Announcement PDF Annual Financial Report Year ended 30 June 2023 ABN 97 140 316 463 Suvo Strategic Minerals Limited Corporate Directory 30 June 2023 Corporate Directory Directors Aaron Banks Hugh Thomas Oliver Barnes Agu Kantsler Company secretary Chris Achurch Registered office Level 11 40 The Esplanade Perth WA 6000 Phone: (08) 9389 4495 Principal place of business 3610 Glenelg Hwy Pittong VIC 3360 Phone: (03) 5344 6688 Share registry Automic Registry Services Pty Ltd Level 5 191 St Georges Terrace Perth WA 6000 Phone: 1300 288 664 Auditors RSM Australia Partners Level 32 2 The Esplanade Perth WA 6000 Phone: (08) 9261 9100 Solicitors Hamilton Locke Level 48 152-158 St Georges Terrace Perth WA 6000 Phone: (08) 6311 9160 Stock exchange listing Suvo Strategic Minerals Limited’s shares are listed on the Australian Securities Exchange (ASX code: SUV) Website www.suvo.com.au Corporate Governance Statement www.suvo.com.au/investors/corporate-governance/ 2 Suvo Strategic Minerals Limited Directors’ Report 30 June 2023 Directors’ Report The Directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'Group') consisting of Suvo Strategic Minerals Limited (referred to hereafter as the 'Suvo' or the 'Company') and the entities it controlled at the end of, or during, the year ended 30 June 2023. Directors The following persons were Directors of Suvo during the whole of the financial year and up to the date of this report, unless otherwise stated: Mr Aaron Banks Mr Hugh Thomas Mr Oliver Barnes Dr Agu Kantsler Mr Henk Ludik Dr Ian Wilson Interim Non-Executive Chairman (appointed 7 March 2023) Executive Director (resigned 7 March 2023) Managing Director (appointed 15 June 2023) Non-Executive Director Non-Executive Director (appointed 5 September 2023) Non-Executive Director (appointed 7 March 2023, resigned 15 June 2023) Executive Chairman (appointed 22 August 2022, resigned 7 March 2023) Non-Executive Chairman (resigned 22 August 2022) Non-Executive Director (resigned 14 June 2023) Principal activities The principal activities of the Group during the year were refined kaolin production in Victoria and mineral exploration in Western Australia. Review of operations Pittong upgrade and optimisation project In August 2022, the Company announced that an independent review on the Pittong processing plant had been completed. This independent review confirmed that the nameplate processing capacity of the Pittong plant could reach ~60,000 tonnes per annum if certain plant items were upgraded. Due to the forecast increasing demand for kaolin, from both domestic and international customers, and off the back of this independent review, the Board approved an upgrade and optimisation project to commence at Pittong. In February 2023, the Company announced that it had successfully completed, on time and on budget, the above-mentioned Pittong plant upgrade and optimisation project. In February 2023, the Pittong plant was operated continuously over a 6-day period, and produced in total, 1,004 tonnes of hydrous kaolin. This represents a 245% uplift in production when compared to average weekly production rates achieved in the previous year of 410 tonnes. This result validates Pittong’s ability to produce ~50,000 tonnes per annum of hydrous kaolin, representing an 83% utilisation rate of the 60,000 tonnes name plate processing capacity. New sales orders received, additional turnover generated Bolstering the Company’s earnings, Suvo signed a major take or pay Offtake Agreement (“Agreement”) with Chaozhou Chengcheng Industrial Co.,Ltd (“Chaozhou”) in November 2022. This is a major supply agreement for the Company covering a minimum order quantity of 4,275 tonnes over a three-year term. The hydrous kaolin to be supplied under this Agreement will primarily be used in the inks and pharmaceutical sectors, with the contract valued at between ~A$3.25 million to A$3.50 million, depending on delivery location and a forecast exchange rate of USD: AUD 0.65:1. An Offtake of this size is in line with the Company’s growth strategy and justifies the upgrade of its Pittong plant. In April 2023, Suvo signed another Sales Agreement (“the Agreement”) with Chinese distributor, Qingdao Minglang New Material Co., Ltd (“Qingdao”). The Agreement covers up to 500 tonnes (+/-10%) of hydrous kaolin to be supplied between May 2023 and December 2024 and is valued at ~A$0.4 million (based on an exchange rate of USD: AUD 0.65:1). Suvo’s strategy for the next 12 months has been clearly defined, which is to increase sales of hydrous kaolin in the Asia Pacific. The Company has a newfound depth of knowledge with respect to hydrous kaolin industry trends and market dynamics throughout Asia Pacific which it can now leverage. Being an extremely opaque market, to sell the additional hydrous kaolin tonnes available from the Company’s Pittong plant requires an in depth and acute understanding of each region throughout Asia. Management is confident that it is acquiring the necessary knowledge of how the market works, and the Company has identified a number of opportunities which it is currently pursuing. 