ANNUAL REPORT June 2026 Notes to the Consolidated Financial Statements (d) Exploration and evaluation 30 June 2026 A$’000 30 June 2025 A$’000 Carrying amount at 1 July 1,220 1,332 Addition 510 209 Impairment - (321) Transfer from Mine Development (10 (b)) 95 - At 30 June 1,825 1,220 Comparative amounts for the year ended 30 June 2025 have been reclassified to separately present exploration and evaluation assets (AASB 6, held at cost and not amortised) from mine development assets (AASB 116, amortised on a units-of-production basis), which were previously presented together under a single "Deferred Exploration and Evaluation" heading. The reclassification reflects assets that had, in substance, entered production and commenced units-of-production amortisation in prior periods but had not previously been separately disclosed. Effective 1 January 2026, the Mt Carbine Underground Project of A$95 thousand was also reclassified from mine development to exploration and evaluation. 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, concerning 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 year end, should there be any indication of impairment. EQ Resources Limited Annual Report 2026 85
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