81 2022 ANNUAL REPORT Notes to the CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2022 (cont.) 32 FINANCIAL RISK MANAGEMENT (cont.) Cash flow sensitivity analysis for variable rate instruments An increase of 100 basis points or decrease of 100 basis points in interest rates at the reporting date would have increased/(decreased) equity and profit or loss by the amounts shown below: Profit or loss Equity CONSOLIDATED 100bp increase $’000 100bp/50bp decrease $’000 100bp increase $’000 100bp/50bp decrease $’000 30 June 2022 Variable rate instruments (1,241) 1,241 (1,241) 1,241 30 June 2021 Variable rate instruments 462 (231) 462 (231) NET FAIR VALUES The carrying value of financial assets and liabilities equates to their fair value. CAPITAL MANAGEMENT The consolidated entity’s objective when managing capital is to safeguard its ability to continue as a going concern, so as to maintain a strong capital base sufficient to maintain future exploration and development of its projects. In order to maintain or adjust the capital structure, the consolidated entity may return capital to shareholders, issue new shares or sell assets to reduce debt. Risk management is facilitated by regular monitoring by and reporting to the Board and key management personnel. Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements. 33 FAIR VALUE MEASUREMENT The fair values of financial assets and financial liabilities carried at amortised cost approximate their carrying value. The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique. Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities Level 2 - Valuation techniques for which the lowest - level input that is significant to the fair value measurement is directly or indirectly observable Level 3 - Valuation techniques for which the lowest - level input that is significant to the fair value measurement is unobservable The following financial assets and liabilities are classified as level 2: \ \ Financial liabilities - borrowings of $172.270 million (30 June 2021: $nil) \ \ Derivative Financial Instruments, liability of $nil (30 June 2021: $nil) 34 DEED OF CROSS GUARANTEE Pursuant to ASIC Corporations (Wholly owned Companies) Instrument 2016/785 the wholly owned subsidiaries listed below are relieved from the Corporations Act 2001 requirements for preparation, audit and lodgement of financial reports, and Directors’ Reports. It is a condition of the Instrument that the Company and each of the subsidiaries enter into a Deed of Cross Guarantee. The effect of the Deed is that the Company guarantees to each creditor payment in full of any debt in the event of winding up of any of the subsidiaries under certain provisions of the Corporations Act 2001. If a winding up occurs under other provisions of the Act, the Company will only be liable in the event that after six months any creditor has not been paid in full. The subsidiaries have also given similar guarantees in the event that the Company is wound up. The subsidiaries subject to the Deed are: \ \ Opus Resources Pty Ltd \ \ Darlot Mining Company Pty Ltd \ \ Greenstone Resources (WA) Pty Ltd Opus Resources Pty Ltd and Darlot Mining Company Pty Ltd both became party to the Deed of Cross Guarantee on 30 June 2018. Greenstone Resources (WA) Pty Ltd became party to the Deed of Cross Guarantee on 30 June 2021.
RkJQdWJsaXNoZXIy MjE2NDg3