Notes to the Consolidated Financial Statements continued ANNUAL Report June 2023 Notes to the Consolidated Financial Statements 38 9. PLANT AND EQUIPMENT AT COST 2023 $ 2022 $ Plant and equipment 14,217,001 6,975,823 Accumulated depreciation (2,578,094) (1,979,791) Plant and equipment – right of use assets 3,617,131 2,676,371 Accumulated depreciation (1,241,082) (656,408) 14,014,956 7,015,995 Reconciliation of the carrying amount of plant and equipment at the beginning and end of the current and previous financial year Carrying amount at beginning 7,015,995 2,807,615 Additions 8,470,929 5,111,648 Disposals (179,685) (36,421) Plant and equipment written down - - Depreciation expense (1,292,283) (866,847) 14,014,956 7,015,995 10. DEFERRED EXPLORATION AND EVALUATION 2023 $ 2022 $ Costs brought forward 10,803,974 8,280,353 Costs incurred during the period 3,640,380 2,616,884 Capitalised portion of R&D tax offset (39,427) (20,518) Total deferred exploration and evaluation 14,404,927 10,876,719 Amortisation deferred exploration and evaluation (131,796) (72,745) Costs carried forward 14,273,131 10,803,974 Exploration expenditure costs carried forward are made up of: Expenditure on joint venture areas - - Expenditure on non-joint venture areas 14,273,131 10,803,974 Costs carried forward 14,273,131 10,803,974 The above amounts represent costs of areas of interest carried forward as an asset in accordance with the accounting policy set out in Note 1. The ultimate recoupment of deferred exploration and evaluation expenditure in respect of an area of interest carried forward is dependent upon the discovery of commercially viable reserves and the successful development and exploitation of the respective areas or alternatively sale of the underlying areas of interest for at least their carrying value. Amortisation, in respect of the relevant area of interest, is not charged until a mining operation has commenced. The Directors reassess the carrying value of the Group’s tenements at each half year, or at a period other than that, should there be any indication of impairment. Farm-In and Joint Venture Agreement – NSW Projects EQ Resources Limited entered into a binding Farm-In and Joint Venture Agreement with Sozo Resources Pty Ltd (“Sozo”) in November 2021 whereby Sozo can earn up to an 80% interest in EQR’s 100% owned NSW projects, Crow Mountain (EL6648) and Panama Hat (EL8024), by completing expenditure of $1.6 million over 4 years as follows: Stage 1 – Sozo to complete $100K of expenditure within 9 months from the Agreement’s Commencement date; Stage 2 – Sozo to spend a further $750K of expenditure within a further 24 months to earn a 49% interest. If Sozo elects to continue sole funding exploration expenditure at the end of Stage 2, it will have earnt a further 2% (51% in total) and a Joint Venture will be formed; and 80 EQ Resources Limited Annual Report 2023
RkJQdWJsaXNoZXIy MjE2NDg3