Risk Management

The Directors are responsible for the Group’s system of internal controls, the setting of appropriate policies on those controls, and regular assurance that the system is functioning effectively and that it is effective in managing business risk.

The Audit Committee monitors the Group’s internal control procedures, reviews the internal controls process and risk management procedures and reports its conclusions and recommendations to the Board.

Risk Management based on sound internal controls is a key consideration for the Board.  The Finance Director is charged with the review of the key risks inherent in the business and the system of control necessary to manage such risks and to present his findings to the Board.  Exploration risk, the main corporate risk to which the Group is exposed, is monitored and reviewed regularly by the Board. The Board considers the level of exploration risk to be acceptable for the Company taking into account the industry in which it operates.

The Directors consider that the frequency of Board meetings and the information provided to the Board in relation to Group operations assists the identification, evaluation and management of significant risks relevant to its operations on a continuous basis.

The Group’s system of internal control is designed to manage rather than eliminate the risk of failure to achieve the Group’s business objectives and provides reasonable but not absolute safeguards against loss or material misstatement.

Having thus monitored risk management and internal control processes in place, the Board considers that the Company’s internal control systems operated appropriately during the year and up to the date of signing of the Annual Report and Financial Statements.