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PREDICTIVE DISCOVERY LIMITED — Interim / Quarterly Report 2021
Mar 11, 2021
65537_rns_2021-03-11_a9f38828-f27a-4965-8061-8bfe7d839be2.pdf
Interim / Quarterly Report
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ABN 11 127 871 877
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INTERIM FINANCIAL REPORT
FOR THE HALF-YEAR ENDED 31 DECEMBER 2020
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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 871 877
CORPORATE DIRECTORY
DIRECTORS
Mr Phillip Jackson Non-executive Chairman Mr Paul Roberts Managing Director Mr Steven Michael Non-executive Director
AUDITOR
PKF Perth
Level 4, 35 Havelock Street WEST PERTH WA 6005
Company Secretary
Mr Ian Hobson
REGISTERED OFFICE
Suite 8 110 Hay Street SUBIACO WA 6008 Telephone: +61 89388 8290
SHARE REGISTRY
Link Market Services Limited Level 4, 152 St Georges Terrace PERTH WA 6000 Telephone: +61 8 9211 6670
Email: [email protected]
Email: [email protected] Web Site: www.predictivediscovery.com.au
POSTAL ADDRESS
PO Box 1710 WEST PERTH WA 6872
SOLICITORS
HWL Ebsworth Level 20, 240 St Georges Terrace PERTH WA 6000
ASX CODE
PDI
PREDICTIVE DISCOVERY LIMITED INTERIM FNANCIAL REPORT
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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 871 877
CONTENTS
| DIRECTORS’ REPORT | 4 |
|---|---|
| CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME | 6 |
| CONSOLIDATED STATEMENT OF FINANCIAL POSITION | 7 |
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | 8 |
| CONSOLIDATED STATEMENT OF CASH FLOWS | 9 |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS | 10 |
| DIRECTORS’ DECLARATION | 15 |
| INDEPENDENT AUDITOR’S REVIEW | 16 |
| AUDITOR’S INDEPENDENCE DECLARATION | 18 |
PREDICTIVE DISCOVERY LIMITED INTERIM FNANCIAL REPORT
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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 871 877
DIRECTORS’ REPORT
Your directors present their report, together with the financial statements of Predictive Discovery Limited (the Company) and controlled entities (the Group) for the half year ended 31 December 2020.
DIRECTORS
The names of the Company’s directors in office during the half-year and until the date of this report are as below. Directors were in office for this entire period unless otherwise stated.
Mr Phillip Jackson Non-executive Chairman Mr Paul Roberts Managing Director Mr Steven Michael Non-executive Director
RESULTS
The consolidated loss after income tax of the Group for the half year after providing for income tax amounted to $1,720,063 (31 December 2019: $1,439,016).
CORPORATE
Cash Position
Predictive remains well-funded with cash of $13.7 million as at 31 December 2020.
Land Acquisitions
Located directly along strike of Kaninko and Saman, the acquisition and granting of Argo (58km[2] ) and Bokoro (100km[2] ) represent a significant strengthening of the Company’s Bankan Gold Project.
Cote D’Ivoire
Joint venture signed with Glomin Services Limited (now Tanga Resources Limited) to explore the Company’s Bocanda Permit and Issia and Tieningboue applications.
Glomin can obtain an 80% equity interest in Predictive’s Cote d’Ivoire Subsidiary (Ivoirian Resources SARL) by managing and funding exploration activities in two stages:
Stage 1: Earn an 80% interest by spending at least EUR 200,000 on the Bocanda Permit within the 12 months from agreement signature.
Stage 2: Exploration activities including, in the event that a successful discovery is made, Ore Resource estimation and completion of a Pre-Feasibility study together with grant of a Mining Lease (known as an Exploitation Permit in Cote d’Ivoire), while maintaining the properties in good stead through completion of statutory expenditure and reporting on the three properties.
If a discovery is made and Stage 2 is therefore successfully completed, the Company has the option of either contributing to 20% of all subsequent costs or diluting (Stage 3). If the Company opts to dilute and its shareholding drops below 10%, its equity will be converted to a 2% Net Smelter Return (NSR) Royalty on future gold production from mining operations on any of the properties. Glomin may, at any time, purchase from the Company half of the NSR Royalty, reducing the royalty to a 1% net smelter return royalty on such future gold production for a purchase price of US$10,000,000.
