Westgold Resources Limited Annual Report 2020

86 Westgold Resources Limited Annual Report 2020 Financial Report Notes to the Consolidated Financial Statements for the year ended 30 June 2020 23. INTEREST-BEARING LOANS AND BORROWINGS (current) 2020 2019 Lease liabilities 7,425,093 – Hire purchase arrangements 16,309,721 18,271,020 At 30 June 23,734,814 18,271,020 Represents current portion of hire purchase arrangements which have repayment terms of 36 months from inception. 24. INTEREST-BEARING LOANS AND BORROWINGS (non-current) 2020 2019 Lease liabilities 4,797,566 – Hire purchase arrangements 9,294,070 18,465,857 At 30 June 14,091,636 18,465,857 Represents non-current portion of hire purchase arrangements which have repayment terms of 36 months from inception. The weighted average interest rate is 4.60% per annum (2019: 6.22%). Assets pledged as security: The carrying amounts of assets pledged as security for current and non-current interest-bearing liabilities: Non-current Hire purchase arrangements 2020 2019 Plant and equipment 40,034,638 42,714,688 Total non-current assets pledged as security 40,034,638 42,714,688 Plant and equipment assets are pledged against liabilities for the term of the arrangement. Future commitments in respect of interest bearing loans Hire purchase commitments The Company has hire purchase contracts for various items of plant and machinery. The contracts do have terms of renewal but no escalation clauses. Renewals are at the option of the specific entity that holds the asset. The hire purchase contracts have an average term of 36 months with the right to purchase the asset at the completion of the contract term. Interest bearing liabilities Minimum lease payments Present value of lease payments 2020 Within one year 17,150,953 16,309,721 After one year but not more than five years 9,560,264 9,294,070 Total minimum lease payments 26,711,217 25,603,791 Less amounts representing finance charges (1,107,426) – Present value of minimum lease payments 25,603,791 25,603,791