3 Suvo Strategic Minerals Limited Directors' Report 30 June 2023 Directors’ Report As part of this newly formed strategy, new channel partners have been appointed throughout Asia Pacific, including Indonesia, Philippines, China, Japan, Korea and India. A significant number of new end users throughout Asia Pacific have been strategically targeted and product testing of Pittong hydrous kaolin is well advanced. The Company looks forward to updating the market in the near term as new sales agreements are executed. In June 2023, the Company signed a three-year agreement (valued at $A1.5 - A2.0m) with BQ Nominees Pty Ltd trading as Barfold Quarry (“Barfold”) for the sale of silica sand, a by-product from its hydrous kaolin operation at Pittong, Victoria. Barfold is a basalt quarry and recycled concrete company and will use the Pittong silica sand in its premix concrete. The Company currently operates three batching plants throughout Victoria and is in the process of building a fourth. Subsequent to the reporting period end, Barfold has mobilised its own mobile equipment at the Pittong processing facility and commenced dry screening of the existing silica sand stockpiles. All processing, capital and haulage costs are incurred by Barfold. Suvo estimates the current silica sand stockpiled at the Pittong processing facility is ~200,000 tonnes, of which ~90% (180,000 tonnes) is saleable silica sand. Due to the supply shortages of sand and growth in the construction industry, it is expected that all 180,000 tonnes of silica sand stockpiled at the Pittong processing facility will be processed and hauled by Barfold in the first year of the agreement. Post depletion of the current stockpiles, sales of the by-product will be linked to production of hydrous kaolin at Pittong. Based on current recoveries, 1 tonne of hydrous kaolin produced generates ~1.2 tonnes of saleable silica sand. Barfold will process and purchase all available future production during the term of the agreement. This is a great result for Suvo as it is estimated the cost to the Company to re-locate and backfill would be approximately $9 per tonne in labour and equipment. Not only is the Company generating free cash-flow, the sale of the silica sand is reducing a future cash flow burden. Corporate As part of a overall strategy to refresh the Suvo Board, Mr Hugh Thomas and Dr Agu Kantsler were appointed to the Board in June 2023 and September 2023 respectively. Mr Hugh Thomas was initially appointed as Chief Executive Officer of the Company and was subsequently appointed as Managing Director, whilst Dr Agu Kantsler serves as an independent NonExecutive Director. With over 35 years’ industry experience, Mr Thomas brings a strong mix of commercial and operational experience to Suvo, having held several executive positions across the natural resources sector. Mr Thomas’ previous positions include Managing Director and Head of Asia Pacific Natural Resources for both JP Morgan and Morgan Stanley in Hong Kong, Head of Natural Resources Investment Banking at Investec Bank in Sydney and Partner at Deloitte Corporate Finance Pty Ltd. Dr Agu Kantsler B.SC (hons), Ph.D., G.A.I.C.D., FTSE, has over 45 years of experience in the international and Australian upstream oil and gas industry and has spent over 20 years in senior leadership positions and 12 years serving on the boards of several listed and private companies. He is currently the Managing Director of Transform Exploration Pty Ltd and a NonExecutive Director of Central Petroleum Limited. The appointment of Mr Hugh Thomas and Dr Agu Kantsler follows the wider Company strategy to refresh the Board with the appropriate skillset to support the Company’s next phase of operations and development of its portfolio of assets. Previous Chairman Mr Henk Ludik resigned from the Board in June 2023 and Non-Executive Director Dr Ian Wilson sadly passed in the same month. As this time, Mr Aaron Banks assumed the role of Interim Non-Executive Chairman. Projects On 17 January 2023, the Company announced that the tenement purchase for 100% of exploration license application E70/4981, located in the Muchea region of Western Australia, was completed. The exploration license remains under application as at the date of this report. Subsequent to the reporting period end, the Company announced that it would not progress with the remaining stages of the Dingo HPA Pty Ltd (“Dingo”) earn-in agreement (“Agreement”), and as a result, the Company agreed to sell its 26% share at an agreed price of A$175,000. The divestment process is expected to be completed during the quarter ended 31 December 2023. 