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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
118 Independence Group NL
Notes to the consolidated financial statements
30 June 2015
4 Financial risk management (continued)
(a) Risk exposures and responses (continued)
Financial instruments exposed to commodity price movements
2015
$'000
2014
$'000
Financial assets
Trade and other receivables
10,702
19,853
Derivative financial instruments - commodity hedging contracts
4,981
1,777
15,683
21,630
Financial liabilities
Derivative financial instruments - commodity hedging contracts
1,479
6,381
1,479
6,381
Net exposure
14,204
15,249
The following table summarises the sensitivity of financial instruments held at 30 June 2015 to movements in the nickel
price, with all other variables held constant. Trade receivables valuation uses a sensitivity analysis of 1.5% (2014: 1.5%)
which is based upon the three month forward commodity rate as there is a three month lag time between delivery and
final nickel price received. A 20.0% (2014: 20.0%) sensitivity rate is used to value derivative contracts held and is based
on reasonable assessment of the possible changes.
Impact on post-tax profit
Impact on other components of
equity
Sensitivity of financial instruments to
nickel price movements
2015
$'000
2014
$'000
2015
$'000
2014
$'000
Financial assets
Trade receivables
Increase 1.5% (2014: 1.5%)
117
217
-
-
Decrease 1.5% (2014: 1.5%)
(117)
(217)
-
-
Derivative financial instruments - commodity
hedging contracts
Increase 20.0% (2014: 20.0%)
(1,634)
(1,346)
-
(3,949)
Decrease 20.0% (2014: 20.0%)
1,634
1,353
-
3,946
Net sensitivity to nickel price movements
-
7
-
(3)
The following table summarises the sensitivity of financial instruments held at 30 June 2015 to movements in the copper
price, with all other variables held constant. Trade receivables valuation uses a sensitivity analysis of 1.5% (2014: 1.5%)
which is based upon the three month forward commodity rate as there is generally a four month lag time between
delivery and final copper price received. A 20.0% (2014: 20.0%) sensitivity rate is used to value derivative contracts
held and is based on reasonable assessment of the possible changes.
Independence Group NL
54