ALLUP SILICA LIMITED NOTES TO THE FINANCIAL STATEMENTS 58 FINANCIAL REPORT ALLUP SILICA Year Ending 30 June 2023 Note 21: Financial Risk Management (cont.) (c) Market Risk (i) Interest Rate Risk The Company’s exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a result of changes in market interest rates and the effective average interest rates in classes of financial assets and liabilities is as follows: 2023 Average Effective Interest Rate Fixed Interest Rate Floating Interest rate Non-Interest Bearing Total % $ $ $ $ Financial Assets: Operating accounts - - 11,103 11,103 11am interest account 1.54% - 168,485 - 168,485 Term deposits 4.21% 3,000,000 3,000,000 Trade and other receivables - - 63,150 63,150 3,000,000 168,485 74,253 3,242,738 Financial Liabilities: Accounts payable - - 150,368 150,368 Lease liabilities 5.41% 160,167 - - 160,167 160,167 - 150,368 310,535 2022 Average Effective Interest Rate Fixed Interest Rate Floating Interest rate Non-Interest Bearing Total % $ $ $ $ Financial Assets: Operating accounts - - 106,766 106,766 11am interest account 0.32% - 4,806,308 - 4,806,308 Trade and other receivables - - 80,791 80,791 - 4,806,308 187,557 4,993,865 Financial Liabilities: Accounts payable - - 79,640 79,640 (ii) Commodity Price Risk The Company is exposed to commodity price risk. Commodity prices can be volatile and are influenced by factors beyond the Company’s control. As the Company is currently engaged in exploration and business development activities, no sales of commodities are forecast for the next 12 months, and accordingly, no hedging or derivative transactions have been used to manage commodity price risk.
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