a) Risk Management Framework The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk management framework. Risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities. The Group, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their role and obligations and are able to identify and manage business risks. b) Credit Risk Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Group’s other receivables and investment securities. The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each counterparty. However, management also considers the default risk of the industry and country in which counterparties operate, as these factors may have an influence on credit risk. The carrying amount of the Group’s financial assets represents the maximum credit exposure. The Group’s maximum exposure to credit risk at the reporting date was: 2025 $ 2024 $ Cash and cash equivalents(1) 24,577,181 18,043,388 Other receivables 348,616 337,520 24,925,797 18,380,908 (1) Cash and cash equivalents are held with bank and financial institution counterparties, which are rated BB to AA- based on Standard and Poor’s rating. Other receivables also include refundable deposits and tax credits which include Brazilian federal VAT (PIS-Cofins). The recoverability of PIS-Cofins assets is dependent upon the Group generating a federal company tax liability, which may be offset against the Groups PIS-Cofins assets. The credits have a defined statutory life. As at 31 December 2025, the PIS-Cofins tax asset has been fully impaired, as the Group is currently in the early stages of the development of the Jaguar Nickel Sulphide project and sufficient taxable profits to utilise the credits within their statutory life are not considered probable, although taxable profits may arise from specific transactions. The Group’s maximum exposure to credit risk for other receivables at the reporting date by geographic region was: Carrying Amount 2025 $ 2024 $ Australia 227,435 241,110 Brazil 121,181 96,410 348,616 337,520 These balances are net of provision for impairment (refer Note 15). 26.2 Liquidity Risk Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with the financial liabilities that are settled by delivering cash or another financial asset. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation. As at 31 December 2025, the Group has current trade and other payables of $1,896,004 (31 December 2024: $2,372,115), current lease liabilities of $217,746 (31 December 2024: $150,940) and non-current lease liabilities of $506,681 (31 December 2024: $498,534). The Group believes it will have sufficient cash resources to meet its financial liabilities when due. 72 ANNUAL REPORT CENTAURUS METALS LIMITED CENTAURUS METALS ANNUAL REPORT 2025
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