Burkina Faso
Agreement executed with Progress Minerals Inc. to consolidate the Company’s Burkina Faso assets.
The Company has issued 4,028,477 ordinary Predictive shares (valued at A$240,000) for the interest purchased in PMIBF and has entered into amended and restated Net Smelter Royalty agreements (NSR Agreements) with existing royalty holders (for a total of 2% NSR).
Under the NSR Agreements, the Company has taken responsibility for administration of the holding company’s payment of tenement rentals and completion of statutory reports on the exploration permits. Holding costs are therefore expected to be modest.
PREDICTIVE DISCOVERY LIMITED INTERIM FINANCIAL REPORT
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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 871 877
DIRECTORS’ REPORT
Annual General Meeting
All resolutions put to shareholders at the Company’s Annual General Meeting of Shareholders on 11 December 2020 were carried.
REVIEW OF OPERATIONS
Guinea
The Company’s flagship Bankan Project saw substantial work programs during the period with more than 28,000m of drilling completed as part of Bankan-1 program. The 25,000m Bankan-2 drilling program consisting of Diamond Drill (DD), Reverse Circulation (RC), and Power Auger drilling is now fully underway with four drill rigs now on site.
RC/DD drilling is focused on the 1.6km-long NE Bankan Discovery, initially testing the down-dip extent of the thick zones of gold mineralisation now known on the western side of the deposit (55m at 2.9g/t gold), then followed by shallower RC drilling both to test the full width (up to 300m) of the oxide mineralised zone and other nearby targets revealed by power auger drilling.
The deeper RC/DD drilling at NE Bankan is targeting gold mineralisation in fresh rock to vertical depths of up to 250m, following up earlier drilling which showed gold grades extending to depth.
Ongoing releases of drill results from the Bankan-2 program and subsequent resource drill-out will continue to AprilMay, culminating in a maiden JORC Resource Estimate due in the middle of 2021.
Since the NE Bankan discovery was made in April 2020, the Company has completed extensive drilling programs across the Bankan Project, substantially growing the known gold mineralisation and making a second gold discovery just 3km from the initial discovery hole.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
On 23 October 2020, the Company announced a placement to raise gross proceeds of $10.6 million. The placement was successfully completed in two tranches - 1[st] tranche on the 30 October 2020 for $9,899,976 and 2[nd] tranche for $690,025 in late November.
There were no other significant changes in the state of affairs of the Group during the financial half-year.
EVENTS SUBSEQUENT TO BALANCE SHEET DATE
On 15 February 2021, the Company announced an issue of 25 million employee option at $0.0985 expiring 5 May 2023.
There are no other matters or circumstances have arisen since the end of the half year which significantly affected or could significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial years.
AUDITOR’S INDEPENDENCE DECLARATION
A copy of the lead auditor’s independence declaration as required by Section 307c of the Corporations Act 2001 is included within the Financial Report.
