Icon Energy Limited Annual Report 2016

ICON ENERGY LIMITED AND ITS CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2016 Consolidated Entity Within 1 year $ 1 to 5 years $ 30 June 2016 NOTE Financial assets Cash and cash equivalents 5 2.77% 2,451,005 - - 441 2,451,446 Term deposits 7 2.80% 14,500,000 - - - 14,500,000 Trade and other receivables 6 - - - 79,411 79,411 16,951,005 - - 79,852 17,030,857 Financial liabilities Trade and other payables 10 - - - 113,508 113,508 - - - 113,508 113,508 30 June 2015 NOTE Financial assets Cash and cash equivalents 5 2.51% 8,748,031 - - 489 8,748,520 Term deposits 7 3.34% 5,000,000 - - - 5,000,000 Trade and other receivables 6 - - - 111,360 111,360 13,748,031 - - 111,849 13,859,878 Financial liabilities Trade and other payables 10 - - - 776,665 776,665 - - - 776,665 776,665 Cash flow sensitivity analysis for variable rate instruments Total Financial Liabilities The consolidated entity does not use long-term debt to finance its exploration activities.The company has a policy that when production operations commence in Australia, the interest rate risk will be managed with a mixture of fixed and floating rate debt. Non interest bearing $ Weighted Average Interest Rate % Fixed Interest Rate Maturing Total Financial Assets The sensitivity analyses have been determined based on the exposure of the consolidated entity to variable interest rates for non-derivative financial instruments at the reporting date at the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period. A 0.5% increase or decrease is used when reporting interest rates internally to the board of directors and represents management’s assessment of the possible change in interest rates. Total $ The consolidated entity’s e[posure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a result of changes in market interest rates and the effective weighted average interest rates on those financial assets and financial liabilities, is as follows: Floating Interest $ Total Financial Assets Total Financial Liabilities NOTE 21 - FINANCIAL RISK MANAGEMENT (CONTINUED) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2016 FINANCIAL REPORT 56 ICON ENERGY ANNUAL REPORT 2016