## (q) Foreign Currency 

Transactions denominated in a foreign currency are converted at the exchange rate at the date of the transaction. Foreign currency receivables and payables at balance date are translated at exchange rates at balance date. Exchange gains and losses are brought to account in determining the pro fi  t or loss for the year. 

Exchange gains and losses and hedging costs arising on forward foreign exchange contracts entered into as hedges of speci fi  c commitments are deferred on the statement of fi  nancial position and included in the determination of the amounts at which the hedged transactions are brought to account. All exchange gains and losses relating to other hedge transactions are brought to account in the statement of fi  nancial performance in the same year as the exchange differences on the items covered by the hedge transactions. 

Gains and losses on foreign currency transactions that are not accounted for as speci fi  c hedges, if any, are brought to account as they arise and disclosed as speculative gains or losses. 

## (r) Trade and Other Creditors 

These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the fi  nancial year and which are unpaid. These amounts are unsecured. 

## (s) Rehabilitation and Restoration Costs 

Provision is made on a straight line basis for the consolidated entity’s estimated liability under speci fi  c legislative requirements and the conditions of its mining leases for future costs expected to be incurred in restoring areas of interest. The estimated liability is based on the restoration work required, using existing technology, as a result of activities to date. 

## (t) Borrowing Costs 

Borrowing costs are recognised as expenses in the year in which they are incurred. Borrowing costs include interest on bank overdrafts, short-term and long-term borrowings, fi  nance lease charges, the fair value of equity securities issued in satisfaction of interest and facility fees and amortisation of establishment costs and facility fees in connection with the arrangement of borrowings. 

## (u) Interest Bearing Liabilities 

Loans are carried at their principal amounts which represent the present value of future cash fl  ows associated with servicing the debt. Interest is accrued over the period it becomes due and is recorded as part of other creditors. 

## (v) Rounding of Amounts 

The Company is of a kind referred to in Class Order 98/0100, issued by the Australian Securities and Investments Commission, relating to the “rounding off ” of amounts in the fi  nancial report. Amounts in the report have been rounded off in accordance with that Class Order to the nearest thousand dollars, or in certain cases, to the nearest dollar. 

## (w) Earnings per Share 

(iv) Basic earnings per share 

Basic earnings per share is determined by dividing net pro fi  t after income tax attributable to members of the Company, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the fi  nancial year, adjusted for bonus elements in ordinary shares issued during the year. 

(v) Diluted earnings per share 

Diluted earnings per share adjusts the fi  gures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other fi  nancing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares. 

