Investor Presentaiton
Quellaveco accounting - ramp up & commercial
production
Ramp up from first production
12 months from first production
2022 Production
C1 unit cost - nominal
Accounting treatment considerations
Ramp up to commercial production
Accounting treatment
considerations once commercial
production is reached
100-150kt
~$1.35/lb1
•
Inventory recognised when first ore extracted, at cost of production, including element of waste stripping
Revenue recognised in income statement² with costs of production recognised in cost of sales
Project team and ongoing direct construction costs will continue to be capitalised
Ramp-up of production levels to full design capacity is expected 12 months after first production
•
Mine depreciation commences
•
Cessation of capitalisation of borrowing costs; interest on Mitsubishi shareholder facility will be expensed in
finance costs on consolidation
1.2022 is a ramp-up year and therefore C1 unit costs will be highly dependent on production achieved, and subject to further Covid-19 impacts.
2. Revenue will be recognised in line with the IAS 16 amendment published in May 2020, which states that revenues generated (from first sale) by an asset in construction must be recognised in the income statement as revenue, along with the
related cost of production.
Anglo American
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