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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
Annual Report 2016 99
Notes to the consolidated financial statements
30 June 2016
(continued)
21 Financial risk management (continued)
(a) Risk exposures and responses (continued)
(ii)
Commodity price risk (continued)
The following table summarises the sensitivity of financial instruments held at 30 June 2016 to movements in the zinc
price, with all other variables held constant.
Impact on post-tax profit
Sensitivity of financial instruments to zinc price movements
2016
$'000
2015
$'000
Increase/decrease in zinc price
Increase 1.5% (2015: 1.5%)
225
108
Decrease 1.5% (2015: 1.5%)
(225)
(108)
The following table summarises the sensitivity of financial instruments held at 30 June 2016 to movements in the
Singapore gasoil price, with all other variables held constant.
Impact on other components of
equity
Sensitivity of financial instruments to Singapore gasoil price movements
2016
$'000
2015
$'000
Increase/decrease in Singapore gasoil price
Increase 20% (2015: 0%)
1,301
-
Decrease 20% (2015: 0%)
(1,301)
-
(iii)
Equity price risk sensitivity analysis
The following sensitivity analysis has been determined based on the exposure to equity price risks at the reporting date.
Each equity instrument is assessed on its individual price movements with the sensitivity rate based on a reasonably
possible change of 20% (2015: 45%). At reporting date, if the equity prices had been higher or lower, net profit for the
year would have increased or decreased by $702,000 (2015: $4,890,000).
(iv)
Cash flow and fair value interest rate risk
The Group’s exposure to interest rate risk is the risk that a financial instrument’s value will fluctuate as a result of
changes in market interest rates. At the reporting date, the Group had the following exposure to interest rate risk on
financial instruments:
30 June 2016
30 June 2015
Weighted
average
interest rate
%
Balance
$'000
Weighted
average
interest rate
%
Balance
$'000
Financial assets
Cash and cash equivalents
1.7% 46,264
1.6% 121,296
1.7% 46,264
1.6% 121,296
Financial liabilities
Bank loans
4.5% 271,000
-%
-
4.5% 271,000
-%
-
The sensitivity analysis below has been determined based on the exposure to interest rates at the reporting date and
the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting
period.
Independence Group NL
71