Slide 1: Thunderbird Mineral Sands Project
Thunderbird Mineral Sands Project Kimberley Mineral Sands - Bankable Feasibility Study 24 March 2022
Slide 2: Notice and Disclaimer
Notice and Disclaimer Summary information in relation to Sheffield This Kimberley Mineral Sands Joint Venture Bankable Feasibility Study (KMS BFS) contains summary information about Sheffield Resources Limited (ACN 125 811 083) (Company or Sheffield), its affiliates and their activities which is cur
Slide 3: Notice and Disclaimer
Notice and Disclaimer Not financial product advice This Kimberley Mineral Sands Bankable Feasibility Study (KMS BFS), and the information provided in it, does not constitute, and is not intended to constitute, investment or financial product advice (nor tax, accounting or legal advice). This KMS BFS
Slide 4: Kimberley Mineral Sands Key Objectives - Bankable Feasibility Study
Kimberley Mineral Sands Key Objectives - Bankable Feasibility Study • Achieve initial direct capital expenditure within previous Thunderbird 2019 BFSU estimate BFS Contributors & Partners • Improve Project NPV and IRR • Tailings Management • Financing strategy balances appropriately leveraged projec
Slide 5: Kimberley Mineral Sands BFS Summary Outcomes
SECTION I Kimberley Mineral Sands BFS Summary Outcomes
Slide 6: Kimberley Mineral Sands Bankable Feasibility Study Outcomes
Kimberley Mineral Sands Bankable Feasibility Study Outcomes Metric 2022 BFS 2019 BFSU1 2017 BFS2 NPV8 post-tax A$1.28B A$0.98B A$0.62B • Robust Stage 1 & 2 economics IRR post-tax 27.5% 24.0% 20.6% Project Capital (Stage 1) A$361m4 A$392m A$463m • Simple flowsheet with ilmenite circuit and LTR remove
Slide 7: Thunderbird Flowsheet (Stage 1)
Thunderbird Flowsheet (Stage 1) • Low risk, simple flowsheet focussed on delivery of concentrate products to market • Removal of LTR – avoiding value chain duplication and leveraging off Yansteel’s downstream capacity to process a range of ilmenites • Substantial capital and operating cost removal (
Slide 8: Thunderbird – large, high grade ore body
Thunderbird – large, high grade ore body … in a low risk jurisdiction Ore Reserves and Grade for selected mineral sands deposits 1,2,3 • Large, mature mineral sands deposits globally typically show accelerating grade depletion trend with each new published Ore Reserve update • The highest grade and
Slide 9: Thunderbird – the world’s largest zircon reserve
Thunderbird – the world’s largest zircon reserve … in a low risk jurisdiction Contained zircon in Ore Reserves and Grade for selected mineral sands deposits 1,2,3 • Thunderbird Ore Reserve contains ~ 6.4Mt of zircon • The highest grade and most significant zircon producing mine, Jacinth-Ambrosia (Il
Slide 10: Financial Information
SECTION II Financial Information
Slide 11: Total Funding Requirement – Stage 1
Total Funding Requirement – Stage 1 Stage 1 funding requirement is estimated at approximately A$484 million Cost estimates based on tendered pricing, definitive engineering and agreed by independent technical experts Stage 1 upfront capex Estimated total funding requirement Amount Amount Description
Slide 12: Proposed Funding Sources – Stage 1
Proposed Funding Sources – Stage 1 Targeted project financing sources via NAIF and commercial debt tranche with due diligence underway Forecast equity contribution of c.$36m • Targeted $300 - $320m from Sheffield, represented by $10m senior secured project post-FID contribution + 50% of balance fina
Slide 13: Proposed Project Finance Strategy
Proposed Project Finance Strategy KMS targeting senior secured financing package with NAIF and a commercial debt tranche NAIF Overview Commercial debt tranche • Northern Australia Infrastructure Facility ("NAIF") is • Supported by corporate advisers Cutfield Freeman a corporate Commonwealth entity t
Slide 14: Targeted Production Volumes
Targeted Production Volumes Production volumes average 1.4mt per annum for all products over a 36 year mine life Stage 1 Stage 1 & 2 2,400 2,000 1,872 1,867 1,867 1,867 1,872 1,867 160 160 160 160 160 160 1,600 375 374 374 374 375 374 '000 tonnes 1,392 119 1,200 1,094 1,037 279 1,013 94 86 89 219 20
Slide 15: A Strong Cash Operating Margin
A Strong Cash Operating Margin Revenue and Site Cash Costs A$ per tonne of Ore Mined (Production Years) $35 $34.06 $32.95 $30 $29.06 $25 $26.29 $25.61 $A per tonne mined $25.20 $24.50 $23.94 $23.47 $23.21 $20 $21.10 $16.23 $14.52 $14.45 $14.27 $15 2.81 2.16 2.10 2.05 3.58 $9.89 $9.99 $9.78 $9.84 $9.
