Staatsolie Annual Report 2017

Confidence in Our Own Abilities
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Staatsolie Maatschappij Suriname N.V.
Staatsolie Maatschappij Suriname N.V.
Notes to the Consolidated financial statements for the years ended December 31, 2017 and 2016
(continued)
Notes to the Consolidated financial statements for the years ended December 31, 2017 and 2016
(continued)
Available-for-sale (AFS) financial investments
4.4 Capital Investment in joint venture
AFS financial investments include equity and debt securities. Equity investments classified as availablefor-sale
are those neither classified as held-for-trading nor designated at fair value through profit or loss.
On 14 November 2014 Staatsolie entered as a limited partner with an interest of 25% into the partnership
‘Suriname Gold Project C.V.’. Newmont Suriname LLC, a subsidiary of Newmont Mining Corporation, is
After initial measurement, AFS financial investments are subsequently measured at fair value with
the managing partner with a 75% interest in this partnership. Newmont Suriname LLC is a limited liability
unrealized gains or losses recognized as OCI until the investment is derecognized, at which time, the
company formed pursuant to the laws of the State of Delaware, United States of America.
cumulative gain or loss is recognized in other operating income or expense, or the investment is
determined The Suriname to be Gold impaired, Project at C.V. which encompasses time, the cumulative the exploration, loss is reclassified development to and the consolidated exploitation of statement the gold
of mine profit ‘Merian’, or loss which in finance is a gold costs deposit and removed located from in the the eastern OCI. The part Group of Suriname evaluates close its to AFS the financial French Guiana assets
to border. determine Construction whether of the the ability Merian and Gold intention project to (the sell them current in mine) the near began term after is still the appropriate. right of exploitation was
granted. Suriname Gold Project C.V. commenced commercial gold production on October 1, 2016.
(ii) The Financial Suriname liabilities Gold Project CV partnership is financed through monthly cash calls (capital contributions)
which is the mechanism to fund approved operating costs and capital expenditures. Each partner is
Recognition and measurement
responsible for funding the partnership for its portion based on its participating interest.
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or
loss, Monthly loans the and partnership borrowings, allocates payables, capital as appropriate. contributions All which financial is the liabilities total compensation are recognized received initially by at fair the
value partnership and, in in the exchange case of loans for selling and borrowings the partnership’s and payables, gold net production of directly attributable to transaction each partner costs. in
The proportion Group’s to financial its respective liabilities participating include trade interest. and Staatsolie’s other payables, maximum loans exposure and borrowings to loss from including its interest bank
overdrafts. in the Suriname Gold Project CV partnership equals the annual capital contributions.
The Group’s interest in the Suriname Gold Project CV is accounted for in the consolidated financial
Loans statements and borrowings using the equity method. The summarized financial information of the joint venture and
This reconciliation is the category with the most carrying relevant amount to the of Group. the investment After initial and recognition, share in the interest profit bearing of the loans JV in and the
borrowings consolidated are financial subsequently statements measured are set at out amortized below: cost using the EIR method. Gains and losses are
recognized in the consolidated statement of profit or loss when the liabilities are derecognized as well as
through the EIR amortization process. Amortized cost is calculated by taking into account As at any January discount 1,
xUS$ 1,000 2017 2016
or
2016
premium Summarized on statement acquisition of and financial fees position or costs of that Suriname are an Gold integral part of the EIR. The EIR amortization is
included Project CV: in finance costs in the consolidated statement of profit or loss. This category generally applies to
Current assets, including cash and cash equivalents $26,700 (2016:
interest-bearing loans and borrowings.
132,384 166,030 39,417
$50,488) and inventories $78,691 (2016: $55,555)
Non-current assets 1,063,955 1,067,057 876,221
Current liabilities, including accounts payable $22,125 (2016: $9,521)
m. Inventories
(69,079) (80,497) (34,666)
and due to related parties $19,053 (2016: $46,534)
Petroleum Non-current products liabilities are valued at the lower of cost and net realizable (18,037) value. (11,368) (11,432)
Partnership capital 1,109,223 1,141,222 869,540
Raw materials:
Proportion of the Group's ownership 25% 25% 25%
• Carrying Purchase amount cost of is the valued investment on weighted average method 277,306 285,306 217,385
Finished goods and work in progress:
• Cost of direct materials and labor and a proportion of manufacturing overheads based on normal
operating capacity but excluding borrowing costs
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