Sunstone Metals Annual Report 22

Note 13. Contributed equity (a) Share capital Number of shares 2022 $ Ordinary shares - fully paid 2,574,446,418 109,827,200 (b) Movements in ordinary share capital Number of shares Issue price $ $ Balance as at 1 July 2020 2,209,987,646 88,193,617 Balance as at 1 July 2021 2,209,987,646 88,193,617 Nov-21 Vesting of Employee Performance Rights 3,466,667 0.026 90,133 Nov-21 Vesting of Employee Performance Rights 10,000,000 0.007 74,600 Nov-21 Vesting of Employee Performance Rights 10,000,000 0.004 41,700 Nov-21 Vesting of Employee Performance Rights 3,466,666 0.023 80,427 Dec-21 Vesting of Employee Performance Rights 2,600,000 0.009 22,620 Apr-22 Share placement 298,507,463 0.067 20,000,000 May-22 Share Purchase Plan 36,417,976 0.067 2,440,000 Share issue costs (1,115,897) Balance as at 30 June 2022 2,574,446,418 109,827,200 The issue price for vested employee performance rights is deemed to be the accumulated amount recorded in the share based payment reserve at the vesting period. No cash is received when the rights are exercised. (c) Ordinary shares Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in proportion to the number of and amounts paid on the shares held. On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote. (d) Employee and Director’s Option Plan/Performance Right’s Plan Information relating to the Employee Performance Right’s Plan, including details of instruments issued, exercised and lapsed during the financial year are set out in Note 18. (e) Options/Performance Rights At the end of the 2022 financial year there were 20,000,000 unlisted options, and 51,200,000 performance rights over ordinary shares on issue (see Note 18). (f) Capital management The objective is to ensure the Group continues as a going concern as well as to maintain an optimal structure to reduce the cost of capital. Sunstone is a junior exploration company and it is dependent from time to time on its ability to raise capital from the issue of new shares and its ability to realise value from its exploration and evaluation assets. The Board is responsible for capital management. This involves the use of cash flow forecasts to determine future capital requirements. Capital management is undertaken to ensure a secure, cost-effective and flexible supply of funds is available to meet the Group’s operating and capital expenditure requirements. The Company does not have any debt facilities and is not subject to any external capital requirements. Surplus funds are invested in a cash management account and are available as required. Financial liabilities of the Group at balance date are trade and other payables. Trade and other payables are unsecured and usually paid within 30 days of recognition. 47 Sunstone Metals Limited Annual Report 2022 SUNSTONE METALS LIMITED ANNUAL REPORT 2022

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