20974 29Metals AR23 WEB V1 - Flipbook - Page 180
29Metals 2023 Annual Report
176
Consolidated Financial Statements continued
101
29Metals Appendix 4E and Annual Financial Report for 29Metals Limited and its Controlled Entities for the year ended 31 December 2023
Consolidated Financial Statements
Note 28: Financial risk management
The Group’s activities expose it to a variety of financial risks, including commodity price risk, interest rate risk, market risk, currency risk, credit risk and
liquidity risk. The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse
effects on the Group’s financial performance. The senior executives of the Group meet on a regular basis to analyse treasury risks and evaluate risk
management strategies in the context of the prevailing economic conditions and forecasts. Risk management policies are approved and reviewed by the
oard on a regular basis.
The Group’s financial instruments are as follows.
2023
2022
Note
$’000
$’000
&ŝŶĂŶĐŝĂůĂƐƐĞƚƐ
ash and cash equivalents
1 1,
Trade and other receivables
ther financial assets
1
,
1
1 ,
1 1,
1,
1 , 1
ϮϬϮ͕ϰϱϳ
Ϯϯϲ͕ϭϭϬ
&ŝŶĂŶĐŝĂůůŝĂďŝůŝƚŝĞƐ
Trade and other payables
11 ,
nterest bearing liabilities
1 ,
1 , 11
ease liabilities
1 ,
4,1
erivative financial liabilities
14
,11
11,
,
ϰϬϭ͕ϮϮϵ
ϰϮϯ͕ϬϮϯ
Commodity price risk
The prices of copper, inc, lead, gold and silver are affected by numerous factors and events that are beyond the control of the Group. These metal prices
change on a daily basis and may vary significantly, up and down, over time. The factors impacting metal prices include broader macro economic
developments and factors impacting the demand and supply specific to each particular metal.
etals regularly reviews its exposure to commodity prices and, in particular, the impact of movements in commodity prices on the Group’s:
profitability and return metrics
cashflow generation and funding commitments and
compliance with financial covenants under the Group’s corporate debt facilities.
▪
▪
▪
The Group may engage in certain hedging activity for example the use of commodity forward contracts to seek to reduce the risk associated with
commodity price volatility. ll such transactions are carried out within policies set by the oard.
The following table details the sensitivity of the Group’s financial assets balances to movements in commodity prices. t 1 ecember
provisionally priced sales contract amounted to 1 , 4 ,
1 , ,
:
, ,
1 1,4 1,
.
t the reporting date, if commodity prices increased decreased by
profit loss for the year would have changed as set out below.
:1
, and all other variables were held constant, the Group’s after tax
2023
Commodity
Price
Movement
, the Group’s
2022
Price
Increase Increase
Profit / Equity
Price
Decrease Decrease
Profit / Equity
Commodity
Price
Movement
Price
Increase Increase
Profit / Equity
Price
Decrease Decrease
Profit / Equity
ŽŶĐĞŶƚƌĂƚĞ
opper
,
inc
dŽƚĂů
1, 4
ϳ͕ϲϲϳ
;ϳ͕ϲϲϳͿ
Refer to Note 14 for information regarding the Group’s exposure to gold commodity derivatives.
101
,
1, 4
1
1 ,
1
, 41
Ϯϲ͕ϯϵϴ
1 ,
, 41
;Ϯϲ͕ϯϵϴͿ
