COPY OF FINAL PROSPECTUS - Mirabela Nickel

MIRABELA NICKEL LIMITED
NOTES TO FINANCIAL STATEMENTS (Continued)
For the year ended 30 June 2006
18. FINANCIAL INSTRUMENTS (Continued)
(a) Interest rate risk
The Consolidated entity’s exposure to interest rate risk and the effective weighted average interest rate for classes of financial
assets and liabilities is set out below:
Effective
interest 6 months More than
Note rate Total or less 6 – 12 months 1 – 2 years 2 – 5 years 5 years
Consolidated — 2006 AUD AUD AUD AUD AUD AUD
Cash and cash equivalents . . . 8 5.50% 1,107,978 1,107,978 — — — —
Term deposits* ........... 8 6.00% 5,319,819 5,319,819 — — — —
6,427,797 6,427,797 — — — —
Consolidated — 2005
Cash and cash equivalents . . . 8 5.15% 1,762,998 1,762,998 — — — —
1,762,998 1,762,998 — — — —
* These assets / liabilities bear interest at a fixed rate.
Effective
interest 6 months More than
Note rate Total or less 6 – 12 months 1 – 2 years 2 – 5 years 5 years
The Company — 2006 AUD AUD AUD AUD AUD AUD
Cash and cash equivalents . . . 8 5.50% 695,806 695,806 —
Term deposits* ........... 8 6.00% 5,319,819 5,319,819 —
6,015,625 6,015,625 —
The Company — 2005
Cash and cash equivalents . . . 8 5.15% 1,736,806 1,736,806 — — — —
1,736,806 1,736,806 — — — —
* These assets / liabilities bear interest at a fixed rate.
(b) Credit risk
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date in portion to each class
of recognised financial asset, is the carrying amount, net of any provisions for doubtful debts, as disclosed in the balance sheet and
notes to the financial statements.
The Company does not have any material risk exposure to any single debtor or group of debtors.
(c)
Foreign currency risk
Foreign exchange risk arises when future commercial transactions and recognised assets and liabilities are denominated in a
currency that is not the entity’s functional currency.
The Consolidated entity operates internationally and is exposed to foreign exchange risk arising from currency exposures to
Brazilian Real and US dollar.
(d) Net fair values
Methods and assumptions used in determining net fair value.
For assets and other liabilities, the net fair value approximates their carrying value. No financial assets and financial liabilities are
readily traded on organised markets in standardised form. The Company has no financial assets where carrying amount exceeds net
fair values at balance date.
The aggregate net fair values and carrying amounts of financial assets and financial liabilities are disclosed in the balance sheet and
in the notes to and forming part of the financial statements.
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