Notes to the Consolidated Financial Statements for the year ended 30 June 2025 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%) 2025 $’000 (Audited) Joint venture (100%) 2024 $’000 (Audited) Deferred tax Inventories (804) (804) Right of use asset (1,087) (1,087) Interest deduction carried forward 19,479 19,479 Exploration and evaluation (2,684) (2,684) Other financial liabilities – royalty make whole 1,299 1,299 Development expenditure (27,392) (27,392) Finance lease 1,326 1,326 Employee benefits 1,007 1,007 Tax losses 29,497 29,497 Unrealised foreign exchange 440 440 Deferred tax assets 21,081 21,081 (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%) 2025 $’000 (Audited) Joint venture (100%) 2024 $’000 (Audited) Non-current assets Heavy mineral concentrate and other intermediate stockpiles – at NRV 1,141 3,155 Finished goods stockpiles – at NRV 29,581 29,560 Stores and consumables – at cost 3,130 1,989 33,852 34,704 (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 10 years Plant and equipment 2 to 10 years Motor vehicles 4 years Mining & processing infrastructure Units of production over economically recoverable reserves of the mine 56 Sheffield Resources Limited Annual Report 2025
RkJQdWJsaXNoZXIy MjE2NDg3