CONTENTS FINANCIAL STATEMENTS YEAR IN REVIEW DIRECTORS’ REPORT CORPORATE DIRECTORY SHAREHOLDER INFORMATION 8. Investment in joint venture (continued) (a) Joint venture - revenue from continuing operations KMS primarily generates revenue from the sales of ilmenite and zircon concentrate to customers. Revenue is recognized when control of the product has passed to the customer. For zircon concentrate there are two performance obligations; with the first recognised when the product is loaded onto the ship and the second with revenue from shipping recognised over the period of the journey. For ilmenite concentrate sales, there is only one performance obligation, being the product is loaded onto the ship with revenue recognised at the time of collection. KMS’ revenue from continuing operations is as follows: Joint venture (100%) 2025 $’000 (Audited) Joint venture (100%) 2024 $’000 (Audited) Revenue from continuing operations Sale of concentrates – ilmenite and zircon 243,503 68,380 Freight revenue 82 3,578 243,585 71,958 (b) Joint venture – finance costs KMS’ finance costs are as follows: Joint venture (100%) 2025 $’000 (Audited) Joint venture (100%) 2024 $’000 (Audited) Finance costs Interest on borrowings (20,596) (9,991) Interest accretion on borrowings (20,733) (11,425) Commitment fees on borrowings – (102) Interest on lease liabilities (8,106) (6,426) Revaluation on royalty make whole 23,797 (5,156) Net foreign exchange loss (470) (4,252) Other (2,473) (57) (28,581) (37,409) (c) Joint venture – income tax benefit Reconciliation of income tax to prima facie tax for KMS is as follows: Joint venture (100%) 2025 $’000 (Audited) Joint venture (100%) 2024 $’000 (Audited) Loss before income tax (40,944) (79,505) Prima facie tax calculated at 30% (12,283) (23,852) Adjusted for the tax effect of: Other non-deductible expenses – 12 Other – (389) Deferred tax assets not recognised 12,283 Income tax benefit reported in the statement of profit or loss – (24,229) 55 Sheffield Resources Limited Annual Report 2025
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