for the year ended 30 June 2023, 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,
15 August 2023
67
Prodigy Gold Annual Report 2023
4
ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES
Additional information required by the Australian Securities Exchange Limited and not shown elsewhere in this report is set out below.
The information was prepared based on share registry information processed up to 10 August 2023.
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
662
906
495
1,279
497
3,839
(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
Jetosea Pty Ltd
(d)
Voting rights
The voting rights attached to each class of equity security are as follows:
Ordinary shares
871,681,907
111,631,439
49.78
6.37
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.
68
Prodigy Gold Annual Report 2023
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
BNP PARIBAS NOMS PTY LTD
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
*JETOSEA PTY LTD
BNP PARIBAS NOMS PTY LTD
*JEMAYA PTY LTD
ZERO NOMINEES PTY LTD
JAYLEAF HOLDINGS PTY LTD
SUPER SEED PTY LTD
PULSE MARKETS PTY LTD
10. MR GORDON CHAN
11.
12.
13.
DELPHI UNTERNEHMENSBERATUNG AKTIENGESELLSCHAFT
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
CITICORP NOMINEES PTY LIMITED
14. MR STEPHEN ROBERT WYLIE
15.
16.
17.
GECKO RESOURCES PTY LTD
PULSE MARKETS PTY LTD
BNP PARIBAS NOMINEES PTY LTD
18. MR PAOLO VALCINI & MRS SWEE FONG VALCINI
19. MR VINCENT ANDREW MAIOLO
20.
*JUTTA Z PTY LTD
Number of Ordinary
Fully Paid Shares Held
% Held of Issued
Ordinary Capital
882,899,831
119,640,182
111,631,439
85,000,010
65,500,000
49,254,285
30,000,000
20,000,000
13,800,000
13,018,512
11,394,000
9,833,334
9,652,948
8,802,000
8,000,000
6,200,000
5,563,293
5,250,000
5,000,000
4,906,145
50.42
6.83
6.37
4.85
3.74
2.81
1.71
1.14
0.79
0.74
0.65
0.56
0.55
0.50
00.46
0.35
0.32
0.30
0.29
0.28
1,465,345,979
83.68
* 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
69
Prodigy Gold Annual Report 2023
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 10 August 2023, the Company has 5,500,000 unlisted options, which were issued to a total of 4 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
Mark Edwards
Brett Smith
Gary Ferris
Edward Keys
7.
On-Market Buy Back
The Company does not have a current on-market buy back.
2,000,000
1,500,000
1,000,000
1,000,000
36.37%
27.27%
18.18%
18.18%
70
Prodigy Gold Annual Report 2023
Level 1, 67 Smith Street, Darwin NT 0800
www.prodigygold.com.au