Speciality Metals International Limited Annual Report 2020

66 Speciality Metals International Limited Annual Report 2020 Independent Auditor’s Report continued Key audit matter How our audit addressed the key audit matter Carrying value Deferred exploration and evaluation expenditure Refer to Note 10 non-current assets The Group carries significant exploration and evaluation assets at 30 June 2020 which is material to the financial report. As a result the capitalised exploration and evaluation expenditure were required to be considered for impairment indicators in accordance with AASB 6 Exploration and Evaluation of Mineral Resources and therefor considered a key audit matter. Our procedures included, amongst others:  Obtain schedules of the areas of interest held by the Group and assessing whether the rights to tenure remain current at balance date;  Considering whether any such areas of interest had reached a stage where a reasonable assessment of economically recoverable reserves existed;  Review the Company’s capitalisation of exploration expenditure in the current year, ensuring that it is consistent with the criteria as stated under AASB 6. This included discussion with management, reviewing Group exploration budgets, ASX announcements and directors’ minutes;  Review and considered whether any facts or circumstances existed that suggest impairment was required;  We tested a sample of additions of capital exploration expenditure to supporting documentation;  Assessing the adequacy of the related disclosures in Note 10 to the financial report. Other information The Directors are responsible for the other information. The other information comprises the information in Speciality Metals International Limited’s annual report for the year ended 30 June 2020, but does not include the financial report and the auditor’s report thereon. Our opinion on the financial report does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of the other information we are required to report that fact. We have nothing to report in this regard.