2012 Annual Report (2 April 2013) - Grange Resources
2012 Annual Report (2 April 2013) - Grange Resources
2012 Annual Report (2 April 2013) - Grange Resources
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<strong>2012</strong> ANNUAL REPORT<br />
71<br />
PAGE<br />
NOTE 21. BORROWINGS (CURRENT)<br />
<strong>2012</strong> 2011<br />
$’000 $’000<br />
Secured<br />
Finance lease liabilities (1) 13,876 11,459<br />
13,876 11,459<br />
Unsecured<br />
Bank loan - 10,000<br />
Other 450 588<br />
450 10,588<br />
14,326 22,047<br />
(1) Lease liabilities are secured as the rights to the leased assets<br />
recognised in the financial statements revert to the lessor in the event<br />
of default.<br />
NOTE 22. DEFERRED CONSIDERATION<br />
(CURRENT)<br />
<strong>2012</strong> 2011<br />
$’000 $’000<br />
Deferred consideration 7,559 10,387<br />
(a) Movements in deferred consideration<br />
7,559 10,387<br />
Balance at beginning of the year 10,387 -<br />
Payments (5,324) -<br />
Changes in estimate (5,274) (41)<br />
Unwind of discount 147 911<br />
Transfers from non-current balance 7,623 9,517<br />
Balance at end of the year 7,559 10,387<br />
Refer to Note 25 for further details on deferred consideration.<br />
NOTE 23. PROVISIONS (CURRENT)<br />
<strong>2012</strong> 2011<br />
$’000 $’000<br />
Employee benefits 6,139 4,967<br />
Decommissioning and restoration 217 235<br />
6,356 5,202<br />
NOTE 24. BORROWINGS (NON-CURRENT)<br />
<strong>2012</strong> 2011<br />
$’000 $’000<br />
Secured<br />
Finance lease liabilities (1) - 14,161<br />
Unsecured<br />
Other 8,603 8,678<br />
8,603 22,839<br />
(1) Lease liabilities are secured as the rights to the leased assets<br />
recognised in the financial statements revert to the lessor in the event<br />
of default.<br />
NOTE 25. DEFERRED CONSIDERATION<br />
(NON-CURRENT)<br />
<strong>2012</strong> 2011<br />
$’000 $’000<br />
Deferred consideration 42,027 54,965<br />
(a) Movements in deferred consideration<br />
42,027 54,965<br />
Balance at beginning of year 54,965 59,269<br />
Changes in estimate (10,054) 230<br />
Unwinding of discount 4,739 4,983<br />
Transfers to current balance (7,623) (9,517)<br />
Balance at end of year 42,027 54,965<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 and arose from a business combination which<br />
completed in August 2007. The terms of the obligation entitle the<br />
previous owners to 2% of the gross receipts of <strong>Grange</strong> <strong>Resources</strong><br />
(Tasmania) Pty Ltd from 1 January <strong>2012</strong> to 31 December 2023.<br />
Movements in each class of provision,<br />
other than employee benefits, are set out below:<br />
(a) Movements in decommissioning<br />
and restoration provision<br />
Balance at beginning of the year 235 228<br />
Changes in estimate - 131<br />
Transfers to non-current provisions (18) (124)<br />
Balance at the end of the year 217 235
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