St Barbara Mines Limited Annual Report 2004 Notes to the Financial Statements  for the year ended 30 June 2004 (d) Recoverable Amount of Non-Current Assets (e)  Treatment of Mining Properties (f)  Depreciation and Amortisation of Property, Plant and Equipment (g) Depreciation and Amortisation of Assets Held for Resale The recoverable amount of an asset is the net amount expected to be recovered through the cash in fl  ows and out fl  ows  arising from its continued use and subsequent disposal. Where the carrying amount of a non-current asset is greater than its recoverable amount, the asset is written down to  its recoverable amount. Where net cash in fl  ows are derived from a group of assets working together, recoverable amount  is determined on the basis of the relevant group of assets. The decrement in the carrying amount is recognised as an  expense in net pro fi  t or loss in the reporting period in which the recoverable amount write-down occurs. The expected net  cash  fl  ows included in determining the recoverable amounts of non current assets are not discounted. All exploration and evaluation expenditure incurred by or on behalf of the Company up to the decision by the Board  to proceed with development of a mining property, is expensed as incurred. Acquired exploration assets are not written  down below acquisition cost until such time as the acquisition cost is not expected to be recovered. Mining properties consists only of acquired exploration assets together with related mine development costs and capital  assets. The cost of mineral properties includes the cash consideration and/or the fair value of shares issued on the date  the property is acquired. The recoverability of amounts shown for mining properties is dependent upon the existence of economically recoverable  reserves; the acquisition and maintenance of appropriate permits, licenses and rights; the ability of the Company to obtain  fi  nancing to complete the development of the properties where necessary and upon future pro fi  table production; or,  alternatively, upon the Company’s ability to recover its spent costs through a disposition of its interests. Mine development costs relating to mineral properties are deferred until the properties are brought into commercial  production, at which time they are amortised over the estimated useful life of the related property or on a unit-of- production basis over proven and probable reserves. Pre-production credits, including the value of marketable metals  extracted during mine development, are credited against costs incurred. The Directors have considered the economic life of mine buildings, machinery and equipment with due regard to both  the physical life limitations, assessments of economically recoverable reserves of the mine property at which the items  are located, and to possible future variations in those assessments. The estimated remaining useful life for all such assets  is reviewed regularly with annual reassessments being made for major items. The majority of mine buildings, plant and equipment (other than freehold land) are written off over their expected  economic life. The expected useful lives are as follows: The total net carrying values of mine buildings, machinery and equipment at the mine property are reviewed regularly  and, to the extent by which these values exceed their recoverable amounts, that excess is fully provided against in the  fi  nancial year in which this is determined. Pro fi  ts and losses on disposal of property, plant and equipment are taken into account in determining the result for the year. Plant and equipment which is currently surplus to requirements and not used is not depreciated. When those assets  are used, they are depreciated on an hourly basis. The total carrying value of these assets is not in excess of estimated  market value. Buildings Plant and Equipment  10 years 3 to 13 years B