As required by current legislation and stock market rules and other regulations, Endomines strives to regularly provide correct, reliable and up-to-date financial information. The financial information is regularly published in the following formats:
- Annual reports
- Interim reports
- Press releases including news and significant events that may influence the share price.
The Board of Directors and CEO have the overall responsibility for internal control regarding financial reporting. The Board of Directors is in charge of documenting how the quality of the Company’s financial reporting is assured as well as how the Company communicates with its auditor. The Board of Directors has also appointed an Audit Committee tasked with monitoring the financial reporting, internal control and work with external auditors, among others.
The purpose of internal control of financial reporting at Endomines is to achieve a high degree of reliability on the external reporting. At Endomines, internal control with regard to financial reporting is directed at ensuring an effective and reliable business and records on purchases and sales, income records as well as accounts of the Company’s financing.
Endomines’ control environment determines the basis of the direction and culture that the Company’s Board of Directors and management communicate to the organization. Internal steering and control in accordance with the established framework is a key focus in management work. Endomines’ Board of Directors and management determine reporting relationships, distribution of authority and responsibilities. These are then clearly specified and communicated within the organization.
The Company’s Board of Directors also strives to ensure that governing documents, such as internal policies and guidelines, include all identified essential areas and that these guide the work of the Company’s various executives in the right direction.
The control environment comprises the values and corporate culture at Endomines. Endomines has a flat organization with unified operations where everyone from the Board of Directors and management to staff members participates in the operations and activities in practice. The Board of Directors has the overall responsibility for the internal control. The Board of Directors has set out rules of procedure for its work and appointed an Audit Committee. The Audit Committee’s role as a body of the Board of Directors is to be responsible for supervising the financial reporting, internal control as well as cooperation with external auditors.
Endomines has a set of rules and procedures for financial reporting including a financial and administrative handbook. The handbook includes accounting principles, financial policy, purchase practices, and reporting procedures. It also includes the distribution of authorities and rules for acceptance of transactions within the Company and with third parties.
Endomines is subject to a number of risks and uncertainties which may have an adverse effect on the Company’s ability to fulfil its exploration and development plans as well as to successfully mine and refine ore. The risks involve factors such as the size of the mineral reserves, conditions for mining and concentrating ore, estimated development potential, exploration, valuation of mine assets, environmental permits and environmental costs, decrees and acts as well as other financial risks.
Endomines’ management has documented and evaluated the control activities related to the risks with unreliable accounting. This comprehensive document is maintained by the CFO. The purpose of the control activities is to prevent and detect errors and/or fraud in a manner and scope that corresponds to the size and complexity of the operations.
Controls include established accounting principles, process controls and reconciliations rules for acceptance of transactions, restrictions of access rights in systems and analytical procedures for all financial items. The CFO follows up on any unexpected deviations.
Endomines has agreements with service providers for the provision of accounting services for the operations. The services include bookkeeping, accounts payable ledger, salaries and controls related to these such as balancing of the accounts and statutory controls.
Information and communication
In addition to adhering to the standard industry practices and the applicable legislation, Endomines observes the following principles in its communication:
- Dedication and sincerity
- Clear communication of Endomines’ values and agenda
- Transparency and equal treatment in order to promote Endomines’ development and investor contacts
Endomines’ disclosure policy lays down principles and rules for how it communicates with its shareholders and other interested parties.
Stock exchange releases and press releases, quarterly reports and consolidated results are published at www.endomines.com.
A report package including financial reports is submitted to the Board of Directors on a monthly basis. Due to the size of the Company, communication is very close between the Board of Directors, company management, and operations in general.
The financial results and position are closely supervised at multiple levels. The financial performance of the operative divisions is analyzed in detail and reported to the CFO. The Audit Committee scrutinizes the financial reports before submission for acceptance by the Board of Directors. The Technology, Environment and Safety Committee reviews press releases and other information with respect to the technical data (mineral reserves, mineral resources, results of exploration and core drillings, etc.).
The Audit Committee and the Board of Directors discuss with the external auditor in order to discover any discrepancies in the auditor’s work concerning financial reporting or in the internal controls.
Endomines has a straightforward structure both in the legal and operative sense. In addition, the management has a hands-on approach to the supervision of all significant operations. For this reason, the Board of Directors does not consider it necessary to have a separate internal control function or internal auditor.