Signed in accordance with a resolution of Directors:
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DIRECTOR
12 March 2021
PREDICTIVE DISCOVERY LIMITED INTERIM FINANCIAL REPORT
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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 871 877
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE HALF-YEAR ENDED 31 DECEMBER 2020
| Note Finance income Other income Employee benefits expenses Share based payments Administrative payments Foreign exchange gain/expenses Exploration expenditure impaired Share of loss of associates Exploration expenditure pre-right to tenure Gain on acquisition of exploration asset 2 Loss before income tax Income tax expense Net loss for the year Other comprehensive income Item that may be reclassified subsequently to operating result Foreign currency translation Total comprehensive loss for the year Loss attributable to: Members of the parent entity Basic loss per share (cents per share) Diluted loss per share (cents per share) |
Consolidated 31 December 2020 $ 31 December 2019 $ 2,155 5,355 20,000 - (305,054) (90,018) (682,584) - (485,321) (329,340) (143,485) (24,431) (25,260) - - (747,567) (101,197) (253,011) 683 - (1,720,063) (1,439,016) - - (1,720,063) (1,439,016) (223,374) (3,152) (1,943,437) (1,442,168) (1,943,437) (1,442,168) (0.002) (0.0042) (0.002) (0.0042) |
Consolidated 31 December 2020 $ 31 December 2019 $ 2,155 5,355 20,000 - (305,054) (90,018) (682,584) - (485,321) (329,340) (143,485) (24,431) (25,260) - - (747,567) (101,197) (253,011) 683 - (1,720,063) (1,439,016) - - (1,720,063) (1,439,016) (223,374) (3,152) (1,943,437) (1,442,168) (1,943,437) (1,442,168) (0.002) (0.0042) (0.002) (0.0042) |
|---|---|---|
| (1,439,016) - |
||
| (1,439,016) (3,152) |
||
| (1,442,168) | ||
| (1,442,168) | ||
| (0.0042) (0.0042) |
The accompanying notes form part of these financial statements
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PREDICTIVE DISCOVERY LIMITED INTERIM FINANCIAL REPORT
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 871 877
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2020
| Note Current Assets Cash and cash equivalents Trade and other receivables Total current assets Non-Current Assets Property, plant and equipment Exploration and evaluation expenditure 2 Total non-current assets Total assets Current Liabilities Trade and other payables Total current liabilities Total liabilities Net Assets Equity Issued capital 3 Reserves Accumulated losses Total Equity |
Consolidated 31 December 2020 $ 30 June 2020 $ 13,759,758 8,639,015 135,117 125,538 13,894,875 8,764,553 147,608 34,524 8,264,439 5,048,178 8,412,047 5,082,702 22,306,922 13,847,255 509,377 992,721 509,377 992,721 509,377 992,721 21,797,545 12,854,534 52,614,636 42,859,342 908,915 131,465 (31,726,006) (30,136,273) 21,797,545 12,854,534 |
Consolidated 31 December 2020 $ 30 June 2020 $ 13,759,758 8,639,015 135,117 125,538 13,894,875 8,764,553 147,608 34,524 8,264,439 5,048,178 8,412,047 5,082,702 22,306,922 13,847,255 509,377 992,721 509,377 992,721 509,377 992,721 21,797,545 12,854,534 52,614,636 42,859,342 908,915 131,465 (31,726,006) (30,136,273) 21,797,545 12,854,534 |
|---|---|---|
| 8,764,553 | ||
| 34,524 5,048,178 |
||
| 5,082,702 | ||
| 13,847,255 | ||
| 992,721 | ||
| 992,721 | ||
| 992,721 | ||
| 12,854,534 | ||
| 42,859,342 131,465 (30,136,273) |
||
| 12,854,534 |
The accompanying notes form part of these financial statements
PREDICTIVE DISCOVERY LIMITED INTERIM FINANCIAL REPORT
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| Issued Capital Accumulated Losses Foreign Currency Translation Reserve Share Based Payments Reserve Total $ $ $ $ $ CONSOLIDATED At 1 July 2019 31,491,240 (27,908,576) 43,299 255,333 3,881,296 Profit (loss) attributable to members - (1,439,016) - - (1,439,016) Other comprehensive income - - (3,152) - (3,152) Total comprehensive loss for the year - (1,439,016) (3,152) - (1,442,168) Transactions with owners in their capacity as owners: Transfer of expired options - 125,005 - (125,005) - Issue of share capital 1,948,500 - - - 1,948,500 Transaction costs (189,653) - - - (189,653) At 31 December 2019 33,250,087 (29,222,587) 40,147 130,328 4,197,975 At 1 July 2020 42,859,342 (30,136,273) 1,135 130,330 12,854,535 Profit (loss) attributable to members - (1,720,063) - - (1,720,063) Other comprehensive income - - (223,374) - (223,374) Total comprehensive loss for the year - (1,720,063) (223,374) - (1,943,437) Transactions with owners in their capacity as owners: Transfer of expired options - 130,330 - (130,330) - Issue of share capital 10,830,900 - - - 10,830,900 Share-based payments - - - 1,131,153 1,131,153 Transaction costs (1,075,606) - - - (1,075,606) At 31 December 2020 52,614,636 (31,726,006) (222,238) 1,131,153 21,797,545 The accompanying notes form part of these financial statements |
PREDICTIVE DISCOVERY LIMITEDINTERIM FINANCIAL REPORT 8 |
|---|---|
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 871 877
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE HALF-YEAR ENDED 31 DECEMBER 2020
