ISSUED CAPITAL (CONTINUED) 29. (d) Escrow Restrictions (e) Options on Issue (f) Option conversions (g) Capital management 97  NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011 The entity is not subject to any externally imposed capital requirements. During the year ended 30 June 2011, interest bearing liabilities decreased as a result of the Consolidated Entity making  repayments of its finance lease facility to finance property, plant and equipment at its Renison Tin Project (refer to note 38). The  net effect was a decrease in the gearing ratio. The gearing ratio is calculated as net debt divided by total capital. Net debt is defined as interest bearing liabilities and total capital is  calculated as ‘equity as shown in the statement of financial position (including minority interest). The Consolidated Entity monitors the adequacy of capital by analysing cash flow forecasts for each of its projects. To a lesser  extent, gearing ratios are also used to monitor capital. Appropriate capital levels are maintained to ensure that all approved  expenditure programs are adequately funded. This funding is derived from an appropriate combination of debt and equity. During the financial year ending 30 June 2011, management did not pay a dividend and does not expect to pay a dividend in the  foreseeable future. Management may adjust the capital structure to take advantage of favourable costs of capital or higher returns on assets. As the  market is constantly changing, management may issue new shares or sell assets to raise cash, change the amount of dividends  to be paid to shareholders (if at all) or return capital to shareholders. Capital managed by the Board includes shareholder equity, which was $290,056,226 at 30 June 2011 (2010: $290,141,787).  When managing capital, management’s objective is to ensure the entity continues as a going concern as well as to maintain  optimal returns to shareholders and benefits for other stakeholders. Management also aims to maintain a capital structure that  ensures the lowest cost of capital available to the entity. Managed capital is disclosed on the face of the statement of financial  position and comprises shareholder equity, accumulated losses and reserves. There were no option conversions during the financial year. Share options carry no right to dividends and no voting rights.  * The above options are exercisable at any time on or before the expiry date.  ** These options were issued pursuant to the Metals X Limited Employee Option Scheme and can only be exercised pursuant to  the scheme rules. Unissued ordinary shares of the company under option at the date of this report are as follows: There are no current escrow restrictions on the issued capital of the Company. Effective 1 July 1998, the Corporations legislation in place abolished the concepts of authorised capital and par share values.  Accordingly, the Parent does not have authorised capital nor par value in respect of its issued shares. Type  Expiry Date  Exercise Price Number of options Unlisted** 31 March 2012 36 cents 225,000  Unlisted** 31 July 2012 45 cents 1,000,000  Unlisted* 30 November 2012 14 cents 2,500,000  Unlisted** 30 November 2013 13 cents 2,850,000  Unlisted* 30 November 2013 13 cents 1,000,000  Total 7,575,000  2011 2010 Gearing ratio 0.44% 1.00% Net debt 1,158,829 2,834,719 Capital 263,853,027 201,866,069