Westgold Resources Limited Annual Report 2020

94 Westgold Resources Limited Annual Report 2020 Financial Report Notes to the Consolidated Financial Statements for the year ended 30 June 2020 30. COMMITMENTS (CONTINUED) (d) Other commitments The Group has obligations for various expenditures such as royalties, production-based payments and exploration expenditure. Such expenditures are predominantly related to the earning of revenue in the ordinary course of business. 2020 2019 Royalties paid under contractual arrangements 20,901,094 14,982,184 31. CONTINGENT ASSETS AND LIABILITIES (i) Bank guarantees and rental deposits The Group has a number of bank guarantees and rental deposits in favour of various government authorities and service providers. These primarily relate to office leases and environmental and rehabilitation bonds at the various projects. The total amount of these guarantees at the reporting date is $1,149,449 (2019: $1,427,836). The bank guarantees are fully secured by term deposits (refer to Note 14). 32. AUDITOR’S REMUNERATION 2020 2019 Amounts received or due and receivable by Ernst & Young (Australia) for: Fees for auditing the statutory financial report of the parent covering the group and auditing the statutory financial reports of any controlled entities 245,577 312,467 Fees for other services: - tax compliance 208,409 116,000 Total auditor’s remuneration 453,986 428,467 33. OPERATING SEGMENTS For management purposes, the Group is organised into operating segments determined by the location of the mineral being mined or explored, as these are the sources of the Group’s major risks and have the most effect on rates of return. Reportable segments The Group comprises the following reportable segments Reference Segment Nature FGO Fortnum Gold Operations Mining, treatment, exploration and development of gold assets MGO Meekatharra Gold Operations Mining, treatment, exploration and development of gold assets CGO Cue Gold Operations Mining, treatment, exploration and development of gold assets Other Other Exploration and development of other mineral assets and contract mining services General Executive management monitors the operating results of its operating segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on operating profit or loss and is measured consistently with operating profit or loss in the consolidated financial statements. However, certain income and expenses (see below) are managed on a consolidated basis and are not allocated to operating segments. All other adjustments and eliminations are part of the detailed reconciliations presented further below. Unallocated income and costs Finance income and fair value gains and losses on financial assets are not allocated to individual segments as the underlying instruments are managed on a Group basis. Current taxes, deferred taxes and certain financial assets and liabilities are not allocated to those segments as they are also managed on a Group basis. Corporate charges comprise non-segmental expenses such as head office expenses and interest costs. Corporate charges are not allocated to operating segments. Refer to reconciliation segment results to consolidated results.