20974 29Metals AR23 WEB V1 - Flipbook - Page 183
2023 key
results
104
Chair letter and
CEO report
About
29Metals
Our
assets
Sustainability
& ESG Report
Mineral Resources
and Ore Reserves
Annual
Financial Report
179
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)
Credit risk
redit ris refers to the ris that a counterparty will default on its contractual obligations resulting in financial loss to the Group.
The Group is exposed to counterparty credit ris through
▪
sales of metal products on normal terms of trade
▪
deposits of cash held with financial institutions
▪
commodity swaps and other derivative contracts held with financial institutions.
The most significant exposure to credit ris is through sales of metal products on normal terms of trade. The majority of sales for mining operations were
made under contractual arrangements whereby provisional payment is received promptly after delivery and is generally
of estimated value at
that time. efer to ote .
The Group held cash and cash equivalents of
, ,
at
ecember
, ,
. The cash and cash equivalents are held with
financial institutions which are rated
to a , based on Moody’s credit ratings. The Group considers that its cash and cash equivalents have low credit
ris based on the external credit ratings of the counterparties.
t the reporting date, the carrying amounts of financial assets are adjusted for any impairment and represent the Group’s maximum exposure to credit
ris , excluding the value of any collateral or other security, as shown below.
&ŝŶĂŶĐŝĂůĂƐƐĞƚƐ
2023
2022
$’000
$’000
ash and cash equivalents
,
,
Trade and other receivables
,
,
ther financial assets
,
,
ϮϬϮ͕ϰϱϳ
Ϯϯϲ͕ϭϭϬ
ustralia
,
,
sia
,
,
EĞƚĞdžƉŽƐƵƌĞ
The maximum exposure to credit ris for financial assets at the reporting date by geographic region was
ther
,
ϮϬϮ͕ϰϱϳ
Ϯϯϲ͕ϭϭϬ
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