62 Impact Minerals Ltd Annual Report 2023 Notes to the Consolidated Financial Statements continued NOTE 25: FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) Foreign currency risk Exposure to foreign exchange risk may result in the fair value or future cash flows of a financial instrument fluctuating due to movement in foreign exchange rates of currencies in which the Group holds financial instruments which are other than the AUD functional currency of the Group. The Group’s exposure to foreign currency risk is minimal at this stage of its operations. Commodity price risk The Group’s exposure to commodity price risk is minimal at this stage of its operations. Liquidity risk Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation. The Group’s objective is to maintain a balance between continuity of funding and flexibility. The following are the contractual maturities of financial liabilities: Carrying amount $ Contractual cash flows $ 6 months or less $ Consolidated – 2023 Trade and other payables 452,065 452,065 452,065 Lease liabilities 449,604 449,604 54,339 901,669 901,669 506,404 Trade and other receivables 41,915 41,915 41,915 41,915 41,915 41,915 Consolidated – 2022 Trade and other payables 508,446 508,446 508,446 Lease liabilities – – – 508,446 508,446 508,446 Trade and other receivables 107,172 107,172 107,172 107,172 107,172 107,172 Fair value of financial assets and liabilities The fair value of cash and cash equivalents and non-interest bearing financial assets and financial liabilities of the Group is equal to their carrying value.
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