for the year ended 30 June 2023 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 66 Westgold Resources Limited Annual Report 2023 4. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) Risk exposures and responses (continued) The board reviews and agrees policies for managing each of these risks as summarised below. Primary responsibility for identification and control of financial risks rests with the Board. The Board reviews and agrees policies for managing each of the risks identified below, including for interest rate risk, credit allowances and cash flow forecast projections. Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in Note 2 to the financial statements. (a) Interest rate risk The Group’s exposure to risks of changes in market interest rates relate primarily to the Group’s interest-bearing liabilities and cash balances. The level of debt is disclosed in Notes 23 and 24. The Group’s policy is to manage its interest cost using fixed rate debt. Therefore, the Group does not have any variable interest rate risk on its debt. The Group constantly analyses its interest rate exposure. Within this analysis, consideration is given to potential renewals of existing positions, alternative financing positions and the mix of fixed and variable interest rates. There is no significant exposure to changes in market interest rates at the reporting date. At the reporting date the Group’s exposure to interest rate risk for classes of financial assets and financial liabilities is set out below. Floating interest rate Fixed interest Non-interest bearing Total carrying amount 2023 Financial assets Cash and cash equivalents 176,411,855 – – 176,411,855 Trade and other receivables – – 6,854,911 6,854,911 Financial assets at fair value through profit and loss – – 8,157,712 8,157,712 Other financial assets – 4,149,443 – 4,149,443 176,411,855 4,149,443 15,012,623 195,573,921 Financial liabilities Trade and other payables – – (79,227,398) (79,227,398) Lease liabilities – (5,595,472) – (5,595,472) Interest-bearing liabilities – (21,895,346) – (21,895,346) – (27,490,818) (79,227,398) (106,718,216) Net financial assets 88,855,705 2022 Financial assets Cash and cash equivalents 142,701,502 40,000,000 – 182,701,502 Trade and other receivables – – 7,122,734 7,122,734 Financial assets at fair value through profit and loss – – 6,799,309 6,799,309 Other financial assets – 1,930,033 – 1,930,033 142,701,502 41,930,033 13,922,043 198,553,578 Financial liabilities Trade and other payables – – (88,017,524) (88,017,524) Lease liabilities – (10,909,353) – (10,909,353) Interest-bearing liabilities – (32,050,458) – (32,050,458) – (42,959,811) (88,017,524) (130,977,335) Net financial assets 67,576,243
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