Note 18. Share-based payments (continued) (b) Amortisation expense of Options and Performance Rights The amortised expense for performance rights in the statement of profit or loss and other comprehensive income for the year ended 30 June 2023 was $235,359 (2022: $690,806). A further $332,308 (2022: $862,609) was capitalised as it related to employees working exclusively on the exploration projects including Ecuadorian staff. Expense for options was $124,000 (2022: $248,000). Note 19. Related party transactions and Key Management Personnel Controlling entities The ultimate parent entity in the wholly-owned Group is Sunstone Metals Limited. Interests in subsidiaries are disclosed in Note 23. Key Management Personnel compensation 2023 $ 2022 $ Short-term employee benefits 1,303,800 1,239,400 Cash bonus 656,640 208,500 Post employment benefits 120,624 109,440 Long-term benefits 21,462 74,736 Share based payments 576,487 1,575,286 2,679,013 3,207,362 There were no other related party transactions during the financial year (2022: Nil) Note 20. Capital and other commitments Commitments on Tenements 2023 $ 2022 $ – not later than 12 months 375,202 152,372 – between 12 months and 5 years 4,023,698 180,139 4,398,900 332,511 Exploration tenement fees are required to keep licenses in good standing. The Group is committed to this expenditure on the current tenements. In order to maintain current rights to tenure of its mineral tenement leases, the Group will be required to pay exploration tenement/claim fees to the government in Ecuador in addition to prove reasonable exploration activities have been undertaken. These obligations may be varied from time to time, or subject to approval, and are expected to be fulfilled in the normal course of operations of the Group. Sunstone now holds 70% of the highly prospective El Palmar copper-gold porphyry project in Ecuador. Under this Staged Acquisition Agreement, for Sunstone to acquire a 100% interest a final cash payment of US$2,000,000 is required by 1 July 2024. Sunstone holds the right to exit the Agreement between 30 June 2023 and 30 June 2024 whereby its interest will revert to 51%. Note 21. Financial instruments and financial risk management The Group’s activities expose it to a variety of financial risks including credit risk, liquidity risk, interest rate risk and foreign currency risk. The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Group. Risk management is carried out by the Board of Directors under policies approved by the Board. The Board identifies and evaluates financial risks and provides written principles for overall risk management. 55 Sunstone Metals Limited Annual Report 2023
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