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AXIOM MINING LIMITED
ANNUAL REPORT 2015
67
Notes to the
financial statements
for the year ended 30 September 2015
GROUP FINANCIAL REPORT
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)
Solomon Islander Dollar
(4,142)
(4,142)
Vietnamese Dong
1
1
Statement of financial position exposure
(1,687)
(4,142)
1
(5,828)
2014
Australian Dollar
1,031
–
–
1,031
Solomon Islander Dollar
–
(2,595)
–
(2,595)
Vietnamese Dong
–
–
17
17
Statement of financial position exposure
1,031
(2,595)
17
(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.
22. Contingent assets and contingent liabilities
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.
Contingent liabilities
As at the date of this report there are no contingent liabilities.