Slide 16: Material Mined and Grade Profile
Material Mined and Grade Profile Material Mined – Ore & Waste (Mt) 50.0 43.8 40.0 33.3 32.9 32.9 33.5 33.6 33.6 21.4 30.0 9.1 9.2 9.2 9.2 9.2 9.2 20.5 20.8 21.1 20.0 17.2 9.2 9.2 9.2 8.5 24.2 23.7 23.7 24.3 24.4 24.4 22.4 10.0 8.7 11.3 11.6 11.9 0.0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Y
Slide 17: Production and Recoveries
'000 tonnes 400 800 1,200 1,600 2,000 2,400 0 '000 tonnes 2024 518 715 0% 20% 40% 60% 80% 100% 2025 725 202 1,013 2026 740 208 1,037 Stage 1 2027 781 219 1,094 67% 74% 2024 2028 1,336 375 1,872 2029 1,333 374 1,867 Overall Recoveries (%) 2030 1,333 374 1,867 75% 82% 2025 2031 1,333 374 1,867 Final P
Slide 18: Revenue and EBITDA
Revenue and EBITDA Total Gross Revenue by Product 800 598 623 567 581 567 585 600 473 A$m 384 381 400 345 338 359 374 353 350 332 280 228 237 232 210 200 137 192 221 218 224 215 211 176 86 133 136 122 0 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 LT Average Mag Concentrate Zircon Concentrate P
Slide 19: Capex and Operating Margins
Capex and Operating Margins Capex by category 250 Includes pre-FID sunk capex of c.$36m 196 Capex breakdown (A$m) 200 >65% fixed EPC pricing 162 Total Stage 1 capex 3611 52 Total Stage 2 capex 2582 $Am 150 131 LOM sustaining capex (Stage 1 & 2) 108 100 84 69 76 50 29 35 60 10 19 10 34 1 1 3 3 3 0 -
Slide 20: Kimberley Mineral Sands – Cash Flows
Kimberley Mineral Sands – Cash Flows 800 6,000 600 4,500 400 3,000 A$m A$m 200 1,500 0 0 (200) (1,500) (400) (3,000) Gross Revenue Royalties Site operating costs Tax paid Capex Change in Working Capital Closing Cash (RHS) Stage 1 Stage 1 and 2 Note: 1. Free cash flow calculated as gross revenue, les
Slide 21: Sensitivity Analysis – NPV Outcomes (A$m)
Sensitivity Analysis – NPV Outcomes (A$m) Pre-finance, post-tax NPV8 of A$1.28B compared to 10% shifts in key variables Base Case NPV -10% Variance A$1,279m +10% Variance Capital Costs $1,230m $1,328m Site Operating Costs $1,127m $1,431m Ore Grade (VHM) $986m $1,504m Commodity Price (AUD) $970m $1,5
Slide 22: Sensitivity Analysis – IRR Outcomes (%)
Sensitivity Analysis – IRR Outcomes (%) Pre-finance, post-tax IRR of 27.5% compared to 10% shifts in key variables Base Case IRR -10% Variance 27.5% +10% Variance Capital Costs 25.5% 30.0% Site Operating Costs 25.5% 29.5% Ore Grade (VHM) 24.0% 29.3% Commodity Price (AUD) 23.9% 30.9% 22
Slide 23: Life of Mine Project Economics – Stage 1 & 2
Life of Mine Project Economics – Stage 1 & 2 Strengthening market outlook and improved offtake contracting basis providing NPV growth, offset by mine operating, labour cost and logistics volume increase 2022 BFS magnetic concentrate priced as mixture of high quality ilmenite and iron oxide vs 2019 B
Slide 24: Royalty Regime and Fiscal Assumptions
Royalty Regime and Fiscal Assumptions Key royalty and fiscal arrangements are outlined below Arrangement or Calculation State government royalty • WA State government royalty of 5% of Total Sales Revenue Native title royalty • Calculated as a percentage of Total Sales Revenue (confidential terms – i
Slide 25: Thunderbird Development Pathway
SECTION III Thunderbird Development Pathway
Slide 26: Thunderbird Project Development Strategy
Thunderbird Project Development Strategy • The large scale of the Thunderbird ore body allows for multiple stages of development, with shared infrastructure from Stage 1 • Stage 1 – Typical dry mining, concentrator and magnetic/non-magnetic separation all associated site and port infrastructure (inc
Slide 27: Stage Development & Commissioning Timeline
Stage 1 Development & Commissioning Timeline Q1 2022 Q2 2022 H2 2022 2023 2024 Project financing completion and timing subject DECISION to completion of due diligence, approvals, BFS Completion documentation and customary conditions Pre-FID Early Works precedent Long Lead Items INVESTMENT Pr
Slide 28: Thunderbird Project Overview
SECTION IV Thunderbird Project Overview
Slide 29: Thunderbird - Location
Thunderbird - Location Thunderbird is a large scale, high grade zircon-focused project in a Tier 1 mining jurisdiction Western Australia is a Tier 1 Jurisdiction Location • Located on the Dampier Peninsula in northern Western Australia • Large-scale, high grade, zircon focused mineral sands project
Slide 30: Evolution of Thunderbird
