Key Audit Matter How our audit addressed the key audit matter Capitalisation and impairment of Exploration and Evaluation Costs Refer to Note 1 (k) Summary of Material Accounting Policies: Exploration and evaluation expenditure; and Note 10: Exploration and evaluation assets In accordance with AASB 6 Exploration for and Evaluation of Mineral Resources, the Group capitalises all exploration and evaluation expenditure. As at 30 June 2024, the Group had a capitalised exploration and evaluation balance of $81,475,930. Capitalisation and impairment of Exploration and Evaluation Costs was determined to be key audit matter due to the following: • The significance of the total balance; and • The importance of this balance to the users’ understanding of the financial statements as a whole; and • The level of procedures undertaken to evaluate management’s application of the requirements of AASB 6 Exploration for and Evaluation of Mineral Resources We planned our audit work to address the audit risk that the valuation of, and accounting for, exploration and evaluation expenditure may not have been carried out in accordance with the relevant accounting standard. Our procedures included but were not limited to the following: • Reviewed management’s accounting treatment of capitalised costs under AASB 6 Exploration for and Evaluation of Mineral Resources; • Obtained evidence that the Group has current rights to tenure of its areas of interest; • Tested a sample of expenditure by agreeing to supporting documentation; • Reviewed management’s assessment of impairment; and • Reviewed the adequacy of the Group’s disclosures in the financial statements. Information Other than the Financial Report and Auditor’s Report Thereon The directors are responsible for the other information. The other information comprises the information included in the Group’s annual report for the year ended 30 June 2024, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report, or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Independent Auditor’s Report continued 62 Sunstone Metals Limited Annual Report 2024
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