## 39. OPERATING SEGMENTS 

## Identification of reportable segments 

The Consolidated Entity has identified its operating segments based on internal reports that are reviewed and used by the executive management team (the chief operating decision makers) in assessing performance and in determining the allocation of resources. 

The operating segments are identified by management based on the manner in which resources are allocated. Discrete financial information about each of these operating businesses is reported to the executive management team on at least a monthly basis. 

The reportable segments are based on aggregated operating segments determined by the similarity of the mineral being mined or explored, as these are the sources of the Consolidated Entity’s major risks and have the most effect on rates of return. 

The Consolidated Entity comprises the following reportable segments: 

- Tin Projects:  Mining, treatment and marketing of tin concentrate. 

- Nickel Projects:  Nickel royalty income and exploration of nickel assets. 

- Phosphate Projects: Phosphate exploration projects. 

## Accounting policies and inter-segment transactions 

The accounting policies used by the Consolidated Entity in reporting segments internally are the same as those contained in note 2 to the financial report. 

The Consolidated Entity does not have any inter-entity sales. 

Corporate charges comprise non-segmental expenses such as head office expenses and interest. Corporate charges are not allocated to operating segments. 

It’s the Consolidated Entity’s policy that if items of revenue and expense are not allocated to operating segments then any associated assets and liabilities are not allocated to segments. This is to avoid allocations within segments which management believe would be inconsistent. 

The following items and associated assets and liabilities are not allocated to operating segments as they are not considered part of the core operations of any segment: 

• Interest revenue. 

• Fair value gains/losses on financial instruments. 

• Net gains on disposal of available-for-sale investments. 

• Share of loss of associates. 

• Finance costs. 

The following table presents revenue and profit information for reportable segments for the years ended 30 June 2011 and 30 June 2010. 

## Major customers 

The Consolidated Entity only has one customer to which it provides both products and services. The Consolidated Entity sends its tin concentrate to a South East Asian customer that accounts for 95% of external revenue (2010: 98%). 

