20974 29Metals AR23 WEB V1 - Flipbook - Page 181
2023 key
results
102
Chair letter and
CEO report
About
29Metals
Our
assets
Sustainability
& ESG Report
Mineral Resources
and Ore Reserves
Annual
Financial Report
177
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 (continued)
Interest rate risk
he Group is e posed to interest rate ris primaril through interest bearing liabilities (refer to ote
and cash and cash e uivalents (refer to ote
he Group monitors its interest rate ris regularl to ensure that there are no undue e posures to significant interest rate movements.
.
At the reporting date the interest rate profile of the Group’s interest bearing financial instruments was as follows.
sĂƌŝĂďůĞƌĂƚĞŝŶƐƚƌƵŵĞŶƚƐ
2023
2022
$’000
$’000
ash and cash e uivalents
Interest bearing liabilities
(
on interest bearing instruments include
, ,
(
, ,
in derivative financial liabilities (Refer to ote
,
.
,
,
,
,
(
;ϱϱ͕ϯϱϮͿ
in rade and other receivables (Refer to ote
and
,
,
;Ϯϲ͕ϯϵϳͿ
,
(
Cash flow sensitivity analysis for variable rate instruments
A change of basis points (
basis points in interest rates would have increased or (decreased e uit and before ta profit (loss b the
amounts shown below. his anal sis assumes all other variables remain constant.
2023
Variable rate instruments
$’000
50bp increase
2022
$’000
50bp decrease
$’000
50bp increase
Profit or loss
(
(
otal e uit
(
(
$’000
50bp decrease
Market risk
ar et ris is the ris that changes in mar et prices (e.g., foreign e change rates, interest rates and e uit prices will affect the Group’s income or the
value of its holdings of financial instruments. he ob ective of mar et ris management is to manage and control mar et ris e posures within acceptable
parameters, while optimising the return.
Ris management activities are carried out within the guidelines set b the Audit, Governance
Ris
ommittee.
As part of the reform of ma or interest rate benchmar s underta en globall , in accordance with the terms of the Group’s financing facilities, USD LIBOR
was replaced with the secured overnight offer rate (‘^K&Z’ on December
as the applicable reference rate for calculating interest on US dollar
borrowings. Prior to this date, USD LIBOR was the applicable reference rate for calculating interest on the Group’s US dollar borrowings.
102
