INSTRUCTIONS - Realview

NOTES TO THEFINANCIAL STATEMENTSFor the year ended 30 June 2009Note 8 Significant itemsSignificant items are those items where their nature or amount is considered material to the financial report. Such itemsincluded within the consolidated results for the period are detailed below.consolidatedparent entity2009 2008 2009 2008$’000 $’000 $’000 $’000Included within net realised/unrealised gains on derivativesNet realised/unrealised gains on gold put options 1,515 16,834 1,515 16,834Included within corporate costsRedundancy payments (3,877) – (3,877) –Restructuring provisions (1,957) – (1,957) –(5,834) – (5,834) –Asset impairment write downsOpen pit mine development (16,904) – (16,904) –Southern Cross assets (40,488) – (40,488) –Capitalised exploration (8,650) – (8,650) –(66,042) – (66,042) –Included within unrealised loss on available-for-sale assetsWrite down of listed investments to fair value (6,192) (4,876) (6,192) (4,876)Total significant items (76,553) 11,958 (76,553) 11,958Redundancy paymentsDuring the period a review of corporate and exploration overhead costs gave rise to an organisational restructure, whichresulted in redundancies. These costs are one-off costs related to the restructure of the corporate functions and associatedredundancy expenses.Restructuring provisionRepresents provisions raised during the period for positions identified as redundant as at 30 June 2009 at Southern Crossoperations as a consequence of the strategic review completed in June 2009. These amounts are not included in the“redundancy payments” disclosed above. In addition, certain demobilisation costs associated with cessation of open pitmining at Southern Cross operations were provided for at 30 June 2009.Open pit mine developmentCapitalised expenditure associated with mine development and infrastructure to support mining of open pits at SouthernCross and Leonora was written off as an impairment at 31 December 2008. As a result of the strategic review completed inJune 2009, all open pit mining ceased at Southern Cross in July and this gave rise to additional write-offs as at 30 June2009. The write-off of open pit development expenditure is reflected in the depreciation and amortisation expense.Impairment write down of Southern Cross assetsAs at 30 June 2009, an impairment write down was taken on Southern Cross assets. The impairment write down at 30 June2009 was driven by a reduction in future estimated net cash flows from the Southern Cross operations cash-generating unitas a result of the cessation of open pit mining. The revised cash flow estimates no longer supported full recovery of thecarrying value of the Southern Cross cash-generating unit. Substantial net cash flows from future open pit operations atSouthern Cross were previously included in the business plan and provided support for the carrying value of assets. Theimpairment write down of Southern Cross assets is mainly reflected in the depreciation and amortisation expense.Capitalised exploration written offExploration expenditure capitalised in relation to open pit operations at Southern Cross and Leonora operations that are nolonger part of the business plans were written off as part of the open pits impairment as at 31 December 2008. As at 30June 2009 capitalised exploration at Nevoria was written off as part of the impairment review. The write-off of capitalisedexploration is reflected in the depreciation and amortisation expense.68