Aeris Annual Report 2022

Aeris Resources Limited
Notes to the consolidated financial statements
30 June 2022
11. Mine properties (continued)
Impairment of non-financial assets
The consolidated entity considers annually whether there have been any indicators of impairment and tests whether or
not non-current assets have suffered an impairment. For the purposes of assessing impairment, assets are grouped at
the lowest levels for which there are separately identifiable cash flows which are largely independent of the cash flows
from other assets or groups of assets.
This grouping of assets is referred to as a Cash Generating Unit (CGU). The consolidated entity currently assesses the
Tritton Copper Operations and Cracow Gold Operations as two separate CGUs. The recoverable amount of each CGU is
determined based, where required, on fair value less costs of disposal (FVLCD). The FVLCD is calculated based on a Board
approved life of mine plan (LOM).
This requires the use of estimates and judgements in relation to a range of inputs including:
● Commodity prices;
● Exchange prices;
● Mineral Resources and Ore Reserves, and mining planning scheduling;
● Production costs; and
● Discount rates.
There were no indicators of impairment identified and no impairment recognised during the financial years ended 30
June 2022 and 30 June 2021 for either the Tritton Copper Operations CGU or Cracow Gold Operations CGU.
Accounting policy for mining assets
Mine properties represent the acquisition costs and/or accumulation of exploration, evaluation and development
expenditure in respect of areas of interest in which mining has commenced.
When further development expenditure is incurred in respect of a mine property after the commencement of production,
such expenditure is carried forward as part of the mine property only when substantial future economic benefits are
thereby established, otherwise such expenditure is classified as part of the cost of production. Mine development costs
are deferred until commercial production has been achieved, at which point the development cost of the asset will
commence amortisation.
Amortisation of mine properties is calculated using the units-of-production method which results in an amortisation
charge proportional to the depletion of the anticipated remaining life of mine production. Each item's economic life has
due regard to both its physical life limitations and to present assessments of economically recoverable Mineral Resources
and Ore Reserves of the mine property at which it is located. The annual change in Mineral Resources and Ore Reserves
driving the remaining life of mine production are accounted for prospectively when amortising existing mine
development assets.
12. Exploration and evaluation
2022 2021
$'000 $'000
Non-current assets
Exploration and evaluation - at cost 51,546 51,818
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