Johara Mining Limited (JML) is a mining company that operates large mineral mines throughout Australia. In June 2026, JML had sold and delivered mineral ores from other mining operations. The total value of the mineral ores delivered is \($12\) 000 000. JML received the money for these sales in July 2026. JML recognised the revenue in its statement of financial performance for the year ended 30 June 2026.

JML is currently exploring for lithium deposits in south western Western Australia in areas similar to where other mining companies were successfully mining the mineral. The total cost of the exploration has been estimated at \($54\) 000 000. This is related to geographical surveys, drilling holes, testing samples and narrowing down the area being explored to find a viable lithium deposit. JML treated these costs as an asset.

Required Discuss JML's treatment of the mineral ores sold in June for \($12\) 000 000 and the exploration costs of \($54\) 000 000. Are these treatments consistent with the Conceptual Framework and accounting standards? Explain.