Petra Diamonds Limited
Annual Report and Accounts 2013
108
5. Other direct income
US$ million
2013
2012
Profit on disposal of fixed assets
(0.1)
Revaluation of environmental rehabilitation liability – change in assumption/estimate
(1.9)
(4.8)
Other mining income
(4.3)
(4.1)
(6.2)
(9.0)
6. Exploration expenditure
US$ million
2013
2012
Employee expenses
1.0
1.0
Depreciation of exploration assets
0.1
0.1
Drilling, sampling and air survey expenses
3.0
1.6
Rental and equipment hire
0.1
0.1
Other exploration expenses
0.7
0.3
4.9
3.1
7. Corporate expenditure
US$ million
2013
2012
Auditors’ remuneration:
– Audit services1
0.7
0.6
Depreciation of property, plant and equipment
0.3
0.2
Operating lease rentals – buildings
0.7
0.6
Other charges
4.2
3.6
Share-based expense – Directors
1.4
0.3
Share-based expense – Senior Management
0.5
0.1
Other staff costs
5.8
5.2
Total staff costs
7.7
5.6
Transaction costs2
0.5
3.1
14.1
13.7
1. Audit fees for the year ended 30 June 2013 stated above refer to fees for the 2012 audit and audit fees for the year ended 30 June 2012, refer to fees for the 2011 audit.
2. In the current year, transaction costs comprise those costs incurred when the Group was considering the disposal of the Fissure Mines together with other costs associated with
the Group’s refinancing. In the prior period, transaction costs comprised Finsch acquisition costs (US$0.4 million) and costs related to the step up from AIM to the Main Market
of the London Stock Exchange (US$2.7 million). The costs in respect of the step up to the Main Market included US$0.7 million paid to the auditors for non-audit services in their
capacity as reporting accountants.
All share-based payments are in respect of equity-settled share option schemes and share award schemes as stated in note 27.
8. Impairment of operational assets and investments
When events or changes in market conditions indicate that tangible or intangible assets may be impaired, such assets are
reviewed in detail to determine whether their carrying value is higher than their recoverable value, which could lead to recording
an impairment loss (recoverable value is the higher of value in use and fair value less costs to sell). Value in use is estimated by
calculating the present value of the future cashflows expected to be derived from the asset over its useful economic life. Fair value
less costs to sell is based on the most reliable information available (market statistics, recent transactions etc). The discounted
cashflow basis has been used to calculate a value in use for the mining operations for those mines for which value in use exceeds
fair value less cost to sell.
Impaired assets are reviewed annually to determine whether any substantial change to their fair value amounts previously
impaired would require reversal.
When determining recoverable values of investments and property, plant and equipment, assumptions and estimates are made
as set out in notes 1.7 and 1.23. Any change in these assumptions can have a significant effect on the recoverable amount and could
lead to a revision of recorded impairment losses.
Notes to the Annual Financial Statements
For the year ended 30 June 2013 continued
1...,100,101,102,103,104,105,106,107,108,109 111,112,113,114,115,116,117,118,119,120,...142