CONTENTS FINANCIAL STATEMENTS YEAR IN REVIEW DIRECTORS’ REPORT CORPORATE DIRECTORY SHAREHOLDER INFORMATION Total Fixed Annual Remuneration (TFR) A description of TFR applicable for the 2024 financial year is set out below: What is included in fixed remuneration? TFR consists of base salary and is inclusive of superannuation. Allowances and other benefits may be provided, including additional superannuation provided that, in the case of extra superannuation, no extra cost is incurred by the Company. How is fixed remuneration determined and reviewed? The level of TFR is set to provide a base level of remuneration which is both appropriate to the position and is competitive within the market. TFR is reviewed annually with any adjustments to TFR for Senior Executive KMPs ultimately approved by the Board, following consideration by the Committee. Sheffield seeks to position TFR at the 66th market percentile of salaries for comparable companies within the mining industry, utilising information provided by independent remuneration consultants. Short Term Incentive (STI) A description of Short Term Incentive applicable for the 2024 financial year is set out below: Who is eligible to participate in Short Term Incentives? The Committee shall nominate eligible STI participants for Board approval. Typically, individuals classified as Senior Executive KMP shall be eligible to participate, in conjunction with selected employees of the Company that management considers capable of influencing STI objectives. What is the performance period? Short Term Incentives are measured across an annual time horizon (or as otherwise determined by the Committee and Board). What is the purpose of Short Term Incentives? At-risk remuneration strengthens the bond between pay and performance. The purpose of providing STIs is to incentivise and reward Senior Executive KMPs for annual performance, relative to the expectations of their respective role accountabilities and associated KPIs, required behaviours, as well as for the successful execution of annual business plans. A remuneration and benefits structure that provides at-risk remuneration is also a necessary part of competitive remuneration arrangements within the Australian and global marketplace for Executives. Do the Short Term Incentives consider variable performance levels compared to objectives? Yes. The quantum of any STI award is linked to the extent of achievement of applicable performance criteria. Performance levels for each performance criteria are set at the following three levels: – Threshold - a performance level representative of minimum achievement. It represents the minimum level of performance for which a minimum STI award would be payable above this level. The STI is designed such that there is a >75% probability the Executive will meet or exceed this level of achievement. – Target - a performance level that represents a challenging but achievable level of performance. The STI is designed such that there is a 50% probability of achievement in any given year. – Stretch - a performance level that represents the upper limit of what may be achievable. The STI is designed such that there is a less than 25% probability the Executive will reach or exceed this level of achievement. What are the Short Term Incentive performance criteria for the year ended 30 June 2024? For the 2024 financial year, the following performance financial and non-financial measures were reviewed and considered by the Remuneration & Nomination Committee to be appropriate, aligned with the Company’s strategy: – Production - Achievement of product throughput quantity milestones in relation to the Thunderbird Mineral Sands Project, in accordance with the Board approved budget. – Customer Shipments - Achievement of targeted concentrate product volume shipments from the Thunderbird Mineral Sands Project to offtake customers, in accordance with the Board approved budget. – Per Tonne Unit Operating Costs - Achievement of targeted cost of production in relation to the Thunderbird Mineral Sands Project, in accordance with the Board approved budget. – Progress – South Atlantic Project - completion of Board nominated project development milestones, in accordance with the South Atlantic Project investment agreement dated 28 February 2023 and Board approved plans. 27 Sheffield Resources Limited Annual Report 2024
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