INDEPENDENCE GROUP NL ANNUAL REPORT 2017

Notes to the consolidated financial statements 30 June 2017 (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 2017 to movements in the copper price, with all other variables held constant. Trade receivables valuation uses a sensitivity analysis of 1.5% (2016: 1.5%) and a 20.0% (2016: 20.0%) sensitivity rate is used to value derivative contracts. Impact on post-tax profit Impact on other components of equity Sensitivity of financial instruments to copper price movements 2017 $'000 2016 $'000 2017 $'000 2016 $'000 Increase/decrease in copper price Increase 9 251 (2,157) - Decrease (9) (251) 2,157 - The following table summarises the sensitivity of financial instruments held at 30 June 2017 to movements in the gold price, with all other variables held constant. Impact on other components of equity Sensitivity of financial instruments to gold price movements 2017 $'000 2016 $'000 Increase/decrease in gold price Increase 20% (2016: 20%) - (3,018) Decrease 20% (2016: 20%) - 1,743 The following table summarises the sensitivity of financial instruments held at 30 June 2017 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 2017 $'000 2016 $'000 Increase/decrease in zinc price Increase 1.5% (2016: 1.5%) 148 225 Decrease 1.5% (2016: 1.5%) (148) (225) The following table summarises the sensitivity of financial instruments held at 30 June 2017 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 2017 $'000 2016 $'000 Increase/decrease in Singapore gasoil price Increase 20% (2016: 20%) 2,793 1,301 Decrease 20% (2016: 20%) (2,793) (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% (2016: 20%). At reporting date, if the equity prices had been higher or lower, net profit for the year would have increased or decreased by $2,149,000 (2016: $702,000). Independence Group NL 71 IGO ANNUAL REPORT 2017— 101 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017