ANNUAL REPORT June 2026 Notes to the Consolidated Financial Statements 20. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES The financial risks arising from the Group’s operations comprise market, liquidity and credit risk. These risks arise in the ordinary course of business, and the Group manages its exposure to them in accordance with the Group’s risk management strategy. The objective of the strategy is to support the delivery of the Group’s financial targets while protecting its future financial security. The Company’s principal financial instruments comprise cash, short term deposits and available for sale investments. (a) Price Risk The Group is not exposed to equity securities price risk. (b) Liquidity Risk The Group’s liquidity risk arises from the possibility that it may be unable to settle or meet its obligations as they fall due. It is managed by maintaining sufficient cash reserves and marketable securities and by continuously monitoring budgeted and actual cash flows. The maturity profile of the Group’s financial liabilities based on the undiscounted contractual amounts is as follows: Contracted Maturities for Payables Total 1 year or less More than 1 year but less than 2 years More than 2 years but less than 5 years More than 5 years 2026 Trade and other payables 32,612 32,612 - - - Lease liabilities 12,286 6,210 4,477 1,599 - Borrowings 24,506 8,914 15,592 - - Financial liabilities 10,804 10,804 - - - Total 80,208 58,540 20,069 1,599 - 2025 Trade and other payables 62,493 58,486 4,007 - - Lease liabilities 14,379 5,873 5,478 3,028 - Borrowings 43,608 43,608 - - - Convertible notes 2,779 2,779 - - - Expected future interest payments Convertible notes 338 338 - - - Lease liabilities 1,754 1,061 533 160 - Borrowings 558 558 - - - Total 125,909 112,703 10,018 3,188 - Refer to Note 1 for commentary on going concern assumptions. The carrying amounts of trade receivables and trade payables are assumed to approximate their fair values due to their short-term nature. (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). EQ Resources Limited Annual Report 2026 93
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