NOTES TO FINANCIAL STATEMENTS 31 December 2025 24 PROVISIONS As at the end of the reporting period, the Group and Company have made the following provisions: (A) Retirement benefit obligations Employee benefits expense comprised: The Company’s subsidiaries recognise defined postemployment benefits in accordance with the Republic of Indonesia Law No. 6 Year 2023. No funding has been made to the defined benefit scheme. The actuarial valuation of present value of the defined benefit obligation was carried out as at 31 December 2025 and 2024 by KKA Riana & Rekan. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method. The principal assumptions used for the purpose of the actuarial valuations were as follows: * Standard Ordinary Mortality table in Indonesia (“TMI”) Sensitivity analysis was not performed on each of the significant actuarial assumption, in view that the changes in the actuarial assumptions are not expected to be material. (B) Provision for rehabilitation This includes the net present value of the costs expected to be incurred for the rehabilitation of mining properties. Management uses a discount rate of 8% (2024 : 15%). The Group has not provided for certain costs relating to rehabilitation as these activities will be undertaken by the owner of the land in which the Group performs its mining activities. Group Company 2025 2024 2025 2024 US$ US$ US$ US$ Retirement benefit obligations (Note A) 2,441,956 2,249,338 - - Provision for rehabilitation (Note B) 4,889,392 2,782,526 - - 7,331,348 5,031,864 - - Group 2025 2024 US$ US$ Present value of unfunded obligations 2,441,956 2,249,338 Changes in the present value of the defined obligations: Opening defined benefit obligations 2,249,338 2,052,317 Employee benefits expense (Note 36) 320,361 402,370 Remeasurement, (credited) charged to other comprehensive income (Note 30): - Actuarial gains from changes in experience adjustments (53,846) (9,434) - Actuarial loss (gains) from changes in financial assumptions 54,545 (69,872) Benefits paid (29,642) (17,467) Exchange differences (98,800) (108,576) Closing defined benefit obligations 2,441,956 2,249,338 Group 2025 2024 US$ US$ Current service cost 268,957 287,822 Interest cost 107,197 109,970 Past service cost and (gains) loss from curtailment (55,793) 4,577 Total 320,361 402,369 Group 2025 2024 US$ US$ At beginning of year 2,782,526 2,010,627 Additions 3,292,344 755,541 Disposal of a subsidiary (Note 42) (1,196,958) - Exchange differences 11,480 16,358 At the end of year 4,889,392 2,782,526 Valuation at 2025 2024 Discount rate per annum 6.75% 7.25% Expected rate of salary increases per annum 7.5% 7.5% Mortality rate * 100% TMI4 100% TMI4 Disability rate 5% per annum 5% TMI4 Resignation rate 5.5% per annum until age 20 then decrease linearly to 0% at age 59 years 5% per annum until age 35 then decrease linearly to 0% at age 55 years Normal retirement age 59 years 58 years 102
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