20974 29Metals AR23 WEB V1 - Flipbook - Page 153
2023 key
results
74
Chair letter and
CEO report
About
29Metals
Our
assets
Sustainability
& ESG Report
Mineral Resources
and Ore Reserves
Annual
Financial Report
149
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 (continued)
(a) Revenue (continued)
(i) Concentrate sales (continued)
Capricorn Copper (CC)
or domestic sales, revenue is recognised at the point in time when the mineral concentrate is delivered over the weighbridge at the receiving smelter’s
storage facility. or e port shipments, revenue is recognised at the point in time when the mineral concentrate is physically transferred onto a vessel as
these sales of mineral concentrates are sold under
terms. or certain e port shipments, a holding certificate is issued by the
upon delivery of
mineral concentrates to a storage facility at the Townsville ort where the mineral concentrates are held unencumbered and at the unconditional
disposal of the customer. The revenue is measured at the amount to which the Group e pects to receive, being the estimate of the price e pected to be
received at the end of the , determined based on the prevailing forward prices.
or these provisional pricing arrangements, any future changes that occur during the
are embedded within the provisionally priced trade receivables.
Given the e posure to the commodity price, these provisionally priced trade receivables do not satisfy the cash flow characteristics test and are
subse uently measured at fair value through the onsolidated tatement of omprehensive ncome until the date of settlement. These subse uent
changes in fair value are recognised in the onsolidated tatement of omprehensive ncome each period and presented in revenue. hanges in fair
value until the end of the , are estimated by reference to updated forward market prices for the metal contained in mineral concentrates and any
other relevant fair value considerations, including interest rate and credit risk adjustments. The period between provisional invoicing and the end of the
may vary between one and five months.
(ii) Shipping services
or
arrangements, the transaction price as determined above is allocated to the metal in concentrate and shipping services using the relative stand
alone selling price method. nder these arrangements, a portion of consideration is received from the customer at, or around, the date of shipment
under a provisional invoice. Therefore, some of the upfront consideration that relates to the shipping services yet to be provided is deferred. t is then
recognised as revenue over time using an output method being days of shipping transportation elapsed to measure progress towards complete
satisfaction of the service as this best represents the Group’s performance. This is on the basis that the customer simultaneously receives and consumes
the benefits provided by the Group as the services are being provided. The costs associated with these shipping services are also recognised over the
same period of time as incurred.
Significant accounting judgements
(i) Point of revenue recognition
Golden Grove
ontrol of the product is transferred to the customer when the mineral concentrates are physically transferred onto a vessel as this coincides with the
transfer of legal title and the risk and rewards of ownership as a majority of the GG’s sales of mineral concentrates are sold under . or certain e port
shipments, a holding certificate is issued upon delivery to a location where the mineral concentrates are held unencumbered and at the unconditional
disposal of the customer.
Capricorn Copper
or domestic sales, control of the product is transferred to the customer when the mineral concentrates are physically delivered to a location under the
customer’s control, as this coincides with the transfer of legal title and the risk and rewards of ownership. or e port shipments, control of the product is
transferred to the customer when the mineral concentrates are physically transferred onto a vessel as this coincides with the transfer of legal title and the
risk and rewards of ownership. or certain e port shipments, a holding certificate is issued upon delivery to a location where the mineral concentrates are
held unencumbered and at the unconditional disposal of the customer.
(ii) Variable consideration
evenue for GG and is initially recognised based on the most recently determined estimate of metal contained in mineral concentrates using the
e pected value approach based on initial internal assay and weight results. The Group has determined that it is highly unlikely that a significant reversal of
the amount of revenue recognised will occur due to variations in assay and weight results. ubse uent changes in the fair value based on the customer’s
final assay and weight results are recognised in revenue at the end of the .
74