4 Suvo Strategic Minerals Limited Directors' Report 30 June 2023 Directors’ Report Significant changes in the state of affairs There were no significant changes in the state of affairs of the Group during the financial year. Matters subsequent to the end of the financial year On 29 August 2023, the Company announced that it would not progress with the remaining stages of the Dingo HPA Pty Ltd (“Dingo”) earn-in agreement (“Agreement”), and as a result, the Company agreed to sell its 26% share at an agreed price of A$175,000. The divestment process is expected to be completed during the quarter ended 31 December 2023. On 5 September 2023, Dr Agu Kantsler was appointed as Non-Executive Director of the Company. Apart from matters discussed above, no other matter or circumstance has arisen since 30 June 2023 that has significantly affected, or may significantly affect the Group's operations, the results of those operations, or the Group's state of affairs in future financial years. Likely developments and expected results of operations The Group intends to continue its exploration, development and production activities on its existing operations and projects and to acquire further suitable projects as opportunities arise. Environmental regulation The Group is subject to and is compliant with all aspects of environmental regulation of its exploration and mining activities. The Directors are not aware of any environmental law that is not being complied with. Material business risks Exploration and development The Company’s mining tenements are at various stages of exploration, and potential investors should understand that mineral exploration and development are high-risk undertakings. There can be no assurance that future exploration of these tenements, or any other mineral tenements that may be acquired in the future, will result in the discovery of an economic resource. Even where an apparently viable resource is identified, there is no guarantee that it can be economically exploited. Staffing and reliance on key management The Company relies on the experience and knowledge of key members of its staff. In the event that key personnel leave and the Company is unable to recruit suitable replacements, such loss could have a materially adverse effect on the Company. Capital and funding requirements Suvo is not yet at the stage where it is generating positive cash flows at the group level. Further, no assurance can be given that Suvo will become profitable in the future. Accordingly, the Company may require additional equity or debt funding in the short, medium or long term. The ability of Suvo to access funding is never certain and is dependent on a multitude of factors, including the macro-economic conditions in Australia and overseas. 5 Suvo Strategic Minerals Limited Directors' Report 30 June 2023 Directors’ Report Information on directors Name: Title: Experience and expertise: Aaron Banks Interim Non-Executive Chairman (appointed 7 March 2023), Executive Director (resigned 7 March 2023) Aaron Banks is a specialist business consultant with over 20 years’ experience in contract negotiations and business development including senior roles in sales, marketing and construction management. In 2015 as founder and Managing Director of Australian Silica Pty Ltd, Mr Banks discovered one of the largest high grade silica sand resources in the world. Whilst on the Board of Australian Silica he successfully negotiated the sale of the Muchea Silica Sand Project to Ventnor Resources Limited which pivoted the former base metals explorer to the emerging silica sand producers known today as VRX Silica Limited (ASX:VRX). In 2020 he vended his private companies into what is Suvo Strategic Minerals Limited today. Aaron has an extensive background in industrial minerals and has focused on developing emerging assets globally. Other current directorships: None Former directorships (last 3 years): None Special responsibilities: None Interests in shares: 75,319,527 Interests in options: None Interests in performance rights: 15,000,000 Name: Title: Experience and expertise: Hugh Thomas Managing Director (appointed 15 June 2023) Mr Thomas has over 35 years’ industry experience, with a strong mix of commercial and operational experience, having held several executive positions across the natural resources sector. Previous positions include Managing Director and Head of Asia Pacific Natural Resources for both JP Morgan and Morgan Stanley in Hong Kong, Head of Natural Resources Investment Banking at Investec Bank in Sydney and Partner at Deloitte Corporate Finance. Other current directorships: NT Minerals Limited (ASX: NTM) Former directorships (last 3 years): None Special responsibilities: None Interests in shares: None Interests in options: None Interests in performance rights: 7,500,000 Name: Title: Experience and expertise Oliver Barnes Non-Executive Director Oliver Barnes has over 25 years’ experience in