Depreciation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate. 
5.7 
Exploration and Evaluation Expenditure 
Exploration and evaluation costs are expensed in the year they are incurred. Acquisition costs are carried forward where 
right of tenure of the area of interest is current and they are expected to be recouped through sale or successful 
development and exploitation of the area of interest, or, where exploration and evaluation activities in the area of interest 
have not reached a stage that permits reasonable assessment of the existence of economically recoverable reserves.  
Where an area of interest is abandoned, or the directors decide that it is not commercial, any accumulated acquisition costs 
in respect of that area are written off in the financial period in which the decision is made.  Each area of interest is also 
reviewed at the end of each accounting period and accumulated costs written off to the extent that they will not be 
recoverable in the future. 
Amortisation is not charged on costs carried forward in respect of areas of interest in the development phase until 
production commences.   
Exploration and evaluation assets are transferred to Development Assets once technical feasibility and commercial viability 
of an area of interest is demonstrable.  Exploration and evaluation assets are assessed for impairment and any impairment 
loss is recognised prior to being reclassified. 
The carrying amount of the exploration and evaluation assets is dependent on successful development and commercial 
exploitation, or alternatively, sale of the respective area of interest. 
Exploration and evaluation assets are assessed for impairment if sufficient data exists to determine technical feasibility and 
commercial viability or facts and circumstances suggest that the carrying amount exceeds the recoverable amount. 
Exploration and evaluation assets are tested for impairment when any of the following facts and circumstances exist: 
 The term of exploration license in the specific area of interest has expired during the reporting period or will expire 
in the near future and is not expected to be renewed; 
 Substantive expenditures on further exploration for and evaluation of mineral resources in the specific area are not 
budgeted nor planned; 
 Exploration for and evaluation of mineral resources in the specific area has not led to the discovery of commercially 
viable quantities of mineral resources and the decision was made to discontinue such activities in the specified 
area; or 
 Sufficient data exists to indicate that although a development in the specific area is likely to proceed, the carrying 
amount of the exploration and evaluation asset is unlikely to be recovered in full from successful development or 
by sale. 
Where a potential impairment is indicated, an assessment is performed for each cash-generating unit which is no larger 
than the area of interest.  The Group performs impairment testing in accordance with the accounting policy as detailed 
below. 
5.8 
Mine Development Assets 
Mine development costs are capitalised when the technical feasibility and commercial viability of extracting a mineral 
resource are demonstrable. Prior to reclassification from exploration and evaluation, assets are tested for impairment in 
accordance with AASB 6 and AASB 136. Capitalised development costs include costs transferred from exploration and 
evaluation as well as any direct construction and infrastructure costs, and other directly attributable expenditures necessary 
to bring the mine to the condition required for its intended use. General overhead and administration costs are expensed 
as incurred unless there is a direct link to mine development. Upon commencement of commercial production, development 
assets are transferred to mining properties within property, plant and equipment and are amortised using the unit-of-
production method, based on the proportion of actual production to proved and probable reserves. Subsequent expenditure 
is capitalised when it extends mine life, expands capacity, or provides future economic benefits; otherwise, it is expensed 
as incurred.  
5.9 
Leases 
A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of 
time in exchange for consideration. 
The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset 
recognised by the Group is initially measured at cost, comprised of the initial measurement of the related lease liability, any 
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ANNUAL REPORT     CENTAURUS METALS LIMITED
CENTAURUS METALS ANNUAL REPORT 2025

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