Final Results -21-
March 25 2009 - 3:01AM
UK Regulatory
| | feasibility |
| | studies for |
| | mining |
| | projects. In |
| | this regard, |
| | the total |
| | investment |
| | eligible for |
| | additional |
| | deduction |
| | amounts to |
| | approximately |
| | 95,061,000 |
| | Argentinian |
| | pesos |
| | (US$27,853,000) |
| | as at 31 |
| | December 2008 |
| | (2007: |
| | 79,680,000 |
| | Argentinian |
| | pesos |
| | (US$25,596,000). |
| | As this |
| | additional |
| | deduction does |
| | not affect |
| | either taxable |
| | profit or |
| | accounting |
| | profit on |
| | initial |
| | recognition, no |
| | deferred tax was |
| | recognised in |
| | accordance with |
| | IAS 12 'Income |
| | Taxes'. However |
| | under the |
| | Argentinian tax |
| | regime, |
| | following |
| | commencement of |
| | operations in |
| | 2007, this |
| | amount could be |
| | claimed in equal |
| | amounts over 1 |
| | to 5 years. At |
| | 31 December |
| | 2007, the Group |
| | decided to make |
| | this claim over |
| | 2 years, |
| | resulting in 50% |
| | of the available |
| | deduction being |
| | included in the |
| | tax losses for |
| | the year 2007. |
| | In 2008 the |
| | Group included |
| | in the tax |
| | losses of the |
| | year 54,797,000 |
| | Argentinian |
| | pesos |
| | (US$17,324,000). |
| | This amount |
| | includes the |
| | remaining 50% of |
| | eligible costs |
| | calculated as at |
| | 31 December 2007 |
| | of 79,680,000 |
| | Argentinian |
| | pesos plus |
| | 15,381,000 |
| | Argentinian |
| | pesos of |
| | additional |
| | eligible costs. |
| | The balance of |
| | the eligible |
| | costs of |
| | 1,582,000 |
| | Argentinean |
| | pesos |
| | (US$464,000) |
| | will be claimed |
| | in 2009. |
+----------+------------------+
| (ii) | Change |
| | in |
| | Mexican |
| | tax |
| | regime |
+----------+------------------+
| | On 28 |
| | September |
| | 2007, the |
| | Mexican |
| | Government |
| | enacted a |
| | bill for |
| | tax reform |
| | that |
| | significantly |
| | changed the |
| | current |
| | income tax |
| | structure in |
| | Mexico. |
| | Effective |
| | from 1 |
| | January 2008, |
| | the tax |
| | reform |
| | requires |
| | companies to |
| | pay tax equal |
| | to the |
| | greater of |
| | the tax |
| | charge |
| | calculated |
| | under the new |
| | flat rate |
| | business tax |
| | ("IETU" as |
| | abbreviated |
| | in Spanish) |
| | or the tax |
| | change |
| | calculated |
| | under the |
| | current |
| | income |
| | corporate tax |
| | regime ("ISR" |
| | as |
| | abbreviated |
| | in Spanish). |
| | The Group has |
| | performed an |
| | analysis of |
| | the future |
| | impact of |
| | this tax |
| | reform on its |
| | Mexican |
| | companies and |
| | has |
| | determined |
| | that Santa |
| | Maria de |
| | Moris S.A. de |
| | C.V. (the |
| | operator of |
| | the Moris |
| | mine) will be |
| | required to |
| | pay IETU in |
| | each period |
| | until the end |
| | of the mine's |
| | life. |
| | Therefore, as |
| | at 31 |
| | December 2007 |
| | the Group |
| | recognised a |
| | deferred tax |
| | liability in |
| | connection |
| | with IETU of |
| | US$3,403,000 |
| | due to the |
| | resulting |
| | reduction in |
| | the amount of |
| | capital |
| | allowances |
| | arising on |
| | the |
| | investment in |
| | the mine to |
| | date. As at |
| | 31 December |
| | 2008 the IETU |
| | deferred tax |
| | liability had |
| | decreased by |
| | US$1,554,000 |
| | to US$ |
| | 1,859,000. |
+----------+ +
| | |
+----------+------------------+
6 Property, plant and equipment
+------------------+-+-------------+-+-------------+-+-----------+-+--------------+-+----------+-+---------+-+--------------+-+---------+-+
| |
+------------------+
| | |Exploration | | Mining | | Land | | Plant | |Vehicles | | Mine | |Construction | | Total | |
| | | and | | properties | | and | | and | | | |closure | | in progress | | | |
| | | evaluation | | and | |buildings | |equipment(a) | | | | asset | | and capital | | | |
| | | costs | |development | | | | | | | | | | advances | | | |
| | | | | costs | | | | | | | | | | | | | |
+------------------+-+-------------+-+-------------+-+-----------+-+--------------+-+----------+-+---------+-+--------------+-+---------+-+
| | | US$(000) | |
+------------------+-+------------------------------------------------------------------------------------------------------------------+-+
| Year ended 31 | | | | | | | | | | | | | | | | | |
| December 2007 | | | | | | | | | | | | | | | | | |
+------------------+-+-------------+-+-------------+-+-----------+-+--------------+-+----------+-+---------+-+--------------+-+---------+-+
| Cost | | | | | | | | | | | | | | | | | |
+------------------+-+-------------+-+-------------+-+-----------+-+--------------+-+----------+-+---------+-+--------------+-+---------+-+
| At 1 January | | 1,282 | | 106,011 | | 23,706 | | 53,456 | | 1,528 | | 34,516 | | 23,851 | | 244,350 | |
| 2007 | | | | | | | | | | | | | | | | | |
+------------------+-+-------------+-+-------------+-+-----------+-+--------------+-+----------+-+---------+-+--------------+-+---------+-+
| Additions | | 8,279 | | 48,004 | | 1,004 | | 9,450 | | 400 | | 1,056 | | 77,601 | | 145,794 | |
+------------------+-+-------------+-+-------------+-+-----------+-+--------------+-+----------+-+---------+-+--------------+-+---------+-+
| Change in | | _ | | _ | | _ | | _ | | _ | | 2,611 | | _ | | 2,611 | |
| discount rate | | | | | | | | | | | | | | | | | |
+------------------+-+-------------+-+-------------+-+-----------+-+--------------+-+----------+-+---------+-+--------------+-+---------+-+
| Disposals | | _ | | _ | | (110 | )| (2,221 | )| (104 | )| _ | | (6 | )| (2,441 | )|
+------------------+-+-------------+-+-------------+-+-----------+-+--------------+-+----------+-+---------+-+--------------+-+---------+-+
| Sale of | | _ | | _ | | _ | | (2 | )| _ | | _ | | _ | | (2 | )|
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