content_image/207685.jpg content_image/207686.jpg
At 30 June 2011, if commodity prices had moved by a reasonably possible 5%, as illustrated in the table below, with all other variables held constant, post tax losses and equity would have been affected as follows: 

<img src='content_image/207685.jpg'>

A sensitivity of +5% or -5% has been selected as this is considered reasonable given recent fluctuations in tin commodity prices and management’s expectations of future movements. The movements in commodity prices are due to possible higher or lower commodity prices from tin sales that are classified as trade receivables (refer to note 2(h)). The sensitivity in 2011 is lower due to a lower trade receivables balance at 30 June 2011 due to the sale of 50% of the Renison Tin Project in the previous financial year. 

## Equity Security Price Risk 

The Consolidated Entity’s revenues are exposed to equity security price fluctuations arising from investments in equity securities. 

At 30 June 2011, if equity security prices had moved by a reasonably possible 10%, as illustrated in the table below, with all other variables held constant, post tax losses and equity would have been affected as follows: 

<img src='content_image/207686.jpg'>

A sensitivity of +10% or -10% has been selected as this is considered reasonable given recent fluctuations in equity prices and management’s expectations of future movements. The movements in other comprehensive income are due to possible higher or lower equity security prices from investments in equity securities that are classified as available-for-sale financial assets (refer to note 2(l)). The overall sensitivity for post tax losses and equity in 2011 is higher due to increases in the market value of the underlying securities during the financial year and the increased equity investments in Mongolian Resource Corporation Limited, Independence Group NL, Westgold Resources Limited and Aziana Exploration Corporation (refer to notes 17 and 19). 

## (d) Foreign Currency Risk Exposure 

As a result of sales receipts being denominated in Malaysian Ringgit and US dollars, the Consolidated Entity’s cash flows can be affected by movements in the Malaysian Ringgit/Australian dollar and US dollar /Australian dollar exchange rates. The Consolidated Entity’s exposure to foreign currency is however not considered to be significant. 

## (e) Liquidity Risk 

Liquidity risk arises from the financial liabilities of the Consolidated Entity and the subsequent ability to meet the obligations to repay the financial liabilities as and when they fall due. 

The Consolidated Entity’s objective is to maintain a balance between continuity of funding and flexibility through the use of finance and hire purchase leases. 

