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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
142 Independence Group NL
Notes to the consolidated financial statements
30 June 2015
26 Borrowings
2015
$'000
2014
$'000
Current
Secured
Lease liabilities
510
3,508
Total secured current borrowings
510
3,508
2015
$'000
2014
$'000
Non-current
Secured
Bank loans
-
24,344
Lease liabilities
-
510
Total secured non-current borrowings
-
24,854
(a) Corporate loan facility
On 1 March 2013, the Company entered into a Corporate Loan Facility (Facility) with National Australia Bank. The
Facility comprised a corporate debt facility of $130,000,000 (of which $110,000,000 was cancelled during the year,
leaving an available facility of $20,000,000), an asset finance facility of $20,000,000 and a contingent instrument facility
of $20,000,000.
Total capitalised transaction costs to 30 June 2015 are $nil (2014: $2,377,000). Transaction costs are accounted for
under the effective interest rate method. These costs are incremental costs that are directly attributable to the loan and
include loan origination fees, commitment fees and legal fees. There are no unamortised transaction costs at 30 June
2015. At 30 June 2014, a balance of unamortised transaction costs of $656,000 was offset against the bank loans
contractual liability of $25,000,000.
No borrowing costs were capitalised in the current year. In the prior year, borrowing costs of $544,000 related to a
qualifying asset (Tropicana Gold Project) and were capitalised in accordance with AASB 123
Borrowing Costs
. Refer to
note 19.
The Facility has certain financial covenants that the Company has to comply with. All such financial covenants have
been complied with in accordance with the Facility.
In addition to the above Facility, the Group had an additional asset finance facility with Australia and New Zealand
Banking Group Limited in the prior year of $420,000. This facility expired during the year and all outstanding lease
contracts were repaid in full.
Refer to note 33 for details of a new financing facility entered into by the Company in July 2015.
(b) Interest rate, foreign exchange and liquidity risk
Details regarding interest rate, foreign exchange and liquidity risk are disclosed in note 4.
(c) Assets pledged as security
There are no assets pledged as security for non-current borrowings at 30 June 2015. The carrying amount of assets
pledged as security for non-current borrowings at 30 June 2014 was $25,000,000. The security is provided under a
General Security Agreement and is on arm’s length commercial terms with the financier.
Lease liabilities are effectively secured as the rights to the leased assets recognised in the financial statements revert to
the lessor in the event of default.
In addition to the above, $1,315,000 (2014: $15,950,000) is pledged as security in relation to the contingent instrument
facility.
Independence Group NL
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