11. RIGHT OF USE ASSET AND LEASE LIABILITY (a) Right of use asset CONSOLIDATED 30 June 2024 $ CONSOLIDATED 30 June 2023 $ Cost 334,968 502,998 Accumulated depreciation (41,185) (192,591) Carrying value at end of period 293,783 310,407 Opening net carrying value 310,407 333,064 Additions 261,947 73,022 Write offs (179,777) – Depreciation for the period (98,794) (95,679) Carrying value at end of period 293,783 310,407 During the year the lease in relation to the office was terminated and a new lease was entered into, resulting in the reduction in the cost and depreciation. (b) Lease Liability CONSOLIDATED 30 June 2024 $ CONSOLIDATED 30 June 2023 $ Current Property lease liability 146,500 90,704 Non-Current Property lease liability 146,655 237,168 Total lease liabilities 293,155 327,872 Property leases The above right-of-use asset (ROU) and lease liability relate to the office lease and storage lease entered into by the Group. The lease has been accounted in accordance with AASB 16. The right-of-use asset is measured at the amount equal to the lease liability at initial recognition and then amortised over the life of the lease. The lease liability and ROU asset at initial recognition is $334,968. The right-of-use asset is being depreciated over the lease term on a straight-line basis which is approximately 60 and 24 months for the office and storage lease, respectively, in place at 30 June 2024. Depreciation expense of $98,794 (2023: $95,679) was included in corporate administration expense in the consolidated statement of profit or loss and other comprehensive income. At initial recognition, the lease liability was measured as the present value of minimum lease payments using the Group’s incremental borrowing rate of 5.4%. The incremental borrowing rate was based on the unsecured interest rate that would apply if finance was sought for an amount and time period equivalent to the lease requirements of the Group. Each lease payment is allocated between the liability and interest expense. The interest expense of $14,226 (2023: $19,445) was included in finance expense in the consolidated statement of profit or loss and other comprehensive income. Lease payments during the year was $155,659 including interest. Option to extend or terminate The Group uses hindsight in determining the lease term where the contract contains options to extend or terminate the lease. 37 St George Mining Limited Annual Report 2024
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