2024
ANNUAL REPORT
Prodigy Gold NL
CORPORATE DIRECTORY
2
Prodigy Gold Annual Report 2024
ABN 58 009 127 020 ACN 009 127 020
Directors
Secretary
Auditors
Bankers
Share Registry
Solicitors
Stock Exchange
Registered Office
Principal Place of
Business
Postal Address
Website
Email
Mr Gerard McMahon (Chairman)
Mr Mark Edwards (Managing Director)
Mr Brett Smith
Mr Neale Edwards
Ms Jutta Zimmermann
BDO Audit 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
Australian Securities Exchange Limited
ASX Code: PRX
Level 1, 67 Smith Street
DARWIN NT 0800
Level 1, 67 Smith Street
DARWIN NT 0800
Telephone: +61 8 9423 9777
Fax: + 61 8 9423 9733
GPO Box 988
DARWIN NT 0801
www.prodigygold.com.au
admin@prodigygold.com.au
CONTENTS
3
Prodigy Gold Annual Report 2024
Page
Chairman’s Report
4
Managing Director’s Report – Review of Operations
5
Summary of Mining Tenements and Areas of Interest
32
Directors’ Report
35
Corporate Governance Statement
46
Auditor’s Independence Declaration
47
Consolidated Statement of Profit or Loss and Other Comprehensive Income
50
Consolidated Statement of Financial Position
51
Consolidated Statement of Cash Flows
52
Consolidated Statement of Changes in Equity
53
Notes to the Consolidated Financial Statements
54
Directors’ Declaration
71
Independent Auditor’s Report to the Members
72
Additional Information for Listed Public Companies
76
MESSAGE FROM THE CHAIRMAN
4
Prodigy Gold Annual Report 2024
Dear Shareholder,
Over the past year, Prodigy
Gold continued its strategic
focus on gold exploration in
the Northern Territory and
in particular the Tanami
North Project area. Prodigy
Gold had a very busy year completing drilling at the
Tregony and Hyperion Deposits, including some
exploration drilling at the Brokenwood and Stoney Ridge
Prospects.
The
successful
completion
of
a
placement
to
sophisticated, professional and institutional investors as
well as to Company directors and the Company’s largest
Shareholder, APAC Resources Limited (“Placement”)
during May 2024, allowed for the planning and execution
of exploration works on our strategically important
prospects. The Company would like to thank its investors
for their continued financial support and in particular
APAC Resources for their contribution to the Placement.
Prodigy Gold holds its Joint Ventures in very high regard,
and continues to work closely with Newmont Corporation
at the Monza and Tobruk Projects, IGO at Lake Mackay
and Australasian Metals at the Barrow Creek Project.
These Joint Ventures are important to Prodigy Gold as
they allow us to continue to focus on 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 as well as one of
the countries largest undeveloped gold resources at
Oberon.
Recognising the Company’s very large tenement holding
in the Tanami Region of the Northern Territory, Prodigy
Gold re-negotiated the agreement with Stockton Mining
now covering 23 exploration tenements and no mineral
leases. This continues to be the right strategic move for
the Company where we reduce holding costs while
maintaining a royalty interest in the project. Prodigy Gold
is working closely with Stockton Mining to complete this
agreement.
The divestment of the Reynolds Range Project to iTech
Energy Pty Ltd significantly reduced Prodigy Gold’s
holding costs while retaining an upside potential through
a 1% royaly on all minerals and metals other than
graphite.
Some of the highlights for the year include:
•
Hyperion Resource update – representing a
96% increase in tonnes, 33% decrease in grade
and 30% increase in ounces compared to the
previously
released
Hyperion
Mineral
Resource;
•
Tregony Resouces update – representing a 36%
increase in tonnes, 4% decrease in grade and
30% increase in ounces compared to the
previously released Tregony Mineral Resource;
•
Buccaneer Resource update – whilst there was
a reduction in the inventory the results are
suitable for use in future mining studies for the
Project as the optimised shells reflect suitable
gold prices and uses the metallurgical details
obtained from recent studies;
•
Completion of NT government co-funded
programs for Tregony diamond drilling and a
regional ground gravity geophysical survey;
•
Completion of RC drilling at the Tregony and
Hyperion Deposits, including some exploration
drilling south of Hyperion at Brokenwood and
Stoney Ridge;
•
Execellent results achieved through bench-
scale metallurgical testwork for the Hyperion
Deposit, returning gold recovery levels over
95%. In addition to these high Carbon-in-Leach
(“CIL”) recoveries, gravity gold recoveries
ranged between 22% and 41%;
•
Results, utilising the PhotonAssay analytical
technique, provided
the
Company with
confidence in a cost effective analytical tool to
test for high-grade gold;
•
Completion of the Placement raising gross
proceeds of $1.1 Million; and
•
Newmont advanced exploration on our Tobruk
and Monza JV titles located in close proximity
to their Callie operation.
The Company has also completed and released its
Environment, Social and Goverenance (ESG) report for
the year.
It has been a challenging exploration field season this year
due to the extended Northern Australian wet season and
dry season wildfires, so the Board would like to thank all
our dedicated staff members, for their commitment and
work ethics. 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
our 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
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
5
Prodigy Gold Annual Report 2024
EXPLORATION
Review Summary
Prodigy Gold NL (“Prodigy Gold” or the “Company”) continued implementing its new strategy during the year, directing its
focus to the Tanami North Project area. 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). The Company has re-established the Tregony exploration camp as a base for all
works completed in the Tanami North Project area, with drilling contractors utlising the camp over the last year during the
field campaigns along with the Prodigy Gold field team.
The Company continues to actively look at ways to reduce project holding costs through the sale of exploration tenements
to Stockton Mining (23 exploration tenements at the Tanami Project) and iTech Minerals (3 exploration tenements at the
Reynolds Range Project), whilst retaining upside potential in the projects through royalties. Prodigy Gold is also considering
ways to divest or joint venture other non-core projects, including the Lake Mackay Project and the Old Pirate Gold Deposit.
Prodigy Gold and its Joint Venture partners currently hold around 24,391km2 (2023: 26,360km2) of land under tenure. The
area held under granted tenure is 10,111km2 with 14,280km2 held under application.
The 2023-2024 financial year has seen Prodigy Gold focus on updating its Mineral Resources at Hyperion, Tregony and
Buccaneer. Greenfields exploration has advanced on projects like Brokenwood, which is located around 7km south of the
Hyperion Mineral Resource as well as the Tanami North Project with the completion of the co-funded ground gravity
program.
Figure 1 - Drill Rig set up on hole at Hyperion Project – September 2023
Land access for the reporting period was affected by significant bushfires and floods leading to extended periods of road
closures. The fires occurred around the Tanami North and Twin Bonanza Projects with only limited damage reported.
During the reporting period on-ground exploration continued at the Tobruk and Monza Joint Venture (“JV”) Projects with
Newmont Corporation (“Newmont”) and on Prodigy Gold’s 100% owned Tanami North Project area. While access was
restricted post wet-season, it has been a very busy year with the Company drilling around 7,350m at the Tregony and
Hyperion Deposits, including some exploration drilling south of Hyperion, following up on identified surface sampling
targets generated at Brokenwood and Stoney Ridge. Results returned from drilling at the Tregony and Hyperion Mineral
Resource areas were promising with results seen as significant for the Company in terms of both, grade and width.
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
6
Prodigy Gold Annual Report 2024
Reverce Circulation (“RC”) drilling results from the Company’s 2023 drilling campaign at Tregony demonstrated the
opportunity for Prodigy Gold to better understand the potential for resource growth at the Tregony Deposit, with results
showing the presence of higher-grade mineralisation from the southern portion of the Deposit. This higher-grade area at
Tregony will be a key area for resource development drilling, with a separate focus to look at further potential extensions
to the Deposit in the northern area, based on the information gained from the new intercepts combined with the results
of the detailed ground gravity program that was also completed during 2023.
Furthermore, bench-scale metallurgical testwork was undertaken for the Hyperion Deposit and used to improve the
understanding of the Hyperion Mineral Resource. Results have highlighted the potential for future development of the
Hyperion Deposit, with recoveries for all material types, at three different grind scenarios, returning gold recovery levels
over 95%. In addition to these high carbon-in-leach (“CIL”) recoveries, gravity gold recoveries ranged between 22% and
41%1. The testwork also highlighted the moderate consumption of cyanide to achieve these recovery levels without the
use of lime.
The Tanami North Projects continue to highlight the importance of the overall Project to the Company, which now has a
combined Mineral Resource inventory of over 10 million tonnes at a grade of 1.4g/t Au for 471 thousand ounces of gold2.
Figure 2 - Prodigy Gold Major Project Areas – June 2024
1 ASX: 3 April 2024, 6 May 2024 & 12 June 2024
2 ASX: 29 July 2024
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
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Prodigy Gold Annual Report 2024
100% PRODIGY GOLD PROJECTS
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 airborne 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 in close proximity to these deposits.
The Tregony and Hyperion Deposits are located within the 100% Prodigy Gold owned Tanami North Project area and are
situated around the Suplejack Shear Zone (“SSZ”), which hosts several known gold mineral resources (Figure 3) such as:
•
Hyperion Deposit – located approximately 18km north of Groundrush
•
Tregony Deposit – located 11km to the east of the Suplejack Fault
•
Groundrush Deposit3 – located 42km to the south of Tregony
•
Ripcord Deposit3 – located 3km southeast of the Groundrush Deposit
•
Crusade Deposit3 – located 22km to the northeast of Tregony
Work planned at the Tanami North Project over the next 2 years includes further resource drilling at Tregony and Hyperion,
as well as greenfields exploration in and around these Deposits and at the Boco Prospect.
Figure 3 - Tanami North Project area
3 CTPJV – 50% Tanami Gold NL (“TAM”) : 50% Northern Star Resources Limited (“NST”) 1
1
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
8
Prodigy Gold Annual Report 2024
Tanami North Exploration Progress
Tanami North Ground Gravity Survey
During the reporting period, the regional ground gravity survey over a large portion of the Tanami North Project area was
completed4 and data was received. This survey is part of the second co-funded exploration program from the Round 16
Resourcing the Territory grants approved by the NT Government in May 20235. The area covered by previous surface
sampling and mapping programs was included in this ground gravity survey and information generated from this survey
will assist with future drill planning along the Suplejack Shear Zone (SSZ) structure. A total of 1,233 new gravity stations
were completed as part of this program.
This data has been reviewed by independent geophysical consultants with processed images returned to Prodigy Gold for
use in future exploration planning around the project area. The improved quality of data can be seen in Figure 4 below.
Additional processing of this survey with other historic data will continue over the coming year to assist with future
targeting for potential mapping campaigns and drill planning.
Figure 4 - Location of TGRD2301 and 2023 regional gravity survey within the Tanami North Project area with comparison of 4km spaced
regional gravity data (upper right) and new gravity image (lower right)6.
4 ASX 13 September 2023
5 ASX: 31 May 2023
6 ASX: 6 November 2023
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
9
Prodigy Gold Annual Report 2024
Chrysos PhotonAssayTM Results
Prodigy Gold received results of the Chrysos PhotonAssayTM (“PhotonAssay”) results for a select number of RC samples
from drilling completed in 2023 at the Tregony and Hyperion Deposits as well as the Brokenwood Prospect located on the
Company’s Tanami North Project.
A total of thirty-nine RC samples, all with reported grades of greater than 4g/t Au, were selected for analysis using the
PhotonAssay method, with the aim to compare these results with already reported high-grade gold results returned using
the Fire Assay technique.
Both the PhotonAssay and Fire Assay techniques report significant gold grades showing very good correlation between the
results, with results from the samples in the range of 4-20g/t Au yielding very similar results. Interestingly, the highest-
grade sample from the Tregony RC drilling reported 92.0g/t Au7 from Fire Assay and the PhotonAssay reported a
significantly higher grade at 129.8g/t Au and the revised Fire Assay results averaged 132.5g/t Au8. Such variability in very
high-grade gold samples is not uncommon, however the close results in the re-analysed Fire Assay compared to the
PhotonAssay supports the accuracy of the new analytical technique and gives confidence in the accuracy of the high-grade
results originally received and their repeatability.
This exercise provided Prodigy Gold with the confidence that the new PhotonAssay technique is an appropriate alternate
analytical technique, particularly for higher-grade zones. Research, using detailed statistical tests, shows that the analysis
on the 3mm product size used by PhotonAssay is similar to the traditional analysis by Fire Assay using a 50g pulverised (P80
80µm) sample, suggesting the two techniques can be used interchangeably during a drilling program9. Another significant
advantage of the PhotonAssay method is that the process is non-destructive, meaning that the sample remains intact and
can be used for further analysis if required.
Tregony Deposit
The Tregony Project is located on EL31331 in the Tanami North Project area and falls within the same regional structural
trend that includes the Groundrush, Hyperion, and Crusade Deposits. The Tregony Deposit consists of 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 Au10.
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 that still require additional attention.
The Maiden Mineral Resource highlighted areas requiring further drilling to advance the Project, which was partially
completed over the 2023 field season leading to a further Mineral Resource update reported during July 2024. The Mineral
Resource was reported at a 0.6g/t Au lower cut-off11:
Indicated
0.46Mt @ 1.6g/t Au for 23koz
Inferred
1.10Mt @ 1.2g/t Au for 41koz
Total Resource
1.56Mt @ 1.3g/t Au for 64koz
This represents a 36% increase in tonnes, 4% decrease in grade and 30% increase in ounces compared to the previously
released Tregony Maiden Mineral Resource12.
Tregony RC Drilling Program
The Tregony drilling campaign undertaken during the reporting period covered an area in and around the Maiden Inferred
7 ASX: 19 September 2023
8 ASX: 21 March 2024
9 Tremblay, Wheeler, & Oteri, 2019
10 ASX: 15 November 2021
11 ASX: 3 July 2024
12 ASX: 15 February 2023
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
10
Prodigy Gold Annual Report 2024
Mineral Resource. Results were received from the 37 hole, 4,840m RC program, which was designed to improve confidence
and potentially increase the metal inventory of the Maiden Tregony Mineral Resource that was released in February 2023.
The RC drilling results highlighted the potential for extension of the previous Mineral Resource, as well as areas where
extension of the Mineral Resource may be limited, with results used in the updated Mineral Resource reported in July 2024.
Hole TGRC23016 was drilled deeper below the Maiden Mineral Resource and has highlighted the potential for the
mineralisation to continue down plunge to the north of the currently defined mineralisation.
