Annual Report and Accounts 2013
Petra Diamonds Limited 123
Overview
Performance Review
Strategic Review
Sustainability
Corporate Governance
Group Accounts
25. Financial instruments
continued
Foreign exchange risk
continued
30 June 2012
US$ million
Year-end
US$ rate
Year-end
amount
US$
strengthens 10%
US$
weakens 10%
Financial assets:
Botswana pula
0.1304
0.8
0.7
0.9
Pounds sterling
0.6367
2.5
2.3
2.8
South African Rand
0.1225
141.4
127.2
155.5
US Dollar
1.0000
22.0
22.0
22.0
166.7
152.2
181.2
Financial liabilities:
Pounds sterling
0.6367
36.3
32.7
39.9
South African Rand
0.1225
137.9
124.1
151.7
US Dollar
1.0000
10.4
9.3
11.4
184.6
166.1
203.0
The table above reflects the impact of a 10% cumulative currency movement over the next 12 months and is shown
for illustrative purposes.
Liquidity risk
Liquidity risk arises from the Group’s management of working capital, capital expenditure, finance charges and principal repayments
on its debt instruments. It is the risk that the Group will encounter difficulty in meeting its financial obligations and when
necessary will seek to raise funds through the issue of shares and or debt.
It is the policy of the Group to ensure that it will always have sufficient cash to allow it to meet its liabilities when they fall due.
To achieve this aim, the Group maintains cash balances and funding facilities at levels considered appropriate to meet ongoing obligations.
Cashflow is monitored on a regular basis. Projections reflected in the Group working capital model indicate that the Group will
have sufficient liquid resources to meet its obligations as disclosed in note 1.1. The maturity analysis of the actual cash payments
due in respect of loans and borrowings is set out in the table overleaf. The maturity analysis of trade and other payables are in
accordance with those terms and conditions agreed between the Group and its suppliers. For trade and other payables, payment
terms are 30 days, provided all terms and conditions have been complied with. Exceptions to those terms are set out in note 22,
as reflected under non-current.
Maturity analysis
The below maturity analysis reflects cash and cash equivalents and loans and borrowings based on actual cashflows rather than
carrying values.
30 June 2013
US$ million
Notes
Interest
rate
Total
6 months
or less
6–12
months
1–2
years
2–5
years
Cash
Cash and cash equivalents – unrestricted
19
0.1%–4.5% 14.1 14.1
— — —
Cash – restricted
19
0.1%–4.5% 12.1
— — — 12.1
Total cash
26.2 14.1
— — 12.1
Loans and borrowings
Bank loan – secured
21(i)
5.7% 30.8
0.8
0.8
1.5 27.7
Bank loan – secured
21(ii)
8.0% 28.8 28.8
— — —
Bank loan – secured
21(iii)
9.1% 77.9
2.5
2.8
5.2 67.4
Bank loan – secured
21(iv)
4.3% 40.7
0.7
0.8
1.5 37.7
Cashflow of loans and borrowings
178.2 32.8
4.4
8.2 132.8
1...,115,116,117,118,119,120,121,122,123,124 126,127,128,129,130,131,132,133,134,135,...142