| 7. | INVENTORIES |
Inventories are valued at the lower of cost and net realisable value. Gold on hand represents production on hand after the smelting process.
Cost is determined on the following basis:
| • | Gold on hand and gold-in-process is valued using weighted average cost. Cost includes production, amortisation and related administration costs; |
| • | Heap leach and stockpiles inventories are valued using weighted average cost. Cost includes production, amortisation and related administration costs. The cost of materials on the heap leach and stockpiles from which metals are expected to be recovered in a period longer than 12 months is classified as non-current assets; and |
| • | Consumable stores are valued at weighted average cost, after appropriate provision for redundant and slow-moving items. |
Net realisable value is determined with reference to relevant market prices or the estimated future sales price of the product if it is expected to be realised in the long term.