Note 13. Contributed equity continued (c) 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. (d) Options/Performance Rights As at 30 June 2024, there were 30,000,000 unlisted options, and 58,000,000 performance rights over ordinary shares on issue (see Note 18). (e) 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 Group 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. 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 Group. 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. 2024 $ 2023 $ Current assets 3,121,402 10,675,454 Current liabilities 1,904,876 1,568,445 Liquidity ratio 1.6 : 1 6.8 : 1 The Group intends to raise funds in the short to medium term to fund its exploration, investigating and evaluation activities. Note 14. Reserves 2024 $ 2023 $ Share based payments reserve 4,650,495 4,275,443 Foreign currency translation reserve 2,177,144 2,768,563 Total reserves 6,827,639 7,044,006 Share based payments reserve Opening balance 4,275,443 5,438,254 Share based payments - employees 375,052 691,667 Shares issued on vesting – (1,854,478) Closing balance 4,650,495 4,275,443 Foreign currency translation reserve Opening balance 2,768,563 1,152,640 Foreign exchange gains/(losses) on translation (591,419) 1,615,923 Closing balance 2,177,144 2,768,563 49 Sunstone Metals Limited Annual Report 2024
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