2012 Annual Report (2 April 2013) - Grange Resources

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2012 ANNUAL REPORT
Notes to the Financial Statements (cont.)
NOTE 18. EXPLORATION & EVALUATION
2012 2011
$’000 $’000
Exploration & evaluation
properties (at cost) 109,734 96,561
Movements in exploration and evaluation
expenditure are set out below:
109,734 96,561
Balance at beginning of year 96,561 60,573
Current period expenditure 14,321 35,988
Expenditure written-off (1,148) -
Balance at end of year 109,734 96,561
The ultimate recoupment of exploration and evaluation
expenditure is dependent upon successful development and
commercial exploitation or alternatively the sale of the respective
areas of interest at an amount at least equal to book value.
During the period, the Company announced that it had appointed
Deutsche Bank as corporate advisors to assist Grange develop
its equity strategy for the Southdown Magnetite Project by looking
to sell at least a 30 per cent stake of Grange’s 70 per cent interest
in the project.
As at 31 December 2012, there is not sufficient certainty
regarding the outcome of this strategy to recognise a stake of the
group’s interest in the Southdown Project as a non-current asset
held for sale.
The Directors have reviewed the carrying values of each area of
interest (including Southdown) as at the balance date and have
concluded that they are carried forward in accordance with the
exploration and evaluation accounting policy.
NOTE 19. DEFERRED TAX ASSETS
2012 2011
$’000 $’000
The balance comprises temporary
differences attributable to:
Receivables 27 -
Property, plant and equipment 24,109 31,379
Trade and other payables 187 6,001
Employee benefits 2,358 1,948
Decommissioning and restoration 7,089 5,860
Taxation losses 1,438 -
Other 1,091 1,457
Total deferred tax assets 36,299 46,645
Set-off against deferred tax liabilities
pursuant to set-off provisions (Note 26) (36,299) (46,645)
Net deferred tax assets - -
NOTE 20. TRADE AND OTHER PAYABLES
2012 2011
$’000 $’000
Trade payables and accruals 22,674 42,183
Other payables 12,308 7,241
(a) Other payables
34,982 49,424
Other payables include accruals for annual leave. The entire
obligation is presented as current, since the Group does not have
an unconditional right to defer settlement.
(b) Risk exposure
Trade payables are non-interest bearing and are normally settled
on repayment terms between 7 and 30 days. Information about
the Group’s exposure to foreign exchange risk is provided in
Note 2.