| Note Cash flows from operating activities Interest received Receipts from customers Payments to suppliers and employees Payments for exploration expenditure Net cash (used in) operating activities Cash flows from investing activities Payments for purchase of plant and equipment Net cash outflow from investing activities Cash flows from financing activities Proceeds from issue of shares Payment for share issue costs Net cash inflow from financing activities Foreign exchange differences Net cash provided by other activities Net (decrease) /increase in cash and cash equivalents held Cash and cash equivalents at beginning of the half-year Cash and cash equivalents at the end of the half-year |
Consolidated 31 December 2020 31 December 2019 $ $ 2,155 4,278 20,000 - (789,058) (425,044) (3,975,454) (531,316) (4,742,377) (952,082) (100,745) (15,535) (100,745) (15,535) 10,590,900 1,948,500 (627,035) (122,481) 9,963,865 1,826,019 - (729) - (729) 5,120,743 857,673 8,639,015 1,173,049 13,759,758 2,030,722 |
Consolidated 31 December 2020 31 December 2019 $ $ 2,155 4,278 20,000 - (789,058) (425,044) (3,975,454) (531,316) (4,742,377) (952,082) (100,745) (15,535) (100,745) (15,535) 10,590,900 1,948,500 (627,035) (122,481) 9,963,865 1,826,019 - (729) - (729) 5,120,743 857,673 8,639,015 1,173,049 13,759,758 2,030,722 |
|---|---|---|
| (952,082) | ||
| (15,535) | ||
| (15,535) | ||
| 1,948,500 (122,481) |
||
| 1,826,019 | ||
| (729) | ||
| (729) 857,673 1,173,049 |
||
| 2,030,722 |
The accompanying notes form part of these financial statements
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PREDICTIVE DISCOVERY LIMITED INTERIM FINANCIAL REPORT
PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 871 877 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2020
NOTES TO THE FINANCIAL STATEMENTS
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Preparation
This consolidated interim financial report for the half year ended 31 December 2020 are general purpose financial statements that have been prepared in accordance with the requirements of the Corporations Act 2001 and Australian Accounting Standard AASB 134: Interim Financial Reporting, as appropriate for a profit-oriented entity. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS134: Interim Financial Reporting.
The financial statements were authorised for issue, in accordance with the resolution of directors, on 12 March 2021.
The interim financial report is intended to provide users with an update on the latest annual financial statements of Predictive Discovery Limited and controlled entities (the Group). This interim consolidated financial report does not include all the notes normally included in an annual financial report. It is therefore recommended that this interim financial report be read in conjunction with the annual financial report of the Group for the year ended 30 June 2020, together with any public announcements made during the half year. The same accounting policies and methods of valuation have been followed in this interim financial report as were applied in the most recent annual financial report.
New, revised or amending Accounting Standards and Interpretations adopted
The Group has adopted all of the new and revised Accounting Standards and Interpretations issued by the Australian Accounting Standards Board that are mandatory for the current reporting period. The adoption of these new and revised Accounting Standards and Interpretations has not resulted in a significant or material change to the Group’s accounting policies.
Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted by the Group.
PREDICTIVE DISCOVERY LIMITED INTERIM FINANCIAL REPORT
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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 871 877 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2020
| NOTE 2: DEFERRED EXPLORATION AND EVALUATION EXPENDITURE Carrying amount at beginning of year Expenditure incurred Expenditure acquired |
Consolidated 31 December 2020 $ 30 June 2020 $ 5,048,178 1,923,318 2,976,972 3,124,860 239,289 - 8,264,439 5,048,178 |
Consolidated 31 December 2020 $ 30 June 2020 $ 5,048,178 1,923,318 2,976,972 3,124,860 239,289 - 8,264,439 5,048,178 |
|---|---|---|
| 5,048,178 |
The Group has capitalised exploration expenditure of $8,264,439 (30 June 2020: $5,048,178). This amount includes costs directly associated with exploration and the purchase of exploration properties. These costs are capitalised as an exploration asset until assessment and / or drilling of the permit is complete and the results have been evaluated. These direct costs include employee remuneration, materials, permit rentals and payments to contractors. The expenditure is carried forward until such a time as the area moves into the development phase, is abandoned or sold. The ultimate recovery of the carrying value of exploration expenditure is dependent upon the successful development and commercial exploitation or, alternatively, sale of the interest in the tenements. The Directors are of the opinion that the exploration expenditure is recoverable for the amount stated in the financial report.
