Cue Energy Resources Limited Notes to the financial statements 30 June 2023 Note 15. Financial instruments (continued) 24 AUD strengthened AUD weakened Consolidated - 30 June 2022 % change Effect on profit before tax Effect on equity % change Effect on profit before tax Effect on equity Trade and other receivables 10% (4) - 10% 5 - Trade and other payables 10% 88 - 10% (92) - 84 - (87) - Management believes the risk exposures as at the reporting date are representative of the risk exposure inherent in the financial instruments. (d) Commodity price risk The Group is involved in oil and gas exploration and appraisal and generates revenue from the sale of hydrocarbons. Exposure to commodity price risk is therefore limited to this revenue and from future revenue potentially generated from successful exploration and appraisal activities, the quantum of which at this stage cannot be measured. The Group’s exposure to commodity price fluctuations is therefore in respect of the sale of petroleum products denominated in US dollars. Gas contracts are primarily fixed, with an immaterial value of contracts subject to spot prices, limiting the Group's exposure to fluctuations in gas price. Commodity price risks are measured by monitoring and stress testing the Group’s forecast financial position to sustained periods of low oil and gas prices. This analysis is regularly performed on the Group’s portfolio and, as required, for discrete projects and acquisitions. (e) Liquidity risk Liquidity risk is the risk that the Consolidated Entity cannot meet or generate sufficient cash resources to meet its payment obligations in full as they fall due, or can only do so at materially disadvantageous terms. Ultimate responsibility for liquidity risk management rests with the Board of Directors, who have established an appropriate liquidity risk management framework for the management of the Group’s short, medium and long-term funding and liquidity management requirements. The Group manages liquidity risk by maintaining adequate reserves, banking facilities and by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. Consequently, there are reasonable grounds to conclude that the Group is able to meet its payment obligations in full as and when they fall due. Prudent liquidity risk management implies maintaining sufficient cash to meet the Group's obligations. The Group aims to maintain flexibility in funding to meet ongoing operational requirements, exploration and development expenditure, and smallto-medium-sized opportunistic projects and investments, including taking out loans and where available and appropriate, maintaining credit facilities. The following table analyses the contractual maturities of the Group’s financial liabilities into relevant groupings based on the remaining period at the reporting date to the contractual undiscounted cash flows comprising principal and interest repayments. 30 June 2023 12 months or less 1 to 2 years 2 to 5 years More than 5 years Non-derivative financial liabilities $'000 $'000 $'000 $'000 Trade and other payables 3,929 - - - Lease liabilities 91 45 - - Borrowings 4,398 - - - 70 Cue Energy Resources Limited Annual Report 2023
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