Note 13. Contributed equity (continued) (f) Capital management (continued) The ability to raise equity in the future to fund the Group’s operations, investigations and exploration activities is a risk that could influence the activities of the Company. The Group has historically raised sufficient capital to fund its operations, however, it recognises that it is at risk of financial markets which dictate its ability to fund operations beyond exhaustion of the current cash funds and monetisation of investments held such as shares in listed entities. 2022 $ 2021 $ Current assets 25,830,656 12,210,098 Current liabilities 2,128,967 515,208 Liquidity ratio 12.1 : 1 23.7 : 1 The Company intends to either monetise investments held such as shares in listed entities or raise funds in the medium term to fund its exploration, investigating and evaluation activities. Note 14. Reserves 2022 $ 2021 $ Share based payments reserve 5,438,254 3,946,319 Foreign currency translation reserve 1,152,640 (1,624,504) Total reserves 6,590,894 2,321,815 Movements in reserves were as follows: Share based payments reserve Opening balance 3,946,319 3,783,520 Share based payments - employees 1,801,415 162,799 Shares Issued on vesting (309,480) – Closing balance 5,438,254 3,946,319 Foreign currency translation reserve Opening balance (1,624,504) 423,864 Foreign exchange gains/(losses) on translation 2,777,144 (2,048,368) Closing balance 1,152,640 (1,624,504) Nature and purpose of reserves Share-based payments reserve The share based payments reserve is used to record the fair value of share based payments provided to Directors, employees, including key management personnel, and contractors as payment for services. Foreign currency translation reserve The foreign currency translation reserve is used to recognise foreign exchange gains or losses arising on the translation of the financial report of foreign subsidiary companies. The functional currency of Sunstone is the Australian Dollar and that of its foreign operations is primarily the US Dollar plus Swedish Krona and Euro. Notes to the Financial Statements for the year ended 30 June 2022 48 Sunstone Metals Limited Annual Report 2022 SUNSTONE METALS LIMITED ANNUAL REPORT 2022
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