11 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. 2022 2021 Current ratio 1.47 9.85 Due to the nature of the Group’s activities, being mineral 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 2022 was as follows: 2022 $ 2021 $ Cash and cash equivalents 353,634 5,729,496 Trade and other receivables 131,568 220,704 Other assets 185,274 125,044 Trade and other payables (377,255) (578,077) Borrowings (55,573) (17,227) Provisions (21,812) (21,652) Working capital position 215,836 5,458,288 12 Reserves 2022 $ 2021 $ Foreign currency translation reserve (77,619) (138,039) Share-based payment reserve 878,306 878,306 800,687 740,267 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. Notes to the Consolidated Financial Statements for the year ended 31 December 2022 Annual Report 2022 65
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