Operating and financial review The Group’s operations during the year ended 30 June 2023 are set out in the Review of Operations and Ore Reserves and Mineral Resources sections. The Group recorded a net loss after tax for the year ended 30 June 2023 of $8.6m (2022: net profit after tax of $26.1m). At 30 June 2023, the Group had $24.4m in cash and cash equivalents (2022: $40.2m) and the Group’s net assets were $169.6m (2022: $155.6m). COVID-19 impact COVID-19 impacts have not been significant to the Group during the period. The Company does not expect any negative impacts to the financial statements or triggers for any significant uncertainties with respect to events or conditions that may adversely impact the Group. Dividends No dividends were paid or declared during the year ended 30 June 2023. Corporate Governance Statement The Corporate Governance Statement is available on the Company’s website at www.sheffieldresources.com.au. Likely developments and expected results Through its 50% investment in Kimberley Mineral Sands Pty Ltd, Sheffield is on track to deliver mineral sands products to markets across the globe, through the successful construction and operation of the Thunderbird Mineral Sands Project in Western Australia. Sheffield continued to assess and consider growth opportunities within the mineral sands sector during the year, executing an investment agreement with Mineração Santa Elina Indústria e Comércio S/A. and Kromus Xi Fundo De Investimento Em Participações, owners of Rio Grande Mineração S/A (RGM), providing Sheffield with an option to acquire a 20% interest in RGM. Environmental regulation The Group’s exploration and mining activities are governed by environmental regulation. To the best of the Directors’ knowledge the Group believes it has adequate systems in place to ensure the compliance with applicable environmental legislation and is not aware of any material breach of those requirements during the year and up to the date of the Directors’ Report. Indemnification and insurance of Directors and Officers The Company agreed to indemnify all the Directors and key management personnel of the Company for any liabilities to another person (other than the company or related body corporate) that may arise from their designated position of the Company, except where the liability arises out of conduct involving a lack of good faith. During the year the Company paid a premium in respect of a contract insuring the Directors and Officers of the Company against any liability incurred in the course of their duties to the extent permitted by the Corporations Act 2001. Indemnification of insurance of Auditor The Company has not, during or since the end of the year, indemnified or agreed to indemnify the auditor of the Company or any related entity against a liability incurred by the auditor. During the year, the Company has not paid a premium in respect of a contract to insure the auditor of the Company or any related entity. Non-audit services During the year the Company has not used its auditors, HLB Mann Judd, to complete any non-audit related work (2022: nil). Directors’ Report continued 18 Sheffield Resources Limited Annual Report 2023
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