Document: Capital Expenditure Request (ALL-FIN-FM163)

Revision Date: 01/07/2023 Capital/Project Number:

(Available from weekly Capital Report or PMR)

CAPITAL EXPENDITURE REQUEST FORM (ALL-FIN-FM163)

COVER PAGE Please select one (tick)
In Budget
Out of Budget
Capital Expenditure Checklist Completed
Site: Hidden Valley (E.g. HV, HEGL, BNE)

Department Fixed Plant Maintenance

Description/Title Regen Kiln Upgrade

Project Classification: Property, Plant & Equipment (Capital) P

Infrastructure (Capital)
Mine Development
Expansion (Capital)(Capital)

Local Economic Development (LED) (Operating Cost)

Other Projects (Operating Cost/below the line):
- Business Case / Pre-Feasibility
- Feasibility

R & D eligible (Default No but check with Commercial Manager if unsure) No

Amount in '000
Applicable Currency (Select PGK, AUD, USD, ZAR) Amount in '000 <Select>
1. Total estimated amount (Ensure Site, Logistics and other costs are provided for)
2. Amount previously approved
3. Total approval amount (1 + 2) 0
Capital Budget Project Name Capital Budget No:
4. Budgeted amount OR
5. Budget Sacrificed *
6. Anticipated (over)/under expenditure ((4 + 5) – 3) 0
* Note: Item 5 only required if Project is unbudgeted or above budgeted value

7. Estimated date order will be placed

8. Estimated date on site
9. Estimated commisioning date
10. Post Implementation Review required (FM145 - PIR)? (Post Implementation Review (PIR) required for expenditures with
estimated spend of $50k and above)
11. Due date for Post Implementation Review if required

CIRCULATION & AUTHORISATION LIST

Title / Position Approved Name & Signature Date

1 Business Unit Manager Originate

2 Commercial Manager Endorse

3 General Manager Yes/No

4 SE Asia Executive Yes/No

5 CFO Yes/No

6 Executive Operating Officer SE Asia Yes/No

7 CEO Group Yes/No

8 Technical Committee Yes/No

9 Board Yes/No

CIRCULATION AND AUTHORISATION LIST

7.1 Approved in Strategic Plan/Budget 7.2 Not Approved in Strategic Plan/Budget

Business Unit Manager Originate Originate

Commercial Manager Endorse Endorse

General Manager Approve up to $500,000 Approve up to $50,000

Relevant SE Asia Executive Approve up to $1 million Approve up to $250,000

CFO Approve up to $2 million Approve up to $1 million

Executive Operating Officer SE Asia Approve up to $10 million Approve up to $3 million

CEO Group Approve above $10 million Approve up to $10 million

Technical Committee NA Approve up to $15 million

Board NA Approve above $15 million

Currency Conversion Factors (1 AUD)*:

*Conversion factors below only to be used to determine approval limits. Project value and option analysis must use values from Quarterly Assumptions Sheet (FM163A)
1.0 AUD = 0.75 USD 1.0 AUD = 2.5 PGK 1.0 AUD = 10 ZAR

Capitalisation Details (if applicable)

Date Cost Code Value Commercial Manager Approval Notes

Add a second sheet if more than three items are to be capitalised

03/04/2024 731971190.xlsx : Cover Page 1 of 10

 CAPITAL EXPENDITURE CHECKLIST

The checklist below provides for the following:

- Information for consideration;

- Equipment for procurement (as required);
- Self-compliant;
- Satisfies competitive bid; and
- Meets site schedules

INFORMATION TO BE PROVIDED BY REQUESTOR PRIOR TO BIDDING/ORDERING PROCESS

Item No. Description Provided
Yes No
(1) Technical Specifications for Equipment/Material Required
(2) Site Application – Where Fitted or Where Operating
(3) Detailed Description including operation, duties and Part Nos
(4) Dimensions Required
(5) General Dimension Drawings
(6) Transmission Required – Manual or Automatic
(7) Model/Manufacturer Preferred
(8) Minimum ISO Certification Requirement
(9) Is QA/QC inspection required; if so, what level of inspection
(10) Training and Commissioning/Installation Requirements – Site Presence?
(11) Warranty Expectations
(12) Site Compliance Including Minimum Safety Requirements
(13) Are Commissioning and 01st Year Spares Required with Initial Order
(14) Itemised list of all auxiliary equipment to be supplied, if any
(15) Date Required on Site
(16) Recommended/Preferred Supplier – Contact Details
(17) Attach Quotations Already Sourced
(18) Labelling required