At 30 June 2020, the Group held 49% interest in Burkina Resources Pty Ltd, Predictive Discovery SARL and Progress Minerals SARL which was fully impaired. The Group acquired an additional 51% interest in Burkina Resources Pty Ltd, Predictive Discovery SARL and Progress Minerals SARL on the 3[rd] November 2020 for a consideration of $240,000 which was settled through a share issue. The Group valued the total assets acquired at acquisition to be $1,394. The gain in acquisition was $683, which was 49% of the net assets on acquisition.
| Consolidated 31 December 2020 $ 30 June 2020 $ NOTE 3 ISSUED CAPITAL 1,017,021,882 (30 June 2020: 823,886,255) Ordinary Shares 42,859,342 46,002,695 Share issue during the half year 10,830,900 - Share issue costs written off against issued capital (1,075,606) (3,143,353) 52,614,636 42,859,342 Shares Shares Issue Price Value No. $ $ At 1 July 2020 823,886,255 - 42,859,342 Issue of shares in Placement 1 176,785,281 $0.056 9,900,876 Issue of shares in Placement 2 12,321,869 $0.056 690,025 Issue of shares in Share Purchase Plan 4,028,477 $0.056 240,000 Transaction costs - - (1,075,606) At 31 December 2020 1,017,021,882 - 52,614,636 |
Consolidated 31 December 2020 $ 30 June 2020 $ NOTE 3 ISSUED CAPITAL 1,017,021,882 (30 June 2020: 823,886,255) Ordinary Shares 42,859,342 46,002,695 Share issue during the half year 10,830,900 - Share issue costs written off against issued capital (1,075,606) (3,143,353) 52,614,636 42,859,342 Shares Shares Issue Price Value No. $ $ At 1 July 2020 823,886,255 - 42,859,342 Issue of shares in Placement 1 176,785,281 $0.056 9,900,876 Issue of shares in Placement 2 12,321,869 $0.056 690,025 Issue of shares in Share Purchase Plan 4,028,477 $0.056 240,000 Transaction costs - - (1,075,606) At 31 December 2020 1,017,021,882 - 52,614,636 |
Consolidated 31 December 2020 $ 30 June 2020 $ 42,859,342 46,002,695 10,830,900 - (1,075,606) (3,143,353) 52,614,636 42,859,342 Issue Price Value $ $ - 42,859,342 $0.056 9,900,876 $0.056 690,025 $0.056 240,000 - (1,075,606) |
Consolidated 31 December 2020 $ 30 June 2020 $ 42,859,342 46,002,695 10,830,900 - (1,075,606) (3,143,353) 52,614,636 42,859,342 Issue Price Value $ $ - 42,859,342 $0.056 9,900,876 $0.056 690,025 $0.056 240,000 - (1,075,606) |
|---|---|---|---|
| 42,859,342 | |||
| Value $ 42,859,342 9,900,876 690,025 240,000 (1,075,606) |
|||
| 1,017,021,882 - |
52,614,636 |
PREDICTIVE DISCOVERY LIMITED INTERIM FINANCIAL REPORT
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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 871 877 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2020
NOTE 3 ISSUED CAPITAL (continued)
| Shares | Shares | Issue Price | Value | ||||
|---|---|---|---|---|---|---|---|
| No. | $ | $ | |||||
| At 1 July 2019 | 295,142,065 | - | 31,491,240 | ||||
| Issue of shares in placement | 194,850,000 | $0.01 | 1,948,500 | ||||
| Exercise of options to shares | 30,993,519 | $0.018 | 557,833 | ||||
| Rights Issue | 180,402,671 | $0.05 | 9,020,134 | ||||
| Issue of shares in placement | 122,498,000 | $0.005 | 612,490 | ||||
| Transaction costs | - | - | (770,855) | ||||
| At 30 June 2020 | 823,886,255 | - | 42,859,342 | ||||
| Options | Listed Options | Value |
Unlisted | Value | |||
| Options | |||||||
| No. | $ | No. | $ | ||||
| At 1 July 2020 | 86,431,485 | - | 1,952,500 | 130,330 | |||
| Issue of options | - | - | 33,500,000 | 1,131,153 | |||
