Speciality Metals International Limited Annual Report 2019

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Page | 49 20. NON-CURRENT LIABILITIES 2019 $ 2018 $ Prepaid Mt Carbine Sublease Rent 1 1,911,911 - Offtake Advance Loan 2 2,134,140 - 1 Mt Carbine Sublease Rent prepaid to Mt Carbine Quarries Pty Ltd as per the Retreatment Operations Sublease Agreement between Mt Carbine Quarries Pty Ltd, Cronimet Australia Pty Ltd and Mt Carbine Retreatment Pty Ltd. 2 Speciality Metal’s wholly 100% owned subsidiary and 50% unincorporated Joint Venture Partner, Mt Carbine Retreatment Management Pty Ltd’s, Offtake Advance recognition. The terms and repayment of this advance are governed by the Offtake Advance Agreement between Cronimet Asia Pte Ltd, Cronimet Australia Pty Ltd and Mt Carbine Retreatment Pty Ltd. 21. CORPORATE INFORMATION The Financial Report of the Group for the year ended 30 June 2019 was authorised for issue in accordance with a resolution of the Directors on 26 September 2019. Speciality Metals International Limited is a company limited by shares and incorporated in Australia. Its shares are publicly traded on the Australian Stock Exchange under the ticker code “SEI”. 22. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES The Company’s principal financial instruments comprise cash, short term deposits and available for sale investments. The main purpose of these financial instruments is to finance the Company’s operations. The Company has various other financial assets and liabilities such as trade receivable and trade payables, which arise directly from its operations. It is, and has been throughout the entire period under review, the Company’s policy that no trading in financial instruments shall be undertaken. The main risks arising from the Company’s financial instruments are cash flow interest rate risk and equity price risk. Other minor risks are summarised below. The Board reviews and agrees policies for managing each of these risks. (a) Price Risk The Group is exposed to equity securities price risk. The Group has derivative financial assets, and investments held and classified on the Statement of Financial Position as available-for-sale, both as shown in Note 4. (b) Liquidity Risk The Company manages liquidity risk by maintaining sufficient cash reserves and marketable securities and through the continuous monitoring of budgeted and actual cash flows. Contracted maturities for payables year ended 30 June 2019 2019 $ 2018 $ Payable: - less than 6 months 780,155 164,582 - 6 to 12 months - - - 1 to 5 year - - - later than 5 year - - Total 780,155 164,582 (c) Fair Value of Financial Instruments The following tables detail the consolidated entity’s fair values of financial instruments categorised by the following levels: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices). Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).