2011 Annual Report (3 April 2012) - Grange Resources
2011 Annual Report (3 April 2012) - Grange Resources
2011 Annual Report (3 April 2012) - Grange Resources
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<strong>2011</strong> ANNUAL REPORT<br />
75<br />
NOTE 25. DEFERRED CONSIDERATION<br />
(NON-CURRENT)<br />
31 December 31 December<br />
<strong>2011</strong> 2010<br />
$’000 $’000<br />
Deferred consideration 54,965 59,269<br />
(a) Movements in deferred consideration<br />
54,965 59,269<br />
Movements in deferred consideration<br />
are set out below:<br />
Balance at beginning of year / period 59,269 50,409<br />
Changes in estimate 230 6,678<br />
Unwinding of discount 4,983 2,182<br />
Transfers to current balance (9,517) -<br />
Balance at end of year / period 54,965 59,269<br />
The deferred consideration obligation represents a series of<br />
payments owing to the previous owners of <strong>Grange</strong> <strong>Resources</strong><br />
(Tasmania) Pty Ltd (formerly Australian Bulk Minerals (ABM))<br />
and arose from a business combination involving ABM which<br />
completed in August 2007. The terms of the obligation entitle<br />
the previous owners to 2% of the gross receipts of <strong>Grange</strong><br />
<strong>Resources</strong> (Tasmania) Pty Ltd from 1 January <strong>2012</strong> to<br />
31 December 2023.<br />
NOTE 27. PROVISIONS (NON-CURRENT)<br />
31 December 31 December<br />
<strong>2011</strong> 2010<br />
$’000 $’000<br />
Employee benefits 1,527 673<br />
Decommissioning and restoration 19,298 19,001<br />
Movements in each class of provision<br />
during the financial period, other than<br />
employee benefits, are set out below:<br />
20,825 19,674<br />
(a) Movements in decommissioning<br />
and restoration provision<br />
Balance at beginning of year / period 19,001 19,085<br />
Changes in estimate (879) (627)<br />
Unwinding of discount 1,052 543<br />
Transfer from current provisions 124 -<br />
Balance at end of year / period 19,298 19,001<br />
NOTE 26. DEFERRED TAX LIABILITIES<br />
(NON-CURRENT)<br />
31 December 31 December<br />
<strong>2011</strong> 2010<br />
$’000 $’000<br />
The balance comprises temporary<br />
differences attributable to:<br />
Trade and other receivables 277 -<br />
Inventories - 4,340<br />
Receivables 11 -<br />
Property, plant and equipment - 8,120<br />
Mine properties and development 25,655 67,554<br />
Exploration and evaluation 28,968 17,795<br />
Borrowings 682 1,018<br />
Other - 151<br />
Total deferred tax liabilities 55,593 98,978<br />
Set-off of deferred tax assets pursuant<br />
to set-off provisions (Note 19) (46,645) (26,876)<br />
Net deferred tax liabilities 8,948 72,102<br />
DirectorS’ <strong>Report</strong><br />
Financial Statements<br />
Shareholder information
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