FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2025 90 WESTGOLD RESOURCES LIMITED 4. F INANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) Risk exposures and responses (continued) (c) Price risk Commodity Price Risk The Group is exposed to the risk of fluctuations in the prevailing market prices for the gold and silver currently produced from its operating mines, including Morgan Stanley royalty. Foreign Exchange Risk The Group is exposed to foreign exchange risk primarily through the impact of currency fluctuations on gold prices, which are denominated in US dollars (USD). Although the Company operates domestically and incurs most of its costs in the local currency, revenues from gold sales are influenced by international gold markets, which price gold in USD. As a result, movements in the exchange rate between the USD and the local currency can affect the realised selling price of gold. The Group does not currently use derivative instruments to hedge this exposure but monitors exchange rate movements closely to assess potential impacts on financial performance. Equity Security Price Risk The Group’s operations were exposed to equity security price fluctuations arising from investments in equity securities. Refer to Note 13 for details of equity investments at fair value through profit or loss held at 30 June 2025. The Group has equity investments, which have shown volatility in price movements over the year. If security prices varied by 20%, with all other variables held constant, the impact on post tax profits and equity at 30 June, is reflected below: in $000 Post tax profit higher (lower) Other Comprehensive Income higher (lower) 30 June 2025 30 June 2024 30 June 2025 30 June 2024 Judgements of reasonably possible movements: Price + 20% 6,091 1,122 – – Price - 20% (6,091) (1,122) – – (d) Liquidity risk Liquidity risk arises from the financial liabilities of the Group and the subsequent ability to meet the obligations to repay the financial liabilities as and when they fall due. The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of equipment loans. The table below reflects all contractually fixed payables for settlement, repayment and interest resulting from recognised financial liabilities as of 30 June 2025. Cash flows for financial liabilities without fixed amount or timing are based on the conditions existing as 30 June. Maturity analysis of financial assets and liabilities based on management’s expectation The risk implied from the values shown in the table below reflects a balanced view of cash inflows and outflows. Leasing obligations, trade payables and other financial liabilities mainly originate from the financing of assets used in our ongoing operations such as property, plant, equipment and investments of working capital e.g. inventories and trade receivables. To monitor existing financial assets and liabilities, as well as to enable effective controlling of future risks, management monitors its Group’s expected settlement of financial assets and liabilities on an ongoing basis.
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