Aeris Annual Report 2022
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<strong>Aeris</strong> Resources Limited<br />
Notes to the consolidated financial statements<br />
30 June <strong>2022</strong><br />
2. Revenue<br />
<strong>2022</strong> 2021<br />
$'000 $'000<br />
Sales revenue 383,185 422,339<br />
Sales revenue from provisional pricing adjustments 3,372 8,529<br />
Other revenue from ordinary activities 29 422<br />
Accounting policy for revenue recognition<br />
386,587 431,290<br />
Revenue from contracts with customers<br />
The consolidated entity generates sales revenue primarily from the performance obligation to deliver goods such as<br />
copper concentrate and gold doré to the customer. Sales revenue represents the gross proceeds receivable from the<br />
customer.<br />
Copper concentrate sales<br />
For copper concentrate sales, the recognition of concentrate sales occurs when the performance obligation, being the<br />
transfer of the title of copper concentrate, is met and control of the goods transfers to the customer.<br />
Concentrate sales are initially recognised at an estimated sales value when the control of the product transfers to the<br />
customer, which in most cases is when the Holding and Title certificate is issued at the port handling and ship loading<br />
facility.<br />
The terms of the concentrate sales contracts with our offtake agreement partner contains provisional pricing<br />
arrangements whereby the final selling price for the concentrate is based on prevailing average monthly prices on a<br />
specified future period after shipment to the customer (quotation period). Adjustments to the sales price occur based on<br />
movements in quoted marked prices up to the final settlement price specified in the sales contracts. The period between<br />
provisional invoicing and the final settlement pricing is typically one to three months. Revenue on provisionally priced<br />
sales is recognised based on the estimated fair value of the total consideration receivable.<br />
The change in value of the provisionally priced receivable is based on relevant forward market prices and is included in<br />
sales revenue. Adjustments are made for variations in the metal prices, assays, weights and currency between the time<br />
control passed to the customer and the time of final invoice being issued. Mining royalties payable are presented as an<br />
operating cost.<br />
The contract with customer has no significant financing component and has no variable consideration under AASB 15<br />
Revenue from Contracts with Customers. A trade receivable is recognised (refer note 6 and note 22) when the Holding<br />
and Title Certificate is issued as this is the point in time that the consideration is unconditional because only the passage<br />
of time is required before the payment is due.<br />
Shipping is generally arranged by the customer and occurs after the control of goods transfers to the customer.<br />
Gold doré sales<br />
For gold doré sales, revenue is recognised at the point when the doré is collected by the buyer at the mine site.<br />
AERIS ANNUAL REPORT <strong>2022</strong><br />
The contract with customer has no significant financing component and has no variable consideration under AASB 15<br />
Revenue from Contracts with Customers. A trade receivable is recognised (refer note 6 and note 22) when the buyer takes<br />
possession of the gold doré as this is the point in time that the consideration is unconditional. Mining royalties payable<br />
are presented as an operating cost.<br />
Gains and losses on hedge instruments related to sales contracts are recorded in revenue when the associated instrument<br />
matures.<br />
8<br />
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