b'CENTAURUS METALS ANNUAL REPORT 2023 Financial Report31 December 2023a)Risk Management Framework The Board of Directors has overall responsibility for the establishment and oversight of the Groups 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 reflectchanges in marketconditions and the Groups 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 Groups other receivables and investment securities.The Groups 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 Groups financial assets represents the maximum credit exposure. The Groups maximum exposure to credit risk at the reporting date was: 31 December31 December 20232022 $ $ Cash and cash equivalents (1)34,673,85234,047,722 Other receivables 1,724,173871,840 36,398,02534,919,562 (1)Cash and cash equivalents are held with bank and financial institution counterparties, which are rated BB- to AA based on Standard and Poors 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. As at 31 December 2023, the PIS-Cofins tax asset has been fully impaired as taxable profits in the ordinary course of business are not considered probable though one-off taxable profits may be generated on specific transactions. The Groups maximum exposure to credit risk for other receivables at the reporting date by geographic region was: Carrying Amount 31 December31 December 20232022 $ $Australia1,562,251594,428 Brazil161,922277,412 1,724,173871,840 These balances are net of provision for impairment (refer to Note 15). 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 Groups 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 Groups reputation. As at 31 December 2023, the Group has current trade and other payables of $3,351,700 (31 December 2022: $4,589,016), CurrentFinancial Liabilities of$212,028(31 December2022:$1,432,088), currentlease liabilities of $239,075(31 December 2022: $540,419), non current lease liabilities of $267,979 (31 December 2022: $488,512) and Non-Current Financial Liabilities of $nil (31 December 2022: $183,926).The Group believes it will have sufficient cash resources to meet its financial liabilities when due.page 24 Page 46 of 54 72 ANNUAL REPORT CENTAURUS METALS LIMITED CENTAURUS METALS LIMITED ANNUAL REPORT 73'