21. FINANCIAL INSTRUMENTS (CONTINUED) (b) Credit Risk The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial assets is the carrying amount of those assets, net of any allowance for doubtful debts, as disclosed in the statement of financial position and notes to the financial report. The Group does not have any material credit risk exposure to any single debtor or group of debtors under financial instruments entered into by the Group. (c) Financial liabilities Financial liabilities are initially recognised at the fair value of the consideration received, net of transaction costs. They are subsequently measured at amortised costs using the effective interest method. Where there is an unconditional right to defer settlement of the liability for at least 12 months after the reporting date, the loans or borrowings are classified as non-current. The contractual maturities of the Group’s financial liabilities are as follows: Contractual maturities of financial liabilities As at 30 June 2024 Less than 6 months 6 – 12 months Between 1 and 2 years Between 2 and 5 years Over 5 years Total contractual cash flows Carrying amount (assets)/ liabilities Non-derivatives Lease liability 73,250 73,250 93,390 53,265 – 293,155 293,155 Trade and other payables 459,695 – – – – 459,695 459,695 Total nonderivatives 532,945 73,250 93,390 53,265 – 752,850 752,850 (d) Net Fair Values The carrying amount of financial assets and financial liabilities recorded in the financial statements represent their respective net fair value and is determined in accordance with the accounting policies disclosed in Note 2 to the financial statements. (e) Financial Risk Management The Group’s financial instruments consist mainly of deposits with recognised banks, investment in term deposits up to 90 days, accounts receivable, accounts payable and borrowings. Liquidity is managed, when sufficient funds are available, by holding sufficient funds in a current account to service current obligations and surplus funds invested in term deposits. The directors analyse interest rate exposure and evaluate treasury management strategies in the context of the most recent economic conditions and forecasts. The main risks the Group is exposed to through its financial instruments are the depository banking institution itself, holding the funds, and interest rates. The Group’s credit risk is minimal as being an exploration Company, it has no significant financial assets other than cash and term deposits. (f) Foreign Currency Risk The Group is not exposed to any significant foreign currency risk as at 30 June 2024. (g) Market Price Risk The Group is not exposed to market price risk as it does not have any investments other than an interest in the subsidiaries. 47 St George Mining Limited Annual Report 2024
RkJQdWJsaXNoZXIy MjE2NDg3