Results for the RC holes drilled at Tregony yielded highlight intercepts of:
•
3m @ 10.7g/t Au from 84m in hole TGRC23004
o
including 1m @ 30.2g/t Au from 84m
•
6m @ 15.7g/t Au from 91m in hole TGRC23004
o
including 1m @ 92.0g/t Au from 92m
•
6m @ 12.0g/t Au from 43m in hole TGRC23008
o
including 1m @ 69.1g/t Au from 43m
•
4m @ 14.0g/t Au from 65m in hole TGRC23008
o
including 2m @ 25.8g/t Au from 65m
•
4m @ 2.1g/t Au from 44m in hole TGRC23034
•
2m @ 2.0g/t Au from 58m in hole TGRC23020
•
8m @ 1.6g/t Au from 99m in hole TGRC23038 including:
o
1m @ 3.1g/t Au from 99m &
o
1m @ 4.0g/t Au from 101m
•
1m @ 30.9g/t Au from 60m in hole TGRC23035
Figure 5 - Cross section through 7860200mN showing results and stacked veins of Tregony mineralisation with previously released
holes13
13 ASX 15 November 2021 & 19 September 2023
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
11
Prodigy Gold Annual Report 2024
Figure 6 - Location of Tregony 2023 RC drill holes
Figure 7 - Long Section looking west showing location of updated Mineral Resource outline with model holes
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
12
Prodigy Gold Annual Report 2024
Tregony Diamond Drilling Program
The pre-collar for diamond hole TGRD2301 was completed to a depth of 120m during the RC program. Prodigy Gold drilled
a single deep diamond hole, designed to test/extend mineralisation down dip, while also providing structural and
stratigraphic context to the mineralisation at Tregony (Figure 3). This diamond hole was co-funded by the Round 16
Resourcing the Territory grants approved by the NT Government.
Results for the co-funded diamond drill hole at Tregony (TGRD2301) reported significant intercepts including14:
•
1.00m @ 2.39g/t Au from 165.00m
•
3.40m @ 4.29g/t Au from 196.60m
o
including 0.40m @ 32.90g/t Au from 196.60m
•
1.57m @ 0.84g/t Au from 237.80m
Tregony Downhole Geophysics
Prodigy Gold completed a downhole geophysical survey14 at Tregony, which demonstrated the ability to effectively
characterise and measure directionality of mineralised structures in both recently completed RC and diamond drilling
(Figure 6). Downhole geophysical data assists in providing a better understanding of the Tregony Deposit and the controls
to mineralisation. These findings may also lead to the identification of new exploration prospects in areas adjacent to the
existing Mineral Resource.
Figure 8 - Striplog section of TGRD2301 highlighting downhole rock property relationships to mineralisation;
1m @ 2.39g/t Au from 165m.
Boco North Prospect
Boco North Drilling
Results of the nine hole, 1,647m Boco North RC drilling program were released during the reporting period15 with no
significant results returned for the program. This drilling was co-funded by the NT Government through the Round 15
Resourcing the Territory grant, with drilling and reporting completed in time to ensure the successful completion of the
program and the co-funding to be made available.
14 ASX: 6 December 2023
15 ASX: 6 July 2023
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
13
Prodigy Gold Annual Report 2024
Hyperion Deposit
The Hyperion Deposit is located on EL9250 within the Tanami North Project area. An updated Mineral Resouce was
reported for the Hyperion Deposit during July 2024, representing a 96% increase in tonnes, 33% decrease in grade and 30%
increase in ounces when compared to the previously released Hyperion Mineral Resource.
The Hyperion Mineral Resource was reported at a 0.6g/t Au lower cut-off grade16:
Indicated
2.29Mt @ 1.7g/t Au for 122koz
Inferred
6.35Mt @ 1.4g/t Au for 285koz
Total Resource
8.64Mt @ 1.5g/t Au for 407koz
Mineralisation at the Hyperion Deposit is associated with a structural break between regional north-south trending thrust
faults. At the Hyperion lodes, this is a shear zone hosted system 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 30m thick, with an average true width of approximately 10m.
It is planned to complete further RC drilling at the Hyperion Project during the FY24 period to add confidence to the current
Mineral Resource estimate, as well as to provide additional material for metallurgical testwork on the Hyperion and Tethys
domains of the Deposit. This will be critical information for the potential future development of the Project. Some drilling
will also be used to test areas outside the current Mineral Resource.
Hyperion Mapping and Sampling
Prodigy Gold undertook a targeted rock-chip sampling campaign, which returned anomalous values ≥0.09g/t Au from 8 of
19 samples collected. It identified a new structurally controlled zone of mineralisation at the Brokenwood Prospect, which
extends over approximately 130m in strike length. Results received from the program included several encouraging gold
results, including17:
•
HYPSS2307 – 15.27g/t Au – Stoney Ridge
•
HYPSS2310 – 6.04g/t Au – Brokenwood
•
HYPSS2318 – 2.24g/t Au – Brokenwood
Hyperion RC Drilling Program
During the reporting period Prodigy Gold completed 24 RC holes, totaling 2,506m of drilling at Hyperion in a two-part
program. The first part was planned to improve confidence and potentially increase the metal inventory of the Hyperion
Mineral Resource, which was subsequently updated in July 2024. The second part of the program was designed to follow
up on successful surface sampling results, as outlined above, with focus on the Brokenwood (5 holes) and Stoney Ridge (4
holes) Prospects.
Results for this drilling campaign18 were received and reported, delivering some exciting intercepts, in particular the 40m
intercept grading 6.5g/t Au at Seuss in drill hole HYRC2305A19.
All intercepts have been calculated at a lower cut-off grade of 0.5g/t Au using a minimum width of 2m and can include a
maximum of 2m of contiguous lower grade material. No high-grade cuts were applied in the calculation of the reported
intercepts. For grade interval calculations, the intercepts show both down hole lengths and estimated true widths that
were calculated using cross-section analysis in Micromine software. Estimated true width (“ETW”) have been included in
the reported results.
16 ASX: 29 July 2024
17 ASX 13 September 2023
18 ASX 12 October 2023
19 ASX: 29 January 2024
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
14
Prodigy Gold Annual Report 2024
Significant intercepts include the following highlights:
•
Hyperion Deposit
o
18m @ 1.3g/t Au from 39m in hole HYRC2305A – ETW 11.7m
o
40m @ 6.5g/t Au from 60m in hole HYRC2305A (re-stated) – ETW 26.0m
o
4m @ 3.1g/t Au from 62m in hole HYP23_068 – ETW 3.2m
•
Brokenwood Prospect
o
6m @ 8.1g/t Au from 98m in hole HYRC23010 – ETW 2.0m
o
8m @ 1.0g/t Au from 50m in hole HYRC23006 – ETW 2.5m
Figure 9 - Collar plan for Hyperion drill program
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
15
Prodigy Gold Annual Report 2024
Hyperion Metallurgical Testwork Program
Selected Hyperion RC samples were submitted to Independent Metallurgical Operations Pty Ltd (IMO) in Perth, an
independent metallurgical laboratory, to conduct sample characterisation, gravity and cyanide leach testwork on fresh,
transitional and oxide material composites of the Hyperion Deposit. The purpose of this initial testwork was to assess the
Hyperion Deposit’s amenability to gravity and cyanide leaching through a conventional CIL type circuit across the different
material composites
Results of the campaign of bench-scale metallurgical testwork20 confirmed that the Hyperion samples demonstrate the
presence of gravity-recoverable gold. The gold appears to be free-milling and suitable for conventional CIL gold processing.
The gold head-grades were consistently higher than the interval-assayed grades, ranging from 2.74g/t Au to 15.91g/t Au,
indicating the probable presence of coarse gold in the provided sample material.
The testwork completed included:
•
Composite selection and characterisation:
o
Interval selection to generate three (3) composites: oxide, transitional and fresh;
o
Comprehensive head assay analysis of all 3 composites;
•
Gravity testwork
•
Cyanide leach optimisation testwork:
o
Grind optimisation testwork; and
o
Reagent optimisation testwork.
Table 1: Gold leaching grind optimisation testwork results
The testwork yielded high gold recovery levels through gravity and cyanide leach testing, with overall gold recovery rates
ranging from 95.1 to 97.9%, and also highlighted very favourable metallurgy with rapid leach times from a coarse grind and
low reagent consumption. Prodigy Gold is planning to take additional samples from selected mineralised zones at Hyperion
during the 2024 drilling campaign to allow additional testwork on the Deposit.
20 ASX: 12 June 2024 & 6 May 2024 & 3 April 2024
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
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Prodigy Gold Annual Report 2024
Twin Bonanza Project
Buccaneer Mineral Resource Update
In August 2023, an updated Mineral Resource was completed on the Buccaneer Deposit. While not a large amount of new
data was added to the Project since the release of the previous model in 2017, this new model has used updated
mineralisation domaining, which is supported by an improved geological understanding of the Deposit. The update also
incorporated results of some new diamond holes drilled in 2021. The final Mineral Resource was reported within an
optimised pit shell, which resulted in an overall reduction in the size of the Deposit compared to the previously reported
estimate.
The updated Mineral Resource for Buccaneer was reported at a 0.7g/t Au lower cut-off and is in the indicated and inferred
categories21:
Indicated
3.9Mt @ 1.2g/t Au for 157koz
Inferred
5.3Mt @ 1.2g/t Au for 201koz
Total Resource
9.2Mt @ 1.2g/t Au for 359koz
The updated Mineral Resource will be used with the previously announced metallurgical testwork results and the
geotechnical studies as part of a review of the Project in relation to the Old Pirate Deposit, which is located approximately
2km south-southeast of Buccaneer (Figure 10).
Figure 10 - Location of the Buccaneer Deposit within the Twin Bonanza Project area
21 ASX: 11 August 2023
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
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Prodigy Gold Annual Report 2024
Future Work planned for the 2024 Field Season:
Exploration plans
During the reporting period Prodigy Gold released an outline of the intended exploration programs for the 2024 field
season22. The Company’s main exploration focus remains the Tanami North Project in the Northern Territory. Updates of
the Tregony and Hyperion Mineral Resource were completed during July 2024 allowing planning to continue on advancing
these Deposits over the coming field season.
The Company has an exciting work program planned for the Tanami North Project area over the 2024 field season, which
is expected to provide results that potentially could add to the current Mineral Resource estimates at Hyperion and
Tregony. Proposed upcoming work programs include:
•
Additional drilling within the Hyperion and Tregony Deposits, aiming to improve confidence in, and potentially
expand the current recently updated Mineral Resources;
•
Drilling at the Brokenwood (EL9250) and Boco Prospects (EL31331) based on positive results returned from recent
and historic drilling activities at these Prospects;
•
Further metallurgical testwork on the Hyperion Mineral Resource with drilling aimed at providing additional
samples from the Hyperion lodes to support the metallurgical results returned from the holes into the Seuss lodes;
•
Initiation of on-ground exploration, involving geological mapping at Mark’s Rise subject to the completion of a
successful on-ground clearance; and
•
Detailed review of the Old Pirate Mineral Resource as part of a larger review for the Twin Bonanza Project area.
Community Engagement
In February 2024, Prodigy Gold attended a meeting at the Central Land Council (“CLC”) office in Alice Springs for an “on-
country” meeting with the families of the Traditional Owners that represent the Tanami North Project area. The Company
reported on works completed, up-coming plans, as well as answering any questions Traditional Owners had. Discussions
also included putting in place processes for additional meetings required for the granting of new Exploration Tenements.
Figure 11 - Meeting in CLC offices with Traditional Owners – February 2024
22 ASX: 12 February 2024
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
18
Prodigy Gold Annual Report 2024
Figure 12: Group Photo with Traditional Owners and CLC staff at the February 2024 Meeting in Alice Springs
Prodigy staff was invited to an initial meeting with a group of Traditional Owners and representatives from the CLC to
discuss the granting of three exploration licence applications - EL26627, EL32056 and EL33487 (Figure 13). The agreement
negotiation process can now commence, which is required prior to the granting of the tenements.
Figure 13 - On Country meeting July 2024
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
19
Prodigy Gold Annual Report 2024
JOINT VENTURE PROJECTS
Joint Venture Portfolio Overview
Project
JV Partner
JV Terms
Current Status
Lake Mackay (Cu-Au,
Ni-Co and Orogenic
Au potential)
IGO (IGO: ASX)
Base Metal JV
IGO 70% / PRX 30%
Management with Prodigy Gold and
IGO diluting. No on-ground exploration
undertaken.
Gold JV
PRX 70% / IGO 30%
Management with Prodigy Gold and
IGO diluting. No on-ground exploration
undertaken.
IGO (IGO: ASX)
Castile
Resources
(CST: ASX)
Gold JV
PRX 60% / IGO 26%/
Castile 14%
Management with Prodigy Gold and
IGO and Castile diluting. No on-ground
exploration undertaken.
Monza Gold Project
Newmont
Exploration Pty Ltd,
an indirect, wholly
owned subsidiary of
Newmont
Corporation (NEM.
NYSE)
Newmont has the
option
to
spend
$6M to earn up to
51% / additional
29% on a decision to
mine
Agreement signed in November 2021.
Surface geochemical survey, Horizontal
to Vertical component Spectral Ratio
(“HVSR”) passive seismic survey and
detailed ground gravity survey were
undertaken
Tobruk Gold Project
Newmont has the
option to complete
$12M
in-ground
earn-in to 70% /
$2.5M
cash
+
financing option for
an additional 5%
interest
Agreement signed in May 2019.
Surface geochemical survey, Horizontal
to Vertical component Spectral Ratio
(“HVSR”) passive seismic survey, depth
to
feature
modelling,
rock
chip
sampling and infill surface geochemical
surveying were undertaken.
Barrow Creek Project
Australasian Metals
Limited (ASX: A8G)
Cash consideration
of
$150,000
for
90%. PRX free
carried
until
completion of a PFS
No
on-ground
exploration
was
undertaken.
Tanami
exploration
ground
Stockton
Mining
Limited
(Public
company)
Cash consideration
of $400,000 for 23
exploration
tenements / Share
consideration / NSR
0.5% for gold and
silver over all, other
than one tenement
New
agreement
signed
on
30
November 2023 returning the Old
Pirate Mineral Lease to Prodigy Gold.
Completion
is
subject
to
the
satisfaction
of
various
conditions
precedent some of which remain
outstanding but are progressing.
