b'Centaurus Metals Limited and its controlled entitiesCentaurus Metals Limited and its controlled entities CENTAURUS METALS ANNUAL REPORT 2024Financial Report 31 December 2024Financial Report 31 December 20245.4Financial InstrumentsDepreciation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate. The Group classifies non-derivative financial assets into the following categories at fair value through profit and loss, at fair5.7Exploration and Evaluation Expenditure value through other comprehensive income and measured at amortised cost. Exploration and evaluation costs are expensed in the year they are incurred. Acquisition costs are carried forward where The Group classifies non-derivative financial liabilities into the other financial liabilities category.rightoftenureoftheareaofinterestiscurrentandtheyareexpectedtoberecoupedthroughsaleorsuccessful a)Non- derivative Financial Assets and Financial LiabilitiesRecognition and Derecognitiondevelopment 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.The Group initially recognises loans, receivables and deposits on the date when they are originated.All other financial assetsWhere an area of interest is abandoned, or the directors decide that it is not commercial, any accumulated acquisition costs and financial liabilities are recognised initially on the trade date.in respect of that area are written off in the financial period in which the decision is made.Each area of interest is also The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfersreviewed at the end of each accounting period and accumulated costs written off to the extent that they will not be the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks andrecoverable in the future. rewards of ownership of the financial asset are transferred, or it neither transfers nor retains substantially all of the risksAmortisation is not charged on costs carried forward in respect of areas of interest in the development phase until and rewards of ownership and does not retain control over the transferred asset.Any interest in such derecognised financialproduction commences. assets that is created or retained by the Group is recognised as a separate asset or liability. The Group derecognises a financial liability when its contractual obligations are discharged, cancelled or expire.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 Financial assets and liabilities are offset and the net amount presented in the statement of financial position when and onlyloss is recognised prior to being reclassified. when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset andThe carrying amount of the exploration and evaluation assets is dependent on successful development and commercial settle the liability simultaneously.exploitation, or alternatively, sale of the respective area of interest. The Group has the following non-derivative financial assets:Exploration and evaluation assets are assessed for impairment if sufficient data exists to determine technical feasibility and 4receivables commercial viability or facts and circumstances suggest that the carrying amount exceeds the recoverable amount. 4cash and cash equivalents.Exploration and evaluation assets are tested for impairment when any of the following facts and circumstances exist: i)Receivables4The term of exploration license in the specific area of interest has expired during the reporting period or will expire Receivables are financial assets with fixed or determinable payments that are not quoted in an active market.Such assetsin the near future and is not expected to be renewed; are recognised initially at fair value plus any directly attributable transaction costs.Subsequent to initial recognition,4 Substantive expenditures on further exploration for and evaluation of mineral resources in the specific area are not receivables are measured at amortised cost using the effective interest method, less any impairment losses.budgeted nor planned; ii)Cash and Cash Equivalents4Exploration 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 Cash and cash equivalents comprise cash balances and call deposits with original maturities of three months or less.area; or b)Non derivative Financial LiabilitiesMeasurement 4Sufficient 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 Non-derivative financial liabilities are initially recognised at fair value less any directly attributable transaction costs.by sale. Subsequent to initial recognition, these liabilities are measured at amortised cost using the effective interest method.Where a potential impairment is indicated, an assessment is performed for each cash-generating unit which is no larger 5.5Share Capitalthan the area of interest.The Group performs impairment testing in accordance with the Accounting Policy as detailed Ordinary shares are classified as equity.Incremental costs directly attributable to the issue of ordinary shares or sharebelow. options are recognised as a deduction from equity, net of any tax effect.5.8Leases 5.6Property, Plant and EquipmentA contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of a)Recognition and Measurementtime in exchange for consideration. Itemsofproperty,plantandequipmentaremeasuredatcostlessaccumulateddepreciationandanyaccumulatedThe Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset impairment losses.Cost includes expenditure that is directly attributable to the acquisition of the asset. recognised by the Group is initially measured at cost, comprised of the initial measurement of the related lease liability, any lease payments made at or before the commencement of the contract, less any lease incentives received, any initial direct If significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separatecostsandanyrestorationcosts.Subsequentlytheassetismeasuredatcostlessanyaccumulateddepreciationand items (major components) of property, plant and equipment.impairment losses and adjusted for certain re-measurements of the lease liability. Right-of-use assets are depreciated over Any gains or loss on disposal of an item of property, plant and equipment are recognised in profit or loss.When revaluedthe shorter period of either the useful life of the underlying asset or the lease term. assets are sold, the amounts included in the revaluation reserve are transferred to retained earnings.The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement b)Depreciation date, discounted using the interest rate implicit in the lease or, if that rate cannot be determined the lessees incremental borrowing rate is used, being the rate the lessee would have to pay to borrow funds necessary to obtain an asset of similar Depreciation is calculated to write off the cost of items of property, plant and equipment less their estimated residual valuesvalue in a similar economic environment with similar terms and conditions.using the straight-line method over their estimated useful lives and is generally recognised in profit or loss.Land is notThe lease liability is subsequently increased by the interest costs on the lease liability and decreased by lease payments depreciated. made. It is re-measured where there is a change in future lease payments arising from a change in an index rate, or as The estimated useful lives of property, plant and equipment ranges from 3 to 15 years.appropriate, changes in the assessment of whether an extension option is reasonably certain to be exercised. Page 35 of 60Page 36 of 6060 ANNUAL REPORT CENTAURUS METALS LIMITED'