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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
Annual Report 2015 119
Notes to the consolidated financial statements
30 June 2015
4 Financial risk management (continued)
(a) Risk exposures and responses (continued)
Impact on post-tax profit
Impact on other components of
equity
Sensitivity of financial instruments to
copper price movements
2015
$'000
2014
$'000
2015
$'000
2014
$'000
Financial assets
Trade receivables
Increase 1.5% (2014: 1.5%)
6
11
-
-
Decrease 1.5% (2014: 1.5%)
(6)
(11)
-
-
Derivative financial instruments - commodity
hedging contracts
Increase 20.0% (2014: 20.0%)
(578)
(960)
-
(1,323)
Decrease 20.0% (2014: 20.0%)
578
957
-
1,317
Net sensitivity to copper price movements
-
(3)
-
(6)
The following table summarises the sensitivity of financial instruments held at 30 June 2015 to movements in the gold
price, with all other variables held constant. 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
gold price movements
2015
$'000
2014
$'000
2015
$'000
2014
$'000
Financial assets
Derivative financial instruments - commodity
hedging contracts
Increase 20.0% (2014: 20.0%)
(432)
(4,280)
(6,158)
-
Decrease 20.0% (2014: 20.0%)
959
1,581
4,366
-
Net sensitivity to gold price movements
527
(2,699)
(1,792)
-
The following table summarises the sensitivity of financial instruments held at 30 June 2015 to movements in the zinc
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 generally a four month lag time between
delivery and final zinc price received.
Impact on post-tax profit
Sensitivity of financial instruments to zinc price movements
2015
$'000
2014
$'000
Financial assets
Trade receivables
Increase 1.5% (2014: 0%)
108
-
Decrease 1.5% (2014: 0%)
(108)
-
Net sensitivity to zinc price movements
-
-
(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 45% (2014: 45%). At reporting date, if the equity prices had been higher or lower, net profit for the
year would have increased or decreased by $4,890,000 (2014: $254,000).
Independence Group NL
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