Reynold
Range
Project
iTech Energy Pty Ltd
/ subsidiary of Itech
Minerals Ltd (ASX:
ITM)
Cash consideration
of $100,000 and 1%
royalty
over
all
metallic
product
recovered
other
than graphite
Agreement signed 23 February 2024
and completed during August 2024.
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
20
Prodigy Gold Annual Report 2024
Lake Mackay JV Project
Project Background
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
previously demonstrated the emerging potential of the province to host multiple styles of precious and base metal
mineralisation.
IGO Limited (“IGO”) commenced activity on the Lake Mackay JV area in 2013. Systematic exploration led to the discovery
of gold and base metal mineralisation at Bumblebee in 2015 and Grapple in 2016. Diamond drilling of Grapple in 2017
defined gold and copper mineralisation over 800m of plunge including a result of 11m @ 7.9g/t Au, 20.7g/t Ag, 0.8% Cu,
0.5% Pb, 1.1% Zn & 0.1% Co in 17GRDD00123. Subsequent drilling discovered high-grade base metal mineralisation at the
Phreaker Prospect, and bedrock gold mineralisation in RC drilling, including at the Arcee Prospect - 12m @ 3.5g/t Au24, and
Goldbug Prospect - 16m @ 1.15g/t Au and 4m @ 1.54g/t Au25.
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 Ventures (“JV”) agreements covering the
Lake Mackay Project26:
Lake Mackay Gold JV Agreement – covering most of the Gold Tenements (Prodigy Gold 70% / IGO 30%)
•
currently covers tenements EL25146, EL31234 and ELA31913 (“Gold Tenements”)
Castile JV Agreement – covering Gold Tenement EL31794
•
Prodigy Gold holds a 60% interest, IGO a 26% interest and Castile a 14% interest in the tenement.
Lake Mackay JV Agreement – covering 14 Base Metal Tenements (IGO 70% / Prodigy Gold 30%)
IGO is currently diluting rather than contributing to exploration programs on all three projects, which changes the
ownership percentages noted above immaterially.
Lake Mackay Exploration Progress
No on-ground exploration works were completed on the Lake Mackay Project area during the reporting period.
Lake Mackay JV’s – Rehabilitation Status
Rehabilitation work was completed at Lake Mackay with the exception of two holes, which were left open as a future water
source. Rehabilition reporting was completed during the reporting period with an assessment of the Department of
Environment, Parks and Water Security (DEPAWS) pending.
Future Work
Any future works on the JV Projects will require a new Mine Management Plan to be submitted and approved by the NT
DEPAWS. Clearances from the Traditional Owners through the Central Land Council will also be required.
It is unlikely that Prodigy Gold will undertake any on-ground exploration on the Project during the 2024 exploration field
season due to it’s focus on the Tanami North Project area.
IGO are running a dataroom to establish if there are other parties interested in a joint venture or acquisition of the Project.
23 ASX: 18 September 2017
24 ASX: 16 October 2019
25 ASX: 18 January 2021
26 ASX: 18 May 2022
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
21
Prodigy Gold Annual Report 2024
Tobruk and Monza JV’s (Newmont)
Prodigy Gold has two unincorpated JV’s with Newmont Exploration Pty Ltd, an indirect, wholly owned subsidiary of
Newmont Corporation (“Newmont”), over the Tanami Region in the Northern Territory (Figure 14), namely the Tobruk and
Monza JV’s.
Figure 14 - Location of Newmont JV Projects
Tobruk
Tobruk Agreement
In May 2019 Prodigy Gold signed a A$14.5M Exploration Farm-in and Joint Venture Agreement (“Agreement”) with
Newmont27. Under the Agreement, Newmont can earn up to a 70% interest in the Tobruk Project over two phases. The
first phase is to earn a 51% interest by spending $6M on exploration and the second phase by spending an additional $6M
or defining a 500Koz Mineral Resource. The Agreement includes a total of A$2.5M cash payments to Prodigy Gold (with
A$1M being contingent on Newmont Exploration electing to proceed to phase 2 of the earn-in). Newmont met its minimum
expenditure commitment of $2.5M within the specified four-year timeframe during the reporting period.
The Agreement currently covers six of the Company’s granted tenements and three tenement applications, to the west of
Newmont’s Tanami Operations, which includes the Callie underground mine and Granites processing facility.
Tobruk Project Background
The Tobruk Project is interpreted to have occurrences of the similar prospective lithologies to those that host Newmont’s
Callie Gold Deposit and several other significant deposits including Groundrush and Oberon. The Tobruk Project’s potential
is further enhanced by having analogous structural setting to known Tanami deposits including tightly folded stratigraphy,
Trans-Tanami parallel faults and drill defined anomalous geochemistry positioned on the margins of magnetic features.
27 ASX: 16 May 2019
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
22
Prodigy Gold Annual Report 2024
Tobruk Exploration Progress
•
Results from surface sampling completed in the previous financial year observed low-level anomalism at Tobruk.
•
Results from the surface geochemical survey, which employed Newmont’s exclusive Deep Sensing Geochemistry
(DSG) technique, conducted in the third quarter of 2023 were received in the first quarter of 2024. A number of
low-level anomalous responses were observed in the Project area.
•
Results for the depth modelling carried out by consultant Resource Potentials for the horizontal to vertical spectral
ratio (HVSR) passive seismic survey completed in the September 2023 quarter were received during the March
2024 quarter. The passive seismic survey data is being used to model the depth to transported cover and bedrock
across the Project and remains in progress at the end of the June 2024. Initial indications are that the modelled
cover depth when compared to the logged cover thickness from historical drilling appear to correlate well.
•
Results were received for the detailed ground gravity program conducted by Daishsat Geodetic Surveyors during
the September 2023 quarter over Newmont’s 100% tenure with a small portion of the survey extending onto the
Tobruk Project area. A total of 446 gravity readings were collected over the Tobruk Project areas at a spacing of
50m x 50m, with the Bouguer Anomaly and residual gravity maps being produced from this gravity data.
•
Four rock chip samples were collected on EL29832 during Q3 2023, and results did not return any significant
values.
•
Newmont worked with the Central Land Council and Department regulators on exploration work programs to
obtain and confirm approvals for planned works over the 2024 field season.
Monza
Monza Agreement
During November 202128, Newmont and Prodigy Gold signed a binding Exploration and Farm-in and Joint Venture
Agreement (“Agreement”) to advance exploration at the Monza Project located in the Northern Territory (the “Monza
Project”).
Under the Agreement, Newmont can earn an initial 51% interest in the Monza Project by either incurring expenditure of
A$6,000,000 or defining a JORC 2012 Inferred Mineral Resource. If the JV elects to proceed with the development of a
mining operation, Newmont will automatically earn an additional 29% interest in the Monza Project. Following Newmont
earning a 80% interest, Prodigy Gold may elect to bring Newmont’s interest in the JV to 85% with Newmont funding Prodigy
Gold’s share of future JV costs (including feasibility study costs) until the commencement of commercial production, co-
fund all future exploration and development or dilute its interest in the Monza Project.
The Agreement now covers eight of the Company’s granted tenements and five tenement applications, within close vicinity
of Newmont’s recently updated Oberon Mineral Resource Resource, which “as of February 2024, contains a measured,
indicated and inferred resource totalling 2.7 Moz of gold”29.
During the reporting period, Newmont exercised its contractual right to relinquish its earn-in interest in five exploration
licences that form part of the Project. These exploration licenses have been relinquished by Prodigy Gold.
Monza Project Background
The Monza Project includes over 3,000km² of exploration licences and applications in the Tanami Region of the Northern
Territory along strike of and containing structures parallel to, the Trans-Tanami Fault trend. Previous exploration has
primarily included soil sampling and patchy reconnaissance drilling with 10 of the tenements in the Monza Project having
no previous drilling in the last 20 years.
Monza Exploration Progress
•
Newmont completed its surface geochemical and passive seismic surveys at the Monza Project with 1,238 survey
points collected during the reporting period.
28 ASX: 30 November 2021
29 Crawford, Thedaud, Masurel, & Maidment, 2024
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
23
Prodigy Gold Annual Report 2024
•
Results for the surface geochemical survey, utilising Newmont’s DSG technique completed during the June and
September 2023 quarters, were received during the March 2024 quarter. An elevated response was observed in
the central project area and a number of anomalous responses were also observed across the Project.
•
Newmont undertook a horizontal to vertical spectral ratio (HVSR) passive seismic survey completed during the
June and September 2023 quarters are pending. Results for the depth to feature modelling on the HVSR data
carried out by consultant Resource Potentials were received and the interpretation of results is in progress.
•
Four rock chip samples were collected during Q3 2023 across the Project. The rock chip sample results did not
return any significant values.
•
At the end of June 2024 a HVSR passive seismic survey is in progress.
•
The surface geochemical survey at the Dune Prospect commenced in June 2024 and was in progress at the end of
the reporting period. A total of 221 survey points from a proposed 756 sample points were collected at various
spacing, ranging from 500m x 500m to 50m x 400m at selected locations.
Future Work
Future works plan for the Monza and Tobruk JV Projects include:
•
Additional surface geochemical sampling and HSVR passive seismic surveying of specific targets.
•
A ground gravity and airborne magnetic survey are proposed for the September 2024 quarter. These surveys are
primarily on Newmont’s 100% tenure with a small portion of the surveys extending onto the Tobruk Project area.
•
Newmont continues to work with the Central Land Council and Department regulators on exploration work
programs to obtain and confirm approvals for planned exploration programs for the 2024 field season.
Barrow Creek JV (Australasian Metals) - 10% Prodigy Gold
Prodigy Gold finalised the sale of 90% of the Barrow Creek Project to Australasian Metals (A8G)30 in January 2022.
No work was completed on the Barrow Creek Project during the reporting period as Australasia Metals were focused on
drilling their Mt Peake Lithium Project, located to the west of the Barrow Creek JV land position.
Reynolds Range Divestment (iTech Energy)
In February 2024, Prodigy Gold announced the execution of two binding Tenement Sale and Purchase Agreements (SPA)
with iTech Energy Pty Ltd (“iTech”), iTech Energy Pty Ltd is a wholly owned subsidiary of iTech Minerals Ltd (ASX: ITM), to
acquire 100% of Prodigy Gold’s interest in three tenements in the Reynolds Range area31. This sale was completed during
August 2024 with the Company receiving a total consideration of $100,000 for the SPA’s. Furthermore, Prodigy Gold will
receive a 1% royalty on any mineral or metallic product revovered from a mining area, excluding graphite.
Old Pirate Project and Tanami Exploration Project
During the reporting period, Prodigy Gold re-negotiated the previously announced32 agreement with Stockton Mining Ltd
(“Stockton”) for the divestment of the Company’s Old Pirate Gold Project and 23 surrounding exploration tenements (“Old
Pirate Agreement”). It had become apparent to the Company and Stockton that various conditions precedent (including
those outside of the control of the parties) relating to the Old Pirate Agreement could not be satisfied by the specified “End
Date” of 30 November 2023. The Company and Stockton mutually agreed to terminate the Old Pirate Agreement and
entered into a new agreement (“New Agreement”)33 limited to the 23 exploration tenements returning the Old Pirate
mineral lease (ML33459) to Prodigy Gold.
30 ASX: 12 January 2022
31 ASX: 23 February 2024
32 ASX: 29 April 2022
33 ASX: 30 November 2023
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
24
Prodigy Gold Annual Report 2024
Material terms of the New Agreement include:
•
Completion end date of 30 October 2024
•
Cash consideration of $400,000
•
Consideration shares equal to 5% of the issued capital
•
NSR royalty over all exploration tenements (excluding) for gold and silver production at a rate of 0.5%
Completion of the New Agreement remains subject to government and semi-government agencies approvals and various
other CP’s the responsibility of Stockton.
Figure 15 - Stockton Sales tenements including Prodigy Gold Twin Bonanza Project tenements
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
25
Prodigy Gold Annual Report 2024
MINERAL RESOURCES
Prodigy Gold’s Mineral Resources for 19 August 2024 are summarised below. See the 2024 Annual Mineral Resource
Statement34 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.
Consolidated Resource Summary
Table 2 Prodigy Gold Mineral Resource Summary as at 19 August 2024.
Consolidated Resource
Indicated
Inferred
Total
Project
Date
Cut-off
Tonnes
Grade
Metal
Tonnes
Grade
Metal
Tonnes
Grade
Metal
(g/t Au)
(Mt)
(g/t Au)
(Koz)
(Mt)
(g/t Au)
(Koz)
(Mt)
(g/t Au)
(Koz)
Tanami North Project
Tregony
Jul-24
0.6
0.5
1.6
23
1.1
1.2
41
1.6
1.3
64
Hyperion
Jul-24
0.6
2.3
1.7
122
6.3
1.4
285
8.6
1.5
407
Sub-Total
2.8
1.6
145
7.4
1.4
326
10.2
1.4
471
Twin Bonanza Project
Buccaneer
Aug-23
0.7
3.9
1.2
157
5.3
1.2
201
9.2
1.2
359
Old Pirate
Aug-16
1.0
0.04
4.7
6
0.8
4.5
109
0.8
4.5
115
Sub-Total
4.0
1.3
163
6.0
1.6
310
10.0
1.5
474
Total Resource
6.7
1.4
308
13.5
1.5
636
20.2
1.5
945
Notes for Mineral Resource:
•
All Mineral Resources are completed in accordance with the JORC Code 2012 edition.
•
All figures are rounded to reflect appropriate levels of confidence, differences may occur due to this rounding.
•
Tonnes are reported as dry metric tonnes with all projects owned 100% by Prodigy Gold and no Mineral Reserves reported for any project.
•
All Resources are reported at various cut-off grades depending on their location, cost assumptions and how they were reported at the time of
reporting.
o
Hyperion Mineral Resources are determined by cutting all Mineral Resources to 180m below surface. The 180m depth was used to
define the Mineral Resource due to being the approximate depth of previously optimised pits.
o
Tregony Mineral Resources are determined by cutting all Mineral Resources to 100m below surface. The 100m depth was used to
define the Mineral Resource due to being the approximate depth of previously optimised pits.
o
Buccaneer Mineral Resources are determined using an optimised pit shell with these parameters:
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 (Consesnsus Economics Inc, 2023).
Mining, processing and G&A costs of around $56/ore tonne mined. Pit wall angles at Buccaneer 45o in oxide and 39o (from
vertical) in fresh and transitional are based on geotechnical work completed on the 2021 diamond drilling.
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 202335
Tregony - 95% for oxide and 90% for transitional and fresh based on historic metallurgical testwork performed by Metcom
Laboratories for Acacia Resources (Rayer, 1997)
Hyperion - 95% for oxide transitional and fresh based on new metallurgical testwork performed at Hyperion by IMO Pty
Ltd and reported in 202436.