INFORMATION TO BE PROVIDED BY SUPPLIER WITH BID SUBMISSIONS AND FOLLOWING ORDER PLACEMENT
Item No. Description Provided
Yes No
(1) Technical Specification of Equipment/Material Offered
(2) As built Drawings of Equipment/Material Offered
(3) Confirmation of ISO Certification
(4) Details of warranty coverage
(5) Delivery schedule
(6) Training and commissioning support
(7) QA/QC reports
(8) Commissioning and 01st spares listings
(9) After sales servicing support
(10) Transportation requirements
(11) Operation manuals – quantity required
(12) Lubrication requirements
(13) Engines to allow for site spec of 500ppm for diesel fuel

03/04/2024 731971190.xlsx : Checklist 2 of 10

 FY End

FM163 - CER
Summary

Title Regen Kiln Upgrade

Currency <Select>

Monthly Capital Expenditure Cash Flows ('000)

Total Next Yr
FY24 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Grand Total
Current Yr Spend
Budget 0 0

Forecast - Revised 0 0

Cumulative Forecast 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Details of Old Asset/s (if applicable)

Asset Number (if known)

Date of Removal/Replacement

Equipment Description

Make/Model

Serial Number

Year of Manufacture

Identifying Marks

Location

Reason for Removal/Replacement

Has repair been considered? (Y/N)

Cost of repair v replacement (repair quote attached)

ACCOUNTS USE ONLY

Original Cost

Written Down Value

Market Value

*Note: If sold to a third party complete FM165

Justification
Rank only relevant Confirm whether there is a business risk State whether the operational or
objectives with 1 justification project risks are
being the most dominant for the CER Tolerable (T) or Intolerable (I)

Business Risk Operational/Project Risk

Objective Analysis Analysis
(1-8) (Y/N) (T/I)
Improve current production N/A
Maintain current production N/A
Enable new capacity N/A
Reduce costs N/A
Meet safety requirements N/A
Meet environmental requirements N/A
Meet legal/regulatory requirements N/A
Other: <Describe> N/A

Option Summary: Equivalent

Annual Internal Capital
Total Real After Tax Net Present Value Cost Rate of Efficiency Payback in Payback
Description Cashflows ($'000) ($'000) ($'000) Return Ratio Years Date
Option Selected
#N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A
Options Considered
Option 1 : Option 1
Option 2 : Option 2
Option 3 : Option 3
Option 4 : Option 4

Synopsis:
Objective Risk Analysis Financial Analysis

03/04/2024 731971190.xlsx : Summary 3 of 10

 FM163 - CER form
Guidance Notes Background Information

1 Existing Situation 1 Existing Situation

- Describe the opportunity or problem (DO NOT
discuss the solution here). State why this is an
issue.

- Explain the context of the capital expenditure or

chain of events for why the capital expenditure is
being recommended at this point in time.

2 Proposal 2 Proposal
- Outline the scope, capital expenditure deliverables
and implementation plan.

- What are the strengths and weaknesses of the

proposal.

- Do not include a full scope of work, just the key

reasons of what you are looking to achieve.

- Attach a full scope of work (if available) as an

appendix.

3 Safety and Environment Assessment 3 Safety and Environment Assessment

- Assess all impacts and effects of the capital
expenditure on safety and the environment.

- Include how you propose those issues will be

managed and the costs of these (which should be
included in your overall expenditure for this capital
expenditure request).

- Consider operational emissions, discharges etc. All

safety issues should be considered, including
reference to Risk Assessments which have been
carried out as part of the capital expenditure
request.

4 Alternatives Considered 4 Alternatives Considered

-
Describe the alternatives considered, key
assumptions and likely consequences of each
alternative before reaching the current proposal.

- Ensure you consider and discuss the 'Do Nothing'

option.

- Discuss the reasons why the alternatives were

rejected.

- Show all key assumptions used and state the

consequences of NOT proceeding with this CER.

03/04/2024 731971190.xlsx : Commentary 4 of 10

 FM163 - CER form
Guidance Notes Background Information

5 Strategic Purpose 5 Strategic Purpose

- Provide details on how this expenditure will fit
within the current business plan and budgeted
outcomes.

- You should quantify how the expenditure will

impact the company's financial objectives.

- Justify the timing of the proposal (why do we need

to spend the money now).

- Any changes to the budgeted amount needs to be

quantified and justified. Even though the
expenditure may be included in the budget, the
CER could still be declined.

