83 Westgold Resources Limited Annual Report 2022 17. MINE PROPERTIES AND DEVELOPMENT (CONTINUED) Bryah Sensitivity Analysis It is estimated that changes in key assumptions, in isolation, would have the following approximate (increase or decrease) on the recoverable amount of the Bryah FGOCGU as at 30 June 2022 Bryah -FGO Increase in key assumption $m Decrease in key assumption $m 10% change in gold price ($/oz.) 44 (44) 1% change in inflation rate (10) 11 1% change in discount rate (2) 2 10% change in operating cost (36) 36 18. EXPLORATION AND EVALUATION EXPENDITURE Exploration and evaluation costs carried forward in respect of mining areas of interest 2022 2021 Pre-production areas At cost less expenditure written off 104,577,467 89,738,936 Net carrying amount 104,577,467 89,738,936 Movement in deferred exploration and evaluation expenditure At 1 July net of accumulated impairment 89,738,936 78,874,701 Additions 18,190,290 14,249,778 Transferred to mine properties (refer to Note 17) (1,518,725) (1,051,234) Transferred to mine capital development (refer to Note 17) (1,722,869) (2,248,251) Expenditure written off - continuing operations (110,165) (86,058) At 30 June net of accumulated impairment 104,577,467 89,738,936 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, certain expenditure on exploration and evaluation of mineral resources has not led to the discovery of commercially viable quantities of mineral resources. As a result, exploration and evaluation expenditure of $110,165 (2021: $86,058) was written off to the profit and loss. The amount relates to tenements which were written down to nil as the expenditure did not result in the discovery of commercially viable quantities of mineral resources and as a result no future benefits are expected.
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