Notes to the consolidated and separate annual financial statements | Note 29

The Board's policy is to maintain a strong capital base to maintain investors, debt providers and the market confidence in the business. The Group's objective when managing capital is to maintain a flexible capital structure that reduces the cost of capital to an acceptable level of risk and to safeguard the Group's ability to continue as a going concern while taking advantage of strategic opportunities to maximise stakeholder returns sustainably.

The strong capital base should ensure that any organic or acquisitive growth in the business is sustainable and provides a cushion for the cyclical nature of the resources business.

The Board has actively pursued a policy of debt reduction, and its objective is to maintain its net gearing level to a maximum of 25% versus total assets. This ratio is calculated taking into account interest-bearing debt excluding cash balances divided by total assets. At 31 December 2024 year-end, the gearing level was 0% (31 December 2023: 0%).

As the required gearing level has been achieved, the Board will focus on balancing the requirements to pay dividends while at the same time ensuring that there is sufficient capital in the business to see the Company through the continued global economic uncertainty, to fund working capital, to fund capital expenditure requirements and to fund other growth opportunities in the business.

When analysing growth opportunities, the Board seeks to obtain a minimum internal rate of return of 20%.

Neither the Company nor its subsidiary are subject to externally imposed capital requirements.