Evolution of Thunderbird From grassroots exploration through to commercial development stage Timeline 2010: 2012: 2014: 2015: 2017: 2019: 2020: Project 2022: Project Exploration Maiden Scoping PFS Thunderbird BFS Update equity funding financing and Licence Resource Study BFS BFSU release with Yanste
Slide 31: 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 • Thunderbird is the first significant mineral sand deposit to be discovered in the Canning Basin, typical of an off-shore, sub-wave base style deposit Thunderbird Site Layout
Slide 32: Thunderbird JORC Compliant Ore Reserve
Thunderbird JORC Compliant Ore Reserve >70% conversion of Mineral Resource in Ore Reserve demonstrates high quality of Thunderbird • Ore Reserve1 estimate was prepared by Entech Pty Ltd, an experienced and prominent mining engineering consultancy with appropriate mineral sands experience and industr
Slide 33: Conventional and Well Tested Mining Techniques
Conventional and Well Tested Mining Techniques Conventional use of dry mining techniques and equipment currently employed in existing and similar mineral sands operations globally Mining method Vegetation and Topsoil Removal • Dry mining via conventional dozer trap mineral sand mining using bulk min
Slide 34: Conventional and Well Tested Mining Techniques
Conventional and Well Tested Mining Techniques Use of dry mining techniques and equipment currently employed in other mineral sands operations Major mining equipment to be utilised Plan View of Mine Design Equipment utilised (#) Max utilisation (hrs/month Year Year Year Class Description ) 1–4 5 – 1
Slide 35: Simple and Conventional Processing Circuit – Stage 1
Simple and Conventional Processing Circuit – Stage 1 • Mining provides -12mm feed material at 1,250 and 1,750 dry tph. • The magnetic fraction from the CUP is the Magnetic Concentrate product. • WCP screens -12mm ore to deliver a -2mm sand fraction designed to • The non-magnetic fraction is further
Slide 36: Leveraging Yansteel Downstream Capability
Leveraging Yansteel Downstream Capability • Yansteel is part of Tangshan Yanshan Iron & Steel Co., Ltd, a privately owned Chinese steel manufacturer • Construction of Yansteel's vertically integrated smelter/pigment complex in China is well advanced • Yansteel designed the plant to process ilmenite
Slide 37: Well Positioned Near Existing Port Infrastructure
Well Positioned Near Existing Port Infrastructure • Thunderbird is located in close proximity to two existing ports ̶ Distance to Port of Broome = 148km (115km of national highway) Port of Broome ̶ Distance to Port of Derby = 146km (113km of national highway) • Products to be trucked from mine to po
Slide 38: Products, Offtake and Markets
SECTION V Products, Offtake and Markets
Slide 39: Binding Agreements for Thunderbird Product Suite
Binding Agreements for Thunderbird Product Suite Thunderbird produces three products comprising: • Zircon Concentrate ̶ Zircon concentrate contains ZrO2 (c. 37% ZrO2), TiO2 (c. 25.6% TiO2) and rare earth oxides ̶ Recoverable zircon suited for ceramics (as a blended product), zirconium chemicals indu
Slide 40: Product quality
Product quality Zircon Concentrate Properties • 75% Binding Offtake in place with 3 • Available upgrade step to higher grade zircon Composition Range (%) Typical (%) Chinese processors ZrO2 + HfO2 38 – 45 43 • Target offtake partners are diverse range • Samples supplied and approved by a wide range
Slide 41: Market Pricing Outlook for Zircon and Ilmenite
Market Pricing Outlook for Zircon and Ilmenite TZMI Historical and Forecast Zircon Prices (US$/t FOB)1 TZMI Historical and Forecast Sulfate Ilmenite Prices (US$/t FOB)1,2 $2,400 2085 $400 2015 1960 1950 $2,000 $350 310 1595 1535 1460 $300 260 270 $1,600 1400 250 255 $250 TZMI Long Term $1,200 1080 P
Slide 42: Thunderbird – Aligned with emerging zircon supply gap
Thunderbird – Aligned with emerging zircon supply gap Forecast zircon supply gap beyond 2022/23 Zircon Supply and Demand Actual and Forecast1 1,500 Demand Supply 1,300 000's tonnes 1,100 900 700 500 2014 2015 2016 2017 2018 2019 2020 2021 2022F 2023F 2024F 2025F Observations • COVID-19 demand impact
Slide 43: Thunderbird – New ilmenite supply is required
Thunderbird – New ilmenite supply is required New non-captive projects required to meet non-captive demand Observations • Sulfate ilmenite demand remained strong during 2020, 2021 and into 2022 • Sulfate pigment provides solid demand base • New Chinese chloride slag smelters driving increasing benef
