Notes to the Financial Statements
100
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28. Financial risk management and instruments continued
The Company’s functional currency is Australian dollars.
The Group’s exposure to US dollar foreign currency risk at the reporting date was as follows:
2013 
$’000
2012 
$’000
Cash and cash equivalents  483 211
Receivables  127 4,014
Payables  (1,016) (5,834)
Total exposure to foreign currency risk (406) (1,609)
The Group’s sale of gold produced from Chatree Gold Mine is in US dollars, however the functional currency of the subsidiary company that owns the Chatree 
Gold Mine is Thai Baht and therefore, the Group’s profit is sensitive to movement in those currencies.
If the spot Australian dollar weakened / strengthened by one cent against the US dollar with all other variables held constant, the Group’s revenue for the 
year would have been $2,510,000 higher / $2,456,000 lower (2012: $3,552,000 higher / $3,483,000 lower).
The Group’s current exposure to other foreign exchange movements is not material.
Commodity price risk 
At 30 June 2013 the Group’s subsidiary, Challenger Gold Operations Pty Ltd, has forward sold 6,500 ounces of gold at an average price of $1,159 per ounce. 
Subsequent to year-end the Group forward sold a further 50,000 ounces of gold over a 12 month period at an average price of $1,435 per ounce to manage 
Australian gold price risk associated with forecast production from the Challenger Mine.
The following table sets out an aging of forward gold sale contracts in place at year end.
Gold for  
physical delivery 
ounces
Contracted sales 
price  
A$/oz
Value of committed 
sales  
$’000
As at 30 June 2013
Within one year 6,500 1,159 7,5 3 4
Later than one year but not greater than five years – – –
As at 30 June 2012
Within one year 6,500 1,151 7,4 82
Later than one year but not greater than five years – – –
The following table displays fluctuations in the fair value of the Group’s gold forward contracts due to movements in the spot price of gold with all other 
variables held constant. The 10% sensitivity is based on reasonable possible changes, over a financial year, using the observed range of actual historical prices.
2013 
$’000
2012 
$’000
Mark to market movement of the fair value of gold forward contracts
10% increase in the spot price of gold (611) (590)
10% decrease in the spot price of gold (2,217) 899
Equity price risk
The Group is exposed to equity securities price risk, which arises from investments classified on the statement of financial position as available-for-sale 
financial assets.