Speciality Metals International Limited Annual Report 2020

46 Speciality Metals International Limited Annual Report 2020 Notes to the Consolidated Financial Statements continued NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Page | 47 9. PLANT AND EQUIPMENT AT COST 2020 $ 2019 $ Plant and equipment 2,436,535 1,776,719 Accumulated depreciation (1,380,777) (1,445,045) Plant and equipment – right of use assets 1,201,234 - Accumulated depreciation (2,051) - 2,254,941 331,674 Reconciliation of the carrying amount of plant and equipment at the beginning and end of the current and previous financial year Carrying amount at beginning 331,674 3,861 Additions 2,151,486 342,323 Disposals (8,564) - Plant and equipment written down - - Depreciation expense (219,655) (14,510) 2,254,941 331,674 The above amounts represent costs of areas of interest carried forward as an asset in accordance with the accounting policy set out in Note 1. The ultimate recoupment of deferred exploration and evaluation expenditure in respect of an area of interest carried forward is dependent upon the discovery of commercially viable reserves and the successful development and exploitation of the respective areas or alternatively sale of the underlying areas of interest for at least their carrying value. Amortisation, in respect of the relevant area of interest, is not charged until a mining operation has commenced. The Directors reassess the carrying value of the Group’s tenements at each half year, or at a period other than that, should there be any indication of impairment. 1 As a result of the Company successfully completing the 100% acquisition of Mt Carbine Quarries Pty Ltd on 28 June 2019 and its newly formed unincorporated joint venture with CRONIMET Australia Pty Ltd the Directors have reassessed their previous decision to impair, in full, the capitalised exploration and evaluation expenditure associated with the Mt Carbine Tungsten Project and have determined that the 2017 impairment be reversed in full. The basis for this decision is that via the Company’s 100% acquisition of Mt Carbine Quarries Pty Ltd it has removed the previous uncertainty surrounding the unresolved sublease issues with the Quarry and Mining Leaseholder thus removing any adverse impact on the technical feasibility and commercial viability of the Mt Carbine Tungsten Project. 10. DEFERRED EXPLORATION AND EVALUATION EXPENDITURE Costs brought forward 6,834,416 596,066 Costs incurred during the period 212,753 347,919 Costs recognised upon acquisition of MCQ on 28 June 2019 (5,079) 255,100 Exploration and evaluation expenditure written down (140,855) - Capitalised portion of R&D Tax Offset (4,241) - Impairment reversal 1 - 5,635,331 Costs carried forward 6,896,994 6,834,416 Exploration expenditure costs carried forward are made up of: Expenditure on joint venture areas - - Expenditure on non-joint venture areas 6,896,994 6,834,416 Costs carried forward 6,896,994 6,834,416