Slide 44: Environmental, Social & Governance
SECTION VI Environmental, Social & Governance
Slide 45: Primary Approvals, Leases & Agreements in Place
Primary Approvals, Leases & Agreements in Place Fully permitted and construction ready Party Topic Scope Date Complete In Place Dept of Environment & Environmental Approval Federal Government environmental approval for project Sep 2018 Energy (Cwth) Department of Water & Environmental Approval Sta
Slide 46: Environment
Environment All necessary State and Federal environmental approvals received • Strong social licence to operate is supported by full State and Federal environmental approvals following an extensive Public Environmental Review ("PER") • The PER process required full environmental impact assessment, w
Slide 47: Environment
Environment Continuous Rehabilitation • Proposed dry mining via conventional dozer trap mineral sand mining • Topsoil and overburden excavated and transported using truck and excavators • Topsoil is deposited and seeded following completion of mining within each zone • Active rehabilitation of mined
Slide 48: Environment
Environment Embracing the Climate Change challenge • CO2 baseline Scope 1 emissions estimated in BFS 2017 at 11mt CO2e (c.40 year life of project)* • Significant reduction expected following removal of Low Temperature Roaster • Independent third-party validation of emissions commissioned for 2022 BF
Slide 49: Our Community Stakeholders
Our Community Stakeholders Actively working with community stakeholders to create and maintain a robust relationship • Central to the Kimberley regional strategy is our social licence to operate ̶ Built over ten years and based on formal and informal community relations practices • Strategy focuses
Slide 50: Native Title Agreement
Native Title Agreement Native Title agreement signed and is irrevocably binding on both Sheffield and the Traditional Owners • Signed the Co-existence Agreement (Native Title Agreement) for Thunderbird on 31 October 2018 • The Traditional Owners authorised the Named Applicants to sign the Co-existen
Slide 51: Ore Reserves, Mineral Resources and Exploration
APPENDIX A Ore Reserves, Mineral Resources and Exploration
Slide 52: Thunderbird Ore Reserves
Thunderbird Ore Reserves Thunderbird Ore Reserves: Valuable Heavy Mineral in-situ grade1 Valuable Heavy Mineral Grade (In-situ)2 Ore Reserve Ore Tonnes In-situ HM HM Grade Zircon HiTi Leucoxene Leucoxene Ilmenite Oversize Slimes Category (Mt) Tonnes (Mt) (%) (%) (%) (%) (%) (%) (%) Proved 239 31 12.
Slide 53: Thunderbird Mineral Resources
Thunderbird Mineral Resources Thunderbird Mineral Resources: Valuable Heavy Mineral in-situ grade1 Mineral In-situ HM Valuable Heavy Mineral Grade (In-situ)3 2 Cut-off Resource Ore Tonnes Tonnes HM Grade Zircon HiTi Leucoxene Leucoxene Ilmenite Slimes Oversize (HM%) Category (Mt) (Mt) (%) (%) (%) (%
Slide 54: Night Train Mineral Resources
Night Train Mineral Resources Night Train Mineral Resources: Valuable Heavy Mineral in-situ grade1 Valuable Heavy Mineral Grade (In-situ)2,3 HiTi Leucoxene Mineral Resource Cut off Ore Tonnes HM Grade Zircon & Rutile Leucoxene Ilmenite Slimes Oversize Category (HM%) (Mt) (%) (%) (%) (%) (%) (%) (%)
Slide 55: Significant Regional Exploration Upside
Significant Regional Exploration Upside Strategic value demonstrated through multiple discoveries made along a 120km long trend • Exploration has delineated 14 zones of significant mineralisation along a Dampier Project – Regional Plan1 120km long highly mineralised trend • Maiden high grade Mineral
Slide 56: Corporate Overview
APPENDIX B Corporate Overview
Slide 57: Sheffield Resources Corporate Overview
Sheffield Resources Corporate Overview Sheffield Resources is an ASX listed mineral sands developer which has a 50% joint venture interest in the large scale Thunderbird Mineral Sands Project Capital structure1 • Sheffield Resources Limited (“Sheffield” or the “Company”) is an Item Unit Value ASX li
Slide 58: Sheffield Executive & Board
Sheffield Executive & Board Bruce Griffin Mark Di Silvio Executive Chair Chief Financial Officer & Company Secretary • Most recently held the position of Senior Vice President • Mr Di Silvio is a CPA and MBA qualified finance professional Strategic Development of Lomon Billions Group, the with over