Exploration and evaluation expenditure

12 Months Ended

Dec. 31, 2023

Exploration And Evaluation Expenditure [Abstract]

Exploration and evaluation expenditure

8 Exploration and evaluation expenditure

Exploration and evaluation expenditure includes costs that are directly attributable to:

–researching and analysing existing exploration data;

–conducting geological studies, exploratory drilling and sampling;

–examining and testing extraction and treatment methods;

–compiling various studies (order of magnitude, pre-feasibility and feasibility) and/or

–early works at mine sites prior to full notice to proceed.

Exploration expenditure relates to the initial search for deposits with economic potential. Expenditure on exploration activity undertaken by the

Group is not capitalised.

Evaluation expenditure relates to a detailed assessment of deposits or other projects (including smelter and refinery projects) that have been

identified as having economic potential. These costs are also expensed until the business case for the project is sufficiently advanced. For

greenfield projects, expensing typically continues to a later phase of study compared with brownfield expansions.

The charge for the year and the net amount of intangible assets capitalised during the year are as follows:

	2023 US$m	2022 US$m	2021 US$m
Expenditure in the year (inclusive of net cash proceeds of US$88 million (2022: US$1 million; 2021: US$7 million) on disposal of undeveloped projects)(a)	(1,684)	(1,097)	(852)
Non-cash movements and non-cash proceeds on disposal of undeveloped projects	(17)	(6)	23
Amount capitalised during the year	471	207	110
Exploration and evaluation expenditure (net of profit from disposal of interests in undeveloped projects) per income statement	(1,230)	(896)	(719)
Comprising:
Exploration and evaluation expenditures	(1,384)	(897)	(726)
Profit from disposal of interests in undeveloped projects(a)	154	1	7

(a)In 2023, net cash proceeds of US$88 million were received in relation to the sale of a 55% interest in the undeveloped La Granja project in Peru, for which we recognised a gain on disposal of

US$154 million. This profit is recorded within underlying EBITDA as it represents recovery of past exploration and evaluation expenditures that were also included within underlying EBITDA.

Refer to note 5 for details of the transaction.