34 ASX: 19 August 2024
35 ASX: 10 March 2023
36 ASX: 12 June 2024
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
26
Prodigy Gold Annual Report 2024
Cut-off grade consideration
For Hyperion and Tregony the reporting cut-off parameters were selected based on calculated economic cut-off grades for
oxide, transitional and fresh – an overall cut-off grade of 0.6g/t Au has been selected as a close proximity to those calculated
(0.58g/t Au for Hyperion and between 0.58g/t Au and 0.61g/t Au for Tregony). The lower cut-off grade is based on a gold
price of AUD$3,180/oz (or $101.25/gm), which represents the 3-year forecast of gold at US$2,258/oz and exchange rate
of $0.71 – (Consesnsus Economics Inc, 2024). Total mining and processing costs of $56/ore tonne was used (consistent
with the latest Prodigy Gold Annual Mineral Resource Statement)37. The cut-off parameter used for the Buccaneer and Old
Pirate Deposits remains consistent with what was used in the 2023 Mineral Resource Statement at 0.7g/t Au and 1.0g/t Au
respectively.
Prodigy Gold believes the use cut-off grades of 1.0g/t Au for Old Pirate, 0.7g/t Au for the Buccaneer and 0.6g/t Au for the
Tregony and Hyperion Deposits as reported are appropriate and could potentially be extracted through selective open pit
mining and processing through a conventional carbon in leach (“CIL”) plant. The cut-off grades reflect the current spot gold
price consistent with industry reporting practices.
Tregony Mineral Resource
Table 3 – Tregony Mineral Resource Estimate
Tregony Gold Deposit - Mineral Resource Estimate July -2024
Material Type
Indicated
Inferred
Total
Tonnes
Grade
Metal
Tonnes
Grade
Metal
Tonnes
Grade
Metal
(Mt)
(g/t Au)
(Koz)
(Mt)
(g/t Au)
(Koz)
(Mt)
(g/t Au)
(Koz)
Oxidised
0.12
1.5
6
0.59
1.2
22
0.70
1.2
28
Transitional
0.14
1.5
7
0.32
1.2
12
0.46
1.3
18
Fresh
0.21
1.6
11
0.19
1.1
7
0.40
1.4
18
Total
0.46
1.6
23
1.10
1.2
41
1.56
1.3
64
Note: Reported above 0.6g/t Au cut-off. Totals may vary due to rounding. The above Mineral Resource Estimate was first announced in July 2024 (ASX:3 July
202438)
Hyperion Mineral Resource
Table 4 – Hyperion Mineral Resource Estimate
Tregony Gold Deposit - Mineral Resource Estimate July -2024
Material Type
Indicated
Inferred
Total
Tonnes
Grade
Metal
Tonnes
Grade
Metal
Tonnes
Grade
Metal
(Mt)
(g/t Au)
(Koz)
(Mt)
(g/t Au)
(Koz)
(Mt)
(g/t Au)
(Koz)
Oxidised
0.08
1.6
4
0.43
1.3
18
0.51
1.3
22
Transitional
0.72
1.7
39
0.90
1.3
39
1.63
1.5
78
Fresh
1.49
1.6
79
5.01
1.4
229
6.50
1.5
307
Total
2.29
1.7
122
6.35
1.4
285
8.64
1.5
407
Note: Reported above 0.6g/t Au cut-off and constrained to 180m below surface. Resources may not sum to equal totals due to rounding. The Mineral
Resource estimate was reported in July 2024 (ASX: 29 July 202439).
37 ASX: 15 August 2023
38 ASX: 3 July 2024
39 ASX: 29 July 2024
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
27
Prodigy Gold Annual Report 2024
Buccaneer Mineral Resource
Table 5 – Buccaneer Mineral Resource Estimate
Buccaneer Gold Deposit - Mineral Resource Estimate August-2023
Material Type
Indicated
Inferred
Total
Tonnes
Grade
Metal
Tonnes
Grade
Metal
Tonnes
Grade
Metal
(Mt)
(g/t Au)
(Koz)
(Mt)
(g/t Au)
(Koz)
(Mt)
(g/t Au)
(Koz)
Oxidised
0.28
1.4
12
0.46
1.3
20
0.74
1.3
32
Transitional
1.72
1.2
66
1.30
1.1
45
3.03
1.1
111
Fresh
1.93
1.3
79
3.50
1.2
136
5.43
1.2
216
Total
3.94
1.2
157
5.26
1.2
201
9.20
1.2
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 202340)
Old Pirate Mineral Resource
Table 6 – Old Pirate Mineral Resource Estimate
Old Pirate Gold Deposit - Mineral Resource Estimate August -2016
Domain
Indicated
Inferred
Total
Tonnes
Grade
Metal
Tonnes
Grade
Metal
Tonnes
Grade
Metal
(Kt)
(g/t Au)
(Koz)
(Kt)
(g/t Au)
(Koz)
(Kt)
(g/t Au)
(Koz)
Western Limb
12
7.6
3
305
5.3
52
317
5.4
55
Central
23
3.0
2
436
3.8
54
459
3.8
56
East
2
7.4
1
10
5.9
2
12
6.2
2
Golden Hind
4
3.5
1
6
4.5
1
10
4.1
1
Total
42
4.7
6
756
4.5
109
798
4.5
115
Note: Reported above 1g/t Au cut-off grade. Totals may vary due to rounding. The above Mineral Resource Estimate was first reported in 201641
40 ASX: 11 August 2023
41 ASX: 19 August 2016
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
28
Prodigy Gold Annual Report 2024
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 (FAusIMM –
Membership number 220787) and Member of the Australian Institute of Geoscientists (MAIG – Membership number 3655) and has sufficient
experience relevant to the style of mineralisation and type of deposits 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 29 July
2024, 3 July 2024, 11 August 2023 and 19 August 2016, and the assumptions and technical parameters underpinning the estimates in the 29 July
2024, 3 July 2024, 11 August 2023 and 19 August 2016 releases continue to apply and have not materially changed.
The information in this report that relates to Mineral Resources for Hyperion was previously released to the ASX on the 29 July 2024 – Updated
Mineral Resource for Hyperion Gold Deposit. This document can be found at www.asx.com.au (Stock Code: PRX) and at www.prodigygold.com.au.
The 29 July 2024 release fairly represents data, geological modelling, grade estimation and Mineral Resource estimates completed by Mr. Mark
Edwards who is a Fellow of the Australasian Institute of Mining and Metallurgy and Member of the Australian Institute of Geoscientists. At the time
of the 29 July 2024 release Mr. Edwards was a full-time employee of Prodigy Gold. Mr. Edwards has previously provided written consent for the 29
July 2024 release.
The information in this report that relates to Mineral Resources for Tregony was previously released to the ASX on the 3 July 2024 – Updated
Mineral Resource for Tregony Gold Deposit. This documents can be found at www.asx.com.au (Stock Code: PRX) and at www.prodigygold.com.au.
The 3 July 2024 release fairly represents data, geological modelling, grade estimation and Mineral Resource estimates completed by Mr. Mark
Edwards who is a Fellow of the Australasian Institute of Mining and Metallurgy and Member of the Australian Institute of Geoscientists. At the time
of the 3 July 2024 release Mr. Edwards was a full-time employee of Prodigy Gold. Mr. Edwards has previously provided written consent for the 3
July 2024 release.
The information in this report that relates to the Mineral Resources 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 and Member of the Australian Institute of Geoscientists. Mr.
Edwards is the Mineral Resource Competent Person for this estimate. At this time of publication Mr. Edwards was a full-time employee of Prodigy
Gold and Mr. Searle was a full-time employee of Ashmore Advisory Pty Ltd. Mr. Edwards and Mr Searle have previously provided written consent
for the 11 August 2023 release.
The information in this report that relates to Mineral Resources 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 has previously provided written consent for the 19 August 2016 release.
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 (FAusIMM) and a Member of the
Australasian Institute of Geoscientists (MAIG). 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 deposits 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 original 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 relevant announcements for the information in this report that relates to previous ASX announcements relating to ASX Exploration Result and
Exploration Targets are noted below:
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
29
Prodigy Gold Annual Report 2024
Announcement Date
Announcement Title
Competent Person
At the time of release
full-time employee of
Membership
Membership
status
12.06.2024
Final Metallurgical Testwork Results for
Hyperion Project
Dr Andrew Dowling
&
Mr Mark Edwards
IMO Pty Ltd
Prodigy Gold NL
AusIMM
AusIMM
AIG
Fellow
Fellow
Member
06.05.2024
Update on Metallurgical Testwork For The
Hyperion Project
Dr Andrew Dowling
&
Mr Mark Edwards
IMO Pty Ltd
Prodigy Gold NL
AusIMM
AusIMM
AIG
Fellow
Fellow
Member
03.04.2024
Preliminary Metallurgical Testwork Results
For The Hyperion Project Return Excellent
Recoveries For All Material Types
Dr Andrew Dowling
&
Mr Mark Edwards
IMO Pty Ltd
Prodigy Gold NL
AusIMM
AusIMM
AIG
Fellow
Fellow
Member
21.03.2024
Chrysos
PhotonAssayTM
Technique
confirms High-grade Drill Results
Mr Mark Edwards
Prodigy Gold NL
AusIMM
AIG
Fellow
Member
23.02.2024
iTech Energy to Acquire Reynolds Range
Project
N/A
12.02.2024
Exploration Update - Planning for 2024
Field Season
Mr Mark Edwards
Prodigy Gold NL
AusIMM
AIG
Fellow
Member
29.01.2024
Further Positive Drilling Results from
Tregony
Mr Mark Edwards
Prodigy Gold NL
AusIMM
AIG
Fellow
Member
06.12.2023
Diamond Drilling at Tregony Returns
Encouraging Intercepts
Mr Edward Keys
Prodigy Gold NL
AIG
Member
30.11.2023
New Agreement with Stockton for Tanami
Exploration Tenements
N/A
06.11.2023
Tanami North Exploration Update
Mr Mark Edwards
Prodigy Gold NL
AusIMM
AIG
Fellow
Member
12.10.2023
Hyperion Drilling Returns Higher-Grade
Intercepts
Mr Mark Edwards
Prodigy Gold NL
AusIMM
AIG
Fellow
Member
13.09.2023
Exploration update for the Tanami North
Project:
Surface
Samples
Return
Encouraging Gold Results
Mr Mark Edwards
Prodigy Gold NL
AusIMM
Fellow
19.09.2023
Tregony
Drilling
Returns
High-Grade
Intercepts
Mr Mark Edwards
Prodigy Gold NL
AusIMM
AIG
Fellow
Member
15.08.2023
Annual Mineral Resource Statement - 2023
Mr Mark Edwards
Prodigy Gold NL
AusIMM
AIG
Fellow
Member
6.07.2023
Drilling Update for Tanami North Project
Mr Mark Edwards
Prodigy Gold NL
AusIMM
Fellow
31.05.2023
Prodigy Gold Successfully Receives Two
Exploration Grants under the Resourcing
the Territory Initiative
Mr Mark Edwards
Prodigy Gold NL
AusIMM
Fellow
10.03.2023
Buccaneer Gold Project - Metallurgical
Update
Dr Andrew Dowling
&
Mr Mark Edwards
IMO Pty Ltd
Prodigy Gold NL
AusIMM
AusIMM
AIG
Fellow
Fellow
Member
15.02.2023
Maiden Mineral Resource for Tregony
Deposit
Mr Mark Edwards
Prodigy Gold NL
AIG
Member
18.05.2022
Lake Mackay JV – Agreement and
Exploration Update
Mr Edward Keys
Prodigy Gold NL
AIG
Member
29.04.2022
Agreement Signed over Old Pirate Project &
Tanami Tenements
NA
12.01.2022
A8G to acquire a 90% interest in a
substantial lithium exploration package
within the Northern Arunta LCT pegmatite
province
NA
30.11.2021
Newmont Signs Farm-in Agreement to
Advance Exploration at Monza Project,
Northern Territory
Mr Matt Briggs
Prodigy Gold NL
AusIMM
Member
15.11.2021
Historic High Grades Confirm Potential of
Tregony System
Mr
Adriaan
van
Herk
Prodigy Gold NL
AIG
Member
18.01.2021
Lake Mackay JV: First bedrock gold
intersected at Goldbug Prospect
Mr Doug Winzar
IGO
AIG
Member
16.10.2019
Lake Mackay JV Update: New Gold Prospect
Identified
Mr Doug Winzar
IGO
AIG
Member
16.05.2019
Prodigy Signs A$14.5M Tobruk Joint
Venture with Newmont Goldcorp
NA
18.09.2017
Lake Mackay JV - Grapple Prospect Drilling
Update
Mr Doug Winzar
IGO
AIG
Member
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
30
Prodigy Gold Annual Report 2024
References
Consesnsus Economics Inc. (2023). Energy Metals & Agriculture Consensus Forecasts - June Report. London: Consesnsus
Economics Inc.
Consesnsus Economics Inc. (2024). Energy Metals & Agriculture Consensus Forecasts - June Report. London: Consesnsus
Economics Inc.
Crawford, A. F., Thedaud, N., Masurel, Q., & Maidment, D. W. (2024). Geology and regnional setting of the Oberon gold
deposit, Tanami Region. Northern Territory Geological Survey AGES 2024 Conference (pp. 83-87). Alice Springs: Northern
Territory Geological Survey.
Rayer, S. F. (1997). Preliminary Metallurgical Tests on Drill intersections from holes TGRC008, 026 & 029 in the Suplejack Gold
Prospect. Perth: Metcon Laboratories.
Tremblay, C., Wheeler, G., and Oteri, A., 2019. PhotonAssay – Efficient & bulk gold analysis in the modern world. ASEG
Extended Abstracts, 2019:1, 1-4.
MANAGING DIRECTOR’S REPORT – REVIEW OF OPERATIONS
31
Prodigy Gold Annual Report 2024
TENEMENT MANAGEMENT
The total area of 24,391km2 (2023: 26,360km2) held under tenure by Prodigy Gold and its JV partners has decreased during
the financial year. The area held under granted tenure is 10,111km2 with 14,280km2 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 Auditor
The Company changed its auditor from BDO Audit (WA) Pty Ltd (BDO WA) to BDO Audit Pty Ltd (BDO Audit) as a result of
BDO WA restructuring its audit practice whereby audits will be conducted by BDO Audit rather than BDO WA.
