Ann: Full Year Statutory Accounts, page-2

Net (loss) / profit after income tax(iii) (81,688)

The net loss before tax includes a once-off non-cash impairment expense of $135.7 million.

The net loss after tax includes a once-off non-cash impairment expense after tax of $95.0 million.

Dear Shareholder,
On behalf of the Board of Directors of Aurelia Metals Limited, I am pleased to present our FY22 Remuneration Report.
Following a strong year for metals and mining in FY21, FY22 was a year of rebalance. Despite strong commodity prices, a combination of complex external factors has provided a challenging landscape for companies like ours.
The re-opening of borders and easing of restrictions following multi-year COVID lockdowns saw a rapid escalation of infections in our communities, which eventually made its way to Aurelia mines. Diminished workforce availability coupled with a rapidly tightening labour market impeded our operational effectiveness and performance during the second-half of FY22. Despite the difficulties, our employees keep rising to the challenge, and I would like to personally thank them on behalf of the Board for their dedication and resilience.

More recently, geopolitical uncertainty and an economic environment characterised by high levels of inflation, supply chain constraints and cost pressures has introduced a level of volatility the market has not experienced for decades. Against this backdrop, Aurelia has remained nimble. We have adapted our plans to ensure that we continue accelerate and advance two organic growth projects – Federation and Great Cobar – which we believe, represent the greatest potential to sustain and grow the business in the long-term.

With our growth always under the lens of reducing environmental and carbon impacts, I am pleased to say we’ve laid a sustainable platform for the next chapter of Aurelia Metals and I am proud to share with you some of our achievements during FY22 and the related remuneration outcomes and initiatives.

Performance
Aurelia takes a whole of business approach to developing strategy and plans, reviewing performance and linking outcomes to variable remuneration. The Balanced Business Plan brings together leaders to develop opportunities to improve the Company by prioritising projects to achieve step change across five pillars:
• Health Safety, Environment and Community
• People and Organisation
• Operations
• Growth
• Financial Outcomes
The targets and measures developed for each pillar provide the essential link to executive and employee variable remuneration (through short-term and long-term incentives). This ensures the variable remuneration framework encapsulates the key Company performance drivers aligned to societal and key stakeholder expectations.

Workplace development
As we continue to execute an ambitious growth story through the development of two new mines, we continue to invest in our people as the key element to secure our Company’s future.
In FY22, we implemented the following frameworks and initiatives to ensure continued employee engagement and a quality experience aimed at attracting, retaining and motivating a high performing team:
• The Aurelia Way – new code of conduct
• Leading the Aurelia Way – leadership development program
• Enterprise Risk Management framework – a refreshed risk framework embedded throughout the business
• Employee engagement survey – established improvement actions and initiatives
• Employee working groups - formed for each business unit to further improve employee engagement
outcomes

FY22 Performance
Aurelia has an enviable pipeline of organic growth opportunities, including two near-term projects that represent
significant value for shareholders. In FY22, Aurelia achieved the following key milestones:
 Great Cobar Pre-Feasibility Study (PFS) completed confirming a robust technical and economic case for
development of the copper-rich Great Cobar mine with a production target of 2.3 Mt over five years;
 Regulatory approval to extend the life of Peak Mines to 2035 following the NSW Government’s issue of
development consent for the New Cobar Complex, including the Great Cobar copper-gold mine; Feasibility Study (FS) for the emerging tier one asset – the Federation Project – completed and enabling
works underway, including the excavation of the box cut for the exploration decline. The Federation Project is a leading example of accelerated mine development from its discovery in 2019 through to the current phase of development;
 Exemplary exploration success in our geographically prospective landholding in the Cobar Basin (which
includes Federation and Great Cobar). This success, underpinned by our in-house capabilities, provide a
means for increased exposure to critical future-facing commodities, which are experiencing significant
demand and associated prices; and
 Revised life-of-mine plan for Dargues (due to reduced average gold head grades) has resulted in a substantial
impairment expense; an outcome which has been accounted for and reflected in the FY22 variable
remuneration outcomes.
Remuneration changes in FY23
While the Board will continue to monitor and review remuneration for the executive team and all staff in FY23, at this stage we do not expect any substantial change to the structure of short term or long term rewards in the coming year.
As shareholders would be well aware, substantial pressure on wages is being experienced across all sectors of the economy flowing from relatively high levels of inflation and record low unemployment. Aurelia is taking steps to address the retention of key staff and this may include lifting wages at a higher rate than what we have seen in the recent past.
Your Board is acutely aware of the need to balance cost control against the disruption to operations that can be caused by the loss of staff and will continue to work with management to address this important issue.

Looking forward
Aurelia Metals has established a solid foundation for success and the next two years are set to be transformational for our Company. I’m confident our remuneration strategy will enable us to attract and retain the high performing team we need to take us forward while strongly aligning employee interest with sustained gains in shareholder wealth.

I thank you for your interest and support of our Company.