PREDICTIVE DISCOVERY LIMITED — Interim / Quarterly Report 2022

Mar 13, 2022

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ABN 11 127 871 877

INTERIM FINANCIAL REPORT

FOR THE HALF-YEAR ENDED 31 DECEMBER 2021

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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 871 877

CORPORATE DIRECTORY

DIRECTORS

AUDITOR

Mr Simon Jackson Non-Executive Chairman Mr Paul Roberts Executive Director Mr Steven Michael Non-Executive Director Mr Andrew Pardey Managing Director

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 6000 Telephone: +61 8 6143 1840 Fax : +61 8 9321 4692 Email: info@predictivediscovery.com Website: www.predictivediscovery.com

SHARE REGISTRY

Link Market Services Limited Level 4, 152 St Georges Terrace PERTH WA 6000 Telephone: +61 8 9211 6670 Email : info@linkmarketservices.com.au

POSTAL ADDRESS

PO Box 1710 WEST PERTH WA 6872

SOLICITORS

Hamilton Locke Level 27, 152-158 St Georges Terrace PERTH WA 6000

ASX CODE

PDI

CONTENTS

CONTENTS
DIRECTORS’ REPORT	3
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME	5
CONSOLIDATED STATEMENT OF FINANCIAL POSITION	6
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	7
CONSOLIDATED STATEMENT OF CASH FLOWS	8
NOTES TO THE FINANCIAL STATEMENTS	9
DIRECTORS’ DECLARATION	16
AUDITOR’S INDEPENDENCE DECLARATION	17
INDEPENDENT AUDITOR’S REVIEW REPORT	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 2021.

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 Simon Jackson Non-Executive Chairman Appointed 19 October 2021 Mr Paul Roberts Executive Director Mr Steven Michael Non-Executive Director Mr Andrew Pardey Managing Director Mr Francis Harper Non-Executive Chairman Resigned 19 October 2021

RESULTS

The consolidated loss after income tax of the Group for the half year after providing for income tax amounted to $2,409,862 (31 December 2020: $1,720,063).

CORPORATE

Cash Position

Predictive remains well-funded with cash of $17.5 million as at 31 December 2021.

Annual General Meeting

All resolutions put to shareholders at the Company’s Annual General Meeting of Shareholders on 22 November 2021 were carried.

REVIEW OF OPERATIONS

Guinea

The Company’s flagship Bankan Project advanced very substantially in the December half of 2021. On July 1 2021, the Company reported its best intercept to date of 44m at 8.0g/t Au, leading to recognition of a deep high grade core mineralised zone at depth in the NE Bankan gold deposit.

The Company announced excellent metallurgical testwork results indicating free milling gold on 14 September 2021. Release of the maiden, JORC-compliant Mineral Resource Estimate on the NE Bankan and Bankan Creek gold deposits followed soon thereafter; an Inferred Resource totalling 72.8 million tonnes at 1.56g/t Au, containing 3.65 million ounces of gold was announced on 30 September 2021.

Extensive drilling programs continued on the Bankan project throughout the December half year with a total of 34,337m completed in 920 drill holes, including 9,646m of diamond, 12,233m of air core and 12,458m of power auger drilling.

The deeper diamond drilling has shown that the high-grade core gold mineralised zone continues to at least 500m below surface and remains open at depth. The shallow auger and aircore holes have identified a series of gold prospects across the 356km[2] Bankan project area with excellent shallow gold intercepts including 28m at 12.8g/t Au from the SW Bankan prospect and 31m at 1.9 g/t Au (to end of hole) from the 800W prospect. Both prospects are located within 2 km of the NE Bankan deposit.

The Company also undertook baseline environmental and social studies on the Bankan project area.

Compliance Statement

Predictive confirms that it is not aware of any new information or data that materially affects the exploration results or mineral resource included in any original ASX announcement and all material assumptions and technical parameters underpinning the results and estimates continue to apply and have not materially changed.

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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 871 877

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

There were no significant changes in the state of affairs of the Group during the financial half-year.

EVENTS SUBSEQUENT TO BALANCE SHEET DATE

The impact of the Coronavirus (COVID-19) pandemic is ongoing and it is not practicable to estimate the potential impact, positive or negative, after the reporting date. The situation is rapidly developing and is dependent on measures imposed by the Australian Government and other countries, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided.

