Notes to the Financial Statements 78 4. Segment information  continued Revenue % of External Revenue 2013  $’000 2012  $’000 2013  % 2012  % Customer A 226,759 217,3 07 69 61 Customer B 102,523 140,065 31 39 5. Revenue and expenses 2013  $’000 2012  $’000 a)  Sales revenue Gold sales 302,996 329,579 Silver sales 26,286 27,79 3 Total sales revenue 329,282 357,372 b)  Cost of sales Direct costs of mining and processing 179,817 159,500 Royalties 25,838 27,19 6 Inventory movements (8,341) (8,132) Deferred mining costs (2,250) (7,059) Depreciation (operations) 85,388 67,320 Total costs of sales 280,452 238,825 c)  Corporate and administration expenses Administration 15,515 12,737 Technical support and business development 2,096 2,867 Statutory and professional fees 3,334 3,467 Depreciation 207 233 Total corporate and administration expenses 21,152 19,304 d)  Other income and expenses Sale of mineral rights – 1,150 Net (loss) on the sale of exploration assets (16,709) – Net (loss) / gain on the sale of fixed assets (70) 35 (Loss) / gain on the change in fair value of undesignated gold contracts held for trading  1,414 (425) (Loss) on the change in fair value of available-for-sale financial assets (855) (260) Gain on the close-out of hedge contract – 819 Other revenue 730 246 Total other income and (expense) (15,490) 1,565 e) Impairment Challenger Gold Project (refer Note 5j) 311,850 – Exploration assets 20,421 – Investment in associate – Caravel Minerals 537 – Total impairment  332,808 – www.kingsgate.com.au