Risk Management and Internal Controls

Procedures and systems of internal controls which outline and monitor, amongst other things, workplace health and safety standards, environmental standards, employee and community relations and risk management decisions are in place. The board is of the view that it is crucial for all directors and executives to be a part of this process, and as such the board has not established a separate risk management committee.

So that the board is aware of the current status of the Company and its controlled entities and to enable informed decisions to be made, the board regularly reviews operating and financial information.

Where appropriate, competent external advice is obtained by management to audit proposals prior to presentation to and decision by the board.

The board has a number of mechanisms in place to ensure that management’s objectives and activities are aligned with the risks identified by the Board. These include the following:

• Implementation of board approved operating plans and budgets and board monitoring of the progress both of a financial and non-financial nature against these budgets.
• The establishment of a committee to report on and monitor occupational health and safety.
• The establishment of a gold hedge risk management policy which establishes the criteria for selling forward against future gold production.
• The requirement for the Managing Director and Finance Director to certify the integrity of the financial statements and the effectiveness of internal control systems.

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