Sheffield Resources Limited · ASX:SFX
Sheffield Resources — TZMI Congress 2019
30 slides from Sheffield Resources's conference presentation, Nov 12, 2019
Slide 1: Thunderbird - A Globally Dominant Zircon Project
For personal use only Thunderbird - A Globally Dominant Zircon Project TZMI Congress – Singapore November 2019
Slide 2: Notice and Disclaimer
Notice and Disclaimer IMPORTANT: You must read the following in conjunction with this Bankable Feasibility Study Update (BFSU). For personal use only Summary information in relation to Sheffield This document contains summary information about Sheffield Resources Limited (ACN 125 811 083) (Company o
Slide 3: Notice and Disclaimer
For personal use only Notice and Disclaimer Not financial product advice This document does not constitute, and is not intended to constitute, investment or financial product advice (nor tax, accounting or legal advice). This document should not be relied upon as advice to investors or potential inv
Slide 4: Thunderbird Bankable Feasibility Study Update
Thunderbird Bankable Feasibility Study Update1 • c. A$1 billion post tax NPV8 For personal use only Metric 2019 BFSU NPV8 post-tax A$0.98B • 24% post tax IRR • A$1.1 billion pre-tax NPV10 IRR post-tax % 24.0% • 30% pre-tax IRR NPV10 pre-tax A$1.13B • 2.3 Revenue to cost ratio IRR pre-tax % 30.1% • A
Slide 5: Indicative Mine Schedule – Zircon Dominant Project
Indicative Mine Schedule – Zircon Dominant Project LOM plan to deliver 202ktpa zircon on average over a 37 year mine life For personal use only Stage 1 Stage 1 and 2 1,600 1,498 1,497 1,506 1,506 1,514 1,459 125 124 129 130 132 127 112 110 113 112 113 104 1,182 1,200 114 ‘000 tonnes 911 97 883 827 9
Slide 6: Optimally Positioned to Supply Key End Markets
Optimally Positioned to Supply Key End Markets Sheffield has a clear competitive advantage in supplying the Asian markets For personal use only Thunderbird Namakwa Richards Bay >100ktpa zircon production capacity Jacinth-Ambrosia <100ktpa zircon production capacity Key target markets Secondary targe
Slide 7: Safe and Reliable Mining Jurisdiction
Safe and Reliable Mining Jurisdiction 150 km from Broome and Derby ports For personal use only • Low risk jurisdiction • Local access to labour and industrial services • Fully permitted • Drive In Drive Out operations • Simple mine to port logistics • Strong Indigenous and local participation • Majo
Slide 8: One of the Highest Margin Projects Globally - TZMI
One of the Highest Margin Projects Globally - TZMI Thunderbird is in the first quartile - one of the highest margin projects globally For personal use only Independent TZMI Feedstock Cost Study for CY 2022 (Published 2018) R/C Ratio 4.0 1st quartile 2nd quartile 3rd quartile 4th quartile 3.5 3.0 Thu
Slide 9: One of the Largest, Zircon Rich, Mineral Sands Projects Globally
One of the Largest, Zircon Rich, Mineral Sands Projects Globally Comparison of contained zircon within JORC Ore Reserves of key global mineral sands deposits1 For personal use only 7 6 5 Contained Zircon Mt 4 3 2 1 0 Notes: 1. Thunderbird Ore Reserve (red) as published on the ASX on 31 July 2019. Co
Slide 10: One of the Largest, Highest Grade, Ore Reserves Globally
One of the Largest, Highest Grade, Ore Reserves Globally Comparison of Ore Reserves and grade between the key large mineral sands deposits globally1,2,3 For personal use only • Large, mature mineral sands deposits indicate a strong trend of accelerating grade depletion with each new published Ore Re
Slide 11: A Strong Cash Operating Margin
A Strong Cash Operating Margin Revenue and Site Cash Costs A$ per tonne of Ore Mined (Production Years) For personal use only Robust Cash 30 Operating Margin $28.18 25 $26.23 $A per tonne mined $24.31 $23.71 $22.89 20 $21.57 $21.66 $21.99 $21.05 $20.33 $19.57 15 $12.30 $11.65 $11.51 $10.28 $9.92 $9.
