The Board is responsible for ensuring that an effective system of internal controls exists within the Company and is operating as expected. A Risk Management Committee has been established, although as previously noted, given the priority placed on risk management by the Board, the role of this Committee has been assumed by the full board of the Company during the financial year ended 30 June 2008.
The Board continually monitors the operational and financial aspects of the Company’s activities at its monthly meetings. The Board considers the recommendations and advice of external auditors and other external advisers on the operational and financial risks that face the Company.
The Company has implemented a system of risk management in both its corporate office and its regional exploration office which involves formal identification of risks, the evaluation of risks and formulation of mitigation strategies and the implementation of relevant policies and procedures to mitigate risk. In this respect, the Board has approved a range of corporate and operational policies and procedures that have subsequently been implemented to mitigate against specific risks. Financial risk is managed on a procedural basis and through a transparent management and financial accounting system.
The Chief Executive Officer and Chief Financial Officer are required to certify to the Board that:
- The Company’s financial reports are complete and present a true and fair view, in all material respects, of the financial condition and operational results of the Company for the financial year ended on that date and are in accordance with relevant accounting standards.
- The above statement is founded on a sound system of internal control and risk management which implements the policies adopted by the Board.
- The Company’s risk management and internal controls are operating efficiently and effectively in all material respects.
