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AXIOM MINING LIMITED
ANNUAL REPORT 2015
57
Notes to the
financial statements
for the year ended 30 September 2015
GROUP FINANCIAL REPORT
11. Mineral exploration expenditure
Exploration, evaluation and development costs carried forward in respect of mining areas of interest:
2015
$000
2014
$000
Carrying amount at 1 October
2,472
2,796
Exploration costs
7,044
2,385
Less: Exploration costs expensed
(471)
(1,425)
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.
12. Trade and other payables
2015
$000
2014
$000
Trade payables
2,362
854
Other payables and accruals
1,575
914
3,937
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.