natural resources and asset development with expertise in carbon, rural development, ESG and clean technology commercialisation. Mr Barnes was previously the Managing Director of an ASX listed land and water developer and held a senior role with an ASX listed phosphate technology company. He holds a Bachelor of Science in Agriculture Business Management. Other current directorships: None Former directorships (last 3 years): Alterra Limited (ASX:1AG) Special responsibilities: None Interests in shares: None Interests in options: None Interests in performance rights: 5,895,000 6 Suvo Strategic Minerals Limited Directors' Report 30 June 2023 Directors’ Report Name: Title: Experience and expertise: Agu Kantsler Non-Executive Director (appointed 5 September 2023) Dr Agu Kantsler B.SC (hons), Ph.D., G.A.I.C.D., FTSE, has over 45 years of experience in the international and Australian upstream oil and gas industry and has spent over 20 years in senior leadership positions and 12 years serving on the boards of several listed and private companies. He is currently the Managing Director of Transform Exploration Pty Ltd and a Non-Executive Director of Central Petroleum Limited. He is a former Director of Oil Search Limited, a former President of the Chamber of Commerce and Industry Western Australia, a former Director of the Australian Chamber of Commerce and Industry and a former Chairman and Director of the Australian Petroleum Production and Exploration Association (APPEA). Dr Kantsler was awarded APPEA’s gold medal for service to the industry in 2005 and in 2006 was elected to Fellowship of the Australia Academy of Technological Sciences and Engineering. Other current directorships: Central Petroleum Limited (ASX: CTP) Former directorships (last 3 years): Oil Search Limited (ASX: OSH) Special responsibilities: None Interests in shares: None Interests in options: None Interests in performance rights: None Name: Title: Henk Ludik Non-Executive Director (appointed 7 March 2023, resigned 15 June 2023), Executive Chairman (appointed 22 August 2022, resigned 7 March 2023), Non-Executive Chairman (resigned 22 August 2022) Experience and expertise: Mr Ludik is a mining engineer with a career spanning over 20 years in mining with expertise in engineering, feasibility, mine optimisation, ESG and corporate finance. Mr Ludik has worked on a number of landmark transactions in the resource sector since 2006. Mr Ludik holds a BEng in Mining Engineering, MSc in Oil and Gas Engineering and an MBA. Other current directorships: Not applicable as no longer a director Former directorships (last 3 years): Not applicable as no longer a director Special responsibilities: Not applicable as no longer a director Interests in shares: Not applicable as no longer a director Interests in options: Not applicable as no longer a director Interests in performance rights: Not applicable as no longer a director Name: Title: Experience and expertise: Ian Wilson Non-Executive Director (resigned 14 June 2023) Dr. Wilson was an economic geologist with over forty-five years’ international experience in industrial minerals. He held key technical and management positions in a major publicly listed mining and construction enterprise, was a Senior Scientific Officer in what is now the British Geological Survey, and had been an independent consultant since 2001. His experience spanned the range from exploration and resource estimation to project development and production, and included global and regional marketing for a wide variety of industrial minerals, including kaolin, halloysite, calcium carbonate, talc, bentonite, barytes, magnesite, and others. He authored many articles in peer-reviewed journals and was a regular contributor to Industrial Minerals magazine for over 17 years. He was formerly Secretary of the Mineralogical Society of London (Clay Minerals Group) and had been the convenor of several international conferences on clay minerals. In 2009 he was awarded the Hal William Hardinge Award by SME in recognition of his services to the industrial minerals industry. Other current directorships: Not applicable as no longer a director Former directorships (last 3 years): Not applicable as no longer a director Special responsibilities: Not applicable as no longer a director Interests in shares: Not applicable as no longer a director Interests in options: Not applicable as no longer a director Interests in performance rights: Not applicable as no longer a director 7 Suvo Strategic Minerals Limited Directors' Report 30 June 2023 Directors’ Report 'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships of all other types of entities, unless otherwise stated. 