CONTENTS FINANCIAL STATEMENTS YEAR IN REVIEW DIRECTORS’ REPORT CORPORATE DIRECTORY SHAREHOLDER INFORMATION 7. Subsidiaries Subsidiaries are entities over which the Group has control. Subsidiaries are consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. Ownership interest % Country of incorporation 2025 2024 Sheffield Resources Limited Sheffield Exploration (WA) Pty Ltd Australia 100% 100% Sheffield Brazil Holdings Pty Ltd Australia 100% 100% Sheffield Brazil Holdings Pty Ltd Sheffield Brazil Investments Pty Ltd Australia 100% 100% 8. Investment in joint venture A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exist only when the decisions about relevant activities require the unanimous consent of the parties sharing control. Interest in the investment in joint venture is accounted for using the equity method in the financial statements. Under the equity method, the investment in joint venture is initially recognised at cost. The carrying amount of the investment is adjusted to recognise changes in the share of net assets of the joint venture since the acquisition date. The statement of profit or loss reflects the share of the results of operations of the joint venture. Kimberley Mineral Sands Pty Ltd Joint Venture Kimberley Mineral Sands Pty Ltd (KMS) became jointly owned by Sheffield and YGH Australia Investment Pty Ltd (Yansteel) as at 12 March 2021. The Thunderbird mineral sands project (Thunderbird) was previously held by Sheffield through its 100% owned subsidiary KMS prior to the formation of the joint venture. The project is located in north-west Western Australia. Sheffield’s interest in KMS is accounted for using the equity method in the consolidated financial statements. KMS is governed by a four-person Board of Directors with Sheffield and Yansteel each nominating, and being represented by, two directors. Key decisions require unanimous approval of both shareholders. KMS made a Final Investment Decision (FID) to construct and develop the Thunderbird project on 7 October 2022. KMS reached financial close on a combined $315m senior loan facilities provided by Northern Australia Infrastructure Facility (NAIF) and OMRF (Th) LLC, a related entity of Orion Mineral Royalty Fund (Orion). The Thunderbird project was fully funded through to first production. Carrying amount in joint venture investment is as follows: 2025 $’000 2024 $’000 Reconciliation of carrying amount in joint venture investment Opening balance of share of joint venture investment 123,800 143,938 Equity contribution in favour of KMS – 7,500 Share of KMS joint venture loss – 50% (20,472) (27,638) Closing carrying amount of joint venture investment 103,328 123,800 KMS also had commitments and contingent liabilities as at 30 June 2025, for which the Group has corresponding commitments and contingent liabilities as disclosed in Notes 22 and 23. 51 Sheffield Resources Limited Annual Report 2025
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