Capital Structure
During the year, the Company completed a private placement to sophisitcated, professional and institutioal investors as
well as Company directors and the Company’s larges Shareholder APAC Limited at an issue price of $0.003 per share raising
gross proceeds of $1.1 Million. Participants in the placement received two (2) options to acquire one (1) share each for
every three (3) shares issued, for nil additional consideration, having an exercise price of $0.007 and an expiry date of 30
November 2026 which were subject to shareholder approval. The Company also received shareholder approval for the
issue of broker options on the same terms and conditions at a general meeting held in May 2024. Under the various
tranches of the placement, some conditional on shareholder approval, the Company issued a total of 366,666,665 fully
paid ordinary shares, 244,444,444 unlisted options to participants in the placement and 5,844,999 unlisted broker options.
Following shareholder approval at the Company’s AGM held on 16 October 2023, the Company issued 1.5 Million unlisted
options with an exercise price of $0.012 with an expiry date of 16 October 2027 to managing director Mark Edwards. A
total of 5,250,000 unlisted options with with an exercise price of $0.012 and an expiry date of 16 October 2027 were issued
to employees of the Company on the same date. All option have vested as at 30 June 2024. A total of 2 Million unlisted
options expired unexercised.
As at 30 June 2023, Prodigy Gold had a total of 2,117,774,483 shares (2023: 1,751,107,818) and 260,539,443 (2023:
5,500,000) unlisted options on issue.
Substantial Shareholders
APAC Resources purchased 66,666,667 shares as part of the placement changing the voting power of APAC and the Allied
Group to 44.31% if the issued capital of the Company.
Director Holdings
Managing director Mark Edwards purchased 7,666,667 shares and non-executive director Neale Edwards purchased
2,333,333 shares as part of the placement. Mark Edwards purchased an additional 666,666 shares on market.
SUMMARY
OF
MINING
TENEMENTS
AND
AREAS
OF
INTEREST
32
Prodigy Gold Annual Report 2024
Summary of Mining Tenements as at 30 June 2024
Area of Interest
Tenement
Group’s
Interest
Tenement
Status
Status Changes
During the Year
NORTHERN TERRITORY
TANAMI
Bluebush(1)
EL23659
100
granted
EL24436
100
granted
EL26610
100
granted
EL27127
100
granted
EL27589
100
granted
EL28327
100
granted
EL29860
100
granted
EL31288
100
granted
EL31290
100
granted
EL31291
100
granted
EL30944
100
application
Bonanza(1)
EL25194
100
granted
EL26608
100
granted
EL27378
100
granted
EL28322
100
granted
Split into EL28322 and EL33724
EL28324
100
granted
EL28325
100
granted
EL28328
100
granted
EL28394
100
granted
EL31289
100
granted
EL30814
100
application
Bonanza
ML29822
100
granted
ML33459
100
granted
EL33724
100
granted
Split from EL28322
Hyperion
EL09250
100
granted
EL27125
100
granted
EL27979
100
granted
EL31331
100
granted
EL31530
100
granted
EL32055
100
granted
EL26623
100
application
EL32056
100
application
EL33487
100
application
Abroholos
EL29833
100
application
Tobruk (2)
EL25156
100
granted
EL25191
100
granted
EL25192
100
granted
EL28785
100
granted
EL29832
100
granted
EL29859
100
granted
EL30270
100
application
EL30274
100
application
EL32057
100
application
SUMMARY
OF
MINING
TENEMENTS
AND
AREAS
OF
INTEREST
33
Prodigy Gold Annual Report 2024
Area of Interest
Tenement
Group’s
Interest
Tenement
Status
Status Changes
During the Year
Monza JV (3)
EL25845
100
granted
EL26590
100
granted
EL26591
100
granted
EL26592
100
ceased
surrendered
EL26593
100
ceased
surrendered
EL26613
100
granted
EL26615
100
granted
EL26618
100
granted
EL26620
100
granted
EL26621
100
ceased
surrendered
EL26622
100
ceased
surrendered
EL26673
100
granted
EL27604
100
ceased
surrendered
EL29834
100
application
EL30271
100
application
EL30272
100
application
EL30273
100
application
EL30283
100
application
Tanami Ngungaju JV (4)
EL26628(1)
90
granted
EL29828(1)
90
granted
EL26627
90
application
LAKE MACKAY
Tekapo
EL28682
100
application
Lake Mackay Gold JV (5)
EL25146
70
granted
EL31234
70
granted
IGO Limited
EL31913
70
application
IGO Limited
Castile JV (6)
EL31974
60
granted
Castile Resources Pty Ltd
Warumpi (7)
EL24915
30
granted
EL30730
30
granted
EL30731
30
granted
EL31720
30
withdrawn
IGO Limited - withdrawn
EL31721
30
application
IGO Limited
EL31722
30
application
IGO Limited
EL32095
30
application
IGO Limited
EL32096
30
application
IGO Limited
EL32097
30
application
IGO Limited
EL32098
30
application
IGO Limited
EL32099
30
application
IGO Limited
EL32100
30
application
IGO Limited
EL32101
30
application
IGO Limited
EL32102
30
application
IGO Limited
EL32103
30
application
IGO Limited
SUMMARY
OF
MINING
TENEMENTS
AND
AREAS
OF
INTEREST
34
Prodigy Gold Annual Report 2024
1)
Tenements subject to a conditional sales agreement with Stockton Mining signed in November 2023
2)
Farm-in and Joint Venture Agreement with Newmont Exploration Pty Ltd earning up to a 70% interest in the tenements
3)
Farm-in and Joint Venture Agreement with Newmont Exploration Pty Ltd earning up to an 80% interest in the tenements
4)
Joint Venture with Ngungaju Lithium Operations Pty Ltd 10% / Prodigy Gold 90%
5)
Joint Venture with Prodigy Gold 70% / IGO Limited 30%
6)
Joint Venture between Castile Resources Pty Ltd (14%), IGO Limited (26%) and Prodigy Gold (60%)
7)
Joint Venture with IGO Limited 70% / Prodigy Gold 30%
8)
Joint Venture with Australasian Metals Limited 90% / Prodigy Gold 10%
9)
Joint Venture with Select Resources Pty Ltd / Prodigy Gold holds an 80% beneficial interest with 60% interest currently registered on title
10)
Tenement and sales agreement with iTech Energy Pty Ltd to acquire 100% of Prodigy Gold’s interest in the tenements which was completed
during August 2024
Area of Interest
Tenement
Group’s
Interest
Tenement
Status
Status Changes
During the Year
NORTH ARUNTA
Barrow Creek
EL8766
100
ceased
surrendered
EL23880
100
ceased
surrendered
EL23883
100
ceased
surrendered
EL23884
100
ceased
surrendered
EL23885
100
ceased
surrendered
EL23886
100
ceased
surrendered
EL26825
100
ceased
surrendered
EL29723
100
ceased
surrendered
EL29896
100
ceased
surrendered
EL30637
100
ceased
surrendered
Australasian Gold JV (8)
EL28515
10
granted
EL29724
10
granted
EL29725
10
granted
EL30470
10
granted
EL30507
10
granted
Reynolds Range(10)
EL23655
80(9)
granted
EL23888
100
granted
EL28083
100
granted
DIRECTORS’ REPORT
35
Prodigy Gold Annual Report 2024
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 2024.
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 (2023: NIL).
Operating Results
The consolidated loss for the Group after providing for income tax amounted to $10,124,651 (2023: loss of $5,218,298).
Financial Position
The net assets of the Group have decreased by $9,109,117 from 30 June 2023 to $5,454,113 at 30 June 2024. The decrease
is due to the Group recognising an impairment of $5,030,945 for available for sale assets and operating expenses.
Significant Changes in the State of Affairs
There were no significant changes in the state of affairs of the Company. The Company’s position with APAC Resources
Limited (“APAC”) remains unchanged with the Group continuing to be considered a controlled entity of APAC who are
consolidating the results of the Group for their reporting purposes. Exploration continued during the year, however was
disrupted by weather events shortening the field season significantly. Prodigy Gold continued its divestment strategy and
surrendered non-core tenements.
Matters Subsequent to the End of the Financial Year
The Company released Resource updates for its Tregony and Hyperion Mineral Resources42.
Prodigy Gold completed the binding tenement sale and purchase agreements with iTech acquiring 100% of Prodigy Gold’s
interest in three tenements in the Reynolds Range43. The Company received a total consideration of $100,000 and will
receive a 1% royalty over all metallic product recovered from the projects other than graphite.
No other matter or circumstance has arisen since 30 June 2024 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.
42 ASX: 3 July 2024 and 29 July 2024
43 ASX: 23 February 2024 and 7 August 2024
DIRECTORS’ REPORT
36
Prodigy Gold Annual Report 2024
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, Old Pirate 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.
DIRECTORS’ REPORT
37
Prodigy Gold Annual Report 2024
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 (Stock Code 1712) (since February 2014), was deputy
executive Chairman of Hong Kong listed APAC Resources Limited (Stock Code 1104) (May 2016 to November 2023),
executive director of Metals X Limited (ASX: MLX) (board member since December 2019), non-executive director of Tanami
Gold NL (ASX: TAM) (since November 2018), non-executive director of Nico Resources Limited (ASX: NC1) (since April 2021)
and non-executive director of UK listed First Tin PLC (LSE: 1SN) (since July 2024). Mr Smith was non-executive director of
Elementos Limited (ASX: ELT) (January 2020 to May 2023). Overall, Mr Smith has over 30 years’ international experience in
the engineering, project development and organisational change management.
DIRECTORS’ REPORT
38
Prodigy Gold Annual Report 2024
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 (Stock Code 1712) and Non-Executive Director for Tanami Gold NL (ASX: TAM).
Ms Jutta Zimmermann
Dip AQF, Dip IT, GradDipACG, FGIA FCG, MAICD
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 2024, and the number of meetings attended by each Director were:
Board Meetings
Directors
Eligible to Attend
Attended
Mr Gerard McMahon
8
8
Mr Mark Edwards
8
8
Mr Brett Smith
8
7
Mr Neale Edwards
8
8
Interests in Shares and Share Rights of the Company
At the date of this report, the interests of the Directors in the shares and share rights of the Group were as follows:
Directors
Fully Paid Ordinary Shares
Unlisted Options
Mr G McMahon
-
-
Mr M Edwards(1)
8,433,333
8,611,111
Mr B Smith
1,982,142
1,500,000
Mr N Edwards
2,333,333
1,555,555
(1)
Includes 100,000 shares held by a close family member
DIRECTORS’ REPORT
39
Prodigy Gold Annual Report 2024
REMUNERATION REPORT (AUDITED)
This Remuneration Report outlines the Director’s and the Group’s key management personnel remuneration arrangements
in accordance with the requirements of the Corporations Act 2001 and its Regulations. For the purposes of this report, key
management personnel of the Group are defined as those persons having authority and responsibility for planning,
directing and controlling the major activities of the Company and the Group, directly or indirectly, including any Director
(whether executive or otherwise) of the Group.
Remuneration Principles
Remuneration levels are set with the objective of attracting and retaining appropriately qualified and experienced staff.
Remuneration packages are structured to recognise, encourage and reward improved performance and business growth,
balanced between short-term and long-term goals. Benchmarking is undertaken where considered appropriate to ensure
remuneration packages are competitively positioned in the market.
Non-Executive Director Remuneration
Non-Executive Directors’ fees are set by the Board within the maximum aggregate amount of fees approved by
shareholders at a general meeting. Non-Executive Directors are not entitled to retirement benefits other than statutory
superannuation or other statutory required benefits. The remuneration of Non-Executive Directors is fixed for each
individual Director taking into account market rates for comparable companies for time, commitment, responsibilities and
accountability.
The available Non-Executive Directors’ fees pool is currently $400,000. As at 30 June 2024 the Company utilised $124,320
(2023: $141,117) 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 July 2024.
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 11%
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.
DIRECTORS’ REPORT
40
Prodigy Gold Annual Report 2024
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 seven 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 18.
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 18), 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 seven 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.
2020
2021
2022
2023
2024
Revenue and interest
205,300
82,419
17,535
240,297
243,028
Net loss
5,620,204
4,807,264
7,620,360
5,218,298
10,124,651
Share price at year-end
0.045
0.04
0.013
0.008
0.003
Dividend paid
-
-
-
-
-
Loss per share (cents)
(1.00)
(0.83)
(1.31)
(0.37)
(0.55)
Key Management Personnel
The following persons were key management personnel of the Group during the financial year:
Key Management Personnel
Position
Commencement of Position
Mr G McMahon
Non-Executive Chairman
29 November 2021
Mr M Edwards
Managing Director
1 May 2022
Mr B Smith
Executive Director
9 May 2016
Mr N Edwards
Non-Executive Director
29 November 2021
Ms J Zimmermann
CFO / Company Secretary
1 June 2005
DIRECTORS’ REPORT
41
Prodigy Gold Annual Report 2024
Details of Remuneration
Details of compensation for key management personnel (“KMP”) and Directors of the Group are set out below:
2024
Short-Term Employee Benefits
Post-
Employ-
ment
Super-
annuation
$
Long-Term
Benefits
Long
Service
Leave 2)
$
Share-
based
Payments
Options 3)
$
Termina-
tion
Benefits
$
Total
$
Proportion
of
Remune-
ration that
is at Risk
Cash Salary
and Fees
$
Cash Bonus
$
Annual
Leave 1)
$
Directors
Mr G McMahon
56,000
-
-
6,160
-
-
-
62,160
0%
Mr M Edwards
325,000
-
3,775
27,500
5,200
9,066
-
370,541
2.4%
Mr B Smith
28,000
-
-
3,080
-
-
-
31,080
0%
Mr N Edwards
28,000
-
-
3,080
-
-
-
31,080
0%
Total Directors
437,000
-
3,775
39,820
5,200
9,066
-
494,861
Other KMP
Jutta Zimmermann
220,000
-
6,350
24,200
3,523
9,066
-
263,139
3.4%
Total Other
220,000
-
6,350
24,200
3,523
9,066
-
263,139
Total
657,000
-
10,125
64,020
8,723
18,132
-
758,000
1)
Annual leave relates to movements in annual leave provisions during the year.
2)
Long service leave relates to movements in long service leave provisions during the year.
3)
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 18 in the consolidated financial statements).
