notes to and forming part of the financial statements  for the year ended 30 June 2004 (continued) NOTE 42 - FINANCIAL INSTRUMENTS (continued) The consolidated entity’s maximum exposures to credit risk at reporting date in relation to each class of recognised financial asset, other than derivatives, is the carrying amount of those assets as indicated in the Statement of Financial Position. In relation to the derivative financial instruments, whether recognised or unrecognised, credit risk arises from the potential failure of counterparties to meet their obligations under the contract or arrangement. The consolidated entity’s maximum credit risk exposure in relation to these is as follows: The major geographic concentrations of credit risk arise from the location of the counterparties to the consolidated entity’s financial assets as shown in the following table: Concentration of credit risk on financial assets are indicated in the following table by percentage of the total balance receivable from counterparties in the specified categories. The credit risk does not take into account the value of any collateral or security. The carrying amounts and estimated net fair values of financial assets and financial liabilities (including derivatives) held at balance date are given below. Other financial assets and liabilities where carrying amounts approximate net fair values, are omitted. The net fair value of a financial asset or a financial liability is the amount at which the asset could be exchanged, or liability settled in a current transaction between willing parties after allowing for transaction costs. (f) Net fair value of financial assets and liabilities (i) purchased put options - which is limited to their fair value as at the reporting date, being $3.9m (2003:$3.2m). RESOLUTE MINING LIMITED 2004 ANNUAL REPORT 70 Location of credit risk Consolidated 2004 2003 $’000 $’000 United Kingdom 10,414 12,281 Ghana 1,504 2,199 Tanzania 4,698 12,167 Mongolia - 3,635 Australia 18,060 8,401 Botswana - 6,547 Mali 1,143 - 35,819 45,230 Customer/industry classification Consolidated 2004 2003 % % Financial services 76 65 Mining industry 16 33 Other 8 2 100 100 Consolidated Consolidated Carrying Net fair Carrying Net fair amount value amount value 2004 2004 2003 2003 $’000 $’000 $’000 $’000 Gold hedging contracts 8,042  (21,376) 3,031  (10,573) Current listed investment securities  -  -  1,789  2,360  Non-current listed investment securities  2,603  2,826  9,423  7,550  Net assets/(liabilities) 10,645  (18,550) 14,243  (663) (e) Credit risk exposures