Red5 Annual Report 2022

79 2022 ANNUAL REPORT Notes to the CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2022 (cont.) 32 FINANCIAL RISK MANAGEMENT (cont.) Cash and cash equivalents The consolidated entity limits its exposure to credit risk by only investing in liquid securities and only with counterparties that have an acceptable credit rating. Any excess cash and cash equivalents are maintained in short term deposits with more than one major Australian commercial bank at interest rates maturing over 30 to 120 day rolling periods. Trade and other receivables The Group’s trade and other receivables relate mainly to gold sales and sales tax refunds. The Group has determined that its exposure to trade receivable credit risk is low, given that it sells gold bullion to a single reputable refiner with short contractual payment terms and sales tax refunds are due from Government tax bodies namely the Australian Tax Office and the Philippines Bureau of Internal Revenue. Exposure to credit risk The carrying amount of the consolidated entity’s financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date was: CONSOLIDATED Carrying amount 2022 2021 $’000 $’000 Cash and cash equivalents 32,526 17,415 Trade and other receivables 19,025 9,861 Non-current receivables 8,180 28,810 LIQUIDITY RISK Liquidity risk is the risk that the consolidated entity will not be able to meet its financial obligations as they fall due. The consolidated entity approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the consolidated entity. The consolidated entity manages liquidity risk by maintaining adequate cash reserves from funds raised in the market and by continuously monitoring forecast and actual cash flows. The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements: Carrying amount Contractual cash flows Less than one year Between one and five years More than five years CONSOLIDATED $’000 $’000 $’000 $’000 $’000 As at 30 June 2022 Trade and other payables 64,174 (64,174) (64,174) - - Lease liabilities 100,094 (128,152) (25,288) (73,582) (29,282) Financial liabilities 172,270 (194,598) (27,830) (166,768) - 336,538 (386,924) (117,292) (240,350) (29,282) As at 30 June 2021 Trade and other payables 39,787 (39,787) (39,787) - - Lease liabilities 10,153 (12,715) (6,385) (6,330) - 49,940 (52,502) (46,172) (6,330) -

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