Slide 12: Thunderbird is a High Grade, Thick Deposit
Thunderbird is a High Grade, Thick Deposit Deposit exhibits strong continuity and high Valuable Heavy Mineral (“VHM”) grades For personal use only Thunderbird Site Layout of VHM Grade x Thickness (>7.5% HM) • Typical of an off-shore, sub-wave base deposit • Zircon & Ilmenite dominant VHM • Flat, thi
Slide 13: Simple and Conventional Processing Circuit
Simple and Conventional Processing Circuit For personal use only Stages 1 & 2 • Simple and typical mineral sands flowsheet • 3 finished products ̶ Premium zircon ̶ Zircon concentrate ̶ Primary Ilmenite • Dry mining via conventional dozer trap • Pits back filled and rehabilitated as mining progresses
Slide 14: Well Positioned Near Existing Port Infrastructure
Well Positioned Near Existing Port Infrastructure Thunderbird is conveniently located between two existing ports For personal use only Port of Broome • Close proximity to two existing operating ports ̶ Port of Broome container capacity ̶ Port of Derby bulk and container capacity • Products to be tru
Slide 15: Premium Quality Products
Premium Quality Products Production of high quality zircon products and ilmenite suited to chloride slag production For personal use only Thunderbird produces three high quality finished products comprising: % Revenue1 over • Premium Zircon Stage1&2 ̶ Product has high ZrO2 (> 66% ZrO2 + HfO2) and ve
Slide 16: A Substantial Zircon Supply Gap is Emerging
A Substantial Zircon Supply Gap is Emerging Thunderbird ideally positioned to help bridge part of the expected supply gap For personal use only Significant zircon supply gap expected1 Key observations • Supply decline of 2.9% p.a. expected up to 2023 • Ore Reserve depletion and Forecast supply gap j
Slide 17: Substantial Supply Gap in the Titanium Market is Emerging
Substantial Supply Gap in the Titanium Market is Emerging Significant supply gap for high grade TiO2 feedstocks on the horizon1 For personal use only Key observations Opportunities Rutile supply declines of 10.5% p.a. to 2023 Production of Chloride Slag to fill the void ̶ Supply declines by 330,000
Slide 18: Stage Funding Sources
Stage 1 Funding Sources With c. A$335m of debt funding secured through the Taurus and NAIF facilities. For personal use only A$143m of equity funding is required to commence construction of Thunderbird Stage 1 Stage 1 Funding (A$m)1 c. A$143m in equity funding is required in addition to the Taurus a
Slide 19: Primary Approvals, Leases & Agreements in Place
Primary Approvals, Leases & Agreements in Place Thunderbird is fully permitted and construction ready For personal use only Party Topic Scope Date Complete In Place Dept of Environment & Environmental Federal Government environmental approval for project Sep 2018 Energy (Cwth) Approval Department
Slide 20: Stage Development & Commissioning Timeline
Stage 1 Development & Commissioning Timeline The proposed timetable takes into account all foreseeable seasonal events, such as the wet season. Early works have already commenced For personal use only Note: This timetable is subject to obtaining FID. Continuing further construction on early works is
Slide 21: Summary
Summary For personal use only • Thunderbird is one of the largest undeveloped zircon rich deposits globally • Thunderbird will be a globally dominant zircon producing project for 37 years • Australia is a very stable mining jurisdiction • Thunderbird is fully permitted • Global zircon supply issues
Slide 22: APPENDIX: Sheffield Resources Corporate Overview
APPENDIX: Sheffield Resources Corporate Overview Sheffield Resources is an ASX listed mineral sands developer which owns 100% of the large scale shovel ready Thunderbird Mineral Sands Project For personal use only • Sheffield Resources Limited (“Sheffield” or the “Company”) is an ASX Capital structu
Slide 23: APPENDIX: Thunderbird Ore Reserves
APPENDIX: Thunderbird Ore Reserves For personal use only Thunderbird Ore Reserves: Valuable Heavy Mineral in-situ grade1 Valuable Heavy Mineral Grade (In-situ)2 In-situ HM Ore Reserve Ore Tonnes Tonnes HM Grade Zircon HiTi Leucoxene Leucoxene Ilmenite Oversize Slimes Category (Mt) (Mt) (%) (%) (%) (
Slide 24: APPENDIX: Thunderbird Mineral Resources
APPENDIX: Thunderbird Mineral Resources For personal use only Thunderbird Mineral Resources: Valuable Heavy Mineral in-situ grade1 In-situ HM Valuable Heavy Mineral Grade (In-situ)3 2 Cut-off Mineral Resource Ore Tonnes Tonnes HM Grade Zircon HiTi Leucoxene Leucoxene Ilmenite Slimes Oversize (HM%) C
Slide 25: APPENDIX: Operating Assumptions
APPENDIX: Operating Assumptions Key physical and cost assumptions which underpin the BFSU Financial Model For personal use only Physical assumptions overview Operating cost breakdown Stage 11 Stage 22 LOM3 A$/t ore mined Stage 11 Stage 22 LOM3 Mining 3.19 2.98 3.37 Volume Processing 4.36 3.65 3.69 O
Slide 26: APPENDIX: US$175m Taurus facility summary
APPENDIX: US$175m Taurus facility summary Sheffield expects to conclude similar debt package with an experienced metals & mining specialist private equity fund For personal use only Taurus Overview Tranche A Key Terms • Experienced specialist global investor based in Australia, targeting small to Fa
Slide 27: APPENDIX: A$95m NAIF Loan Facility Summary
APPENDIX: A$95m NAIF Loan Facility Summary Sheffield expects to conclude debt financing with Government support to provide very long tenor financing demonstrates conviction and support for Thunderbird For personal use only NAIF Overview Tranche C Key Terms2 • Northern Australia Infrastructure Fund (
Slide 28: APPENDIX: Stage Total Funding Requirement
APPENDIX: Stage 1 Total Funding Requirement The total Stage 1 funding requirement is estimated at approximately A$478 million For personal use only Stage 1 upfront capex1 Total funding requirement Amount Amount Description (A$m) Description (A$m) Comments Wet Concentrator Plant 52.9 Processing 174.9
Slide 29: APPENDIX: Royalty Regime and Fiscal Assumptions
APPENDIX: Royalty Regime and Fiscal Assumptions Key royalty and fiscal arrangements are outlined below For personal use only Arrangement or Calculation State government royalty • WA State government royalty of 5% of Total Sales Revenue Taurus royalty • Royalty for years 1 to 4, starting on first sal
Slide 30: APPENDIX: Significant Regional Exploration Upside
APPENDIX: Significant Regional Exploration Upside Strategic value demonstrated through multiple discoveries made along a 160km long trend For personal use only • Exploration has delineated 14 zones of significant mineralisation along a 160km Dampier Project – Regional Plan1 long highly mineralised t