CONTENTS FINANCIAL STATEMENTS YEAR IN REVIEW DIRECTORS’ REPORT CORPORATE DIRECTORY SHAREHOLDER INFORMATION 17. Reserves (continued) 465,515 options issued with a vesting date of 30 June 2026 will be expensed over the vesting period. The expected life of an option is based on historical data and is not necessarily indicative of exercise payments that may occur. The expected volatility reflects the assumption that the historical volatility is indicative of future trends, which may also not necessarily be the actual outcome. The weighted average contractual remaining life of the share options outstanding as at 30 June 2024 is 2.74 years (2023: 2.44 years). Movement in options 2024 2023 Number under options Weighted average exercise price Number under options Weighted average exercise price Movement in options Outstanding at the beginning of the year 3,041,271 $0.55 2,140,000 $0.55 Granted during the year 465,515 $0.68 901,271 $0.72 Lapsed during the year (960,000) $0.65 – – Outstanding at the end of the year 2,546,786 $0.54 3,041,271 $0.60 Exercisable at the end of the year 960,000 $0.75 1,920,000 $0.54 Employee incentive plan The Employee Incentive Plan was established to enable employees of the Group (including Directors) to be issued with performance rights entitling each participant to a fully paid ordinary share. The performance rights issued for nil consideration are issued in accordance with the terms and conditions approved at a General Meeting by shareholders and in accordance with performance criteria established by the Directors. The objective of the Employee Incentive Plan is to assist in the recruitment, reward, retention and motivation of employees of the Group. Employees do not possess any rights to participate in the Employee Incentive Plan as participation is solely determined by the Directors. Performance rights convert to one fully paid ordinary share in Sheffield at an exercise price of nil upon meeting certain non-market-based performance conditions. The performance rights do not provide any dividend or voting rights and are not quoted on the Australian Securities Exchange. If an employee ceases to be employed by the Group within the period, the unvested performance rights will be forfeited. The following performance rights were in place and are subject to the Company Performance Rights plan: Expiry date Grant date Exercise price Number under rights 1 December 2025 30 November 2018 Nil 439,018 30 October 2026 25 November 2021 Nil 67,273 30 October 2026 25 November 2021 Nil 3,318,182 1 December 2027 22 November 2022 Nil 119,023 1 December 2028 22 November 2023 Nil 298,089 4,241,585 Note 1: Performance rights issued during the year as part of remuneration to Key Management Personnel, as approved by the 2023 Annual General Meeting of Shareholders. Detailed disclosures regarding vesting conditions of the Performance Rights are also set out in the Remuneration Report, which forms part of the Directors’ Report. 67 Sheffield Resources Limited Annual Report 2024
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