NOTES TO FINANCIAL STATEMENTS 31 December 2025 2 SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION (cont’d) CASH AND CASH EQUIVALENTS IN THE CONSOLIDATED STATEMENT OF CASH FLOWS - Cash and cash equivalents in the consolidated statement of cash flows comprise cash on hand and at banks and deposits and are subject to an insignificant risk of changes in value. SEGMENT REPORTING - An operating segment is a component of the Group that engages in business activities from which it may earn revenue and incur expenses, including revenue and expenses that relate to transactions with any of the Group’s other components. Operating segments are reported in a manner consistent with the internal reporting provided to members of management and the chief operating decision makers who are responsible for allocating resources and assessing performance of the operating segments. 3 CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY In applying the Group’s accounting policies, which are described in Note 2, management is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Critical judgements in applying the Group’s accounting policies In the process of applying the Group’s accounting policies, management has made the following judgements which have the most significant effect on the amounts recognised in the consolidated financial statements: (a) Coal reserves Management has obtained the Resource and Reserve reports (the “Reports”) for all mines held by the Group which give an indication of the reserve volumes used in the value in use calculations. These Reports are issued by independent qualified persons in accordance with The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. As the economic assumptions used may change and as additional geological information is obtained during the operation of a mine, management’s estimates of coal reserves may change. Such changes may impact the Group’s reported financial position and results, including amongst others, on items such as (i) impairment assessment of the Group’s mining properties and deferred stripping costs; (ii) depreciation and amortisation charges; and (iii) inventory cost. (b) Estimated recoverable amount of tax recoverable Tax recoverable are recognised as assets in the consolidated financial statements. The Group considers the recoverable amounts of these tax recoverable by taking into consideration the relevant evidence specific to each case(s) and the related taxation laws along with the professional advice of the tax consultant that the Group engaged in relation to tax cases which gave rise to the tax recoverable. The amount of the tax recoverable is dependant upon the expected outcome of the relevant tax cases and hence any change in the expected outcome may impact the Group’s reported financial position and results, including amongst others, on items such as (i) impairment assessment of the Group’s tax recoverable amounts; (ii) other expenses arising from finalisation of tax assessments. Management has sought advice from the professional tax consultant and is of view that the Group will recover the tax recoverable amounts. The Group has made disclosures on the above critical judgement in Note 8(e) to the consolidated financial statements. Key sources of estimation uncertainty The key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are discussed below. (c) Useful lives of property, plant and equipment As described in Note 2 to the financial statements, the Group reviews the estimated useful lives of property, plant and equipment at the end of each reporting period. During the financial year, management determined that the useful lives of property, plant and equipment are based on the industry practice and the Group’s operational environment. 74
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