Speciality Metals International Limited Annual Report 2019

Page | 28 DIRECTORS’ REPORT (iv) Other Transactions and Balances Consulting Services Payments made for Key Management Personnel noted in (c) Details of Remuneration above are to Penause Pty Ltd, Bodie Investments Pty Ltd and R.W. Nice & Associates Pty Ltd as payments for consulting services. (f) Options and Performance Rights Granted as Remuneration No options were granted by Speciality Metals International Limited to the Directors and Executives of the Group during the financial year as part of their remuneration. Valuation of Performance Rights Granted to Key Management Personnel as Remuneration in the 2018 Financial Year and expensed in the 2019 Financial Year 30 June 2019 Number of granted Performance rights Grant date Expiry date Fair Value per Performance right at grant date Total Fair Value of Performance Rights Share-Based Payments Expensed in prior years Expensed in the 2019 year 1 AASB 2 Not yet expensed Name R.H. Krause 15,000,000 22 Jun 2018 22 Jun 2020 $0.0132 198,000 2,263 195,737 - S. Layton 5,000,000 22 Jun 2018 22 Jun 2020 $0.0132 66,000 754 65,246 - R.W. Nice 5,000,000 22 Jun 2018 22 Jun 2020 $0.0132 66,000 754 65,246 - 25,000,000 330,000 3,771 326,229 - 1 Fully expensed during the 2018/2019 financial year due to the vesting condition relating to the completion of the acquisition of Mt Carbine Quarries and associated mining leases being satisfied on 28 June 2019. The shares were issued to Directors on 2 August 2019. (g) Equity Instruments Issued on Exercise of Remuneration Options No equity instruments were issued during the 2019 financial year to Directors or other Key Management Personnel as a result of options exercised that had previously been granted as remuneration. (h) Service Agreements Remuneration and other terms of employment for the Directors and Executives are formalised in Service/Appointment Agreements. All contracts with Executives may be terminated early by either party within the stipulated notice period, subject to any termination payments as detailed below. R.H. Krause There is a written agreement with Mr Krause dated 1 July 2019 in his role as Executive Chairman of the Company. Cash payments and benefits totalling $150,000 were paid to Mr Krause during the 2019 financial year. The payments were made through Penause Pty Ltd, a company in which Mr Krause has a substantial interest. S. Layton There is a written agreement with Mr Layton dated 9 November 2017 in his role as a Non-executive Director of the Company. Cash payments and benefits totalling $48,000 were paid to Mr Layton during the 2019 financial year. The payments were made through Bodie Investments Pty Ltd, a company in which Mr Layton has a substantial interest. R.W. Nice – Resigned 12 August 2019 There is no written agreement with Mr Nice and cash payments and benefits totalling $16,000 were paid to Mr Nice in his role as Non-executive Director during the 2019 financial year. Accrued Director’s fees of $16,000 was recognised as an expense in the financial statements for the 12 months to 30 June 2019 as Directors fees owing and as yet unpaid to Mr Nice at 30 June 2019. A.M. Wing – Appointed 1 February 2019 There is an agreement dated 22 January 2019 between Speciality Metals International Limited and A.M. Wing whereby Mr Wing agrees to provide Company Secretarial services to Speciality Metals International Limited. Mr Wing’s contract will continue until the agreement is validly terminated. The Company or Mr Wing may terminate the contract by giving one month’s written notice.