2023
Short-Term Employee Benefits
Post-
Employ-
ment
Super-
annuation
$
Long-Term
Benefits
Long
Service
Leave 2)
$
Share-
based
Payments
Options 3)
$
Termina-
tion
Benefits
$
Total
$
Proportion
of
Remune-
ration that
is at Risk
Cash Salary
and Fees
$
Cash Bonus
$
Annual
Leave 1)
$
Directors
Mr G McMahon
57,625
-
-
6,050
-
-
-
63,675
0%
Mr M Edwards
325,000
-
15,000
27,500
5,200
6,6585
-
379,358
0%
Mr B Smith4)
38,416
-
-
4,034
-
3,154
-
45,604
6.9%
Mr N Edwards
28,812
-
-
3,026
-
-
-
31,838
0%
Total Directors
449,853
-
15,000
40,610
5,200
9,812
-
520,475
Other KMP
Jutta Zimmermann
220,000
-
16,711
23,100
3,520
29,422
-
292,753
10%
Total Other
220,000
-
16,711
23,100
3,520
29,422
-
292,753
Total
669,853
-
31,711
63,710
8,720
39,234
-
813,228
1)
Annual leave relates to movements in annual leave provisions during the year.
2)
Long service leave relates to movements in long service leave provisions during the year.
3)
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 18 in the consolidated financial statements).
4)
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.
DIRECTORS’ REPORT
42
Prodigy Gold Annual Report 2024
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 was initially $60,000 plus superannuation per year and reduced to $48,000
plus superannuation from March 2024 . The base fee for non-executive Directors was initially $30,000 plus superannuation
per year and reduced to $24,000 plus superannuation from March 2024.
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;
•
Options may be issued at the discretion of the Directors (see Note 18);
•
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 18);
•
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 18 of the financial statements for more information on options provided as part of remuneration to the
Directors and key management personnel.
Options issue to KMP’s during the Reporting Period
During the reporting period, the Group issued 1,500,000 Options to the managing director following shareholder approval
at the AGM held on 16 October 2023 and an additional 1,500,000 Options to a KMP. The exercise price of the Options was
DIRECTORS’ REPORT
43
Prodigy Gold Annual Report 2024
calculated at a premium of 145% to the 5 day VWAP of Prodigy Gold’s share price immediately prior to 16 October 2023.
Half of the Options vested on the grant date and the remainder of the options vested on 30 June 2024.
Employee Options
Tranche 1
MD
Tranche 2
MD
Tranche 1
CoSec
Tranche 2
CoSec
Number of Options to be granted
750,000
750,000
750,000
750,000
Number of Options vested
750,000
750,000
750,000
750,000
Fair Value at grant date
$0.0081
$0.0081
$0.0081
$0.0081
Exercise price
$0.012
$0.012
$0.012
$0.012
Issue date
16 Oct 2023
16 Oct 2023
16 Oct 2023
16 Oct 2023
Expiry date
16 Oct 2027
16 Oct 2027
16 Oct 2027
16 Oct 2027
Vesting date (subject to Option issue)
16 Oct 2023
30 June 2024
16 Oct 2023
30 June 2024
Expected price volatility of Options
120.03%
120.03%
120.03%
120.03%
Risk free interest rate
4.05%
4.05%
4.05%
4.05%
During the period $18,132 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
Balance at the
Start of the Year
Received as Part
of Remuneration
Additions
Exercise of
Options
Balance at the
End of the Year
Mr G McMahon
-
-
-
-
-
Mr M Edwards
100,000
-
8,333,333
-
8,433,333
Mr B Smith 1)
1,982,142
-
-
-
1,982,142
Mr N Edwards
-
-
2,333,333
-
2,333,333
Ms J Zimmermann
4,951,145
-
-
-
4,951,145
7,033,287
-
10,666,666
-
17,699,953
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
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
Mr G McMahon
-
-
-
-
-
-
Mr M Edwards
2,000,000
1,500,000
5,111,111
-
8,611,111
8,611,111
Mr B Smith
1,500,000
-
-
-
1,500,000
1,500,000
Mr N Edwards
-
-
1,555,555
-
1,555,555
1,555,555
Ms J Zimmermann
-
1,500,000
-
-
1,500,000
1,500,000
3,500,000
3,000,000
6,666,666
-
13,166,666
13,166,666
Loans to Directors and Other Key Management Personnel
No loans to Directors and other key management personnel of the Group were provided in 2024 (2023: NIL).
DIRECTORS’ REPORT
44
Prodigy Gold Annual Report 2024
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. A related party of the MD was paid a
total of $2,030 during the financial year at a casual rate for relief work in administration.
This concludes the Remuneration Report, which has been audited.
DIRECTORS’ REPORT
45
Prodigy Gold Annual Report 2024
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 $15,102 (2023: $21,365) and are detailed in Note 16.
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 47.
Auditor
BDO Audit 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 19th day of August 2024
Darwin, Northern Territory
CORPORATE GOVERNANCE STATEMENT
46
Prodigy Gold Annual Report 2024
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 July 2024.
The Group’s Corporate Governance Statement for the year ended 30 June 2024 (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 2024 may also be accessed
from the Company’s website at www.prodigygold.com.au/about-prodigy-gold/corporate-governance.
AUDITOR’S INDEPENDENCE DECLARATION
47
Prodigy Gold Annual Report 2024
BDO Audit Pty Ltd ABN 33 134 022 870 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 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.
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth, WA 6000
PO Box 700 West Perth WA 6872
Australia
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
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 2024, 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 Pty Ltd
Perth
19 August 2024
ANNUAL FINANCIAL REPORT
48
Prodigy Gold Annual Report 2024
The financial statements of Prodigy Gold NL for the year ended 30 June 2024 were authorised for issue in accordance with
a resolution of the Directors on 19 August 2024 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 23.
The financial statements are presented in Australian currency.
Prodigy Gold NL is a company limited by shares, incorporated and domiciled in Australia whose shares are publicly traded
on the Australian Securities Exchange.
The address of the registered office and principal place of business is:
Prodigy Gold NL
Level 1, 67 Smith Street
DARWIN NT 0800
A description of the nature of the Group’s operations and its principal activities is included in the review of operations and
activities on pages 5 to 31 and in the Directors’ Report on pages 35 to 45, 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
ANNUAL FINANCIAL REPORT
49
Prodigy Gold Annual Report 2024
CONTENTS
Financial Report
48
Consolidated Statement of Profit or Loss and Other Comprehensive Income
50
Consolidated Statement of Financial Position
51
Consolidated Statement of Cash Flows
52
Consolidated Statement of Changes in Equity
53
Notes to the Consolidated Financial Statements
54
Directors’ Declaration
71
Independent Auditor’s Report to the Members
72
Additional Information for Public Listed Companies
76
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 30 JUNE 2024
50
Prodigy Gold Annual Report 2024
Consolidated
Notes
2024
$
2023
$
Interest
243,028
240,297
Other income
3
99,366
71,242
Administrative expenses
Employee and Directors benefits expenses
4
(556,353)
(602,760)
Share-based payments
4
(19,643)
(44,200)
Depreciation
4
(13,833)
(13,538)
Other expenses
(464,813)
(607,130)
Exploration expenses
4
(4,381,458)
(3,705,717)
Impairment of capitalised exploration and evaluation expenditure
10
(5,030,945)
(556,492)
Loss before income tax expense
(10,124,651)
(5,218,298)
Income tax expense
5(a)
-
-
Loss for the year
(10,124,651)
(5,218,298)
Loss attributable to members of Prodigy Gold NL
(10,124,651)
(5,218,298)
Other comprehensive income
-
-
Total other comprehensive income for the year
-
-
Total comprehensive loss for the year
(10,124,651)
(5,218,298)
Total comprehensive loss for the year attributable
to members of Prodigy Gold NL
(10,124,651)
(5,218,298)
Basic and diluted loss per share attributable to the ordinary equity holders
of the Company
Basic and diluted loss per share (cents per share)
22
(0.55)
(0.37)
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the
accompanying notes.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024
51
Prodigy Gold Annual Report 2024
Consolidated
Notes
2024
$
2023
$
ASSETS
CURRENT ASSETS
Cash and cash equivalents
6
2,339,860
6,052,764
Other receivables
7
54,735
500,003
Inventories
13,556
21,306
Available for Sale Assets
8
500,010
5,623,950
Other current assets
125,862
167,791
TOTAL CURRENT ASSETS
3,034,023
12,365,814
NON-CURRENT ASSETS
Term deposits
7
2,489,613
2,481,051
Property, plant and equipment
9
511,850
420,090
Exploration and evaluation expenditure
10
1,823,139
1,735,493
TOTAL NON-CURRENT ASSETS
4,824,602
4,636,634
TOTAL ASSETS
7,858,625
17,002,448
LIABILITIES
CURRENT LIABILITIES
Trade and other payables
11
652,481
686,267
Employee benefits
219,546
229,028
TOTAL CURRENT LIABILITIES
872,027
915,295
NON-CURRENT LIABILITIES
Provisions
12
1,532,485
1,523,923
TOTAL NON-CURRENT LIABILITIES
1,532,485
1,523,923
TOTAL LIABILITIES
2,404,512
2,439,218
NET ASSETS
5,454,113
14,563,230
EQUITY
Contributed equity
13
199,163,094
198,197,192
Reserves
14(a)
1,917,013
1,893,413
Accumulated losses
(195,625,994)
(185,527,375)
TOTAL EQUITY
5,454,113
14,563,230
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
52
Prodigy Gold Annual Report 2024
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
Consolidated
Notes
2024
$
2023
$
CASH FLOWS FROM OPERATING ACTIVITIES
Expense re-imbursements from JV Partners
-
751,980
Payments to suppliers and employees
(1,022,988)
(1,070,734)
Interest received
259,776
199,623
Government Grants
99,730
163,992
Payments for exploration
(3,846,706)
(3,659,767)
Payments for JV Projects
-
(763,519)
Net cash (outflow) from operating activities
21
(4,510,188)
(4,378,425)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment
(189,830)
(364,236)
Proceeds from sale of property, plant and equipment
-
682
Net cash (outflow) from investing activities
(189,830)
(363,554)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from / (Repayment of) borrowings
-
(2,500,000)
Refund of security deposits (cash-back)
-
28,433
Payments for security deposits
(8,562)
-
Borrowing cost
-
(65,397)
Proceeds from issue of shares
1,100,000
11,652,552
Share issue costs
(104,324)
(716,178)
Net cash inflow from financing activities
987,114
8,399,410
Net (decrease)/increase in cash and cash equivalents
(3,712,904)
3,657,431
Cash and cash equivalents at beginning of year
6,052,764
2,395,333
Cash and cash equivalents at end of year
6
2,339,860
6,052,764
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
53
Prodigy Gold Annual Report 2024
Notes
Contributed
Equity
$
Share-based Payment
Reserve
$
Accumulated
Losses
$
Total
$
Balance at 1 July 2022
187,260,818
1,955,984
(180,427,085)
8,789,717
Comprehensive income
for the year
Loss for the year
-
-
(5,218,298)
(5,218,298)
Other comprehensive income
-
-
-
-
Total comprehensive loss for the year
-
-
(5,218,298)
(5,218,298)
Transaction with owners in their
capacity as owners:
Shares Issued
13(a)
11,652,552
-
-
11,652,552
Transaction costs
13(a)
(716,178)
-
-
(716,178)
Share-based payments transfer
14(a)
-
(118,008)
118,008
-
Share-based payments
14(a)
-
55,437
-
55,437
Total transactions with owners
10,936,374
(62,571)
118,008
10,991,811
Balance at 30 June 2023
198,197,193
1,893,413
(185,527,375)
14,563,231
Comprehensive income
for the year
Loss for the year
-
-
(10,124,651)
(10,124,651)
Other comprehensive income
-
-
-
-
Total comprehensive loss for the year
-
-
(10,124,651)
(10,124,651)
Transaction with owners in their
capacity as owners:
Shares issued
13(a)
1,100,000
-
-
1,100,000
Transaction costs
13(a)
(134,099)
-
-
(134,099)
Share-based payments transfer
14(a)
-
(26,032)
26,032
-
Share-based payments
14(a)
-
49,632
-
49,632
Total transactions with owners
965,901
23,600
26,032
1,015,533
Balance at 30 June 2024
199,163,094
1,917,013
(195,625,994)
5,454,113
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
54
Prodigy Gold Annual Report 2024
CONTENTS OF THE NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Page
1.
Summary of Material Accounting Policies
55
2.
Segment Information
56
3.
Other Income
56
4.
Expenses
56
5.
Income Tax Expense
57
6.
Cash and Cash Equivalents
58
7.
Term Deposits and Other Receivables
58
8.
Available for Sale Assets
59
9.
Property, Plant and Equipment
59
10. Exploration, Evaluation and Development Expenditure
60
11. Trade and Other Payables
61
12. Provisions
61
13. Contributed Equity
62
14. Reserves
63
15. Financial Risk Management
63
16. Auditor’s Remuneration
66
17. Contingencies
66
18. Share-Based Payments
66
19. Related Party Transactions
68
20. Subsequent Events
68
21. Cash Flow Information
68
22. Loss per Share
69
23. Parent Entity Information
69
24. Subsidiaries
70
25. Company Details
70
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
55
Prodigy Gold Annual Report 2024
NOTE 1:
SUMMARY OF MATERIAL 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 material 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).
Rounding off of amounts
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 5 (Income Tax Expense), Note 9 (Property, Plant and Equipment) Note 10 (Exploration
and Evaluation Expenditure) and Note 12 (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 23.
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 $10,124,651 (2023: $5,218,298) and experienced net cash outflows from operating activities of
$4,510,188 (2023: $4,378,425).
The ability of the Group to continue as a going concern is dependent on the Group being able to raise additional funds as required to meet
ongoing and budgeted exploration commitments and for working capital. These conditions indicate a material uncertainty that may cast
significant doubt about the Group’s ability to continue as a going concern and, therefore, it may be unable to realise its assets and
discharge its liabilities in the normal course of business. The Directors believe that they will be able to raise additional capital as required
and continuously evaluate the Group’s cash requirements. The Directors believe that the Group will continue as a going concern.
Should the Group be unable to continue as a going concern, it may be required to realise its assets and discharge its liabilities other than
in the ordinary course of business, and at amounts that differ from those stated in the financial statements. The financial report does not
include any adjustments relating to the recoverability and classification of recorded asset amounts or liabilities that might be necessary
should the entity not continue as a going concern.