The following options converted to shares at the following exercise prices at the following dates:

• 196,988 options for $0.018 per share on the 7[th] of January 2022

• 1,240,000 options for $0.018 per share on the 24[th] of January 2022

• 6,440,000 options for $0.0986 per share on 10[th] of February 2022

• 250,000 options for $0.018 per share on 17th of February 2022

• 2,000,000 options for 1,167,582 shares at $0.0986 per share on 17th of February 2022

On the 9[th] of March 2022, the Company announced that Executive Director Paul Roberts will be retiring from the board in June 2022.

There are no 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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Andrew Pardey Managing Director

• 14 March 2022

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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 2021

Note Finance income Other income Employee benefits expenses Share based payments Administrative payments 2 Depreciation of fixed asset Foreign exchange gain/(loss) Exploration expenditure impaired Exploration expenditure pre-right to tenure VAT expense 10 Movement in provisions 3 Gain on acquisition of exploration asset 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 2021 $ 31 December 2020 $ 2,656 2,155 10,000 20,000 (313,194) (305,054) (327,237) (682,584) (1,057,504) (485,321) (76,409) - 1,453,435 (143,485) - (25,260) (852,070) (101,197) (346,935) (902,604) - - 683 (2,409,862) (1,720,063) - - (2,409,862) (1,720,063) (132,548) (223,374) (2,542,410) (1,943,437) (2,542,410) (1,943,437) (0.002) (0.002) (0.002) (0.002)	Consolidated 31 December 2021 $ 31 December 2020 $ 2,656 2,155 10,000 20,000 (313,194) (305,054) (327,237) (682,584) (1,057,504) (485,321) (76,409) - 1,453,435 (143,485) - (25,260) (852,070) (101,197) (346,935) (902,604) - - 683 (2,409,862) (1,720,063) - - (2,409,862) (1,720,063) (132,548) (223,374) (2,542,410) (1,943,437) (2,542,410) (1,943,437) (0.002) (0.002) (0.002) (0.002)
		(1,720,063) -
		(1,720,063) (223,374)
		(1,943,437)
		(1,943,437)
		(0.002) (0.002)

The accompanying notes form part of these financial statements

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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 871 877

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2021

Note Current Assets Cash and cash equivalents Trade and other receivables Total current assets Non-Current Assets Property, plant and equipment 4 Exploration and evaluation expenditure 5 Total non-current assets Total assets Current Liabilities Trade and other payables 6 Total current liabilities Total liabilities Net Assets Equity Issued capital 7 Reserves Accumulated losses Total Equity	Consolidated 31 December 2021 $ 30 June 2021 $ 17,476,397 22,729,169 199,632 232,836 17,676,029 22,962,005 638,868 321,176 24,530,274 15,505,090 25,169,142 15,826,266 42,845,171 38,788,271 1,970,361 2,496,890 1,970,361 2,496,890 1,970,361 2,496,890 40,874,810 36,291,381 77,731,207 71,376,018 2,138,523 1,543,710 (38,994,920) (36,628,347) 40,874,810 36,291,381	Consolidated 31 December 2021 $ 30 June 2021 $ 17,476,397 22,729,169 199,632 232,836 17,676,029 22,962,005 638,868 321,176 24,530,274 15,505,090 25,169,142 15,826,266 42,845,171 38,788,271 1,970,361 2,496,890 1,970,361 2,496,890 1,970,361 2,496,890 40,874,810 36,291,381 77,731,207 71,376,018 2,138,523 1,543,710 (38,994,920) (36,628,347) 40,874,810 36,291,381
		22,962,005
		321,176 15,505,090
		15,826,266
		38,788,271
		2,496,890
		2,496,890
		2,496,890
		36,291,381
		71,376,018 1,543,710 (36,628,347)
		36,291,381

The accompanying notes form part of these financial statements

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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 871 877

