IGO Interactive Annual Report 2020

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 30 JUNE 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 30 JUNE 2020 Notes to the consolidated financial statements 30 June 2020 (continued) Invested Capital This section of the notes provides further information about property, plant and equipment, leases, mine properties and exploration and evaluation expenditure and the carrying amount of these non-financial assets, including accounting policies, key judgements and estimates relevant to understanding these items. 13 Property, plant and equipment Land and buildings $'000 Mining plant and equipment $'000 Furniture, fittings and other equipment $'000 Motor vehicles $'000 Assets under construction $'000 Total $'000 Year ended 30 June 2020 Cost 26,916 36,209 16,960 4,896 12,186 97,167 Accumulated depreciation (17,015) (16,974) (10,455) (4,143) - (48,587) Net book amount 9,901 19,235 6,505 753 12,186 48,580 Movements Opening net book amount 10,706 15,681 5,104 805 9,326 41,622 Additions 1,409 7,033 2,108 334 6,170 17,054 Disposals - (73) (1) - - (74) Depreciation charge (2,681) (5,143) (1,812) (386) - (10,022) Transfers 467 1,737 1,106 - (3,310) - Closing net book amount 9,901 19,235 6,505 753 12,186 48,580 Year ended 30 June 2019 Cost 25,040 27,670 14,118 4,589 9,326 80,743 Accumulated depreciation (14,334) (11,989) (9,014) (3,784) - (39,121) Net book amount 10,706 15,681 5,104 805 9,326 41,622 Movements Opening net book amount 12,663 13,548 4,132 1,013 4,061 35,417 Additions 667 4,344 1,742 293 9,338 16,384 Disposals - (632) - - - (632) Depreciation charge (2,741) (4,288) (1,493) (475) - (8,997) Transfers 117 3,178 756 22 (4,073) - Disposal of subsidiary - (469) (33) (48) - (550) Closing net book amount 10,706 15,681 5,104 805 9,326 41,622 (a) Non-current assets pledged as security Refer to note 17 for information on non-current assets pledged as security by the Group. (b) Recognition and measurement Property, plant and equipment are stated at historical cost less accumulated depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items. It also includes the direct cost of bringing the asset to the location and condition necessary for first use and the estimated future cost of rehabilitation, where applicable. The assets are subsequently measured at cost less accumulated depreciation and any accumulated impairment losses. IGO Limited 25 Notes to the consolidated financial statements 30 June 2020 (continued) 13 Property, plant and equipment (continued) (b) Recognition and measurement (continued) Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred. Depreciation Land is not depreciated. Depreciation on other assets is calculated using either units-of-production or straight-line depreciation as follows: Depreciation periods are primarily: Buildings 5 - 10 years Mining plant and equipment 2 - 10 years Motor vehicles 3 - 8 years Furniture and fittings 3 - 10 years Depreciation is expensed as incurred, unless it relates to an asset or operation in the construction phase, in which case it is capitalised. Derecognition An item of property, plant and equipment is derecognised when it is sold or otherwise disposed of, or when its use is expected to bring no future economic benefits. Any gain or loss from derecognising the asset (being the difference between the proceeds of disposal and the carrying amount of the asset) is included in the profit or loss in the period the item is derecognised. The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. (c) Key estimates and judgements The estimations of useful lives, residual values and depreciation methods require significant management judgements and are regularly reviewed. If they need to be modified, the depreciation and amortisation expense is accounted for prospectively from the date of the assessment until the end of the revised useful life (for both the current and future years). 14 Leases (a) Amounts recognised in the balance sheet The balance sheet shows the following amounts relating to leases: 2020 $'000 1 July 2019 * $'000 Right-of-use assets Buildings 5,339 2,812 Mining plant and equipment 33,657 30,072 38,996 32,884 Lease liabilities Current 6,235 4,979 Non-current 33,550 27,905 39,785 32,884 IGO Limited 26 94 — IGO ANNUAL REPORT 2020 IGO ANNUAL REPORT 2020— 95