(b)
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.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
56
Prodigy Gold Annual Report 2024
NOTE 2:
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 3:
OTHER INCOME
Consolidated
2024
$
2023
$
Expense re-imbursements from JV Partners
(364)
364
Sale of Fixed Assets
-
682
Government Grants
99,730
70,196
99,366
71,242
NOTE 4:
EXPENSES
Consolidated
2024
$
2023
$
Employee and Directors’ benefits expense
1,495,231
1,899,627
Less: Amounts included in exploration expenses
(938,878)
(1,296,867)
556,353
602,760
Share-based payment expense
34,753
55,437
Less: Amounts included in exploration expenses
(15,110)
(11,237)
19,643
44,200
Depreciation expense
103,421
52,848
Less: Amounts included in exploration expenses
(89,588)
(39,310)
13,833
13,538
Allowance for expected credit loss
344,953
-
Less: Amounts included in exploration expenses
(344,953)
-
-
-
Exploration expenses:
Employee benefit expense
938,878
1,296,867
Share-based payment expense
15,110
11,237
Depreciation expense
89,588
39,310
Allowance for expected credit loss
344,953
-
Other exploration expenses
2,992,929
2,358,303
4,381,458
3,705,717
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
57
Prodigy Gold Annual Report 2024
NOTE 5:
INCOME TAX EXPENSE
Consolidated
2024
$
2023
$
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
(10,124,651)
(5,218,298)
Tax at the Australian tax rate of 25% (2023: 25%)
(2,531,163)
(1,304,574)
Tax effect of amounts which are not deductible (taxable) in calculating
taxable income:
Non-assessable income
-
-
Share-based payments
4,911
11,050
Other permanent differences
511
694
Adjustment in respect of prior year
-
7,248
(2,525,741)
(1,285,582)
Deferred tax assets not brought to account
2,525,741
1,285,582
Income tax expense
-
-
The applicable weighted average effective tax rates
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
431,495
405,167
Temporary difference
34,855
47,275
466,350
452,442
Off-set of deferred tax assets
(466,350)
(452,442)
Net deferred tax liability recognised
-
-
d)
Unrecognised deferred tax assets arising on timing
Tax losses
41,669,398
40,341,888
Temporary differences
1,696,590
446,783
Expenses taken into equity
134,371
181,706
43,500,360
40,970,377
Off-set of deferred tax liabilities
(466,350)
(452,442)
Net deferred tax assets not brought to account
43,034,010
40,517,935
No deferred tax assets have been recognised as it is not probable that future tax profits will be available to offset these balances.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
58
Prodigy Gold Annual Report 2024
NOTE 5:
INCOME TAX EXPENSE cont’d
Material Accounting Policy
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.
NOTE 6:
CASH AND CASH EQUIVALENTS
Consolidated
2024
$
2023
$
Cash at bank and in hand
2,339,860
6,052,764
2,339,860
6,052,764
Material Accounting Policy
For cash flow statement presentation purposes, cash and cash equivalents includes cash on hand. All cash balances are available for use
by the Group.
The Group’s exposure to interest rate risk and a sensitivity analysis for financial assets and liabilities are disclosed in Note 15.
NOTE 7:
TERM DEPOSITS AND OTHER RECEIVABLES
Consolidated
2024
$
2023
$
CURRENT
Other receivables (Note 7(a))
54,735
500,003
54,735
500,003
NON-CURRENT
Bond term deposit and DITT Cash Bonds
2,489,613
2,481,051
2,489,613
2,481,051
Accounting estimates and judgements
The Group’s current and non-current other receivables and financial assets were subject an assessment under AASB 9 as at 30 June 2024.
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.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
59
Prodigy Gold Annual Report 2024
NOTE 8:
AVAILABLE FOR SALE ASSETS
Consolidated
2024
$
2023
$
Carrying amounts at the beginning of the reporting period
Fixed assets held for sale
5,349
5,349
Exploration, evaluation and development assets held for sale
5,618,601
5,618,601
Less: Depreciation expense fixed assets held for sale
(5,349)
-
Less: Re-allocation to exploration, evaluation and development expenditure
(87,646)
-
Less: Impairment expense
(5,030,945)
-
500,010
5,623,950
Fixed assets and exploration, evaluation and development assets
On 30 November 2023 the agreement with Stockton Mining for the divestment of the Old Pirate Gold Project and 23 surrounding
exploration tenements was terminated and the parties entered into a new agreement for the divestment of the 23 surrounding
exploration tenements only.
A value assessment was undertaken leading to the recognition $5,030,945 of impairment expenses (2023: NIL) and the re-allocation of
the value of some blocks, on an area basis, underlying the mineral leases which no longer form part of the new agreement, to exploration,
evaluation and development expenditure. 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.
Material 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 Group 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.
NOTE 9:
PROPERTY, PLANT AND EQUIPMENT
Infrastructure
$
Motor
Vehicles
$
Plant &
Equipment
$
Total
$
At 30 June 2023
Cost
8,967
875,110
344,960
1,229,037
Accumulated depreciation
(747)
(585,211)
(222,989)
(808,947)
Net book value
8,220
289,899
121,971
420,090
Year ended 30 June 2024
Opening net book value
8,220
289,899
121,971
420,090
Additions
5,640
184,192
-
189,832
Depreciation expense
(2,874)
(52,776)
(42,422)
(98,072)
Closing net book value
10,986
421,315
79,549
511,850
At 30 June 2024
Cost
14,607
1,059,302
344,960
1,418,869
Accumulated depreciation
(3,621)
(637,987)
(265,411)
(907,019)
Net book value
10,986
421,315
79,549
511,850
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
60
Prodigy Gold Annual Report 2024
NOTE 9:
PROPERTY, PLANT AND EQUIPMENT cont’d
Material Accounting Policy
Property, plant and equipment are stated at historical cost less depreciation and impairment losses. Historical cost includes expenditure
that is directly attributable to the acquisition of the items.
Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values, over their estimated useful
lives, as follows:
Class of Fixed Asset
Depreciation Rate
Infrastructure
20%
Motor Vehicles
8.3% - 20%
Plant & Equipment
10% - 33.3%
Material accounting estimates and judgements
The estimations of useful lives, residual values and depreciations methods require significant management judgements and are regularly
reviewed. If they need to be modified, the depreciation and amortisation expense is accounted for prospectively from the date of the
assessment until the end of the revised useful life (for both the current and future years).
NOTE 10:
EXPLORATION, EVALUATION AND DEVELOPMENT EXPENDITURE
Consolidated
2024
$
2023
$
Carrying amount at the beginning of reporting period
1,735,493
2,291,985
Less: Impairment expense
-
(556,492)
Less: Re-classification from available for sale asset
87,646
-
Carrying amount at the end of reporting period
1,823,139
1,735,493
Material Accounting Policy
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.
Material accounting estimates and judgements
The Group undertook an assessment for impairment triggers of its exploration assets. No tenements were impaired in accordance with
AASB 6 and the value of some blocks was re-allocated from available for sale assets, on are area basis. The blocks are underlying the
mineral leases and no longer form part of the new agreement with Stockton Mining.
The balances of the exploration assets as at 30 June 2024 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 a re-classification totaling $87,646 (2023: NIL) and no impairment charge to exploration and evaluation
expenditure (2023: $556,492).
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
61
Prodigy Gold Annual Report 2024
NOTE 11:
TRADE AND OTHER PAYABLES
Consolidated
2024
$
2023
$
CURRENT LIABILITIES (Unsecured)
Trade payables
176,826
506,750
Sundry payables and accrued expenses
475,655
179,517
652,481
686,267
Information about the Group’s exposure to liquidity risk is provided in Note 15.
Material 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 12:
PROVISIONS
Consolidated
2024
$
2023
$
NON-CURRENT
Exploration and mine restoration
1,532,485
1,523,923
1,532,485
1,523,923
Movement in rehabilitation provisions
Movement in rehabilitation provisions during the current financial year are set out below:
Consolidated
2024
$
2023
$
Opening balance
1,523,923
1,563,660
Additional provisions
8,562
7,163
Less amounts reversed
-
(46,900)
Closing balance
1,532,485
1,523,923
Material Accounting Policy
Long-term environmental obligations are based on the Group's environmental management plans, in compliance with current
environmental and regulatory requirements. Full provision is made based on the value of the estimated cost of restoring the
environmental disturbance that has occurred up to the reporting date. The restoration provision relates to exploration, evaluation and
development expenditure and rehabilitation relating to the mining lease.
The estimated costs of rehabilitation are reviewed annually and adjusted as appropriate for changes in legislation, technology or other
circumstances. Cost estimates are not reduced by the potential proceeds from the sale of assets.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
62
Prodigy Gold Annual Report 2024
NOTE 12:
PROVISIONS cont’d
Material accounting estimates and judgements
Rehabilitation obligation
The Group estimates the future rehabilitation costs of the site and exploration locations taking into consideration facts and circumstances
available at statement of financial position date. A provision has been recognised for the cost to be incurred for the restoration of mine
and exploration sites based on the estimated cost. The estimated cost is determined to be the equivalent to the bonds provided to the
relevant government departments, reduced by restoration work completed and then increased by a correction factor. The bonds provided
are calculated by the government by allocating rehabilitation cost to activities proposed in a mine management plan submitted to the
department. Restoration work is completed on an ongoing basis.
NOTE 13:
CONTRIBUTED EQUITY
(a)
Ordinary Shares
Details
Date
Number of Shares Issue Price $
Value $
Opening balance
1 July 2022
582,627,606
187,260,818
Share placement
3 October 2022
447,707,987
0.01
4,477,080
Share placement
17 October 2022
626,347,225
0.01
6,263,472
Share placement
24 October 2022
91,200,000
0.01
912,000
Share placement1)
4 May 2023
2,725,000
-
Share placement1)
15 May 2023
500,000
-
Transaction costs relating to share issues
-
(716,178)
Closing balance
30 June 2023
1,751,107,818
198,197,192
Share placement
28 March 2024
189,833,332
0.003
569,500
Share placement
4 April 2024
72,832,840
0.003
218,499
Share placement
27 May 2024
104,000,493
0.003
312,001
Transaction costs relating to share issues
-
(134,098)
Closing balance
30 June 2024
2,117,774,483
199,163,094
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 2024 is 260,539,443 (2023: 5,500,000). For further details regarding
sharebased payments to employees refer to Note 18 and for options issued to shareholders refer to Note 14.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
63
Prodigy Gold Annual Report 2024
NOTE 14:
RESERVES
(a)
Reserves
Details
Date
Number of
unlisted Options
Date last
Option
Vested
Value of Reserve
$
Opening balance
1 July 2022
6,725,000
17.10.2022
1,955,984
Option issue date – sharebased payment
29 November 2022
2,000,000
29.11.2022
6,658
Value
allocation
for
historic
sharebased
payments
30 June 2023
-
48,779
Options exercise – sharebased payment
4 May 2023
(2,725,000)
(97,220)
Options exercise – sharebased payment
15 May 2023
(500,000)
(20,788)
Closing balance
30 June 2023
5,500,000
1,893,413
Option issue date – sharebased payment
16 October 2024
3,125,000
16.10.2023
15,866
Option issue date – sharebased payment
16 October 2024
3,625,000
30.6.2024
18,887
Option cancellation – sharebased payment
23 Jan2024
(500,000)
-
Option cancellation – sharebased payment
23 April 2024
(1,500,000)
(26,032)
Broker options – shareholder approved(1)
27 May 2024
5,844,999
27.5.24
14,879
Attaching options to placement – shareholder
approved(2)
27 May 2024
244,444,444
27.5.24
-
Closing balance
30 June 2024
260,539,443
1,917,013
(1)
Broker options for services provided by the lead manager facilitating a placement that was announced to the ASX on 27 March 2024. Shareholders,
at a general meeting held on 22 May 2024, approved to issue the lead manager 1,000,000 options for every $100,000 raised by the lead manager
under the placement, having an exercise price of $0.007 and expiry date of 30 November 2026.
(2)
The Company undertook a private share placement of new shares and attaching options to raise approximately $1.1 million (before expenses).
The relevant placement agreement provided that recipients would receive two (2) attaching options for every three (3) shares issued under the
placement for nil consideration, having an exercise price of $0.007 and expiry date of 30 November 2026. The issue of the options was conditional
upon shareholder approval which was granted at a general meeting held on 22 May 2024.
(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 18 to the financial statements for more information on options provided as part of remuneration to the Directors, key
management personnel and employees.
NOTE 15:
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.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
64
Prodigy Gold Annual Report 2024
NOTE 15:
FINANCIAL RISK MANAGEMENT cont’d
Capital risk management
The Group’s objectives when managing capital is to safeguard its ability to continue as a going concern, so that it can provide returns for
shareholders and benefits for other stakeholders and to maintain an optimum capital structure to reduce the cost of capital.
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calculated as total
borrowings less cash and cash equivalents.
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. 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
Non-Interest
Bearing
$
Total
$
< 1 year
$
1 - 5 year
$
> 5 years
$
30 June 2024
Financial Assets:
Cash and bonds
4.07%
2,339,860
-
-
-
2,339,860
Receivables
-
-
-
-
54,735
54,735
Total financial assets
2,339,860
-
-
-
54,735
2,394,595
Financial Liabilities:
Payables
-
-
-
-
652,481
652,481
Total financial liabilities
-
-
-
-
652,481
652,481
30 June 2023
Financial Assets:
Cash and bonds
3.01%
6,052,764
-
-
-
6,052,764
Receivables
-
-
-
-
500,003
500,003
Total financial assets
6,052,764
-
-
-
500,003
6,552,767
Financial Liabilities:
Payables
-
-
-
-
686,267
686,267
Total financial liabilities
-
-
-
-
686,267
686,267
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
65
Prodigy Gold Annual Report 2024
NOTE 15:
FINANCIAL RISK MANAGEMENT cont’d
Based on the financial instruments held at 30 June 2024, 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 $23,399 higher/$23,399 lower
(2023: $60,528 higher/$60,528 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 (2023: NIL)
for past due receivables.
Credit risk further arises in relation to financial guarantees given to certain parties (see Note 17 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.