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2021

CONSOLIDATED At 1 July 2020 Profit (loss) attributable to members Other comprehensive income Total comprehensive loss for the year Transactions with owners in their capacity as owners: Transfer of expired options Issue of share capital Share-based payments Transaction costs At 31 December 2020 At 1 July 2021 Profit (loss) attributable to members Other comprehensive income Total comprehensive loss for the year Transactions with owners in their capacity as owners: Transfer of lapsed options Transfer from exercise of options Issue of share capital Share-based payments Transaction costs At 31 December 2021	Issued Capital Accumulated Losses Foreign Currency Translation Reserve Share Based Payments Reserve Total $ $ $ $ $ 42,859,342 (30,136,273) 1,135 130,330 12,854,535 - (1,720,063) - - (1,720,063) - - (223,374) - (223,374)
	- (1,720,063) (223,374) - (1,943,437)
	- 130,330 - (130,330) - 10,830,900 - - - 10,830,900 - - - 1,131,153 1,131,153 (1,075,606) - - - (1,075,606)
	52,614,636 (31,726,006) (222,238) 1,131,153 21,797,545
	71,376,018 (36,628,347) 2,084 1,541,627 36,291,381 - (2,409,862) - - (2,409,862) - - (132,548) - (132,548)
	- (2,409,862) (132,548) - (2,542,410)
	- 33,882 - (33,882) - 9,407 (9,407) - 7,262,146 - - - 7,262,146 (443,413) - - 770,650 327,237 (463,544) - - - (463,544)
	77,731,207 (38,994,920) (130,465) 2,268,988 40,874,810

The accompanying notes form part of these financial statements

PREDICTIVE DISCOVERY LIMITED INTERIM FINANCIAL REPORT

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CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE HALF-YEAR ENDED 31 DECEMBER 2021

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 Proceeds from exercise of options 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 2021 31 December 2020 $ $ 2,656 2,155 10,000 20,000 (1,659,114) (789,058) (10,010,815) (3,975,454) (11,657,273) (4,742,377) (394,101) (100,745) (394,101) (100,745) 7,094,410 10,590,900 167,736 - (463,544) (627,035) 6,798,602 9,963,865 - - - - (5,252,772) 5,120,743 22,729,169 8,639,015 17,476,397 13,759,758	Consolidated 31 December 2021 31 December 2020 $ $ 2,656 2,155 10,000 20,000 (1,659,114) (789,058) (10,010,815) (3,975,454) (11,657,273) (4,742,377) (394,101) (100,745) (394,101) (100,745) 7,094,410 10,590,900 167,736 - (463,544) (627,035) 6,798,602 9,963,865 - - - - (5,252,772) 5,120,743 22,729,169 8,639,015 17,476,397 13,759,758
		(4,742,377)
		(100,745)
		(100,745)
		10,590,900 - (627,035)
		9,963,865
		-
		- 5,120,743 8,639,015
		13,759,758

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 FINANCIAL STATEMENTS

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Preparation

This consolidated interim financial report for the half year ended 31 December 2021 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 14 March 2022.

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 2021, 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 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.

NOTE 2: ADMINISTRATIVE EXPENSES Legal, professional and consultancy fees Advertising and marketing Compliance fees Recruitment fees IT & telecommunication expenses Travel and accommodation fees Insurance Other expenses	Consolidated 31 December 2021 $ 31 December 2020 $ 475,342 162,239 102,305 99,436 64,019 59,858 60,602 - 50,694 8,674 45,264 3,233 41,699 14,181 217,579 137,700 1,057,504 485,321	Consolidated 31 December 2021 $ 31 December 2020 $ 475,342 162,239 102,305 99,436 64,019 59,858 60,602 - 50,694 8,674 45,264 3,233 41,699 14,181 217,579 137,700 1,057,504 485,321
		485,321

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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 871 877

NOTE 3: MOVEMENT IN PROVISIONS Provision for foreign indirect taxes	Consolidated 31 December 2021 $ 31 December 2020 $ 902,604 - 902,604 -	Consolidated 31 December 2021 $ 31 December 2020 $ 902,604 - 902,604 -
		-

The provision for foreign indirect taxes is in respect of the Company’s tenements held in Guinea. At 30 June 2021, the value added tax (VAT) for prior periods up to December 2020 was disclosed as a contingent liability as the magnitude of this liability could not be reliably determined, pending formal assessment by the Guinea tax authorities. Subsequently, this liability was confirmed at $243,385 and fully paid during the half-year period to 31 December 2021.

In addition, a VAT provision of $659,219 for the period from 1 January to 30 November 2021 has been made based on an initial assessment of the tax liability by independent tax advisors in Guinea. The total provision for foreign indirect taxes at 31 December 2021 amounts to $966,378 (note 6).

