CONTENTS FINANCIAL STATEMENTS YEAR IN REVIEW DIRECTORS’ REPORT CORPORATE DIRECTORY SHAREHOLDER INFORMATION 5. Segment reporting (continued) 2022 Sheffield Project1 $’000 Thunderbird Project $’000 Other $’000 Total $’000 Segment Reporting Other income – – 83 83 Employee benefits expenses – – (1,263) (1,263) Share-based payments expenses – – (1,160) (1,160) Corporate expenses – – (963) (963) Share of joint venture loss – (866) – (866) Gain on sale of assets 29,160 – – 29,160 Segment profit/(loss) before tax 29,160 (866) (3,303) 24,991 Segment assets – 115,535 40,265 155,800 Segment liabilities – – 174 174 Other disclosures Investment in joint venture – 115,535 – 115,535 Capital expenditure 192 – – 192 Note 1: S heffield project consisted of mineral sands exploration tenements held by Sheffield. Sheffield sold its 100% owned Eneabba and McCalls Project during the year ended 30 June 2022. 6. Financial risk management The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance. The Group does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. The Group have exposure to the following risks from their use of financial instruments: – Interest rate risk; – Credit risk; – Liquidity risk; and – Foreign currency risk; Risk management The Group’s principal financial instruments comprise of cash, receivables, and payables. The Group monitors and manages its exposure to key financial risks in accordance with the Group’s financial management policy. Interest rate risk management The Group is exposed to interest rate risk as the Group holds cash at both fixed and floating interest rates. The Group constantly analyses its interest rate exposure. The Group’s exposure to interest rate risk is limited to the amount of interest income it can potentially earn on surplus cash deposits. Credit risk management Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. The Group has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral where appropriate, as a means of mitigating the risk of financial loss from defaults. The Group’s exposure and the credit ratings of its counterparties are continuously monitored, and the aggregate value of transactions concluded is spread amongst approved counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the Directors periodically. The carrying amount of financial assets recorded in the financial statements, net of any allowance for losses, represents the Group’s maximum exposure to credit risk without taking account of the value of any collateral obtained. 39 Sheffield Resources Limited Annual Report 2023
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