Notes to the Consolidated Financial Statements for the year ended 30 June 2025 8. Investment in joint venture (continued) Joint venture (100%) 2024 Property, Plant and equipment $’000 (Audited) Right of use assets $’000 (Audited) Mine assets under development $’000 (Audited) Total $’000 (Audited) Non-current assets Carrying amount – at cost 268,609 104,264 269,039 641,912 Accumulated depreciation (13,360) (9,564) (242) (23,166) 255,249 94,700 268,797 618,746 Reconciliation Opening balance at the beginning of the year 22,849 1,739 383,629 408,217 Additions 10,360 101,619 64,825 176,804 Transfer between asset classes 231,352 – (231,352) – Addition to mine rehabilitation asset – – 14,188 14,188 Capitalised borrowing costs – – 37,749 37,749 Depreciation expenses (9,312) (8,658) (242) (18,212) 255,249 94,700 268,797 618,746 (f) Joint venture - borrowings This Note 8 (f) (Joint venture – borrowings) should be read in conjunction with Note 8 (g) (Joint venture – prepayments and other financial liabilities). Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and redemption amount is recognised in the profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of the loan facilities are recognised as transaction costs of the loan to the extent that it is probably that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probably that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates. KMS’ carrying amount of borrowings is as follows: Joint venture (100%) 2025 $’000 (Audited) Joint venture (100%) 2024 $’000 (Audited) Current liabilities Production linked loan facility - Orion Mineral Royalty Fund 34,911 9,775 34,911 9,775 Non-current liabilities Production linked loan facility - Orion Mineral Royalty Fund 63,275 81,728 Government debt facilities - Northern Australia Infrastructure Facility 157,446 157,025 220,721 238,753 255,632 248,528 58 Sheffield Resources Limited Annual Report 2025
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