Axiom Mining 2015 Annual Report

GROUP FINANCIAL REPORT

Notes to the financial statements for the year ended 30 September 2015

57

11. Mineral exploration expenditure Exploration, evaluation and development costs carried forward in respect of mining areas of interest:

2015 $000

2014 $000

2,472 7,044

2,796 2,385 (1,425)

Carrying amount at 1 October

Exploration costs

Less: Exploration costs expensed

(471)

Exchange alignment

130

276

Impairment loss on mineral exploration expenditure

(17)

(1,560)

Carrying amount at 30 September

9,158

2,472

Determining the recoverability of mineral exploration expenditure capitalised in accordance with the Group’s accounting policy (see Note 2 (g)), requires estimates and assumptions as to future events and circumstances, in particular, whether successful development and commercial exploitation, or alternatively sale, of the respective exploration right will be achieved. During the period, an impairment charge was made to capitalised exploration expenditure in accordance with the Group’s accounting policy (see Note 2(g)) to its recoverable amount. During the year the company has spent less than the annual expenditure commitment under the amalgamated expenditure arrangement. However, the company expects to meet any shortfall in this arrangement in future periods. The company is in process of renewing its tenement licenses in the West Guadacanal area, and the Kolosori area is subject to litigation matters. The licence relating to the West Guadalcanal Project has not yet been renewed and is currently still proceeding through the renewal process. A significant assumption has been made by the directors that the application to renew will be successful. As the directors expect the licenses will be renewed, it is appropriate to continue to carry the capitalised expenditure relating to West Guadalcanal Project. Recoverability of the carrying amount of exploration assets is dependent on the successful exploration and commercial exploitation of the tenements.

AXIOM MINING LIMITED ANNUAL REPORT 2015

12. Trade and other payables

2015 $000

2014 $000

2,362 1,575 3,937

854 914

Trade payables

Other payables and accruals

1,768

All of the other payables are expected to be settled or recognised as an expense within one year or are repayable on demand.