Axiom Mining 2015 Annual Report

GROUP FINANCIAL REPORT

Notes to the financial statements for the year ended 30 September 2015

65

20. Related parties (continued)

b. KMP and executive director remuneration summary

2015 $000

2014 $000

Short term employee benefits: Salaries

1,408

734

Non-monetary benefits

176

1

Total short-term benefits Post-employment benefits Superannuation

1,584

735

118

60

Other benefits Share-based payments - performance rights*

368

281

Total remuneration

2,070

1,076

* Performance rights were granted in April 2013 following approval by shareholders at the Annual General Meeting held on 22 April 2013. The performance rights are charged to expense over the life of the rights. The expense in relation to the performance rights is calculated as fair value using the Black-Scholes model. For further disclosure in respect of the share-based payment see part (c) Performance Rights Plan of the remuneration report in the Directors’ report. Performance rights issued will automatically vest into fully paid ordinary shares upon speci c conditions being achieved. The performance condition is a market hurdle as disclosed in part (c) Performance Rights Plan of the remuneration report. The amounts that appear are amounts required under Australian Accounting Standards to be expensed by the Company in respect of the allocation of long term incentives. Whether or not these performance rights are received will depend on achieving appropriate vesting conditions as discussed above. No performance rights were exercised during the year. 21. Financial risk management and fair values Exposure to credit, liquidity, interest rates and currency risks arises in the normal course of the Group’s business. The Group’s exposure to these risks and the financial risk management policies and practices used by the Group are described below and are limited by the Group’s financial management policies and practices described below. a. Credit risk Exposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of contract obligations that could lead to a financial loss to the Group. Credit risk is managed through the maintenance of procedures (such procedures include the utilisation of systems for the approval, granting and renewal of credit limits, regular monitoring of exposures against such limits and monitoring of the financial stability of significant customers and counterparties), ensuring to the extent possible, that customers and counterparties to transactions are of sound credit worthiness. Such monitoring is used in assessing receivables for impairment. Credit terms are generally 14 to 30 days from the invoice date. Risk is also minimised through investing surplus funds in financial institutions that maintain a high credit rating, or in entities that the Board has otherwise cleared as being financially sound. Where the Group is unable to ascertain a satisfactory credit risk profile in relation to a customer or counterparty, the risk may be further managed through title retention clauses over goods or obtaining security by way of personal or commercial guarantees over assets of sufficient value that can be claimed against in the event of any default.

AXIOM MINING LIMITED ANNUAL REPORT 2015