Anglesey Mining PLC Annual Financial Report -8-


eliminated on consolidation. 
 
Investment in associate 
 
An associate is an entity over which the group exercises, or is in a position 
to exercise, significant influence, but not control or joint control, through 
participation in the financial or operating policy of the investee. In 
considering the degree of control, any options or warrants over ordinary 
shares which are capable of being exercised at the period end are taken into 
consideration. 
 
Where material, the results and assets and liabilities of associates are 
incorporated in the financial statements using the equity method of 
accounting, except when these associates are classified as held for sale. 
Investments in associates are carried in the statement of financial position 
at cost adjusted by any material post-acquisition changes in the net assets of 
the associates, less any impairment of value in the individual investments. 
 
Investments in associates cease to be treated as associates using the equity 
method of accounting when the group loses significant influence. Any retained 
interest is treated as an investment in accordance with IAS 39 `Financial 
Instruments: Recognition and Measurement'. The transaction is treated as a 
disposal of interest in the associate, with any difference arising between the 
fair value of the retained interest, and the carrying value of the associate 
at the date significant influence is lost recognised as a profit or loss on 
reclassification within the income statement. 
 
Revenue recognition 
 
Interest income is accrued on a time basis, by reference to the principal 
outstanding and at the effective interest rate applicable, which is the rate 
that exactly discounts estimated future cash receipts through the expected 
life of the financial asset to that asset's net carrying amount. 
 
Foreign currencies 
 
Transactions in currencies other than pounds sterling are recorded at the 
rates of exchange prevailing on the dates of the transactions. At the end of 
each reporting period, monetary assets and liabilities that are denominated in 
foreign currencies are retranslated at the rates prevailing on the period end 
date. Non-monetary assets and liabilities carried at fair value that are 
denominated in foreign currencies are translated at the rates prevailing at 
the date when the fair value was determined. Gains and losses arising on 
retranslation are included in net profit or loss for the period. 
 
On consolidation, the assets and liabilities of the group's overseas 
operations are translated at exchange rates prevailing on the period end date. 
Exchange differences arising, if any, are classified as items of other 
comprehensive income and transferred to the group's translation reserve within 
equity. 
 
Such translation differences are reclassified to profit or loss, and 
recognised as income or as expense, in the period in which the operation is 
disposed. 
 
Segmental analysis 
 
Operating segments are identified on the basis of internal reports about 
components of the group that are regularly reviewed by the chief operating 
decision-maker. 
 
Retirement benefit costs 
 
Payments to defined contribution retirement benefit schemes are charged as an 
expense as they fall due. There are no defined benefit retirement schemes. 
 
Equity-settled employee benefits 
 
The group provides equity-settled benefits to certain employees. 
Equity-settled employee benefits are measured at fair value at the date of 
grant. The fair value determined at the grant date is expensed on a 
straight-line basis over the vesting period, based on the group's estimate of 
shares that will eventually vest and adjusted for the effect of non-market 
based vesting conditions. 
 
Fair value is measured by use of a Black-Scholes model. The expected life used 
in the model has been adjusted from the longer historical average life, based 
on directors' estimates of the effects of non-transferability, exercise 
restrictions, market conditions, age of recipients and behavioural 
considerations. 
 
Taxation 
 
Deferred tax is the tax expected to be payable or recoverable on differences 
between the carrying amounts of assets and liabilities in the financial 
statements and the corresponding tax bases used in the computation of taxable 
profit, and is accounted for using the period end liability method. Deferred 
tax liabilities are generally recognised for all taxable temporary differences 
and deferred tax assets are recognised to the extent that it is probable that 
taxable profits will be available against which deductible temporary 
differences can be utilised. Such assets and liabilities are not recognised if 
the temporary difference arises from goodwill or from the initial recognition 
(other than in a business combination) of other assets and liabilities in a 
transaction that affects neither the tax profit nor the accounting profit. 
 
