Aeris Annual Report 2022
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
<strong>Aeris</strong> Resources Limited<br />
Notes to the consolidated financial statements<br />
30 June <strong>2022</strong><br />
12. Exploration and evaluation (continued)<br />
Reconciliations<br />
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out<br />
below:<br />
Exploration<br />
and<br />
evaluation<br />
$'000<br />
Balance at 1 July 2020 28,083<br />
Additions through business combinations 16,250<br />
Expenditure during the year 7,449<br />
Transfers from property, plant and equipment (note 10) 36<br />
Balance at 30 June 2021 51,818<br />
Expenditure during the year 22,207<br />
Impairment of assets (4,349)<br />
Transfers to mine properties (note 11) (18,130)<br />
Balance at 30 June <strong>2022</strong> 51,546<br />
Accounting policy for exploration and evaluation assets<br />
Exploration and evaluation expenditure is carried forward in the financial statements, in respect of areas of interest for<br />
which the rights of tenure are current and where:<br />
(i) Such costs are expected to be recouped through successful development and exploitation of the area of interest, or<br />
alternatively, by its sale; or<br />
(ii) Exploration and/or evaluation activities in the area of interest have not yet reached a stage which permits a<br />
reasonable assessment of the existence or otherwise of economically recoverable ore reserves and mineral<br />
resources and while active and significant operations in, or in relation to, the area are continuing.<br />
Exploration expenditure incurred that does not satisfy the policy stated above is expensed in the year in which it is<br />
incurred. Exploration expenditure that has been capitalised which no longer satisfies the policy stated above is written<br />
off in the year in which that decision is made.<br />
Upon commencement of mining activities, deferred exploration and development expenditure is reclassified to mine<br />
properties and then amortised in accordance with the accounting policy for mine properties.<br />
The net carrying value of each area of interest is reviewed regularly and, to the extent to which this value exceeds its<br />
recoverable value, that excess is provided for or written off in the year in which this is determined.<br />
During the year an impairment expense of $4.349 million (2021: $nil) was recognised against the Torrens Project,<br />
following a change in focus in the operations following the proposed Round Oak Minerals acquisition. The carrying value<br />
has been written down to fair value, less costs of disposal, based on comparable transactions.<br />
19<br />
ADVANCING AERIS<br />
95
Change language