CONTENTS FINANCIAL STATEMENTS YEAR IN REVIEW DIRECTORS’ REPORT CORPORATE DIRECTORY SHAREHOLDER INFORMATION 8. Investment in joint venture (continued) Mine properties and development Mine development costs are accumulated when economically recoverable reserves have been identified and a decision to develop has occurred. This expenditure includes all capitalised exploration and evaluation expenditure in respect of the area of interest, direct costs of construction, overheads and where applicable borrowing costs capitalised during construction. Once mining of the area can commence, the aggregated capitalised costs are classified under non-current assets as an appropriate class of property, plant and equipment. Accumulated mine development costs are depreciated on a units of production (UOP) basis over the economically recoverable reserves of the mine. KMS’ carrying amount of the non-current assets are as follows: Joint venture (100%) 2024 Property, plant and equipment $’000 (Audited) Right of use assets $’000 (Audited) Mine assets under development $’000 (Audited) Total $’000 (Audited) Non-current assets Carrying amount – at cost 268,609 104,264 269,039 641,912 Accumulated depreciation (13,360) (9,564) (242) (23,166) 255,249 94,700 268,797 618,746 Reconciliation Opening balance at the beginning of the year 22,849 1,739 383,629 408,217 Additions 10,360 101,6191 64,825 176,804 Transfer between asset classes 231,3522 – (231,352)2 – Addition to mine rehabilitation asset – – 14,188 14,188 Capitalised borrowing costs – – 37,749 37,749 Depreciation expenses (9,312) (8,658) (242) (18,212) 255,249 94,700 268,797 618,746 Note 1: KMS recognised lease liabilities relating to site power plant, product rotainers, Dry Mining Unit, haulage and logistics plant and equipment, mine site light vehicles, laboratory equipment, staff residential leases in Broome and staging area at Port of Broome. Note 2: As assets became available for use, they were transferred to plant and equipment. These assets are depreciated on a units of production (UOP) basis over the economically recoverable reserves of the mine, except in the case of assets whose useful life is shorter than the life of the mine, in which case, the straight-line method is applied. Joint venture (100%) 2023 Property, Plant and equipment $’000 (Audited) Right of use assets $’000 (Audited) Mine assets under development $’000 (Audited) Total $’000 (Audited) Non-current assets Carrying amount – at cost 26,915 2,792 383,629 413,336 Accumulated depreciation (4,066) (1,053) – (5,119) 22,849 1,739 383,629 408,217 Reconciliation Opening balance at the beginning of the year 10,572 2,099 160,960 173,631 Additions 72 – 217,455 217,527 Transfer between asset classes 14,723 – (14,723) – Modification to finance lease assets – 42 – 42 Addition to mine rehabilitation asset – – 11,541 11,541 Capitalised borrowing costs – – 8,396 8,396 Depreciation expenses (2,518) (402) – (2,920) 22,849 1,739 383,629 408,217 55 Sheffield Resources Limited Annual Report 2024
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