Axiom Mining 2015 Annual Report

GROUP FINANCIAL REPORT

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

67

21. Financial risk management and fair values (continued)

d. Currency risk

Functional currency of entity

AUD

SBD

VND Total AUD

2015 Australian Dollar

(1,687)

(1,687) (4,142)

Solomon Islander Dollar

(4,142)

Vietnamese Dong

1 1

1

Statement of financial position exposure

(1,687)

(4,142)

(5,828)

2014 Australian Dollar

1,031

–

– –

1,031

Solomon Islander Dollar

– –

(2,595)

(2,595)

Vietnamese Dong

–

17 17

17

Statement of financial position exposure

1,031

(2,595)

(1,547)

If the Solomon Islander Dollar and the Vietnamese Dong were to firm against the Australian dollar by 5% the Group loss would increase by $169K. If the Solomon Islander Dollar and the Vietnamese Dong were to weaken against the Australian dollar by 5% the Group loss would reduce by $153K. e. Fair values All financial instruments are carried at amounts not materially different from their fair values as at 30 September 2015 and 2014. Contingent assets On 24 September 2014 the High Court of Solomon Islands dismissed all of SMM Solomon Limited’s claims and enabled Axiom to recommence exploration activities on the Isabel nickel deposit. On 29 October 2014, Axiom filed submissions and supporting evidence to recover costs from Sumitomo related to the Solomon Islands Court Case 258/2011. On 16 January 2015, Sumitomo provided two irrevocable and unconditional bank guarantees with a commercial bank in Solomon Islands for the full sums of: – US$3.9 million for Axiom’s costs relating to the original High Court case – US$177,200 as security for Axiom’s costs of the appeal. Axiom will be entitled to recover the costs upon obtaining a favourable judgment in the appeal in the Court of Appeal of Solomon Islands, which was heard by a panel of three Commonwealth judges from 26 May 2015 to 5 June 2015. The Court of Appeal has reserved judgement and no ruling has been handed down at the date of this report. 22. Contingent assets and contingent liabilities

AXIOM MINING LIMITED ANNUAL REPORT 2015

Contingent liabilities As at the date of this report there are no contingent liabilities.