22. Financial risk management
 
  Fair value
level
  2018
US$’000
  2017
US$’000
 
30 September 2018            
Financial assets measured at fair value            
   Investments in equity instruments Level 1   40   49  
   Forward exchange contracts Level 2   804   –  
   Investments in money markets, current accounts, cash funds and income funds   Level 2     5 012     3 767  
   Option to acquire shares in Salene Chrome Zimbabwe (Private) Limited Level 3   142   –  
Trade and other receivables measured at fair value                
PGM receivable Level 2   25 355   17 254  
Financial liabilities measured at fair value            
   Discount facility Level 2   1 000   449  
   Forward exchange contracts Level 2   –   150  
Financial assets at amortised cost            
Long-term deposits     –   4 505  
Trade and other receivables     38 645   55 602  
Contract assets     2 229   –  
Cash and cash equivalents     66 791   49 742  
Financial liabilities at amortised cost            
Borrowings     77 419   49 401  
Contract liabilities     2 229   –  
Trade and other payables     18 363   19 708  

There were no transfers between level 1 and level 2 fair value measurements during the year.

The Group considers that the fair values of the financial assets and financial liabilities approximate their carrying values at each reporting date.

Fair value hierarchy

All financial instruments for which fair value is recognised or disclosed are categorised within the fair value hierarchy, based on the lowest level input that is significant to the fair value measurement as a whole, as follows:

Level 1

—

fair values measured using quoted prices (unadjusted) in active markets for identical financial instruments (highest level).

Level 2

—

fair values measured using quoted prices in active markets for similar financial instruments, or using valuation methodologies in which all significant inputs are directly or indirectly on observable market data.

Level 3

—

fair values measured using valuation methodologies in which any significant inputs are not based on observable market data.