Cue Energy Resources Limited Notes to the financial statements 30 June 2025 Note 15. Financial instruments (continued) 47 The main risks arising from the Consolidated Entity’s financial instruments are interest rate risk, foreign currency risk, commodity price risk, credit risk and liquidity risk. The Consolidated Entity uses different methods to measure and manage different types of risk to which it is exposed. These include monitoring levels of exposure to interest rate and foreign exchange risk and assessments of market forecasts for interest rates, foreign exchange and commodity prices. These risks are summarised below. 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 Consolidated Entity’s short, medium and long-term funding and liquidity management requirements. The Board reviews and agrees management’s assessment for managing each of the risks identified below. Risk Exposures and Responses (a) Fair value risk The Consolidated Entity has trade receivables, other financial assets, trade payables and borrowings, which are a reasonable approximation of their fair values due to their short-term nature. Given the nature of the financial assets and liabilities noted and the relatively short-term nature, there is no material fair value risk. (b) Interest rate risk The Consolidated Entity’s exposure to market interest rates is related primarily to its cash deposits and borrowings. The Consolidated Entity constantly analyses its interest rate opportunity and exposure. Within this analysis consideration is given to existing positions and alternative arrangement on fixed or variable deposits. The impact of interest rate movement is not material to the Consolidated Entity. (c) Foreign exchange risk The Consolidated Entity is subject to foreign exchange risk on its international exploration and appraisal activities where costs are incurred in foreign currencies. The Consolidated Entity generates revenue denominated in foreign currencies, and does hold significant foreign currency cash balances. The Consolidated Entity’s foreign exchange risk exposures are mitigated through natural hedging, where appropriate. The Consolidated Entity’s exposure to foreign exchange risk at the reporting date was as follows (holdings are shown in AUD equivalent): Consolidated 30 June 2025 USD NZD IDR $'000 $'000 $'000 Financial assets Cash and cash equivalents 3,802 538 65 Trade and other receivables - 53 5 Financial liabilities Trade and other payables - (1,012) (2) AUD strengthened AUD weakened Consolidated - 30 June 2025 % change Effect on profit before tax Effect on equity % change Effect on profit before tax Effect on equity Cash and cash equivalents 10% (400) - 10% 489 - Trade and other receivables 10% (6) - 10% 6 - Trade and other payables 10% 92 - 10% (113) - (314) - 382 - 59 Cue Energy Resources Limited Annual Report 2025
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