| Options expired | - | - | (1,952,500) | (130,330) | |||
| At 31 December 2020 | 86,431,485 | - | 33,500,000 | 1,131,153 | |||
| Options | Listed Options | Value |
Unlisted | Value | |||
| Options | |||||||
| No. | $ | No. | $ | ||||
| At 1 July 2019 | 73,030,518 | - | 3,905,000 | 255,333 | |||
| Exercise of options to shares | (30,993,519) | - | - | - | |||
| Issue of Options – Free attaching | 117,425,004 | - | - | - | |||
| Options cancelled/expired | (73,030,518) | - | (1,952,500) | (125,003) | |||
| At 30 June 2020 | 86,431,485 | - | 1,952,500 | 130,330 | |||
| he options issued in the period from 1 July 2020 to | 31 | December 2020 | were valued by applying a Black-Scholes option | ||||
| ricing model taking into account the terms and conditions upon which | the options were granted. The following table | ||||||
| sts the inputs to the model for the | options: | ||||||
| Option holder | **Euroz Hartleys ** | P Roberts | P Jackson S Michael |
**Euroz Hartleys ** | |||
| Date of Issue | 30 June 2020 | 19 Nov 2020 | 19 Nov 2020 19 Nov 2020 |
11 Dec 2020 |
|||
| Number of options | 7,500,000 | 8,000,000 | 7,500,000 2,500,000 |
8,000,000 | |||
| Dividend yield (%) | Nil | Nil | Nil Nil Nil |
||||
| Expected volatility (%) | 81.4% | 100% | 100% 100% 100% |
||||
| Risk free interest rate (%) | 0.96% | 1.100% | 1.100% 1.100% 1.100% |
||||
| Exercise price ($) | $0.1800 | $0.0986 | $0.0986 $0.011 $0.112 |
||||
| Expected life of options (years) | 3 | 3 | 3 | 3 3 |
|||
| Share price at grant date ($) | $0.088 | $0.069 | $0.069 $0.069 $0.055 |
||||
| Value per option ($) | $0.03183 | $0.0343 | $0.0343 $0.0603 $0.026 |
The options issued in the period from 1 July 2020 to 31 December 2020 were valued by applying a Black-Scholes option pricing model taking into account the terms and conditions upon which the options were granted. The following table lists the inputs to the model for the options:
PREDICTIVE DISCOVERY LIMITED INTERIM FINANCIAL REPORT
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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 871 877 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2020
NOTE 3 ISSUED CAPITAL (continued)
On 30 June 2020, 7,500,000 options exercisable at a price of $0.18 expiring 30 June 2023 were issued to Euroz Hartleys. The Options will vest upon the earlier of the 6-month anniversary of the Engagement; or announcement of a proposed change of control transaction. Otherwise, the Options are exercisable at any time on or prior to the Expiry Date (Exercise Period).
On 19 November 2020, 15,500,000 options at a price of $0.0986 expiring on 5 May 2023 were issued to Paul Roberts and Philip Jackson. There are no further vesting conditions.
On 19 November 2020, 2,500,000 options at a price of $0.011 expiring on 5 May 2023 were issued to Steven Michael. There are no further vesting conditions.
On 21 December 2020, 8,000,000 options at a price of $0.112 expiring 21 December 2023 were issued as transaction cost to Euroz Hartleys. There are no further vesting conditions.
NOTE 4 SEGMENT INFORMATION
The Group has identified its operating segments based on the internal reports that are reviewed and used by the Board of Directors (chief operating decision makers) in assessing performance and determining the allocation of resources.
The Group operates as five segments, which are gold exploration and evaluation within Australia, Cote D’Ivoire, Guinea, Burkina Faso and Mali.
