monthly revenues, page-5

Dasa

Depreciation has nothing to do with replacing assets, it is all about 'expensing' the cost of the asset over the useful life because you are not allowed to claim a full deduction in the year of purchase for assets over a certain value. In the case of PH, the costs of the mine have been cumulatively added together and the total will now be depreciated.

In terms of reducing the depreciation if the mine life is extended, it would depend on how they have calculated the depreciation, ie on a straight line with X number of years or diminishing value at X% per year. If they used a straight line and mine life is extended, this could reduce the amount of depreciation expense.

Cheers

KC