CONTENTS FINANCIAL STATEMENTS YEAR IN REVIEW DIRECTORS’ REPORT CORPORATE DIRECTORY SHAREHOLDER INFORMATION 8. Investment in joint venture (continued) KMS’ breakdowns of the respective borrowings are as follows: Joint venture (100%) 2025 $’000 (Audited) Joint venture (100%) 2024 $’000 (Audited) Government debt facilities – Northern Australia Infrastructure Facility Opening balance 157,025 93,350 Additions – 63,275 Capitalised borrowing costs – – Amortisation 421 400 157,446 157,025 Production linked loan facility - Orion Mineral Royalty Fund Opening balance 91,503 136,468 Additions – 34,068 Repayments (16,812) – Financing costs on royalty obligations – (113,687) Amortisation 26,797 32,560 Foreign exchange movement (3,302) 2,094 98,186 91,503 255,632 248,528 Facility 1 – Government Debt Facilities (Northern Australia Infrastructure Facility) On 4 October 2022, KMS’ wholly owned subsidiary, Thunderbird Operations Pty Ltd (TOPL) entered into a Facility Agreement with the Northern Australia Infrastructure Facility (NAIF) for $160m inclusive of a term loan and cost overrun facility. The facility is secured against TOPL’s assets. Loan – The facility comprises of $120m debt facility (Facility A) and a $40m cost overrun facility (Facility B). – Interest charged at a base rate based upon the Commonwealth Government Security cost plus a margin of 3.5% which increases to 8% from year 6 onwards. Interest is payable quarterly in arrears. – Principal repayments for Facility A are made in line with the repayment schedule commencing 31 December 2027 with the final payment made 31 December 2033. – Principal repayments for Facility B are required to be paid in advance of Facility A, prior to 31 December 2027. As at 30 June 2025, both facilities of $160m were fully drawn. Total interest paid for the year was $10.6m (2024: $8.4m). Facility 2 – Production Linked Loan Facility (Orion Mineral Royalty Fund) On 30 September 2022, KMS and TOPL entered into a Production Linked Loan Agreement with OMFR (Th) LLC, a related entity of Orion Mineral Royalty Fund (Orion) for US$110m. The facility comprises of US$110m debt facility and a production linked royalty. The facility is secured against TOPL’s assets. Loan – Interest is charged at a margin of 5% plus the higher of a) adjusted term SOFR, and b) 2% per annum. – Principal repayments are made in line with the repayment schedule commencing 30 June 2025 with the final payment made 31 December 2028. Royalty – Quarterly payments commence at the earliest of a) full repayment of the loan or b) 7 years following the date of the loan agreement. – Royalty payment is 1.60% of FOB gross revenue for the period. Revenue is based upon the quantity, type and price of the commodity extracted. The royalty payment is limited to Stage 1 production capacity capped at an annual production rate of 8.2m tonnes of ore. – The repayment term is 25 years and is subject to a buyback provision curtailing the term to 12.5 years. 59 Sheffield Resources Limited Annual Report 2025
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