NOTE 4: PROPERTY, PLANT AND EQUIPMENT Balance at the beginning of the period Additions Disposals Depreciation expense NOTE 5: EXPLORATION AND EVALUATION EXPENDITURE Carrying amount at beginning of year Expenditure incurred Expenditure acquired Impairment of capitalised exploration Foreign exchange differences	Consolidated 31 December 2021 $ 30 June 2021 $ 321,176 34,524 394,101 347,181 - - (76,409) (60,529) 638,868 321,176 Consolidated 31 December 2021 $ 30 June 2021 $ 15,505,090 5,048,178 8,155,825 12,709,855 - 239,289 - (2,492,232) 869,359 - 24,530,274 15,505,090	Consolidated 31 December 2021 $ 30 June 2021 $ 321,176 34,524 394,101 347,181 - - (76,409) (60,529) 638,868 321,176 Consolidated 31 December 2021 $ 30 June 2021 $ 15,505,090 5,048,178 8,155,825 12,709,855 - 239,289 - (2,492,232) 869,359 - 24,530,274 15,505,090
		15,505,090

The Group has capitalised exploration expenditure of $24,530,274 (30 June 2021: $15,505,090). 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.

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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 871 877

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||||||
|---|---|---|---|---|
|Consolidated|
|31 December 2021|30 June|
|$|2021|
|$|
|NOTE 6: TRADE AND OTHER PAYABLES|
|Trade and other payables|1,003,983|1,883,427|
|Foreign indirect tax provision|[1]|966,378|613,463|
|1,970,361|2,496,890|
|1 Refer to note 3|
|Consolidated|
|31 December|30 June|
|2021|2021|
|$|$|
|NOTE 7: ISSUED CAPITAL|
|1,365,132,612 (30 June 2021: 1,268,491,755) Ordinary Shares|76,838,685|46,002,695|
|Share issue during the period|7,262,146|30,835,990|
|Share issue costs written off against issued capital|(906,962)|(5,462,667)|
|77,731,207|71,376,018|
|Shares|Shares|Issue Price|Value|
|No.|$|$|
|-|
|At 1 July 2021|1,268,491,755|71,376,018|
|Issue of shares in Placement 1|81,580,127|$0.08|6,526,410|
|Issue of shares in Placement 2|8,000,000|$0.071|568,000|
|Issue of shares from exercise of options|6,556,471|$0.018|118,016|
|Issue of shares from exercise of options|504,259|$0.0986|49,720|
|Transaction costs|-|-|(906,963)|
|At 31 December 2021|1,365,132,612|-|77,731,207|
|Shares|Shares|Issue Price|Value|
|No.|$|$|
|At 1 July 2020|823,886,255|46,002,695|
|Issue of shares in placement - Tranche 1|176,785,281|$0.056|9,899,976|
|Issue of shares to acquire 51% PM SARL|4,028,477|$0.060|240,000|
|Issue of shares in placement - Tranche 2|12,321,869|$0.056|690,025|
|Exercise of options to shares|1,800,000|$0.018|32,400|
|Issue of shares – Capital raising|249,669,873|$0.080|19,973,589|
|Transaction costs|-|-|(5,462,667)|
|At 30 June 2021|1,268,491,755|-|71,376,018|
|Options|Listed Options|Value|Unlisted|Value|
|Options|
|No.|$|No.|$|
|At 1 July 2021|95,131,485|-|58,500,000|1,541,627|
|Reclassification of prior year options|(10,500,000)|-|10,500,000|-|
|Options lapsed|(7,000,000)|(33,882)|
|Exercise of options to shares|(6,556,471)|-|(504,259)|(9,405)|
|Issue of options|-|-|10,500,000|597,671|
|Vesting from prior year|-|-|-|172,976|
|At 31 December 2021|78,275,014|-|63,995,740|2,268,988|
|PREDICTIVE DISCOVERY LIMITED|INTERIM FINANCIAL REPORT|11|

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PREDICTIVE DISCOVERY LIMITED INTERIM FINANCIAL REPORT

PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 871 877

NOTE 7: ISSUED CAPITAL (Continued)

Options At 1 July 2020 Issue of options Exercise of options to shares Options cancelled/expired At 30 June 2021	Listed Options Value Unlisted Options Value No. $ No. $ 86,631,485 - 9,452,500 130,330 10,500,000 - 51,000,000 1,541,627 (1,800,000) - - - - - (1,952,500) (130,330)
	95,131,485 - 58,500,000 1,541,627

The options issued in the period from 1 July 2021 to 31 December 2021 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:

1. On 28 July 2021, 8,000,000 options at a price of $0.14 expiring 28 July 2024 were issued as part of the longterm employee incentive plan. There are no further vesting conditions.