The Group is domiciled in Australia. Segment revenues are allocated based on the country in which the customer is located. Segment assets are allocated to countries based on where the assets are located.
| Gold | ||||||
|---|---|---|---|---|---|---|
| Corporate | Burkina | Cote | Mali | Guinea | Consolidated | |
| Faso | D’Ivoire | $ | ||||
| $ | $ | $ | $ | $ | ||
| Half Year Ended 31 December | 2020 | |||||
| Other income | 22,155 | - | - | - | - | 22,155 |
| Expenses | (1,474,306) | (70,965) | (14,982) | - | (181,966) | (1,742,218) |
| Loss for the period | (1,452,151) | (70,965) | (14,982) | - | (181,966) | (1,720,063) |
| As At 31 December 2020 | ||||||
| Current assets | 13,649,633 | 29,807 | 11,448 | - | 203,986 | 13,894,874 |
| Plant and equipment | 9,243 | - | - | - | 138,365 | 147,608 |
| Exploration expenditure | - | 239,289 | 2,601,852 | - | 5,423,298 | 8,264,439 |
| Current liabilities | (475,183) | (29,060) | (5,134) | - | - | (509,377) |
| Net Assets | 13,183,693 | 240,036 | 2,608,166 | - | 5,765,649 | 21,797,545 |
| Half Year Ended 31 December | 2019 | |||||
| Other income | 5,355 | - | - | - | - | 5,355 |
| Expenses | (1,139,114) | (31,063) | (6,078) | (3,833) | (264,283) | (1,444,371) |
| Loss for the period | (1,133,759) | (31,063) | (6,078) | (3,833) | (264,283) | (1,439,016) |
| As At 30 June 2020 | ||||||
| Current assets | 8,515,327 | 10,872 | 27,560 | 6,286 | 204,508 | 8,764,553 |
| Plant and equipment | 3,746 | - | - | - | 30,778 | 34,524 |
| Exploration expenditure | - | - | 2,541,607 | - | 2,506,571 | 5,048,178 |
| Current liabilities | (573,849) | (4,054) | (301,495) | - | (113,327) | (992,724) |
| Net Assets | 7,945,225 | 6,818 | 2,267,673 | 6,286 | 2,628,530 | 12,854,532 |
PREDICTIVE DISCOVERY LIMITED INTERIM FINANCIAL REPORT
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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 871 877 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2020
NOTE 5: CONTROLLED ENTITIES
| PERCENTAGE | PERCENTAGE | ||
|---|---|---|---|
| OWNED (%)* | OWNED (%)* | ||
| COUNTRY OF INCORPORATION | 31 DEC 2020 | 30 JUNE 2020 | |
| Subsidiaries: | |||
| Predictive Discovery Cote D’Ivoire Pty Ltd | Australia | 100 | 100 |
| Ivoirian Resources Pty Ltd | Australia | 100 | 100 |
| Gayeri Resources Pty Ltd | Australia | 100 | 100 |
| Predictive Discovery Mali Pty Ltd | Australia | 100 | 100 |
| Bougouni Resources Pty Ltd | Australia | 100 | 100 |
| Kenieba Resources Pty Ltd | Australia | 100 | 100 |
| Kita Resources Pty Ltd | Australia | 100 | 100 |
| Ivoirian Resources SARL | Cote D’Ivoire | 100 | 100 |
| Predictive Discovery Niger SARL | Niger | 100 | 100 |
| Gayeri Resources SARL | Burkina Faso | 100 | 100 |
| Predictive Discovery Mali SARL | Mali | 100 | 100 |
| Kindia Resources SARLU | Guinea | 100 | 100 |
| Mamou Resources SARLU | Guinea | 100 | 100 |
| Burkina Resources Pty Ltd | Burkina Faso | 100 | 49 |
| Predictive Discovery SARL | Burkina Faso | 100 | 49 |
| Progress Minerals SARL | Burkina Faso | 100 | 49 |
*Percentage of voting power is in proportion to ownership
NOTE 6: CONTINGENT LIABILITIES AND CONTINGENT ASSETS
In the opinion of the Directors, the Group did not have any contingencies at 31 December 2020 (30 June 2020: Nil).
NOTE 7: RELATED PARTY TRANSACTIONS
Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated.
