FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2024 74 Westgold Resources Limited Annual Report 2024 4. F INANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) Risk exposures and responses (continued) (c) Price risk Commodity Price Risk The Group is exposed to the risk of fluctuations in the prevailing market prices for the gold and silver currently produced from its operating mines. The Group has a commodity risk management hedging policy that authorises management to enter into price protection contracts to ensure revenue streams up to 60% of gold sales for up to three years of forecast production. Refer to Note 5 for details. Equity Security Price Risk The Group’s operations were exposed to equity security price fluctuations arising from investments in equity securities. Refer to Note 15 for details of equity investments at fair value through profit or loss held at 30 June 2024. The Group has equity investments, which have shown volatility in price movements over the year. If security prices varied by 20%, with all other variables held constant, the impact on post tax profits and equity at 30 June, is reflected below: Post tax profit higher (lower) Other Comprehensive Income higher (lower) 30 June 2024 30 June 2023 30 June 2024 30 June 2023 Judgements of reasonably possible movements: Price + 20% 1,121,533 1,142,080 – – Price - 20% (1,121,533) (1,142,080) – – (d) Liquidity risk Liquidity risk arises from the financial liabilities of the Group and the subsequent ability to meet the obligations to repay the financial liabilities as and when they fall due. The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of equipment loans. The table below reflects all contractually fixed payables for settlement, repayment and interest resulting from recognised financial liabilities as of 30 June 2024. Cash flows for financial liabilities without fixed amount or timing are based on the conditions existing as 30 June. The remaining contractual maturities of the Group’s financial liabilities are: 2024 2023 6 months or less (160,298,601) (89,588,752) 6 - 12 months (10,322,503) (6,581,340) 1 - 5 years (33,588,015) (12,612,272) Over 5 years – – (204,209,119) (108,782,364) Maturity analysis of financial assets and liabilities based on management’s expectation The risk implied from the values shown in the table below reflects a balanced view of cash inflows and outflows. Leasing obligations, trade payables and other financial liabilities mainly originate from the financing of assets used in our ongoing operations such as property, plant, equipment and investments of working capital e.g. inventories and trade receivables. To
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