Notes to the Financial Statements
79
Notes to the Financial Statements
continued
u
2013 
$’000
2012 
$’000
f) Finance costs
Interest and finance charges 15,161 13,782
Unwinding of discount 1,017 390
Amortisation of deferred borrowing costs 7,594 2,138
Less: borrowing costs capitalised  (i) (4,963) (6,939)
Total finance costs 18,809 9,371
(i)  Capitalised borrowing costs  
The capitalisation rate used to determine the amount of borrowing costs to be capitalised is the weighted average interest rate  
applicable	to	the	entity’s	outstanding	borrowings	during	the	year,	in	this	case	10.7%	(2012:	9.7%).
g) Depreciation and amortisation
Property, plant and equipment 18,481 17,6 0 0
Mine properties 67,377 50,353
Less: Depreciation capitalised (263) (400)
Total depreciation and amortisation expenses 85,595 67,553
Included in:
Costs of sales depreciation 85,388 67,320
Corporate depreciation 207 233
h) Employee benefits expenses
Included in:
Costs of sales 18,668 17,474
Corporate and administration expenses 11,464 8,822
Total employee benefits expenses 30,132 26,296
i) Other items
Operating lease rentals 915 749
Total other items 915 749
j) Significant items
Foreign exchange (gain) / loss 745 (1,268)
Dominion acquisition cost – 964
Write off of capitalised borrowing fees 5,722 –
Change in fair value of undesignated gold contracts held for trading (1,414) 425
Change in fair value of available-for-sale financial assets 855 260
Share of loss in associate (refer Note 14a) 1,353 –
Loss on sale of exploration assets (refer Note 33) 16,709 –
Impairment Challenger Gold Project (i) 311,850 –
Impairment of capitalised exploration 20,421 –
Impairment of associate 537 –
Total significant items (pre-tax) 356,778 381
(i)	 	Tax	benefit	on	the	impairment	of	Challenger	Gold	Project	amounts	to	$20,600,000.	The	impairment	of	Challenger	Gold	Project	after	tax	is	$291,300,000.	Impairment	charge	
includes	property,	plant,	and	equipment	$64,897,000,	mine	properties	$239,848,000,	and	exploration	and	evaluation	$7,105,000	(refer	Notes	12	and	13).	The	tax	benefit	
relating to the impairment has not been recognised in the financial statements.