89 Westgold Resources Limited Annual Report 2022 26. ISSUED CAPITAL (CONTINUED) (f) Option conversions 332,332 listed options were exercised during the financial year (2021: 3,694,936). 2022 2021 (g) Capital management - gearing ratio Gearing ratio 7.31% 7.42% Debt 42,959,811 45,075,838 Capital 587,767,457 607,360,307 Capital includes issued capital and all other equity reserves attributable to the equity holders of the parent for the purpose of the Group’s capital management. The primary objective of the Group’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximise the shareholder’s value. The Group manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Group may return capital to shareholders or issue new shares. No changes were made in the objectives, policies or processes during the years ended 30 June 2022 and 30 June 2021. The Group monitors capital using a gearing ratio, which is debt divided by the aggregate of equity. The Group includes in its net debt, interest bearing loans and borrowings. The Group’s policy is to keep the gearing ratio between 5% and 20%. 27. RETAINED EARNINGS (ACCUMULATED LOSSES) 2022 2021 At 1 July 46,522,657 (30,229,223) Net profit (loss) in current year attributable to members of the parent entity (111,119,291) 76,751,880 Dividends paid (8,482,619) – At 30 June (73,079,253) 46,522,657 28. RESERVES Share-based payments reserve Equity reserve Total At 30 June 2020 14,466,364 181,493,631 195,959,995 Share-based payments 800,132 – 800,132 At 30 June 2021 15,266,496 181,493,631 196,760,127 Share-based payments 618,435 – 618,435 At 30 June 2022 15,884,931 181,493,631 197,378,562 Equity reserve This reserve relates to the intercompany loans with Metals X Ltd written off on demerger of the Group and includes tax consolidated adjustments. Share-based payments reserve This reserve is used to recognise the fair value of options issued to employees in relation to equity-settled share-based payments.
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