Option holder Date of Issue Number of options Dividend yield (%) Expected volatility (%) Risk free interest rate (%) Exercise price ($) Expected life of options (years) Share price at grant date ($) Value per option ($)	Consultant
	09/07/2021 8,000,000 Nil 100% 0.40% $0.14 3 $0.10 $0.055

1. On 8 November 2021, 2,500,000 options at a price of $0.2910 expiring 8 November 2024 were issued as part of the long-term employee incentive plan. The vesting condition is for the employee to remain in employment with the Company up to 1 April 2022.

Option holder Date of Issue Number of options Dividend yield (%) Expected volatility (%) Risk free interest rate (%) Exercise price ($) Expected life of options (years) Share price at grant date ($) Value per option ($)	Consultant
	08/11/2021 2,500,000 Nil 100% 0.40% $0.2910 3 $0.22 $0.123

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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 871 877

NOTE 8: 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 four segments, which are gold exploration and evaluation within Australia, Cote D’Ivoire, Guinea, Burkina Faso.

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.

Half Year Ended 31 December 2021 Other income Expenses/FX differences Loss for the period At 31 December 2021 Current assets Plant and equipment Exploration expenditure Intercompany loans Current liabilities Net Assets Half Year Ended 31 December 2020 Other income Expenses/FX differences Loss for the period At 30 June 2021 Current assets Plant and equipment Exploration expenditure Intercompany loans Current liabilities Net Assets	Gold Corporate $ Burkina Faso $ Cote D’Ivoire $ Guinea $ Consolidated $ 12,656 - - - 12,656 (773,285) (147,512) 9,009 (1,510,729) (2,431,527)
	(760,629) (147,512) 9,009 (1,510,729) (2,409,862)
	17,312,193 49,733 46,013 268,090 17,676,029 6,764 - - 632,105 638,869 - 239,289 - 24,290,985 24,530,274 27,160,303 (538,491) (164,323) (26,457,489) - (262,844) (25,056) (29,587) (1,652,876) (1,970,363)
	44,216,416 (274,525) (147,897) (2,919,184) 40,874,810
	22,155 - - - 22,155 (1,474,306) (70,965) (14,982) (181,966) (1,742,218)
	(1,452,151) (70,965) (14,982) (181,966) (1,720,063)
	21,026,381 27,892 16,672 1,891,060 22,962,005 6,675 - - 314,502 321,177 - 239,289 - 15,265,801 15,505,090 16,860,670 (200,681) (160,423) (16,499,566) - (212,617) (25,056) (9,009) (2,250,209) (2,496,891)
	37,681,109 (41,444) (152,760) (1,278,412) 36,291,381

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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 871 877

NOTE 9: CONTROLLED ENTITIES

		PERCENTAGE	PERCENTAGE
	COUNTRY OF	**OWNED (%) ***	**OWNED (%) ***
	INCORPORATION	31 DEC 2021	30 JUNE 2021
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 Resources 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%
Burkina Resources Pty Ltd(ii)	Australia	100%	100%
Tinkisso Pty Ltd	Australia	100%	100%
Predictive Discovery SARL(ii)	Cote D’Ivoire	100%	100%
Ivoirian Resources SARL	Cote D’Ivoire	100%	100%
Predictive Discovery Niger SARL	Niger	100%	100%
Gayeri Resources SARL	Burkina Faso	100%	100%
Burkina Resources SARL(ii)	Burkina Faso	100%	100%
Birrimian BV SARL(ii)	Burkina Faso	100%	100%
Sebba Resources SARL(ii)	Burkina Faso	100%	100%
Progress Minerals SARL(ii)	Burkina Faso	100%	100%
Predictive Discovery Mali SARL	Mali	100%	100%
Kindia Resources SARLU	Guinea	100%	100%
Mamou Resources SARLU	Guinea	100%	100%
Tinkisso Resources SARLU	Guinea	100%	100%
Birrimian Pty Ltd(ii)	British Virgin Islands	100%	100%
PMI Burkina Faso (BVI) Inc(ii)	British Virgin Islands	100%	100%
BF Progress (BVI) Inc(ii)	British Virgin Islands	100%	100%