'Former directorships (last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and excludes directorships of all other types of entities, unless otherwise stated. Company secretary Chris Achurch (B Com, CA) holds the role of Company Secretary. Mr Achurch spent 10 years in public practice. Mr Achurch then spent over 2 years as CFO and Joint Company Secretary at Kalium Lakes Limited, before his resignation to join Perth based Investment Banking and Corporate Advisory firm, Westar Capital Limited. Mr Achurch provides company secretarial, corporate advisory and general consulting services to a number of ASX listed clients. Meetings of directors The number of meetings of the Company's Board of Directors ('the Board') and of each Board committee held during the year ended 30 June 2023, and the number of meetings attended by each director were: Nomination and Remuneration Committee1 Attended Held Full board Attended Held Aaron Banks Hugh Thomas Oliver Barnes Henk Ludik Ian Wilson 5 5 4 3 5 5 5 4 - - Audit and Risk Committee1 Attended Held - - 1 Refer to Company’s Corporate Governance statement. Held: represents the number of meetings held during the time the Director held office or was a member of the relevant committee. Remuneration report (audited) The remuneration report details the key management personnel remuneration arrangements for the Group, in accordance with the requirements of the Corporations Act 2001 and its Regulations. Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including all Directors. The remuneration report is set out under the following main headings: ● Principles used to determine the nature and amount of remuneration ● Details of remuneration ● Service agreements ● Share-based compensation ● Additional information ● Additional disclosures relating to key management personnel Principles used to determine the nature and amount of remuneration The Board of Directors ('the Board') ensures that executive reward satisfies the following key criteria for good reward governance practices: ● competitiveness and reasonableness ● acceptability to shareholders ● performance linkage / alignment of executive compensation ● transparency The Board is responsible for determining and reviewing remuneration arrangements for its directors and executives. The performance of the Group depends on the quality of its directors and executives. The remuneration philosophy is to attract, motivate and retain high performance and high-quality personnel. In accordance with best practice corporate governance, the structure of non-executive director and executive director remuneration is separate. 8 Suvo Strategic Minerals Limited Directors' Report 30 June 2023 Directors’ Report Non-executive directors’ remuneration Fees and payments to non-executive directors reflect the demands and responsibilities of their role. Non-executive directors' fees and payments are reviewed annually by the Board. The chairman's fees are determined independently to the fees of other non-executive directors based on comparative roles in the external market. The chairman is not present at any discussions relating to the determination of his own remuneration. ASX listing rules require the aggregate non-executive directors' remuneration be determined periodically by a general meeting. The most recent determination was at the 2016 Annual General Meeting where the shareholders approved a maximum annual aggregate remuneration of $350,000. Executive remuneration The Group aims to reward executives based on their position and responsibility, with a level and mix of remuneration which has both fixed and variable components. The executive remuneration has four components: ● base pay and non-monetary benefits ● short-term performance incentives ● share-based payments ● other remuneration such as superannuation and long service leave The combination of these comprises the executive's total remuneration. Fixed remuneration, consisting of base salary, superannuation and non-monetary benefits, are reviewed annually by the Board based on individual and business unit performance, the overall performance of the Group and comparable market remunerations. Executives may receive their fixed remuneration in the form of cash or other fringe benefits where it does not create any additional costs to the Group and provides additional value to the executive. The short-term incentives ('STI') program is designed to align the targets of the business units with the performance hurdles of executives. STI payments are granted to executives based on specific annual targets and key performance indicators ('KPI's') being achieved. The long-term incentives ('LTI') include share-based payments. Shares are awarded to executives over a period greater than one year based on long-term incentive measures. Use of remuneration consultants During the financial year ended 30 June 2023, the Group did not engage a remuneration consultant. Voting and comments made at the Company's 2022 Annual General Meeting ('AGM') At the 2022 AGM, 97.57% of the votes received supported the adoption of the remuneration report for the year ended 30 June 2022. The Company did not receive any specific feedback at the AGM regarding its remuneration practices. 