Red5 Annual Report 2022

35 2022 ANNUAL REPORT 12. REMUNERATION REPORT (AUDITED) (cont.) 12.5.1 Fixed remuneration outcomes Following the review of executive remuneration levels against relevant market comparators (with the benchmarking analysis provided by BDO), the following table outlines fixed remuneration changes for executive KMP in FY22. FY22 Executive KMP Fixed Remuneration Outcomes FY22 TFR FY21 TFR Mark Williams, Managing Director $687,500 $643,200 Jason Greive, Chief Operating Officer $550,000 $492,750 John Tasovac, Chief Financial Officer $440,000 $415,388 The Board will continue to monitor remuneration levels based on the factors set out in the executive remuneration framework. 12.5.2 FY22 STI outcome Following the end of FY22 the gateway of 90% of budgeted gold production was not achieved due to several external factors that were not known when setting the STI targets. These factors include the continued disruptions by the COVID-19 pandemic on the Red 5 key operations and staffing levels, the increased labour market pressures across the WA gold mining industry, the global breakdown in the supply chain of key parts and spares (which impacted the production targets). Within the above context the Board carefully assessed the FY22 performance against set targets and exercised its discretion to proceed with a 50% of STI outcome for all executives. The awards will be fully satisfied in Service Rights subject to an 18-month deferral period based on continued employment with Red 5. The share price for the calculation of the number of Service Rights to be issued will be based on the volume weighted average price (VWAP) of the Company’s shares in the 14 trading days up to 30 June 2022 ($0.307). The Board considered the STI outcome business appropriate for the following reasons: \ \ Despite the unforeseen challenges Red 5 had a solid FY22 year overall where the executives had significant success in meeting key operational targets including the successful commencement of the KOTH mine in Quarter 4 and the achievement of guidance on production from Darlot; \ \ Notwithstanding the factors which have impacted the WA gold mining sector, the Company’s share price has performed well in FY22 compared to peers and the S&P/ASX All Ordinaries Gold Index (i.e. Red 5 total shareholder return of 31.6% vs Index of -25.1%); and \ \ As competition for executive talent within the mining industry remains extremely tight, the retention of key staff is considered a key priority for Red 5 over the coming years. The FY22 awards in Service Rights recognise executive achievement over the year whilst providing a retention mechanism to ensure the progression of key projects in the following 18 months. The following table outlines KPI performance outcomes for FY22: FY22 STI KPIs and Performance Outcomes KPI KPI Weighting Performance Outcomes STI Outcomes Group EBITDA 30% Below threshold - Gold production across Darlot and KOTH 20% Discretion applied 20% TRIFR and no fatalities 20% Below threshold - AISC 20% Discretion applied 20% Individual effectiveness 10% Achieved 10% 90% of budgeted gold production level Gateway Not satisfied due to external factors (outside of management control) 8 STI performance outcomes (FY22 awards): 50% DIRECTORS’ Report (cont.) $2.74m $3.04m $3.35m 86,158oz 95,731oz 105,304oz 6.36 6.04 5.72 $2,563/oz $2,330/oz $2,097/oz 50% 100% 200% Threshold Target Stretch FY22 Actual

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