Notes to the Consolidated Financial Statements for the year ended 30 June 2024 8. Investment in joint venture (continued) Deferred tax assets and liabilities for KMS have been recognised in respect of the following items: Joint venture (100%) 2024 $’000 (Audited) Joint venture (100%) 2023 $’000 (Audited) Deferred tax Inventories (804) (56) Provisions – 156 Right of use asset (1,087) (522) Interest deduction carried forward 19,479 – Exploration and evaluation (2,684) (2,194) Prepaid expense on financing costs on royalty obligations – (35,186) Other financial liabilities – royalty make whole 1,299 33,808 Development expenditure (27,392) (12,481) Trade & other payables – 8 Finance lease 1,326 613 Employee benefits 1,007 1,021 Tax losses 29,497 11,638 Blackhole expenditure – 14 Unrealised foreign exchange 440 34 21,081 (3,147) (d) Joint venture - inventories Heavy mineral concentrate and ore stockpiles are physically measured or estimated and valued at the lower of cost and net realisable value. Net realisable value (NRV) is the estimated future sales price of the product KMS expects to realise when the product is processed and sold, less estimated costs to complete production and bring the product to sale. Stores and consumables are also valued at the lower of cost and net realisable value. KMS’ inventories are as follows: Joint venture (100%) 2024 $’000 (Audited) Joint venture (100%) 2023 $’000 (Audited) Non-current assets Heavy mineral concentrate and other intermediate stockpiles – at NRV 3,155 – Finished goods stockpiles – at NRV 29,560 – Stores and consumables – at cost 1,989 186 34,704 186 (e) Joint venture – property, plant and equipment, right of use assets and mine assets under development Property, plant and equipment Plant and equipment is stated at historical cost less accumulated depreciation and any accumulated impairment losses. Depreciation of property, plant and equipment is calculated on a straight-line basis over the estimated useful life of the assets as follows: Buildings 4 years Plant and equipment 2 to 10 years Motor vehicles 10 years 54 Annual Report 2024 Sheffield Resources Limited
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