9 Suvo Strategic Minerals Limited Directors' Report 30 June 2023 Directors’ Report Details of remuneration Amounts of remuneration Details of the remuneration of key management personnel of the Group are set out in the following tables. The key management personnel of the Group consisted of the following persons: ● Aaron Banks - Interim Non-Executive Chairman (appointed 7 March 2023), Executive Director (resigned 7 March 2023) ● Hugh Thomas - Managing Director (appointed 15 June 2023), Chief Executive Officer (appointed 1 April 2023) ● Oliver Barnes - Non-Executive Director ● Henk Ludik - Non-Executive Director (appointed 7 March 2023, resigned 15 June 2023), Executive Chairman (appointed 22 August 2022, resigned 7 March 2023), Non-Executive Chairman (resigned 22 August 2022) ● Ian Wilson - Non-Executive Director (resigned 14 June 2023) ● Bojan Bogunovic - Chief Financial Officer ● Hanno Van Der Merwe - Chief Operating Officer (appointed 1 December 2022) Postemployment Long-term benefits benefits Short-term benefits 2023 Cash salary and fees $ Cash bonus $ Nonmonetary $ Superannuation $ Long service leave $ Share-based payments Equitysettled shares $ Equitysettled Other9 $ Total $ Executive Directors: Aaron Banks1 Hugh Thomas2 Henk Ludik3 16,500 261,639 - - 26,250 - - 399,3757 225,000 399,375 16,500 512,889 Non-Executive Directors: Aaron Banks1 Oliver Barnes Henk Ludik3 Ian Wilson5 21,012 48,000 6,000 47,663 - - 2,206 - - - 87,7944 (34,641)8 23,218 135,794 6,000 13,022 82,500 197,083 - - 22,794 - 20,000 13,221 145,744 95,721 385,621 150,453 - - 15,797 - - 46,488 212,738 830,850 - - 67,047 - 20,000 882,981 1,800,878 Other KMP: Hugh Thomas2 Bojan Bogunovic Hanno Van Der Merwe6 1 2 3 4 5 6 7 8 9 Aaron Banks was Executive Director up until 7 March 2023, he transitioned to Interim Non-Executive Chairman. Hugh Thomas was appointed Chief Executive Officer on 1 April 2023 and as Managing Director on 15 June 2023. Henk Ludik was Non-Executive Chairman up until 22 August 2022, he then transitioned to Executive Chairman. He held this role until 7 March 2023, transitioning to Non-Executive Director. He resigned as Non-Executive Director on 15 June 2023. Includes $31,945 in performance rights issued to ESG-F Holdings Pty Ltd, a related party of Oliver Barnes. Salary represents the period 1 July 2022 to 14 June 2023. Salary represents the period 1 December 2022 to 30 June 2023. These performance rights were issued to Aaron Banks in his capacity as Executive Director. Relates to performance rights forfeited due to cessation of directorship. Equity settled performance rights. 10 Suvo Strategic Minerals Limited Directors' Report 30 June 2023 Directors’ Report Postemployment Long-term benefits benefits Short-term benefits 2022 Cash salary and fees $ Executive Directors: Aaron Banks Robert Martin Non-Executive Directors: Ian Wilson Henk Ludik1 Oliver Barnes1 Leonard Troncone2 Other KMP: Bojan Bogunovic3 1 2 3 4 Cash bonus $ Nonmonetary $ Share-based payments Long service leave $ Superannuation $ Equitysettled shares $ Equitysettled other4 $ Total $ 208,000 287,833 50,000 - 20,800 - - - 433,014 - 661,814 337,833 46,348 14,000 14,000 - - - - - 34,641 - 80,989 14,000 14,000 4,455 - - 445 - - - 4,900 142,500 - - 14,250 - - 143,342 300,092 717,136 50,000 - 35,495 - - 610,997 1,413,628 Salary represents the period 14 March 2022 to 30 June 2022. Salary represents the period 1 July 2021 to 29 July 2021. Salary represents the period 1 October 2021 to 30 June 2022. Equity settled performance rights. The proportion of remuneration linked to performance and the fixed proportion are as follows: Name Fixed remuneration 2023 2022 At risk - STI 2023 2022 Executive Directors: Aaron Banks Hugh Thomas Henk Ludik 100% 56% 35% - - Non-Executive Directors: Aaron Banks Oliver Barnes Henk Ludik Ian Wilson 100% 35% 100% 366%1 100% 100% 57% Other KMP: Hugh Thomas Bojan Bogunovic Hanno Van Der Merwe 86% 57% 78% 52% - 1 Due to reversals of performance rights issued in prior years. 11 - - 100% 44% 65% - - - 65% -266%1 43% 5% - - 14% 38% 22% 48% - - - - At risk - LTI 2023 2022 Suvo Strategic Minerals Limited Directors' Report 30 June 2023 Directors’ Report Service agreements Remuneration and other terms of employment for key management personnel are formalised in service agreements. Details of these agreements are as follows: Name: Title: Agreement commenced: Term of agreement: Details: Hugh Thomas Managing Director (appointed 15 June 2023) and Chief Executive Officer (appointed 1 April 2023) 1 April 2023 Open Consultancy fee of $33,000 plus GST per month. The fee will be reviewed annually in accordance with the Company’s policies and procedures. 4-week termination notice by either party, the Company may at any time pay a cash bonus, non-solicitatio