Siren Gold Limited Annual Report 2020

12 Issued capital (continued) d. Capital Management The Directors’ objectives when managing capital are to ensure that the Group can maintain a capital base so as to maintain investor, creditor and market confidence and sustain future development of the business. The Board of Directors monitors the availability of liquid funds in order to meet its short-term commitments. It does this by ensuring that its current ratio (current assets divided by current liabilities) remains in excess of 1:1. 2020 2019 Current ratio 15.00 0.99 Due to the nature of the Group’s activities, being gold exploration, the Group does not have ready access to credit facilities, with the primary source of funding being equity raisings. Therefore, the focus of the Group’s capital risk management is the current working capital position against the requirements of the Group to meet exploration programs and corporate overheads. The Group’s strategy is to ensure appropriate liquidity is maintained to meet anticipated operating requirements, with a view to initiating appropriate capital raisings as required. The Group is not subject to externally imposed capital requirements. The working capital position of the Group at 31 December 2020 was as follows: 2020 $ 2019 $ Cash and cash equivalents 8,801,581 157,853 Trade and other receivables 143,920 479 Other assets 113,646 - Trade and other payables (587,924) (158,298) Borrowings (15,913) (1,937) Working capital position 8,455,310 (1,903) 13 Reserves 2020 $ 2019 $ Foreign currency translation reserve (35,886) 2,045 Share-based payment reserve 878,306 202,816 842,420 204,861 a. Foreign currency translation reserve The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of foreign subsidiaries. b. Share-based payment reserve The share-based payment reserve records the value of options and performance rights issued by the Company to its employees or consultants. 14 Key Management Personnel Compensation (KMP) Refer to the Remuneration Report contained in the Directors’ Report for details of the remuneration paid or payable to each member of the Company’s key management personnel for the year ended 31 December 2020. The totals of remuneration paid to the KMP of the Company during the year are as follows: 2020 $ 2019 $ Short-term employment benefits 371,922 – Post-employment benefits 13,220 – Share-based payments 277,200 – 662,342 – Notes to the Consolidated Financial Statements for the year ended 31 December 2020 Siren Gold Limited 44