Page 122 - Sundance Resources Ltd Annual Report 2013

120 SUNDANCE RESOURCES LIMITED ANNUAL REPORT 2013
NOTES TO THE
FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 JUNE 2013
AUD
Movement EUR Impact USD Impact XAF Impact ZAR Impact GBP Impact
2013
$
2012
$
2013
$
2012
$
2013
$
2012
$
2013
$
2012
$
2013
$
2012
$
10% Increase 6,315 (7,199) (4,801) (347) 6,692 (83,888) (1,666) 6 (573) -
10% Decrease (6,315) 7,199 4,801 347 (6,692) 83,888 1,666 (6) 573 -
Capital risk
The Group and Company endeavour to manage their capital to ensure the Group and the Company will be able
to continue as a going concern while maximising the development outcomes from its exploration expenditure.
The Group’s and the Company’s overall strategy remains unchanged.
The capital structure of the Group and the Company consists of equity attributable to equity holders of the Company,
comprising issued capital, reserves, carried forward losses and non-controlling interests. The Group and the
Company have a convertible note facility with Hanlong but are otherwise debt free.
The Group has exploration expenditure commitments under the exploration permits it has in place and the Board
regularly reviews commitments as part of the overall exploration program.
Interest rate risk
The Group’s exposure to interest rate risk is the risk that a financial instrument’s value will fluctuate as a result of
changes in market interest rates. The Group and the Company are exposed to interest rate risk as entities in the
Group deposit funds at both short-term fixed and floating rates of interest. Neither the Group nor the Company
have any interest bearing liabilities. The Group and the Company’s exposure to interest rates on financial assets
and financial liabilities are detailed in the liquidity risk management section of this note.
Interest rate sensitivity
A change in interest rates would not have a material impact on the carrying value of the Group or the Company’s
financial instruments as at the current or prior year end given that cash reserves were held predominantly in fixed
interest rate instruments as at balance date, while amounts in variable interest rate instruments were held for use
in the short term.
Liquidity risk
The Consolidated Entity manages liquidity risk by maintaining adequate reserves through the monitoring of forecast
and actual cash flows and matching the maturity profiles of financial assets and liabilities.
Ultimate responsibility for liquidity risk management rests with the board of directors, who oversee a liquidity risk
management framework for the management of the Group and the Company’s funding and liquidity management
requirements. The Group and the Company manage liquidity risk by regularly monitoring forecast and actual cash
flows and ensuring there are appropriate plans in place to fund these future cash flows.
Liquidity and interest rate risk tables
The tables below have been drawn up based on the undiscounted cash flows (including both interest and principal
cash flows expected) using contractual maturities of financial assets and the earliest date on which the Group and
the Company can be required to pay financial liabilities. Amounts for financial assets include interest earned on those
assets except where it is anticipated the cash flow will occur in a different period.
Note 28. FINANCIAL INSTRUMENTS (continued)