Other than intercompany loans and remuneration of Key Management Personnel, there were no other related party transactions during the half year.
NOTE 8: EVENTS AFTER THE END OF THE REPORTING PERIOD
On 15 February 2021, the Company announced an issue of 25 million employee options at $0.0985 expiring 5 May 2023.
There are no other matters or circumstances have arisen since the end of the half year which significantly affected or could significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial years.
PREDICTIVE DISCOVERY LIMITED INTERIM FINANCIAL REPORT
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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 871 877
DIRECTORS’ DECLARATION
The directors of the Company declare that:
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�� The interim financial statements and notes, as set out on pages � to 1�, are in accordance with the Corporations Act 2001 and:
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��� comply with Australian Accounting Standard 134 and the Corporations Regulations 2001 and other mandatory professional reporting requirements; and
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��� give a true and fair view of the financial position as at 31 December 2020 and of the performance for the half� year ended on that date of the Group;
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�� In the directors' opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as� and when they become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors.
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Paul Roberts DIRECTOR 12 March 2020
PREDICTIVE DISCOVERY LIMITED INTERIM FINANCIAL REPORT
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PKF Perth
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INDEPENDENT AUDITOR’S REVIEW REPORT
TO THE MEMBERS OF PREDICTIVE DISCOVERY LIMITED
Report on the Half-Year Financial Report
Conclusion
We have reviewed the half-year financial report of Predictive Discovery Limited (the “Company”) and controlled entities (the “consolidated entity”) which comprises the consolidated statement of financial position as at 31 December 2020, 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 half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information and the directors’ declaration of the Company and the entities it controlled at 31 December 2020, or during the half year.
Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the accompanying half-year financial report of Predictive Discovery Limited is not in accordance with the Corporations Act 2001 including:
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(a) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2020 and of its performance for the half-year ended on that date; and
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(b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.
Basis for Conclusion
We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity. Our responsibilities are further described in the Auditor’s Responsibilities for the Review of the Financial Report section of our report.
Independence
We are independent of the Company in accordance with the auditor independence requirements of 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 annual financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
Level 4, 35 Havelock Street, West Perth, WA 6005 PO Box 609, West Perth, WA 6872
T: +61 8 9426 8999 F: +61 8 9426 8900 www.pkfperth.com.au
PKF Perth is a member firm of the PKF International Limited family of legally independent firms and does not accept any responsibility or liability for the actions or inactions of any individual member or correspondent firm or firms.
Liability limited by a scheme approved under Professional Standards Legislation.
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PKF Perth
Directors’ Responsibility for the Half-Year Financial Report
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The directors of the Company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with the Australian Accounting Standards and the Corporations Act 2001 and for such internal controls as the directors determine is necessary to enable the preparation of the half-year financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.
Auditor’s Responsibilities for the Review of the Financial Report
Our responsibility is to express a conclusion on the half-year financial report based on our review. ASRE 2410 requires us to conclude whether we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity’s financial position as at 31 December 2020 and its performance for the half year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporation Regulations 2001.
A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
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PKF PERTH
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SHANE CROSS PARTNER
12[TH] MARCH 2021 WEST PERTH, WESTERN AUSTRALIA
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PKF Perth
AUDITOR’S INDEPENDENCE DECLARATION
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TO THE DIRECTORS OF PREDICTIVE DISCOVERY LIMITED
In relation to our review of the financial report of Predictive Discovery Limited for the half year ended 31 December 2020, to the best of my knowledge and belief, there have been no contraventions of the auditor independence requirements of the Corporations Act 2001 or any applicable code of professional conduct.
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PKF PERTH
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SHANE CROSS PARTNER
12TH MARCH 2021 WEST PERTH, WESTERN AUSTRALIA
Level 4, 35 Havelock Street, West Perth, WA 6005 PO Box 609, West Perth, WA 6872
T: +61 8 9426 8999 F: +61 8 9426 8900 www.pkfperth.com.au
PKF Perth is a member firm of the PKF International Limited family of legally independent firms and does not accept any responsibility or liability for the actions or inactions of any individual member or correspondent firm or firms.
Liability limited by a scheme approved under Professional Standards Legislation.
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