85 Westgold Resources Limited Annual Report 2023 19. 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: Power Stations Premises Mining Equipment Total As at 1 July 2022 5,749,531 4,602,730 462,441 10,814,702 Additions 277,191 – 902,585 1,179,776 Disposals – – – – Accumulated Depreciation expense (5,196,922) (950,555) (536,586) (6,684,063) As at 30 June 2023 829,800 3,652,175 828,440 5,310,415 Set out below are the carrying amounts of lease liabilities (included under interest-bearing loans and borrowings) and the movements during the period: 2023 2022 As at 1 July 10,814,702 7,258,887 Additions 1,179,776 12,321,549 Disposals – – Accretion of interest 622,347 271,572 Payments (7,306,410) (9,037,306) As at 30 June 5,310,415 10,814,702 The following are the amounts recognised in profit or loss: Depreciation expense for right-of-use assets Included in cost of sales 6,139,491 8,249,706 Included in administration expenses (refer to Note 7) 544,573 516,028 Interest expense on lease liabilities 622,347 271,572 Less interest expense capitalised to qualifying asset – (158,195) Total amount recognised in profit or loss 7,306,411 8,879,111
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