Anglesey Mining PLC Annual Financial Report -9-


fair value. Gains and losses arising from changes in fair value are recognised 
in other comprehensive income and accumulated in the investments revaluation 
reserve with the exception of impairment losses and foreign exchange gains and 
losses on monetary assets, which are recognised directly in profit or loss. 
Where the investment is disposed of or is determined to be impaired, the 
cumulative gain or loss previously recognised in the investments revaluation 
reserve is reclassified to profit or loss. 
 
Dividends on AFS equity instruments are recognised in profit or loss when the 
group's right to receive the dividends is established. 
 
The fair value of AFS monetary assets denominated in a foreign currency is 
determined in that foreign currency and translated at the spot rate at the 
balance sheet date. The foreign exchange gains and losses that are recognised 
in profit or loss are determined based on amortised cost of the monetary 
asset. Other foreign exchange gains and losses are recognised in other 
comprehensive income. 
 
(d) Trade and other payables. Trade payables are not interest bearing and are 
initially recognised at fair value and subsequently measured at amortised cost 
using the effective interest rate method. 
 
(e) Deposits. Deposits are recognised at fair value on initial recognition and 
are subsequently measured at amortised cost using the effective interest rate 
method. 
 
(f) Loans. Loans are recognised at fair value on initial recognition and are 
subsequently measured at amortised cost using the effective interest rate 
method. 
 
Equity instruments 
 
Equity instruments issued by the company are recorded at the proceeds 
received, net of direct issue costs. 
 
Leases 
 
Leases are classified as finance leases whenever the terms of the lease 
transfer substantially all the risks and rewards of ownership to the lessee. 
All other leases are classified as operating leases. 
 
Mining lease payments are recognised as an operating expense in the income 
statement on a straight line basis over the lease term unless they relate to 
mineral property exploration and evaluation in which case they are 
capitalised. There are no finance leases or other operating leases. 
 
New accounting standards 
 
The group and company have adopted the following new accounting standards and 
interpretations: 
 
IFRS 13 Fair Value Measurement: Original issue; Issued - May 2011; Effective - 
Annual periods beginning on or after 1 January 2013 
 
IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine; Effective 
- Annual periods beginning on or after 1 January 2013 
 
There has been no impact of adopting the standards. 
 
The group and company have adopted the amendments to the following 
interpretation: 
 
IAS 1 Presentation of Financial Statements: Amendments to revise the way other 
comprehensive income is presented; Issued - June 2011; Effective - Annual 
periods beginning on or after 1 July 2012 
 
IAS 19 Employee Benefits: Original issue; Issued - Amended June 2011; 
Effective - Annual periods on or after 1 January 2013 
 
Amendments resulting from Annual Improvements 2009-2011 Cycle in relation to 
IFRS 1, IAS1, IAS16; Effective- Annual periods on or after 1 January 2013 
 
Amendments resulting from Annual Improvements 2011-2013 Cycle in relation to 
IFRS 1; Effective - Annual periods on or after 1 January 2013. 
There has been no impact of adopting the amendments. 
 
The group and the company have not applied the following IFRS, IAS and IFRICs 
that are applicable and have been issued but are not yet effective: 
 
IFRS 9 Financial Instruments; Original issue; Issued - November 2009; No 
effective date 
 
IFRS 10 Consolidated Financial Statements: Original issue; Issued October 
2012; Effective - Annual periods beginning on or after 1 January 2014 
 
IFRS 11 Joint Arrangements: Original issue; Issued - May 2011; Effective - 
Annual periods beginning on or after 1 January 2013 
 
IFRS 12 Disclosure of Interests in Other Entities: Original issue; Issued - 
May 2011; Effective - Annual periods beginning on or after 1 January 2014 
 
IFRS14 Regularity Deferral Accounts : Original issue; Issued - January 2014; 
Effective - Annual periods beginning on or after 1 January 2016 
 
IFRS15 Revenue from contracts with customers : Original issue; Issued - May 
2014; Effective - Annual periods beginning on or after 1 January 2017 
 
IAS16 Property, plant and equipment: Amendments regarding the clarification of 
acceptable methods of depreciation and amortisation; Amended May 2014; 
Effective for Annual periods beginning on or after 1 January 2016 
 
IAS 27 Separate Financial Statements (as amended in 2011): Original issue; 
Issued - May 2011; Effective - Annual periods beginning on or after 1 January 
2014 
 
