ANNUAL Report June 2025 Notes to the Consolidated Financial Statements 39 Right-of-use assets 2025 $ 2024 $ Balance at 1 July 2024 3,450,296 2,376,049 Additions: - Plant & equipment 7,922,921 1,751,191 - Heavy & light vehicles 7,987,100 466,010 - Acquisition of subsidiary 1,618,204 - Disposals (2,510) (42,935) Amortisation charge for the year (4,592,120) (1,100,019) Balance at 30 June 2025 16,383,891 3,450,296 Lease Liability - Maturity Analysis Less than 1 year 5,873,188 1,324,113 1 to 5 years 5,477,596 1,823,620 5+ years 3,027,964 - 14,378,748 3,147,733 Amounts Recognised in profit or loss Interest on lease liabilities 950,770 153,110 Expenses relating to short-term leases - - 950,770 153,110 Amounts recognised in the statement of cash flows 950,770 150,111 Total cash outflow for leases 4,463,771 937,693 The Company entered into a lease buy-back arrangement for existing leased assets. No cash consideration was exchanged. The transaction did not meet the criteria for a sale under IFRS 15 and was therefore accounted for as a financing arrangement under IFRS 16. The key terms were: ▪ The existing lease was replaced with a new lease. ▪ A 3-month payment reprieve was granted under the new lease. ▪ The asset was not derecognised and continues to be recognised on the balance sheet. ▪ A financial liability was recognised equal to the present value of the future lease payments under the new lease. ▪ Lease payments are accounted for as repayments of the financial liability, with interest expense recognised under IFRS 9. The loss on disposal has been disclosed as a loss on lease modification in the Consolidated Statement of Profit or Loss and Other Comprehensive Income. 28. CORPORATE INFORMATION The Financial Report of the Group for the year ended 30 June 2025 was authorised for issue in accordance with a resolution of the Directors on 30 September 2025. EQ Resources Limited is a company limited by shares and incorporated in Australia. Its shares are publicly traded on the Australian Securities Exchange under the ticker code “EQR”. 29. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES The financial risks arising from the Group’s operations comprise market, liquidity and credit risk. These risks arise in the ordinary course of business, and the Group manages its exposure to them in accordance with the Group’s risk management strategy. The objective of the strategy is to support the delivery of the Group’s financial targets while protecting its future financial security. EQ Resources Limited Annual Report 2025 105
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