20974 29Metals AR23 WEB V1 - Flipbook - Page 155
2023 key
results
76
Chair letter and
CEO report
About
29Metals
Our
assets
Sustainability
& ESG Report
Mineral Resources
and Ore Reserves
Annual
Financial Report
151
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 7: Financial impacts of the Extreme Weather Event
The Group’s Capricorn Copper mine was subject to an Extreme Weather Event in March 2023, with more than 500mm of rainfall recorded over a five
day period, resulting in inundation and flooding at the site (including the Esperan a outh sub level cave underground mine (the ‘^^’)), loss and
damage of site infrastructure, and the suspension of mining and mineral processing operations from March 2023 recovery plan has been
implemented which comprises a phased restart of operations
hase a partial reinstatement of operations, with operations recommencing at the Mammoth and Greenstone Mines and
hase 2 complete reinstatement, with recommencement of mining from E
▪
▪
hase of the restart was successfully completed on
ugust 2023, with the recommencement of mining operations in Mammoth and Greenstone,
and mineral processing operations (on a campaign basis) hase 2 of the restart is targeted for mid first half in 202 , following progressive dewatering
and rehabilitation of E
detailed assessment of the assets impacted by the Extreme Weather Event has been underta en amaged and unrecoverable assets have been
written off in the tatement of Comprehensive ncome Material damage to site infrastructure from the Extreme Weather Event has been limited to
damage (total loss) to the water treatment plant used to treat water for use in mineral processing and mining activities
damage (total loss) to the site main wor shop and warehouse, including tools, parts, and other inventory located in these facilities
damage to coarse ore reclaim feeders, water management infrastructure (e g , pumps, pipewor and sumps), and site civil wor s and
damage to ground support and underground infrastructure in E as a result of inundation
▪
▪
▪
▪
The balance of processing plant and site facilities, including the village and site electrical infrastructure, were not materially impacted
uring the eporting eriod, the Group commenced an insurance claim for the damage and loss of property, and associated business interruption,
caused by the Extreme Weather Event n ugust 2023 the Group’s insurers confirmed indemnity for the damage and loss of property on surface and
associated business interruption, and agreed to ma e an initial unallocated progress payment of 2 ,000,000 The loss adjustment process for the
surface property and business interruption component of the insurance claim is ongoing n parallel, 2 Metals has not accepted insurer’s position on
the underground component of the claim and wor is being progressed to progress this component of the claim with insurers efer to ote (a) for
insurance proceeds income efer to ote 3 Contingent asset for further details of the insurance claim relating to the Extreme Weather Event
The impact of the Extreme Weather Event on the financial performance and position of the Group for the year ended 3
Year ended 31 December 2023
ecember 2023 is as follows
$’000
Note
;ĂͿ ŽŶƐŽůŝĚĂƚĞĚ^ƚĂƚĞŵĞŶƚŽĨŽŵƉƌĞŚĞŶƐŝǀĞ/ŶĐŽŵĞ͗
KƚŚĞƌŝŶĐŽŵĞ
nsurance proceeds
(a)(i)
roceeds from on sale of gas
(a)(ii)
dŽƚĂůŽƚŚĞƌŝŶĐŽŵĞ
2 ,000
, 25
ecovery expenses during recovery period
nventories net realisable value write down (
Ϯϴ͕ϲϮϱ
(
M ore stoc piles)
epreciation and amortisation
džƉĞŶƐĞƐďĞĨŽƌĞŝŵƉĂŝƌŵĞŶƚŽĨĂƐƐĞƚƐĂƐĂƌĞƐƵůƚŽĨĚĂŵĂŐĞŽƌůŽƐƐ
, 0 )
( , 20)
(2, 0 )
;ϱϭ͕ϭϯϱͿ
sset impairment expense as a result of damage or loss
nventory (consumables)
5
( ,
Mine properties
roperty, plant and e uipment
(
dŽƚĂůĂƐƐĞƚŝŵƉĂŝƌŵĞŶƚĞdžƉĞŶƐĞĂƐĂƌĞƐƵůƚŽĨĚĂŵĂŐĞŽƌůŽƐƐ
dŽƚĂůĞdžƉĞŶƐĞƐĂŶĚŝŵƉĂŝƌŵĞŶƚ
(a)(iii)
dŽƚĂůĞdžƉĞŶƐĞƐŶĞƚŽĨŽƚŚĞƌŝŶĐŽŵĞ
(i)
(ii)
(iii)
2)
( ,3 )
,
)
;Ϯϳ͕ϬϬϬͿ
;ϳϴ͕ϭϯϱͿ
;ϰϵ͕ϱϭϬͿ
nsurance proceeds Compensation from third parties for business interruption and loss of items of property, plant and e uipment is included in profit or
loss when the compensation becomes receivable and is virtually certain efer to ote 3
evenue from the sale of gas, surplus to operational re uirements, is recognised when gas is delivered to the customer
efer to ote 2 for mpairment expense relating to the Capricorn Copper cash generating unit of
0,000,000
31 December 2023
$’000
;ďͿŽŶƐŽůŝĚĂƚĞĚ^ƚĂƚĞŵĞŶƚŽĨ&ŝŶĂŶĐŝĂůWŽƐŝƚŝŽŶ
dditions during recovery period, pril 2023 to uly 2023, to
roperty, plant and e uipment
5,02
evelopment activities
3,
0
76