IAS 28 Investments in Associated and Joint Ventures: Original issue; Issued - 
May 2011; Effective - Annual periods beginning on or after 1 January 2014 
 
IAS 32 Financial Instruments: Presentation: Amendments relating to the 
offsetting of assets and liabilities; Issued - December 2011; Effective - 
Annual periods beginning on or after 1 January 2014 
 
IAS 36 Impairment of Assets: Amendments arising from Recoverable Amounts 
Disclosure for Non-financial Assets; Issued - 2004, Amended - May 2013; 
Effective Annual periods beginning on or after 1 January 2014 
 
IAS 39 Financial Instruments: Amendments for novation of derivatives; Amended 
June 2013; Effective for Annual periods beginning on or after 1 January 2014 
 
IAS 38 Intangible assets: Amendments regarding the clarification of acceptable 
methods of depreciation and amortisation; Amended May 2014; Effective for 
Annual periods beginning on or after 1 January 2016 
 
IAS 39 Financial Instruments: Recognition and Measurement; Original issue; 
Issued - June 2013; Effective for Annual periods beginning on or after 1 
January 2014 
 
IFRIC 21 Levies; Effective - Annual periods beginning on or after 1 January 
2014. 
 
The directors expect that the adoption of the above pronouncements will have 
no material impact to the financial statements in the period of initial 
application other than disclosure. 
 
The directors do not consider the adoption of the amendments resulting from 
the Annual Improvements 2010 - 2012 cycle will result in a material impact on 
the financial information of the group and company. These amendments to IFRS2, 
IFRS3, IFRS8 IAS 16, IAS24 and IAS38 are effective for accounting periods 
beginning on or after 1 July 2014. 
 
The directors do not consider the adoption of the amendments resulting from 
the Annual Improvements 2011 - 2013 cycle will result in a material impact on 
the financial information of the group and company. These amendments to IFRS3, 
IFRS13 and IAS40 are effective for accounting periods beginning on or after 1 
July 2014. 
 
There have been no other new or revised International Financial Reporting 
Standards, International Accounting Standards or Interpretations that are in 
effect since that last annual report that have a material impact on the 
financial statements. 
 
Judgements made in applying accounting policies and key sources of estimation 
uncertainty 
 
The following critical judgements have been made in the process of applying 
the group's accounting policies: 
 
(a) In determining the treatment of exploration, evaluation and development 
expenditures the directors are required to make estimates and assumptions as 
to future events and circumstances. There are uncertainties inherent in making 
such assumptions, especially with regard to: ore resources and the life of a 
mine; recovery rates; production costs; commodity prices and exchange rates. 
Assumptions that are valid at the time of estimation may change significantly 
as new information becomes available and changes in these assumptions may 
alter the economic status of a mining unit and result in resources or reserves 
being restated. Operation of a mine and the receipt of cashflows from it are 
dependent on finance being available to fund the development of the property. 
 
(b) In connection with possible impairment of assets the directors assess each 
potentially cash generating unit annually to determine whether any indication 
of impairment exists. The judgements made when doing so are similar to those 
set out above and are subject to the same uncertainties. 
 
Nature and purpose of equity reserves 
 
The share premium reserve represents the consideration that has been received 
in excess of the nominal value of shares on issue of new ordinary share 
capital, less any direct costs of issue. The currency translation reserve 
represents the revaluation of overseas foreign subsidiaries and associates. 
The retained earnings reserve represents profits and losses retained in 
previous and the current period. 
 
3 Segmental information 
 
The group is engaged in the business of exploring and evaluating the 
wholly-owned Parys Mountain project in North Wales and has an investment in 
the Labrador iron project in eastern Canada. In the opinion of the directors, 
the group's activities comprise one class of business which is mine 
exploration, evaluation and development. The group reports geographical 
segments; these are the basis on which information is reported to the board. 
 
Income statement analysis 
                                           2014                               2013 
                                    UK    Canada -       Total        UK     Canada -        Total 
                                        investment                         investment 
                                     GBP           GBP           GBP         GBP            GBP            GBP 
Expenses                     (353,455)           -   (353,455) (398,428)            -    (398,428) 
Share of loss in associate           -           -           -         -  (4,572,320)  (4,572,320) 
Loss on deemed disposals             -           -           -         -  (6,793,789)  (6,793,789) 
Loss on recognition of 
associate as an investment           -           -           -         - (16,149,722) (16,149,722)
Anglesey Mining (LSE:AYM)
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