20974 29Metals AR23 WEB V1 - Flipbook - Page 152
29Metals 2023 Annual Report
148
Consolidated Financial Statements continued
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29Metals Appendix 4E and Annual Financial Report for 29Metals Limited and its Controlled Entities for the year ended 31 December 2023
Consolidated Financial Statements
Note 6: Income and expenses
(a) Revenue
2023
2022
$’000
$’000
evenue from sale of concentrate (point in time
evenue from shippin services (over time
dŽƚĂůƌĞǀĞŶƵĞĨƌŽŵĐŽŶƚƌĂĐƚƐǁŝƚŚĐƵƐƚŽŵĞƌƐ
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dŽƚĂůƌĞǀĞŶƵĞ
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;ŝͿZĞǀĞŶƵĞĨƌŽŵĐŽŶƚƌĂĐƚƐǁŝƚŚĐƵƐƚŽŵĞƌƐďLJƚLJƉĞŽĨƉƌŽĚƵĐƚͬƐĞƌǀŝĐĞ
adjustment
opper concentrate
inc concentrate
ead concentrate
hippin revenue
dŽƚĂůƌĞǀĞŶƵĞĨƌŽŵĐŽŶƚƌĂĐƚƐǁŝƚŚĐƵƐƚŽŵĞƌƐ
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Recognition and measurement
The Group is principally en a ed in the usiness of producin ase and precious metals in the form of mineral concentrates. evenue from concentrate
sales contracts ith customers is reco nised hen control of the oods is transferred to the customer at an amount that reflects the consideration the
Group e pects to receive in e chan e for those oods at the time of transfer. The Group has enerally concluded that it is the principal in its revenue
contracts ecause it typically controls the oods efore transferrin them to the customer.
For the Group’s mineral concentrates sales not sold under ŽƐƚ/ŶƐƵƌĂŶĐĞĂŶĚ&ƌĞŝŐŚƚ (‘/&’ ncoterms the performance o li ation is the delivery of the
concentrate to customers. For the Group’s mineral concentrates sales sold under F ncoterms the Group is also responsi le for providin
frei ht shippin services and the frei ht shippin services represent separate performance o li ations.
(i) Concentrate sales
Golden Grove (GG)
The majority of GG’s sales of mineral concentrates are sold under F and allo for price adjustments ased on the mar et price at the end of the
relevant quotational period (‘YW’ determined in accordance ith the sales contract. These are referred to as provisional pricin arran ements here the
sellin price for the mineral concentrates is ased on prevailin spot prices for the contained metal(s on a specified future date after shipment to the
customer. djustments to the sales price then occur ased on movements in quoted mar et prices up to the end of the . The period et een
provisional invoicin and the end of the
may vary et een one and five months.
evenue is reco nised at the point in time hen the mineral concentrate is physically transferred onto a vessel as the majority of GG’s sales of mineral
concentrates are sold under F terms. For certain e port shipments a holdin certificate may e issued y GG upon delivery of mineral concentrates to
the GG concentrate stora e facility at the Geraldton ort here the mineral concentrates are held unencum ered and at the unconditional disposal of
the customer. The revenue is measured at the amount to hich the Group e pects to receive ein the estimate of the price e pected to e received at
the end of the
determined ased on the prevailin for ard prices.
For these provisional pricin arran ements any future chan es that occur durin the
are em edded ithin the provisionally priced trade receiva les.
Given the e posure to the commodity price these provisionally priced trade receiva les do not satisfy the cash flo characteristics test and are
su sequently measured at fair value throu h the onsolidated tatement of omprehensive ncome until the date of settlement. These su sequent
chan es in fair value are reco nised in the onsolidated tatement of omprehensive ncome for each period and presented in revenue. han es in fair
value until the end of the
are estimated y reference to updated for ard mar et prices for the metal contained in mineral concentrates and any other
relevant fair value considerations includin interest rates and credit ris adjustments. The period et een provisional invoicin and the end of the
may vary et een one and five months.
…
ealised and unrealised fair value movements on receiva les su ject to
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adjustment.