6 Risks and Sensitivities (Copied from Summary 6 Risks and Sensitivities (Copied from Summary tab. Can be overwritten for more detail)
- Discuss the business risk assessment which may be 0
part of the justification for the CER
- Discuss the project risk of the CER. Include a
discussion of the mitigants to reduce or eliminate
these risks. This is a wide category, ensure that you
consider:
* Training/competency of Employees or Contractors
involved
*
Changes in environmental situations (weather etc.)
* Supplier unable to provide critical parts
*
Changes to legislative requirements or government

* Delays
* Changes in foreign currency rates and inflation
(especially on long term projects)

- Attach the results of risk assessment, Hazop, etc.

as an Appendix B

7 Financial Analysis (Copied from Summary tab. 7 Financial Analysis (Copied from Summary tab. Can be overwritten for more detail)
- State the key assumptions for expenditure and 0
income (where applicable), and where/how those
assumptions were sourced. Use the Quarterly
Assumption Sheet where applicable.
Ensure your source assumptions are stated on each
"Appendix Option" sheet.

- Outline all contingencies which have been included

in your expenditure total.

- Discuss the cash flow presented on the Cover Page

and the steps taken to ensure the project meets
these cash flow predictions.

- Include details for additional commitments such as

non-capital items or contingent liabilities related to
this capital expenditure request. Include
information on any foreign currency transactions
which will be required.

8 Timing 8 Timing
- Include a summary of timing.

- For larger capital expenditure requests an

implementation plan could be included as an
appendix. Consider using a Gantt Chart.

- Detail which parts (if any) of the capital

expenditure has flexible timing.

03/04/2024 731971190.xlsx : Commentary (contd) 5 of 10

 BACK Appendix A

ALL-FIN-FM163 - CER form

Financial Analysis
Currency <Select>
Option Summary
Total Real After Capital Years
IRR Payback Payback
Tax Cashflows NPV ('000) EAC ('000) Efficiency Useful
(%) in Years Date
('000) Ratio Life
Number Description

Option 1 : Regen Kiln Upgrade - - Option 1 :

Option 2 : <Describe the option being evaluated> - - Option 2 :
Option 3 : <Describe the option being evaluated> - - Option 3 :
Option 4 : <Describe the option being evaluated> - - Option 4 :

Global Assumptions:

Inflation 6.0%
Taxation rate 0.0%
Annual real discount rate 15.0%

Process for completing a financial analysis: (Please mark relevant box)

Yes No

Does the capital expenditure request exceed A$100,000?

Proceed to next Stop
Are all amounts for analysis shown at current prices (ie. in real terms)?
Proceed to next Adjust to real
Is GST excluded from all amounts used for analysis?
Proceed to next Exclude GST
Are you able to populate the current format of the financial model?

Customize but
Include all co-commitments of the capital expenditure request such as computers, office space, limit to inserting /
Proceed to populate A1 - A3 (as
travel and accommodation etc. Additional working capital requirements should also be reflected deleting lines and
applicable)
in the financial model. amending
descriptions

Are all assumptions detailed?

Detail
Proceed to next
assumptions
Has the CER Form and its appendices (including the financial analysis) been submitted to a
Business Analyst or Capital Accountant for review?

The review is to ensure:

- formulae in A1 - A3 (as applicable) are correct Proceed to next Submit for review
- assumptions are consistent with the latest Business Capital Plan

Is the Net Present Value (NPV) of the financial analysis positive?

Select the option

If the NPV of selected options are equal then choose the selected option with the highest Capital Select the option (if applicable) (if applicable)
Efficiency Ratio. If another method is used, justify your reasons for doing this. with the highest positive NPV with the lowest
negative NPV

03/04/2024 731971190.xlsx : A - Financial Analysis 6 of 10

 Appendix A

FM163 - CER form

Financial Analysis
Option 1 : Regen Kiln Upgrade

<Select> Total Insert annual totals only

'000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Input all amounts in '000 in real terms as at the commissioning date in the green coloured fields.
Capital Expenditure
Regen Kiln Upgrade these numbers should be negative
- Purchase -
- Transport - Sea freight and inland -
- Import Costs - Duties, excise, wharfage, unloading, clearances etc. -
- Direct costs e.g. labour and material for installation/commisioning -
- Indirect costs e.g. overheads -
- Contingency -
- Decommissioning costs (net of recoveries) -
Sub-total - - - - - - - - - - - - - - - - -

Economic Benefits (refer to assumptions below) these numbers should be positive or blank
- Additional revenue -
- Cost savings -
Sub-total - - - - - - - - - - - - - - - -

Operating Costs (refer to assumptions below) these numbers should be negative

- Operating costs -
- Annual repairs and maintenance -
- Lifecycle refurbishment -
Sub-total - - - - - - - - - - - - - - - -

Taxation
Years useful life
Tax depreciation (diminishing value over remaining useful life) - - - - - - - - - - - - - - - -
Taxable income - - - - - - - - - - - - - - - -
Taxation - - - - - - - - - - - - - - - -

Nominal After Tax Cashflows - - - - - - - - - - - - - - - - -

Real After Tax Cashflows - - - - - - - - - - - - - - - - -

Payback in Years
Number of Days in a Year 1 365 *
Commissioning and Payback Date Dec-99
* Change to 366 days if Feb 29 falls within the 12 months preceding the payback date

Net Present Value -

Internal Rate of Return Err:523

Equivalent Annual Cost -

Capital Efficiency Ratio #DIV/0!