Deferred tax liabilities are recognised for taxable temporary differences 
arising on investments in subsidiaries and associates, and interests in joint 
ventures, except where the group is able to control the reversal of the 
temporary difference and it is probable that the temporary difference will not 
reverse in the foreseeable future. 
 
The carrying amount of any deferred tax assets is reviewed at each period end 
date and reduced to the extent that it is no longer probable that sufficient 
taxable profits will be available to allow all or part of the asset to be 
recovered. 
 
Deferred tax is calculated at the tax rates that are expected to apply in the 
period when the liability is settled or the asset is realised. Deferred tax is 
charged or credited in the income statement, except when it relates to items 
charged or credited directly to equity, in which case the deferred tax is also 
dealt with in equity. 
 
Property, plant and equipment 
 
The group's freehold land is stated in the statement of financial position at 
cost. The directors consider that the residual value of buildings, based on 
prices prevailing at the date of acquisition, is such that any depreciation 
would not be material. The carrying value is reviewed annually and any 
impairment in value would be charged immediately to the income statement. 
 
Plant and office equipment are stated in the statement of financial position 
at cost, less depreciation. Depreciation is charged on a straight line basis 
at the annual rate of 25%. Residual values and the useful lives of these 
assets are also reviewed annually. 
 
Intangible assets - mineral property exploration and evaluation costs 
 
Intangible assets are stated in the statement of financial position at cost, 
less accumulated amortisation and provisions for impairment. 
 
Costs incurred prior to obtaining the legal rights to explore a mineral 
property are expensed immediately to the income statement. Mineral property 
exploration and evaluation costs are capitalised until the results of the 
projects, which are usually based on geographical areas, are known; these 
include an allocation of administrative and management costs as determined 
appropriate to the project by management. 
 
Where a project is successful, the related exploration costs are amortised 
over the life of the estimated mineral reserve on a unit of production basis. 
Where a project is terminated, the related exploration costs are expensed 
immediately. Where no internally-generated intangible asset can be recognised, 
development expenditure is recognised as an expense in the period in which it 
is incurred. 
 
Impairment of tangible and intangible assets 
 
The values of mineral properties are reviewed annually for indications of 
impairment and when these are present a review to determine whether there has 
been any impairment is carried out. They are written down when any impairment 
in their value has occurred and are written off when abandoned. Where a 
provision is made or reversed it is dealt with in the income statement in the 
period in which it arises. 
 
Investments 
 
Investments in subsidiaries are shown at cost less provisions for impairment 
in value. Income from investments in subsidiaries together with any related 
withholding tax is recognised in the income statement in the period to which 
it relates. 
 
Provisions 
 
Provisions are recognised when the group has a present obligation as a result 
of a past event and it is probable that the group will be required to settle 
that obligation. Provisions are measured at the directors' best estimate of 
the expenditure required to settle that obligation at the end of the reporting 
period and are discounted to present value where the effect is material. 
 
Financial instruments 
 
Financial assets and liabilities are initially recognised and subsequently 
measured based on their classification as "loans and receivables", "available 
for sale financial assets" or "other financial liabilities". 
 
Loans and receivables are non-derivative financial assets with fixed or 
determinable payments that are not quoted in an active market. They are 
included in current assets, except where they mature more than 12 months after 
the period end date: these are classified as non-current assets. 
 
(a) Trade and other receivables. Trade and other receivables are measured at 
initial recognition at fair value and are subsequently measured at amortised 
cost using the effective interest rate method. Appropriate allowances for 
estimated irrecoverable amounts are recognised in the income statement when 
there is objective evidence that the asset is impaired. 
 
(b) Cash and cash equivalents. The group considers all highly liquid 
investments which are readily convertible into known amounts of cash and have 
a maturity of three months or less when acquired to be cash equivalents. The 
management believes that the carrying amount of cash equivalents approximates 
fair value because of the short maturity of these financial instruments. 
 
(c) Available for sale financial assets. Listed shares held by the group that 
are traded in an active market are classified as being AFS and are stated at
Anglesey Mining (LSE:AYM)
Graphique Historique de l'Action
De Juin 2024 à Juil 2024