Cue Energy Resources Limited Notes to the financial statements 30 June 2026 48 Note 14. Equity - reserves Movements in reserves Movements in each class of reserve during the current and previous financial year are set out below: Foreign currency reserve Options reserve General reserve Total Consolidated $'000 $'000 $'000 $'000 Balance at 1 July 2024 1,916 493 51,691 54,100 Foreign currency translation 663 - - 663 Share-based payments - 56 - 56 Transfer from accumulated losses - - 1,078 1,078 Transfer upon exercise of options - (87) - (87) Dividends declared - - (13,978) (13,978) Balance at 30 June 2025 2,579 462 38,791 41,832 Foreign currency translation (542) - - (542) Share-based payments - 204 - 204 Transfer from accumulated losses - - 7,831 7,831 Transfer upon exercise of options - (329) - (329) Dividends declared - - (5,248) (5,248) Balance at 30 June 2026 2,037 337 41,374 43,748 Foreign currency reserve The reserve is used to recognise exchange differences arising from the translation of the financial statements of foreign operations to Australian dollars. Options reserve The reserve is used to recognise the value of equity benefits provided to employees under the Employee Share Option Plan. General reserve The reserve is used to quarantine the Company's standalone accumulated profits generated in a reporting period. Note 15. Financial instruments The Consolidated Entity’s principal financial instruments comprise receivables, payables, cash and cash equivalents. 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 61 Cue Energy Resources Limited Annual Report 2026
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