ANNUAL REPORT June 2026 Notes to the Consolidated Financial Statements (ii) Lease liabilities Movements in the Group’s lease liabilities during the year are as follows: Right-of-use assets 2026 A$’000 2025 A$’000 Balance at 1 July 16,384 3,451 Additions: - Plant & equipment - 7,873 - Heavy & light vehicles 588 7,787 - Office 529 - Other movement and reclassification 1,293 2,403 Depreciation charge for the year (5,346) (5,130) Balance at 30 June 13,448 16,384 Lease Liability - Maturity Analysis Less than 1 year 6,210 5,873 1 to 5 years 6,076 5,478 5+ years - 3,028 12,286 14,379 Amounts Recognised in profit or loss Interest on lease liabilities 1,535 951 Expenses relating to short-term leases - - 1,535 951 Amounts recognised in the statement of cash flows 1,535 951 The Company entered a lease buy-back arrangement for existing leased assets. No cash consideration was exchanged. The transaction did not meet the criteria for a sale under AASB 15 and was therefore accounted for as a financing arrangement under AASB 16. The key terms were: • The existing lease was replaced with a new lease. • A 3-month payment reprieve was granted under the new lease. • The asset was not derecognised and continues to be recognised on the balance sheet. • A financial liability was recognised equal to the present value of the future lease payments under the new lease. • Lease payments are accounted for as repayments of the financial liability, with interest expense recognised under AASB 9. The loss on disposal has been disclosed as a loss on lease modification in the Consolidated Statement of Profit or Loss and Other Comprehensive Income. EQ Resources Limited Annual Report 2026 79
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