NOTES TO FINANCIAL STATEMENTS 31 December 2025 9 DEPOSITS AND PREPAYMENTS (cont’d) (a) In 2023, US$35 million in refundable deposit was placed with GPE, the non-controlling interest of PT Golden Eagle Energy Tbk (“GEE”), as part of securing offtake rights on coal produced from the PT Triaryani (“TRA”) mine. The balance is interest free and was to be refunded by 31 December 2024 but was subsequently extended to 31 December 2026 at the request of GPE. The balance is secured by a guarantee of up to US$25 million by SUI, the holding company of GPE, with GPE undertaking not to dispose of its share in GEE so long as more than US$5 million of the balance remains outstanding. In 2024, the Group received US$5 million of the refundable deposit from GPE. As at 31 December 2025, US$30 million (2024 : US$30 million) remains outstanding. The guarantee from SUI remains in effect along with the undertaking by GPE on the shares of GEE. Subsequent to the financial year, on 5 February 2026, the Group received US$1 million from GPE. (b) Included in this balance as at 31 December 2025 is US$7 million in refundable deposit that was placed with SUI, the non-controlling interest of MBJ and holding company of GPE, for the potential purchase of additional shares in MBJ. (c) Movement in impairment loss on advance payments for purchase of coal are as follows: (d) Included in this balance as at 31 December 2024 was US$2,959,943 paid in 2024 in relation to the US$150 million Engineering, Procurement and Construction (“EPC”) contract for the construction and development of the MBJ hauling road and jetty (“MBJ Integrated Infrastructure”). In 2025, the amount has been capitalised into construction in progress under property, plant and equipment (Note 15) upon the achievement of development milestone of the MBJ Integrated Infrastructure. 10 INVENTORIES Included in the cost of inventories is a reversal of allowance for inventory written-down of US$676,502 (2024 : US$Nil) (Note 36). 11 INVESTMENT IN SUBSIDIARIES (a) The amount is stated at cost as it is deemed to be part of the Company’s equity investments in the subsidiaries, as the amounts are interest-free, payable at discretion of the borrowers when they are able to do so. (b) The amount pertained to the fair value of financial guarantee given by the Company in relation to senior notes issued by a subsidiary in 2017. The fair value of US$7,887,000 was recognised as deemed investment by the Company in a subsidiary and a financial guarantee liability, the latter of which had been fully amortised and credited to the Company’s profit or loss in 2021 upon the early redemption of the senior notes. In 2024, the Group acquired additional interests of 5.0% and 0.36% in its indirect subsidiaries, MBJ and PT Rajawali Resources (“RR”) respectively. The additional interests acquired in MBJ and RR did not result in change of control and accordingly, amounts of US$1,345,630 and US$29,734 were reclassified respectively from non-controlling interests to equity attributable to owners during the year ended 31 December 2024. Group 2025 2024 US$ US$ At beginning of year 1,346,788 1,411,961 Exchange differences - (65,173) Written off (1,346,788) - At end of year - 1,346,788 Company 2025 2024 US$ US$ Unquoted equity shares, at cost 80,994,130 80,980,516 Less: Allowance for impairment - (7,131,486) 80,994,130 73,849,030 Deemed investment (a) 82,419,651 97,009,790 Fair value of a financial guarantee contract (b) 7,887,000 7,887,000 171,300,781 178,745,820 Group 2025 2024 US$ US$ Coal 30,618,227 34,320,139 Diesel fuel 12,789 39,578 Total 30,631,016 34,359,717 90
RkJQdWJsaXNoZXIy NTkwNzg=