Payback in Years -

Payback Date Dec-99

Detail in point form the assumptions used to estimate the economic benefits and / or operating costs
Attachment
Reference (if
Description any) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Additional revenue
- <Insert assumption 1 e.g. real gold price in US$> <A1.1>
- <Insert assumption 2 e.g. exchange rate> <A1.2>
-
Cost savings
- <Insert assumption 1 e.g. reduced labour> <A1.3>
- <Insert assumption 2 e.g. improved efficiency> <A1.4>
-
Operating costs
- <Insert assumption 1 e.g. additional skilled labour> <A1.5>
- <Insert assumption 2 e.g. utilization and capacity> <A1.6>
-

03/04/2024 731971190.xlsx : A1 - Option 1 7 of 10

 Appendix A

FM163 - CER form

Financial Analysis
Option 2 : <Describe the option being evaluated>

<Select> Total Insert annual totals only

'000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Input all amounts in '000 in real terms as at the commissioning date in the green coloured fields.
Capital Expenditure
<Describe the option being evaluated> these numbers should be negative
- Purchase -
- Transport - Sea freight and inland -
- Import Costs - Duties, excise, wharfage, unloading, clearances etc. -
- Direct costs e.g. labour and material for installation/commisioning -
- Indirect costs e.g. overheads -
- Contingency -
- Decommissioning costs (net of recoveries) -
Sub-total - - - - - - - - - - - - - - - - -

Economic Benefits (refer to assumptions below) these numbers should be positive or blank
- Additional revenue -
- Cost savings -
Sub-total - - - - - - - - - - - - - - - -

Operating Costs (refer to assumptions below) these numbers should be negative

- Operating costs -
- Annual repairs and maintenance -
- Lifecycle refurbishment -
Sub-total - - - - - - - - - - - - - - - -

Taxation
Years useful life
Tax depreciation (diminishing value over remaining useful life) - - - - - - - - - - - - - - - -
Taxable income - - - - - - - - - - - - - - - -
Taxation - - - - - - - - - - - - - - - -

Nominal After Tax Cashflows - - - - - - - - - - - - - - - - -

Real After Tax Cashflows - - - - - - - - - - - - - - - - -

Workings:
Tax shield on depreciation - - - - - - - - - - - - - - -
Cumulative - - - - - - - - - - - - - - - -

Payback in Years
Number of Days in a Year 1 365 *
Commissioning and Payback Date Dec-99
* Change to 366 days if Feb 29 falls within the 12 months preceding the payback date

Net Present Value -

Internal Rate of Return Err:523

Equivalent Annual Cost -

Capital Efficiency Ratio #DIV/0!

Payback in Years -

Payback Date Dec-99

Detail in point form the assumptions used to estimate the economic benefits and / or operating costs
Attachment
Reference (if
Description any) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Additional revenue
- <Insert assumption 1 e.g. real gold price in US$> <A1.1>
- <Insert assumption 2 e.g. exchange rate> <A1.2>
-
Cost savings
- <Insert assumption 1 e.g. reduced labour> <A1.3>
- <Insert assumption 2 e.g. improved efficiency> <A1.4>
-
Operating costs
- <Insert assumption 1 e.g. additional skilled labour> <A1.5>
- <Insert assumption 2 e.g. utilization and capacity> <A1.6>
-

03/04/2024 731971190.xlsx : A2 - Option 2 8 of 10

 Appendix A

FM163 - CER form

Financial Analysis
Option 3 : <Describe the option being evaluated>

<Select> Total Insert annual totals only

'000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Input all amounts in '000 in real terms as at the commissioning date in the green coloured fields.
Capital Expenditure
<Describe the option being evaluated> these numbers should be negative
- Purchase -
- Transport - Sea freight and inland -
- Import Costs - Duties, excise, wharfage, unloading, clearances etc. -
- Direct costs e.g. labour and material for installation/commisioning -
- Indirect costs e.g. overheads -
- Contingency -
- Decommissioning costs (net of recoveries) -
Sub-total - - - - - - - - - - - - - - - - -

