FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2025 104 WESTGOLD RESOURCES LIMITED 16. EXPLORATION AND EVALUATION EXPENDITURE Exploration and evaluation costs carried forward in respect of mining areas of interest 2025 $000 2024 $000 Pre-production areas At cost less expenditure written off 956,835 147,861 Net carrying amount 956,835 147,861 Movement in deferred exploration and evaluation expenditure At 1 July net of accumulated impairment 147,861 123,487 Acquisition as part of the business combination 772,525 – Additions 40,721 24,660 Expenditure written off (1,128) (286) Transfer to mine properties and development (539) – Transfer to capital development (2,605) – At 30 June net of accumulated impairment 956,835 147,861 The ultimate recoupment of costs carried forward for exploration and evaluation phases is dependent on the successful development and commercial exploitation or sale of the respective mining areas. During the year, a review was undertaken for each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest. In assessing the carrying value of all of the Group’s projects, there were $1,128,080 expenditure on exploration and evaluation of mineral resources written off during the year (2024: $286,140) to the profit and loss. 17. RIGHT-OF-USE ASSETS Group as a lessee The Group has lease contracts for various items of mining equipment, power stations, motor vehicles and buildings used in its operations. Leases of mining equipment generally have lease terms between three and seven years, while motor vehicles and buildings generally have lease terms between three and five years. The Group also has certain leases of assets with lease terms of 12 months or less and leases of office equipment with low value. The Group applies the short-term lease and lease of low-value assets recognition exemptions for these leases. Set out below are the carrying amounts of right-of-use assets recognised and the movements during the period: in $000 Premises Mining Equipment Total As at 1 July 2024 2,807 492 3,299 Acquisition as part of the business combination 7,684 863 8,547 Additions 13,297 – 13,297 Disposals – (45) (45) Depreciation expense (6,588) (912) (7,500) As at 30 June 2025 17,200 398 17,598
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