20974 29Metals AR23 WEB V1 - Flipbook - Page 175
2023 key
results
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Chair letter and
CEO report
About
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Our
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Sustainability
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Mineral Resources
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Annual
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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 23: Provisions (continued)
Recognition and measurement
▪
▪
▪
rovisions are recognised hen
the roup has a present legal or constructive o ligation as a result of past events
it is pro a le that an outflo of resources ill e re uired to settle the o ligation and
the amount can e relia ly estimated.
here there are a num er of similar o ligations the li elihood that an outflo
ill e re uired in settlement is determined y considering the class of
o ligations as a hole. provision is recognised even if the li elihood of an outflo
ith respect to any one item included in the same class of o ligations
may e small.
rovisions are measured at the present value of the expenditures expected to e re uired to settle the o ligation using a pre tax discount rate that
reflects current mar et assessments of the time value of money and the ris s specific to the o ligation.
The increase in the provision due to the passage of time is recognised as an interest expense.
Mine Rehabilitation, Restoration and Dismantling Obligations
rovisions are made for the estimated cost of reha ilitation restoration and dismantling relating to areas distur ed during the mine’s operations up to the
reporting date ut not yet reha ilitated. rovision has een made in full for all the distur ed areas at the reporting date ased on current estimates of costs
to reha ilitate such areas discounted to their present value ased on expected future cash flo s. The estimated cost of reha ilitation includes the current
cost of recontouring top soiling and revegetation to meet legislative re uirements. hanges in estimates are dealt ith on a prospective asis as they arise.
ncertainty exists as to the amount of reha ilitation o ligations that ill e incurred due to the impact of changes in environmental legislation and many
other factors including future developments changes in technology price increases and changes in interest rates. The amount of the provision relating
to mine reha ilitation restoration and dismantling o ligations is recognised at the commencement of the mining pro ect and or construction of the
assets to date here a legal or constructive o ligation exists at that time.
The provision is recognised as a lia ility separated into current estimated costs arising ithin months and non current components ased on the
expected timing of these cash flo s. corresponding asset is included in mine properties only to the extent that it is pro a le that future economic
enefits associated ith the restoration expenditure ill flo to the entity other ise a corresponding expense is recognised in the onsolidated
tatement of omprehensive ncome.
t each reporting date the reha ilitation lia ility is remeasured in line ith changes in discount rates and the expected timing or amounts of the costs to
e incurred. eha ilitation restoration and dismantling provisions are ad usted for changes in estimates. d ustments to the estimated amount and
timing of future reha ilitation and restoration cash flo s are a normal occurrence in light of the significant udgements and estimates involved. hanges
in the lia ility relating to mine reha ilitation restoration and dismantling o ligations are added to or deducted from the related asset other than the
un inding of discount on provisions hich is recognised as a finance cost in the onsolidated tatement of omprehensive ncome. hanges to
capitalised costs result in an ad ustment to future depreciation charges.
Employee benefits
(i) Short-term employee benefits
ia ilities for ages and salaries including non monetary enefits and other short term enefits expected to e settled ithin
months of the
reporting date are recognised in respect of employees’ services up to the reporting date. They are measured at the amounts expected to e paid hen
the lia ilities are settled.
(ii) Long-term employee benefits
The lia ility for long term employee enefits including long service leave is recognised and measured as the present value of expected future payments to e
made in respect of services provided y employees up to the reporting date using the pro ected unit credit method. onsideration is given to future expected
age and salary levels experience of employee departures and periods of service. xpected future payments are discounted using mar et yields at the
reporting date on high uality corporate onds ith terms to maturity and currencies that match as closely as possi le the estimated future cash outflo s.
(iii) Termination benefits
Termination enefits are expensed at the earlier of hen the roup can no longer ithdra the offer of those enefits. f enefits are not expected to e
settled holly ithin months of the reporting date they are discounted.
(iv) Incentive plans
provision is recognised for the amount expected to e paid under short term or long term incentive plans if the roup has a present legal or
constructive o ligation to pay this amount as a result of past service provided y the employee and the o ligation can e estimated relia ly.
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