Economic Benefits (refer to assumptions below) these numbers should be positive or blank
- Additional revenue -
- Cost savings -
Sub-total - - - - - - - - - - - - - - - -

Operating Costs (refer to assumptions below) these numbers should be negative

- Operating costs -
- Annual repairs and maintenance -
- Lifecycle refurbishment -
Sub-total - - - - - - - - - - - - - - - -

Taxation
Years useful life
Tax depreciation (diminishing value over remaining useful life) - - - - - - - - - - - - - - - -
Taxable income - - - - - - - - - - - - - - - -
Taxation - - - - - - - - - - - - - - - -

Nominal After Tax Cashflows - - - - - - - - - - - - - - - - -

Real After Tax Cashflows - - - - - - - - - - - - - - - - -

Workings:
Tax shield on depreciation - - - - - - - - - - - - - - -
Cumulative - - - - - - - - - - - - - - - -

Payback in Years
Number of Days in a Year 1 365 *
Commissioning and Payback Date Dec-99
* Change to 366 days if Feb 29 falls within the 12 months preceding the payback date

Net Present Value -

Internal Rate of Return Err:523

Equivalent Annual Cost -

Capital Efficiency Ratio #DIV/0!

Payback in Years -

Payback Date Dec-99

Detail in point form the assumptions used to estimate the economic benefits and / or operating costs
Attachment
Reference (if
Description any) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Additional revenue
- <Insert assumption 1 e.g. real gold price in US$> <A1.1>
- <Insert assumption 2 e.g. exchange rate> <A1.2>
-
Cost savings
- <Insert assumption 1 e.g. reduced labour> <A1.3>
- <Insert assumption 2 e.g. improved efficiency> <A1.4>
-
Operating costs
- <Insert assumption 1 e.g. additional skilled labour> <A1.5>
- <Insert assumption 2 e.g. utilization and capacity> <A1.6>
-

03/04/2024 731971190.xlsx : A3 - Option 3 9 of 10

 Appendix A

FM163 - CER form

Financial Analysis Only for use with mobile equipment or when requested by Commercial Department
Option 4 : <Describe the option being evaluated>

<Select> Total Insert annual totals only

'000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Input all amounts in '000 in real terms as at the commissioning date in the green coloured fields.
Capital Expenditure
<Describe the option being evaluated> these numbers should be negative
- Purchase -
- Transport - Sea freight and inland -
- Import Costs - Duties, excise, wharfage, unloading, clearances etc. -
- Direct costs e.g. labour and material for installation/commisioning -
- Indirect costs e.g. overheads -
- Contingency -
- Decommissioning costs (net of recoveries) -
Sub-total - - - - - - - - - - - - - - - - -

Economic Benefits (refer to assumptions below) these numbers should be positive or blank
- Additional revenue -
- Cost savings -
Sub-total - - - - - - - - - - - - - - - -

Operating Costs (refer to assumptions below) these numbers should be negative

- Operating costs -
- Annual repairs and maintenance -
- Lifecycle refurbishment -
Sub-total - - - - - - - - - - - - - - - -

Taxation
Years useful life
Tax depreciation (diminishing value over remaining useful life) - - - - - - - - - - - - - - - -
Taxable income - - - - - - - - - - - - - - - -
Taxation - - - - - - - - - - - - - - - -

Nominal After Tax Cashflows - - - - - - - - - - - - - - - - -

Real After Tax Cashflows - - - - - - - - - - - - - - - - -

Workings:
Tax shield on depreciation - - - - - - - - - - - - - - -
Cumulative - - - - - - - - - - - - - - - -

Payback in Years
Number of Days in a Year 1 365 *
Commissioning and Payback Date Dec-99
* Change to 366 days if Feb 29 falls within the 12 months preceding the payback date

Net Present Value -

Internal Rate of Return Err:523

Equivalent Annual Cost -

Capital Efficiency Ratio #DIV/0!

Payback in Years -

Payback Date Dec-99

Detail in point form the assumptions used to estimate the economic benefits and / or operating costs
Attachment
Reference (if
Description any) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Additional revenue
- <Insert assumption 1 e.g. real gold price in US$> <A1.1>
- <Insert assumption 2 e.g. exchange rate> <A1.2>
-
Cost savings
- <Insert assumption 1 e.g. reduced labour> <A1.3>
- <Insert assumption 2 e.g. improved efficiency> <A1.4>
-
Operating costs
- <Insert assumption 1 e.g. additional skilled labour> <A1.5>
- <Insert assumption 2 e.g. utilization and capacity> <A1.6>
-

03/04/2024 731971190.xlsx : A4 - Hire Option 10 of 10