Note 2. Accounting estimates and judgements Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Group and are believed to be reasonable under the circumstances. The resulting accounting estimates will, by definition, seldom equal the related actual results. Below are key estimates and assumptions that have a significant risk of causing a material adjustment to carrying amounts of certain assets and liabilities within the next annual reporting period. Exploration and evaluation assets have been capitalised on the basis that the Group will commence commercial production in the future from which the costs will be amortised in proportion to the depletion of the mineral resources. A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest. The carrying value of exploration and evaluation assets at 30 June 2023 is $68,236,422 (2022: $42,304,313). The financial assets at fair value through profit or loss fall under level 1 of the fair value hierarchy referred to in AASB 13 Fair Value measurement i.e. their fair value has been determined using quoted market prices. Refer to Notes 8 and 21 for further detail regarding the key estimates applied to determine the fair value of these financial assets. Investments in shares in listed companies (Note 8) has been classified as a current asset as it is management’s intention, subject to favourable market conditions, that these will be sold within 12 months. Note 3. Earnings per share 2023 cents 2022 cents Basic earnings per share (0.1) (0.1) Diluted earnings per share (0.1) (0.1) Weighted average number of shares used as the denominator Number Number Weighted average number of shares used as the denominator in calculating basic earnings per share 2,659,209,327 2,290,407,950 $ $ Profit/(losses) used in calculating basic and diluted losses per share (1,882,932) (2,866,269) Due to the loss incurred in the current year no share options or performance rights have been included in the calculation as they have an anti-dilutive effect on the loss. Note 4. Expenses Profit/(loss) before income tax includes the following: 2023 $ 2022 $ Employee benefits expense* Salaries & wages 1,150,338 633,226 Directors' fees 155,000 145,000 Defined contribution superannuation expense 52,374 42,473 Share based payments (refer Note 18(b)) 359,359 938,806 Movement in leave provisions 23,993 78,122 Other 111,451 45,950 1,852,515 1,883,577 * Excludes employee costs capitalised to exploration and evaluation expenditure Notes to the Financial Statements for the year ended 30 June 2023 44 Sunstone Metals Limited Annual Report 2023
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