IGO Interactive Annual Report 2019

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 30 JUNE 2019 Notes to the consolidated financial statements 30 June 2019 (continued) 21 Financial risk management (continued) (a) Market risk (continued) (ii) Commodity price risk (continued) Impact on post-tax profit Sensitivity of financial instruments to copper price movements 2019 $'000 2018 $'000 Increase/decrease in copper price Increase 949 1,250 Decrease (949) (1,250) The following table summarises the sensitivity of financial instruments held at 30 June 2019 to movements in the Singapore gasoil price, with all other variables held constant. Impact on other components of equity Sensitivity of financial instruments to Singapore gasoil price movements 2019 $'000 2018 $'000 Increase/decrease in Singapore gasoil price Increase 20% (2018: 20%) 1,713 852 Decrease 20% (2018: 20%) (1,713) (852) (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 20% (2018: 20%). At reporting date, if the equity prices had been higher or lower, net profit for the year would have increased or decreased by $3,854,000 (2018: $3,389,000). (iv) Cash flow and fair value interest rate risk The Group’s exposure to interest rate risk is the risk that a financial instrument’s value will fluctuate as a result of changes in market interest rates. At the reporting date, the Group had the following exposure to interest rate risk on financial instruments: 30 June 2019 30 June 2018 Weighted average interest rate % Balance $'000 Weighted average interest rate % Balance $'000 Financial assets Cash and cash equivalents 1.9% 348,208 1.5% 138,688 1.9% 348,208 1.5% 138,688 Financial liabilities Bank loans 3.7% 85,716 3.8% 142,858 3.7% 85,716 3.8% 142,858 The sensitivity analysis below has been determined based on the exposure to interest rates at the reporting date and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period. Independence Group NL 42 104 — IGO ANNUAL REPORT 2019