Consolidated
2024
$
2023
$
Cash at bank
2,339,860
6,052,764
Bonds term deposit and bonds
2,489,613
2,481,051
Receivables
54,735
500,003
Liquidity Risk
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 2024
Non-derivatives
Non-interest bearing
652,481
-
-
-
-
652,481
652,481
Interest bearing
-
-
-
-
-
-
-
Total non-derivatives
652,481
-
-
-
-
652,481
652,481
30 June 2023
Non-derivatives
Non-interest bearing
686,267
-
-
-
-
686,267
686,267
Interest bearing
-
-
-
-
-
-
-
Total non-derivatives
686,267
-
-
-
-
686,267
686,267
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.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
66
Prodigy Gold Annual Report 2024
NOTE 16:
AUDITOR’S REMUNERATION
Consolidated
2024
$
2023
$
a)
Audit services
BDO
30,800
-
BDO (WA)
19,800
47,811
Total remuneration of audit services
50,600
47,811
b)
Non-audit services
BDO – Tax compliance services
15,102
21,365
Total remuneration of non-audit services
15,102
21,365
NOTE 17:
CONTINGENCIES
Environmental
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 (2023: $2,275,504) have been provided. Term deposits of $2,275,504 (2023: $2,275,504) and a cash
deposit of $101,673 (2023: $93,111) with the Department of Industry, Tourism and Trade – Northern Territory secure these guarantees.
Per Note 12 a restoration provision of $1,532,485 (2023: $1,523,923) has been recognised for all known required restoration costs.
NOTE 18:
SHARE-BASED PAYMENTS
The fair value of all 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 Options, the expected dividend yield and the risk-free interest rate for the term of the 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 1,500,000 Options to the managing director following shareholder approval at the AGM
held on 16 October 2023 and an additional 5,250,000 Options to key management personnel and Company employees. The exercise price
of the Options is calculated at a premium of 145% to the 5 day VWAP of Prodigy Gold’s share price immediately prior to 16 October 2023.
Part of the Options vested on the grant date and the remainder of the options vested on 30 June 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
67
Prodigy Gold Annual Report 2024
NOTE 18:
SHARE-BASED PAYMENTS cont’d
During the period $34,753 of expense was recorded relating to these Options, including $18,132 for key management personnel Options.
Employee Options
Tranche 1
MD
Tranche 2
MD
Tranche 1
Employees
Tranche 2
Employees
Number of Options to be granted
750,000
750,000
2,375,000
2,875,000
Number of Options vested
750,000
750,000
2,375,000(1)
2,375,000(2)
Fair Value at grant date
$0.0081
$0.0081
$0.0081
$0.0081
Exercise price
$0.012
$0.012
$0.012
$0.012
Issue date
16 Oct 2023
16 Oct 2023
16 Oct 2023
16 Oct 2023
Expiry date
16 Oct 2027
16 Oct 2027
16 Oct 2027
16 Oct 2027
Vesting date (subject to Option issue)
16 Oct 2023
30 June 2024
16 Oct 2023
30 June 2024
Expected price volatility of Options
120.03%
120.03%
120.03%
120.03%
Risk free interest rate
4.05%
4.05%
4.05%
4.05%
(1)
500,000 of the vested options were subsequently cancelled as the conditions of the options were no longer able to be met
(2)
500,000 of the options were cancelled prior to vesting as the conditions of the options were no longer able to be met
During the period an additional $NIL (2023: $48,779 ) of expense was recorded relating to historical employee options and an amount of
$26,032 (2023: $118,008) was recycled through retained earnings following the exercise of options. The Company also recognised an
amount of $14,879 (2023: NIL) for broker options in relation to a placement and issued following shareholder approval (refer to Note 14).
Material 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
Consolidated
2024
$
2023
$
Share-based payments expense (refer to Note 4):
Options issued during the period to 30 June 2021
-
11,152
Options issued during the period 30 June 2022
-
37,627
Options issued during the period 30 June 2023
-
6,658
Options issued during the period 30 June 2024
34,753
-
34,753
55,437
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
68
Prodigy Gold Annual Report 2024
NOTE 19:
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 44 (Other Transactions with Directors and Other Key Management Personnel) of the Remuneration Report and in Note 18. A related
party of the MD was paid a total of $2,030 during the financial year at a casual rate for relief work in administration on an arm’s length
basis.
During the year transactions occurred by the Parent Entity for exploration expenditure of its wholly owned subsidiaries. Any expenditure
incurred by the Parent Entity on behalf of its wholly owned subsidiaries is written off and eliminated on consolidation.
NOTE 20:
SUBSEQUENT EVENTS
The Company released resource updates for its Tregony and Hyperion resources. Prodigy Gold completed the binding tenement sale and
purchase agreements with iTech acquiring 100% of Prodigy Gold’s interest in three tenements in the Reynolds Range44, receiving a total
consideration of $100,000. The Group will receive a 1% royalty over all metallic product recovered from the projects other than graphite.
No other matter or circumstance has arisen since 30 June 2024 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 21:
CASH FLOW INFORMATION
Consolidated
2024
$
2023
$
(a) Reconciliation of Cash Flow from Operations with Loss after Income Tax
Loss after income tax
(10,124,651)
(5,218,298)
Non cash activities
Depreciation
103,421
52,848
(Gain)/loss on disposal of fixed assets (net)
-
(682)
Impairment of capitalised exploration expenditures
-
556,492
Impairment of available for sale assets
5,030,945
-
Re-allocation of available for sale assets to capitalised exploration expenditures
87,646
-
Share-based payments
34,753
55,437
Borrowing costs
-
65,397
Issue of broker options
14,879
-
Share issue cost (non-cash)
(29,775)
-
Changes in assets and liabilities
(Increase)/decrease in term deposits and other receivables
445,267
129,842
(increase)/decrease in inventories
7,750
(17,000)
(increase)/decrease in other assets
41,929
(35,837)
(increase)/decrease in capitalised exploration expenditure
(87,646)
-
(Decrease)/increase in trade and other payables and accruals
(33,786)
20,006
(Decrease)/increase in employee entitlements
(9,482)
53,107
(Decrease)/increase in provisions
8,562
(39,737)
Cash flow/(outflow) from operations
(4,510,188)
(4,378,425)
44 ASX: 23 February 2024 and 7 August 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
69
Prodigy Gold Annual Report 2024
NOTE 21:
CASH FLOW INFORMATION cont’d
(b) Non-cash investing and financing activities
There were no non-cash investing activities and a total of $14,896 (2023: NIL) non-cash financing activities for share issue cost paid in July
2024 and broker options.
NOTE 22:
LOSS PER SHARE
Consolidated
2024
$
2023
$
a)
Basic loss per share
Basic loss per share attributable to the ordinary equity holders of the Company
(0.55)
(0.37)
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
(10,124,651)
(5,218,298)
(10,124,651)
(5,218,298)
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
1,826,836,799
1,415,814,376
The Group made a loss, therefore the diluted EPS is not shown as it is not dilutive.
NOTE 23:
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 1 and throughout.
Parent Entity
2024
$
2023
$
Current assets
3,034,022
12,365,813
Non-current assets
4,824,603
4,636,635
Total assets
7,858,625
17,002,448
Current liabilities
872,027
915,295
Non-current liabilities
1,532,485
1,523,923
Total liabilities
2,404,512
2,439,218
Net assets
5,454,113
14,563,230
Contributed equity
199,163,094
198,197,192
Reserves
1,917,013
1,893,413
Accumulated losses
(195,625,994)
(185,527,375)
Total equity
5,454,113
14,563,230
Loss for the year
(10,124,651)
(5,218,298)
Other comprehensive income/(loss) for the year
-
-
Total comprehensive (loss)
(10,124,651)
(5,218,298)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
70
Prodigy Gold Annual Report 2024
NOTE 24:
SUBSIDIARIES
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with Prodigy
Gold’s accounting policies:
Equity Holding
2024
%
2023
%
Parent Entity
Prodigy Gold NL Australia Ordinary
-
-
Controlled entities
Rare Resources Pty Ltd (1) Australia Ordinary
100
100
Australian Tenement Holdings Pty Ltd Australia Ordinary
100
100
(1)
RARE Resources Pty Ltd was converted from a public company into a Pty Ltd during the financial year and is currently in the process of de-
registration.
NOTE 25:
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
DIRECTORS’ DECLARATION
71
Prodigy Gold Annual Report 2024
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 50 to 70 are in accordance with the Corporations Act 2001, and:
(a)
comply with Accounting Standards and the Corporations Regulations 2001;
(b)
give a true and fair view of the financial position as at 30 June 2024 and of the performance for the year ended on that
date of the Group; and
(c)
the consolidated entity disclosure statement is true and correct.
2.
the Managing Director and the Chief Financial Officer of the Group have each declared as required by Section 295A that:
(a)
the financial records of the Group for the financial year have been properly maintained in accordance with Section 286 of
the Corporations Act 2001;
(b)
the financial statements and notes for the financial year comply with the Accounting Standards;
(c)
the financial statements, and notes for the financial year give a true and fair view; and
(d)
the information disclosed in the attached consolidated entity disclosure statement is true and correct.
3.
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.
4.
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 19th day of August 2024
MARK EDWARDS
Managing Director
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS
72
Prodigy Gold Annual Report 2024
BDO Audit Pty Ltd ABN 33 134 022 870 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 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.
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth, WA 6000
PO Box 700 West Perth WA 6872
Australia
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
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 2024, 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 material accounting policy information, the consolidated entity
disclosure statement 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 2024 and of its
financial performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Group in accordance with the Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Material uncertainty related to going concern
We draw attention to Note 1 in the financial report which describes the events and/or conditions which
give rise to the existence of a material uncertainty that may cast significant doubt about the group’s
ability to continue as a going concern and therefore the group may be unable to realise its assets and
discharge its liabilities in the normal course of business. Our opinion is not modified in respect of this
matter.
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS
73
Prodigy Gold Annual Report 2024
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters. In addition to the matter described in the Material uncertainty
related to going concern section, we have determined the matters described below to be the key audit
matters to be communicated in our report.
Recoverability of Exploration and Evaluation Expenditure and Assets Held for Sale
Key audit matter
How the matter was addressed in our audit
As disclosed in Note 8 and 10 of the financial report,
the carrying value of capitalised exploration and
evaluation expenditure represents a significant asset
of the Group.
Refer to Note 10 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:
•
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 $5,030,945 by
checking:
- The allocation of the expenditure across the
relevant tenements
- The mathematical accuracy of the amount
written down.
•
Assessing the adequacy of the related disclosures
in Note 8 and 10 to the Financial Report.
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS
74
Prodigy Gold Annual Report 2024
Other information
The directors are responsible for the other information. The other information comprises the
information contained in the Group’s annual report for the year ended 30 June 2024, but does not
include the financial report and our 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
identified above 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 on the other information that we obtained prior to the date
of this auditor’s report, 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:
a) the financial report that gives a true and fair view in accordance with Australian Accounting
Standards and the Corporations Act 2001 and
b) the consolidated entity disclosure statement that is true and correct in accordance with the
Corporations Act 2001, and
for such internal control as the directors determine is necessary to enable the preparation of:
i) the financial report that gives a true and fair view and is free from material misstatement, whether
due to fraud or error; and
ii) the consolidated entity disclosure statement that is true and correct and is free of 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.
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS
75
Prodigy Gold Annual Report 2024
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 39 to 44 of the directors’ report for the
year ended 30 June 2024.
In our opinion, the Remuneration Report of Prodigy Gold NL, for the year ended 30 June 2024, 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 Pty Ltd
Glyn O'Brien
Director
Perth, 19 August 2024
ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES
76
Prodigy Gold Annual Report 2024
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 12 August 2024.
1.
Shareholdings
(a)
Distribution of shareholders
Size of holding category (number of shares held)
Number of Holders
Ordinary Shares
1 – 1,000
631
1,001 – 5,000
884
5,001 – 10,000
474
10,001 – 100,000
1,161
100,001 and over
617
3,767
(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
938,348,574
44.31
Jetosea Pty Ltd
136,357,208
6.44
(d)
Voting rights
The voting rights attached to each class of equity security are as follows:
Ordinary shares
Each ordinary share is entitled to one vote when a poll is called, otherwise each member present at a meeting or by proxy has one vote
on a show of hands.
ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES
77
Prodigy Gold Annual Report 2024
1.
Shareholdings cont’d
(e)
20 largest shareholders – Ordinary shares
Name
Number of Ordinary
Fully Paid Shares Held
% Held of Issued
Ordinary Capital
1.
BNP PARIBAS NOMS PTY LTD
950,087,733
44.86
2.
*JETOSEA PTY LTD
136,357,208
6.44
3.
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
119,630,832
5.65
4.
BNP PARIBAS NOMS PTY LTD
85,000,010
4.01
5.
*JEMAYA PTY LTD
80,500,000
3.80
6.
ZERO NOMINEES PTY LTD
49,254,285
2.33
7.
SCINTILLA STRATEGIC INVESTMENTS LIMITED
25,000,000
1.18
8.
*PERTH SELECT SEAFOODS PTY LTD
20,133,334
0.95
9.
FILMRIM PTY LTD
16,166,666
0.76
10.
MR VINCENT ANDREW MAIOLO
16,100,000
0.76
11.
MR STEPHEN ROBERT WYLIE
15,255,000
0.72
12.
CITICORP NOMINEES PTY LIMITED
14,432,612
0.68
13.
PULSE MARKETS PTY LTD
13,800,000
0.65
14.
MR GORDON CHAN
13,018,512
0.61
15.
MIKE AND ANGIE PETERS PTY LTD
12,000,000
0.57
16.
MORSEC NOMINEES PTY LTD
10,943,451
0.52
17.
ZANYA NOMINEES PTY LTD
10,000,000
0.47
18.
MR ROGER WOODWARD IDDON & MRS HELEN CATHERINE IDDON
10,000,000
0.47
19.
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
9,833,334
0.46
20.
P G COLEMAN PTY LTD
9,000,571
0.43
1,616,513,548
76.33
* 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
ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES
78
Prodigy Gold Annual Report 2024
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 12 August 2024, the Company has 260,539,443 unlisted options on issue, which are held by 45 beneficial holders holding less than
20% of the unquoted securities.
7.
On-Market Buy Back
The Company does not have a current on-market buy back.
8.
Consolidated Entity Disclosure
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with Prodigy
Gold’s accounting policies:
Name of Entity
Type of Entity
Trustee, Partner
or Participant in
Joint Venture
Country of
Incorporation
Australian
Resident
Equity Holding
2024
%
2023
%
Parent Entity
Prodigy Gold NL
Public Listed
Partner
Australia
Australian
Controlled Entities
Rare Resources Pty Ltd(1)
Body Corporate
N/A
Australia
Australian
100
100
Australian
Tenement
Holdings Pty Ltd
Body Corporate
Partner
Australia
Australian
100
100
(1)
RARE Resources Pty Ltd was converted from a public company into a Pty Ltd during the financial year and is currently in the process of de-
registration.
Level 1, 67 Smith Street, Darwin NT 0800
www.prodigygold.com.au