Page 85 - Sundance Resources 2014 Annual Report

SUNDANCE RESOURCES LIMITED ANNUAL REPORT 2014 83
Foreign currency risk
As a result of significant investment operations in Africa, the Group’s balance sheet can be affected significantly by
movements in the XAF/A$ exchange rates. The Group does not currently hedge this exposure.
The carrying amount of the Group’s foreign currency denominated monetary assets and monetary liabilities at the reporting
date is as follows:
Liabilities Assets
2014
$
2013
$
2014
$
2013
$
Euro (EUR) - 14 36,493 63,166
US Dollars (USD) 9,203 49,629 1,570 1,621
Central African Franc (XAF) 423,974 403,480 252,403 470,404
South African Rand (ZAR) - 16,713 46 51
GB Pound (GBP) - 5,820 96 88
The following table details the Group’s sensitivity to a 10% increase and decrease in the Australian Dollar against the
relevant foreign currencies. 10% is the sensitivity rate assessed by management as the possible change in foreign exchange
rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their
translation at the period end for a 10% change in foreign currency rates. The sensitivity analysis includes external loans
as well as loans to foreign operations within the Group where the denomination of the loan is in a currency other than the
currency of the lender or the borrower. A positive number below indicates an increase in profit and other equity where the
Australian dollar strengthens 10% against the relevant currency. For a 10% weakening of the Australian dollar against the
relevant currency, there would be a comparable impact on the loss and other equity, and the balances below would be
negative. Due to the nature of foreign currency denominated assets and liabilities, the figures below will only impact the loss,
there would be no effect on other equity.
AUD
Movement
Impact on AUD carrying value of net assets denominated in:
EUR USD XAF ZAR GBP
2014
$
2013
$
2014
$
2013
$
2014
$
2013
$
2014
$
2013
$
2014
$
2013
$
10%
Increase
3,649 6,315 (763) (4,801) (17,157) 6,692 5 (1,666) 10 (573)
10%
Decrease
(3,649) (6,315) 763 4,801 17,157 (6,692) (5) 1,666 (10) 573
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2014