Westgold Resources Limited Annual Report 2020

85 Westgold Resources Limited Annual Report 2020 20. TRADE AND OTHER PAYABLES 2020 2019 Trade creditors (a) 34,521,626 27,915,244 Sundry creditors and accruals (b) 35,143,292 29,826,722 69,664,918 57,741,966 The carrying value of trade and other payables approximates the fair value. (a) Trade creditors are non-interest bearing and generally on 30-day terms. (b) Sundry creditors and accruals are non-interest bearing and generally on 30-day terms. 21. PROVISIONS (current) 2020 2019 Provision for annual leave 7,884,585 6,201,679 Provision for long service leave 1,902,341 1,761,844 9,786,926 7,963,523 22. PROVISIONS (non-current) 2020 2019 Provision for long service leave 1,839,187 1,305,623 Provision for rehabilitation (a) 76,650,886 69,017,942 78,490,073 70,323,565 (a) Provision for rehabilitation The Group makes full provision for the future cost of rehabilitating mine sites and related production facilities on a discounted basis at the time of developing the mines and installing and using those facilities. The rehabilitation provision represents the present value of rehabilitation costs relating to mine sites, which are expected to be incurred up to 2030, which is when the producing mine properties are expected to cease operations. These provisions have been created based on the Group’s internal estimates. Assumptions based on the current economic environment have been made, which management believe is a reasonable basis upon which to estimate the future liability. These estimates are reviewed regularly to take into account any material changes to the assumptions. However, actual rehabilitation costs will ultimately depend upon future market prices for the necessary rehabilitation works required that will reflect market conditions at the relevant time. Furthermore, the timing of rehabilitation is likely to depend on when the mines cease to produce at economically viable rates. This, in turn, will depend upon future gold prices, which are inherently uncertain. The discount rates used in the calculation of the provision as at 30 June 2020 range from 0.58% to 0.87% (2019: range from 1.09% to 1.40%). Refer to Note 3) for further detail. (b) Current and non-current movements in provision for rehabilitation 2020 2019 At 1 July 69,017,942 76,945,945 Disposal of subsidiary – (22,265,463) Adjustment due to revised conditions 6,714,063 12,527,922 Unwind of discount 918,881 1,809,538 At 30 June 76,650,886 69,017,942