Cue Energy Resources Limited Notes to the financial statements 30 June 2024 Note 14. Financial instruments (continued) 50 Consolidated 30 June 2023 USD NZD IDR $'000 $'000 $'000 Financial assets Cash and cash equivalents 4,455 159 60 Trade and other receivables 84 - 5 Financial liabilities Trade and other payables 3 1,380 - AUD strengthened AUD weakened Consolidated - 30 June 2023 % change effect on profit before tax Effect on equity % change effect on profit before tax Effect on equity Cash and cash equivalents 10% (425) - 10% 519 - Trade and other receivables 10% (10) - 10% 10 - Trade and other payables 10% 130 - 10% (144) - (305) - 385 - Management believes the risk exposures as at the reporting date are representative of the risk exposure inherent in the financial instruments. (d) Commodity price risk TheGroup is involved in oil and gas exploration and appraisaland generates revenuefrom the sale of hydrocarbons. Exposure to commodity price risk is therefore limited to this revenue and from future revenue potentially generated from successful exploration and appraisal activities, the quantum of which at this stage cannot be measured. The Group’s exposure to commodity price fluctuations is therefore in respect of the sale of petroleum products denominated in US dollars. Gas contracts are primarily fixed price, with an immaterial value of contracts subject to spot prices, limiting the Group's exposure to fluctuations in gas price. Commodity price risks are measured by monitoring and stress testing the Group’s forecast financial position to sustained periods of low oil and gas prices. This analysis is regularly performed on the Group’s portfolio and, as required, for discrete projects and acquisitions. (e) Liquidity risk Liquidity risk is the risk that the Consolidated Entity cannot meet or generate sufficient cash resources to meet its payment obligations in full as they fall due, or can only do so at materially disadvantageous terms. Ultimate responsibility for liquidity risk management rests with the Board of Directors, who have established an appropriate liquidity risk management framework for the management of the Group’s short, medium and long-term funding and liquidity management requirements. The Group manages liquidity risk by maintaining adequate reserves, banking facilities and by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. Consequently, there are reasonable grounds to conclude that the Group is able to meet its payment obligations in full as and when they fall due. Prudent liquidity risk management implies maintaining sufficient cash to meet the Group's obligations. The Group aims to maintain flexibility in funding to meet ongoing operational requirements, exploration and development expenditure, and smallto-medium-sized opportunistic projects and investments, including taking out loans and where available and appropriate, maintaining credit facilities. 64 Cue Energy Resources Limited Annual Report 2024
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