*Percentage of voting power is in proportion to ownership

NOTE 10: CONTINGENT LIABILITIES AND CONTINGENT ASSETS Contingent Assets

On 20 May 2021, the Company swapped its 23.5% contributing equity in Cote D’Ivoire for an 11% free carried equity and deferred consideration of 10 million performance shares in Turaco Gold Limited. These performance shares convert to ordinary shares upon certain milestones:

• 3,500,000 performance shares to convert to ordinary shares upon the announcement of a 500,000oz reported Mineral Resource above 1.5g/t of gold being defined on any of the Tenements which is prepared and reported in accordance with the JORC Code before the applicable Expiry date.

• 6,500,000 performance shares to convert to ordinary shares upon the announcement of a 1,000,000oz reported Mineral Resource above 1.5g/t of gold being defined on any of the Tenements which is prepared and reported in accordance with the JORC Code before the applicable Expiry date.

As the timing of these milestones cannot be reliably estimated, the value of the deferred consideration is $nil as at 31 December 2021.

PREDICTIVE DISCOVERY LIMITED INTERIM FINANCIAL REPORT

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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 871 877

NOTE 10: CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Contingent Assets (continued)

According to Guinean tax law, value added tax (VAT) paid in relation to the Company’s Guinea tenements may be recovered from the Guinea tax authorities if these tenements progress to the development phase. No asset has been recognised in the Consolidated Statement of Financial Position as there is currently no certainty that these tenements will reach the development phase or that the total VAT will be fully recovered in this event. However, a contingent asset exists of $773,515 at 31 Dec 2021 (June 2021: $426,580) relating to total VAT paid to date. A total of $346,935 VAT was paid to the Guinea tax authorities during the half-year period to 31 December 2021 which was expensed in the Statement of Comprehensive Income.

Contingent Liabilities

On acquisition of a 100% interest of PMI BF Holdings Inc, the company entered into an Amended and Restated Net Smelter Return (NSR) royalty agreements dated 3 November 2020 in which the company has obligations for payments and obligations for a 2% NSR over the Burkina Faso properties.

NOTE 11: 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 12: EVENTS AFTER THE END OF THE REPORTING PERIOD

The impact of the Coronavirus (COVID-19) pandemic is ongoing and it is not practicable to estimate the potential impact, positive or negative, after the reporting date. The situation is rapidly developing and is dependent on measures imposed by the Australian Government and other countries, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided.

The following options converted to shares at the following exercise prices at the following dates:

• 196,988 options for $0.018 per share on the 7[th] of January 2022

• 1,240,000 options for $0.018 per share on the 24[th] of January 2022

• 6,440,000 options for $0.0986 per share on 10[th] of February 2022

• 250,000 options for $0.018 per share on 17th of February 2022

• 2,000,000 options for 1,167,582 shares at $0.0986 per share on 17th of February 2022

On the 9th of March 2022, the Company announced that Executive Director Paul Roberts will be retiring from the board in June 2022.

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:

1. The interim financial statements and notes, as set out on pages 5 to 16, are in accordance with the Corporations Act 2001 and:

2. (a) comply with Australian Accounting Standard 134 and the Corporations Regulations 2001 and other mandatory professional reporting requirements; and

3. (b) give a true and fair view of the financial position as at 31 December 2021 and of the performance for the half year ended on that date of the Group;

4. 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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Andrew Pardey Managing Director 14 March 2022

PREDICTIVE DISCOVERY LIMITED INTERIM FINANCIAL REPORT

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PKF Perth

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AUDITOR’S INDEPENDENCE DECLARATION

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 2021, 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

SHANE CROSS PARTNER

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14 MARCH 2022 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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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 accompanying 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 2021, 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 2021, 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:

• (a) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2021 and of its performance for the half-year ended on that date; and

• (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

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Directors’ Responsibility for the Half-Year Financial Report

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 2021 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

14 MARCH 2022 WEST PERTH, WESTERN AUSTRALIA

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