ANNUAL Report June 2023 Notes to the Consolidated Financial Statements 45 As announced on 8 May 2023 Sozo Resources has successfully completed the Stage 1 FarmIn Conditions and has elected to proceed to Stage 2 Farm-In, providing Sozo the exclusive right to earn a 49% legal and beneficial interest in the Joint Venture gold properties subject to conditions. o Three (3) tungsten focused Exploration Permits being as EPM 27394, EPM 14871 and EPM 14872 located at Mt Carbine, North Queensland. EPM 14872 contains both the Iron Duke and Petersen’s Lode prospects whilst EPM 14871 features the Mt Holmes tin-tungsten prospect. EPM 14872 holds significant exploration upside given that the tungsten grades indicated in the sampling of the Iron Duke and Petersen’s Lode are extensively higher than the estimated global average grade in the present open-pit resource within the Mt Carbine Mining Leases. These unencumbered, greenfield sites also offer the added advantage of having minimal environmental legacy issues. Based on the above, Directors’ have assessed there to be no indication of impairment in the current financial year. Combined Deferred Expenditure, Plant and Equipment and Financial Assets 2023 $ 2022 $ Non-current assets Receivables 4,487,440 1,081,292 4,487,440 1,081,292 Plant and equipment Plant and equipment – at cost 15,307,239 9,652,194 Accumulated depreciation (1,292,283) (2,636,199) 14,014,956 7,015,995 Inventory Inventory – Quarry Material 8,812,714 7,603,863 Inventory – Workshop 278,682 85,450 9,091,396 7,689,313 Deferred exploration and evaluation expenditure Exploration and evaluation expenditure 14,554,304 10,876,719 Tenement and other security deposits – increase / (decrease) 99,406 - Amortisation (380,579) (72,745) 14,273,131 10,803,974 TOTAL 41,866,923 26,590,574 Reconciliation of the carrying amount of Mt Carbine assets at the beginning and end of the current and previous financial year: 2023 $ 2022 $ Combined assets carrying amount at the beginning of the year 26,590,574 19,985,239 Receivables – increase / (decrease) 3,306,742 - Plant and equipment – additions 8,470,929 5,111,648 Plant and equipment – WDV of disposals (179,685) (36,421) Plant and equipment – depreciation expense (1,292,283) (866,847) Inventory – increase / (depletion) 1,402,083 (125,887) Tenement & other security deposits – increase 99,406 (779) Capitalised exploration and evaluation expenses 3,640,380 2,616,884 Capitalised exploration and evaluation expenses - R&D Tax Offset (39,427) (20,518) Capitalised exploration and evaluation – amortisation (131,796) (72,745) TOTAL 41,866,923 26,590,574 EQ Resources Limited Annual Report 2023 87
RkJQdWJsaXNoZXIy MjE2NDg3