GALAXY RESOURCES LIMITED
ANNUAL FINANCIAL REPORT DECEMBER 2011
15. EXPLORATION AND EVALUATION ASSETS (CONTINUED) (b) Recoverability of the carrying amount of deferred exploration and evaluation assets is dependent on the successful commercial exploitation, or alternatively, sale of the respective area of interest. 16. AVAILABLE-FOR-SALE FINANCIAL ASSETS Group
Equity securities listed in Australia, at fair value
December 31, 2011 $
December 31, 2010 $
205,000
600,000
As at December 31, 2011, the Group’s available-for-sale financial assets were individually determined to be impaired on the basis of a significant decline in their fair value below cost. Adverse changes in the market in which these investees operated indicated that the cost of the Group’s investment in them may not be recovered. As such, an impairment loss of $245,000 was recognised, which represented the excess of original cost over the fair value in accordance with the policy set out in note 3(e). 17. OTHER RECEIVABLES Group Current Other receivables (note 17(a)) Prepayments Amounts capitalised for proposed Hong Kong listing Others Non-Current Security bonds (note 17(b)) Other receivables and prepayments
December 31, 2011 $
December 31, 2010 $
10,603,924 66,808 57,880 10,728,612
2,756,712 1,723,936 1,397,756 57,880 5,936,284
1,232,000 2,536,202 3,768,202 14,496,814
913,000 39,654 952,654 6,888,938
(a) Other receivables comprise mainly GST/VAT receivable. (b) The non-current security bonds mainly relate to a restoration performance bond paid by the Group to the Australian government authorities to secure the Group’s mining lease for the Mt. Cattlin spodumene mine. The bond is interest-bearing at 2.44%, unsecured and repayable once rehabilitation of the Mt. Cattlin spodumene mine is completed to the Western Australian Government’s satisfaction. 18. CASH AND CASH EQUIVALENTS Group Current Cash at bank and on hand
December 31, 2011 $
December 31, 2010 $
17,996,933
27,509,567
17,996,933
27,509,567
The Group’s exposure to interest rate risk and a sensitivity analysis for financial assets and liabilities are disclosed in note 30.
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