Sheffield Resources Limited · ASX:SFX
Sheffield Resources — Mineral Sands Conference - Melbourne 2016
23 slides from Sheffield Resources's conference presentation, Mar 16, 2016
Slide 1: Pre Feasibility Study and Beyond: Thunderbird
For personal use only PRE FEASIBILITY STUDY and BEYOND Thunderbird World’s Best Undeveloped Mineral Sands Project Mineral Sands Conference - Melbourne 15-16 March 2016 ASX : SFX 1
Slide 2: Disclaimer
DISCLAIMER For personal use only PREVIOUSLY REPORTED INFORMATION This report includes information that relates to Exploration Results, Mineral Resources, Ore Reserves and results of Pre-Feasibility studies which were prepared and first disclosed under the JORC Code 2012. The information was extracte
Slide 3: Key PFS Outcomes
KEY PFS OUTCOMES For personal use only FINANCIALS PHYSICALS COST & PRICE • A$297M1 (US$220M) capital • 40 year mine life • A$308/t C1 cost3 • 3.4 year payback • Strip ratio 0.7:1.0 LOM • LOM Zircon price US$1371/t • A$11.8B gross rev • Strip ratio 0.2:1.0 yrs 1-7 • LOM Ilmenite price US$185/t • A$6.
Slide 4: Corporate Snapshot
CORPORATE SNAPSHOT For personal use only ASX ISSUED EMPLOYEE SHARE PRICE MARKET CASH ENTERPRISE TOP TWENTY CODE SHARES1 OPTIONS (10 March 2016) CAP (UNAUDITED)2 VALUE SHAREHOLDERS2 SFX 150.3M (AVE.EX PRICE A$0.37 A$55.6M A$7.9M A$47.7M ~43% 68C) 7.4M Price (AUD) Volume(k) 700.0 $0.85 600.0 $0.75 500
Slide 5: Directors, Management & Register
DIRECTORS, MANAGEMENT & REGISTER For personal use only Will Burbury Non-executive Chairman Directors 12% Bruce McFadzean 18% New Zealand Managing Director David Archer Retail Tasmania Technical Director Retail WA 37% Bruce McQuitty Non-executive Director 28% Retail Australia Mark Di Silvio CFO/Compa
Slide 6: Discovery to Production
DISCOVERY TO PRODUCTION For personal use only • ASX listed December 2010 • Thunderbird Mineral Sands – Tier 1 project • From initial drill hole to BFS in 3 Years • Targeting first production from Thunderbird early 2019 • First mover status in Canning Basin mineral sands province • +40 year mine life
Slide 7: Thunderbird Tier 1 Project
THUNDERBIRD TIER 1 PROJECT For personal useTiOonly 2 Grade Zircon Grade Amongst the world’s largest and Thunderbird’s high zircon and titanium highest grade zircon rich deposits mineral grades set it apart globally Thunderbird Mineral Resource ranked against current mineral sands operations and proj
Slide 8: BFS Strategy
BFS Strategy KEY TARGETS For personal use only KEY DELIVERABLES COMMUNITY/EMPLOYMENT PERMITTING • BFS Completion late 2016 • Predominantly local workforce • Government support via • Production ramp-up1 • Promotion of Aboriginal “Lead Agency Status” from employment and business Department of Mining a
Slide 9: Key Targets 2016
KEY TARGETS 2016 For personal use only BFS OFF-TAKE PARTNERS FUNDING • Tier 1 BFS Manager HATCH • Engaged Marketing • Debt sizing and option engaged consultants/personnel analysis commenced • Maiden Ore Reserve • Commencing • JV/partner options being released January 2016 introductions considered •
Slide 10: Thunderbird Mineral Sands Deposit
THUNDERBIRD MINERAL SANDS DEPOSIT For personal use only • Key to • This zone is • Deposit geometry • Low strip Ratio Thunderbird is the surface favours large 0.22:1.0 year 1-7 thick, continuous outcropping in scale mining 0.67:1.0 life of high Grade Zone the northern part mine of the deposit LEGEND
Slide 11: Mineral Resource
MINERAL RESOURCE For personal use only THUNDERBIRD HIGH GRADE MINERAL RESOURCE AT 7.5% HM CUT-OFF 31 JULY 2015 Mineral Resources 1 Valuable HM Grade (in situ) 2 Material HM Zircon HiTi Leuc Leucoxene Ilmenite Resource Mt % % % % % Measured 110 14.9 1.09 0.31 0.28 4.0 Indicated 850 11.8 0.90 0.28 0.2
Slide 12: PFS Physicals
PFS PHYSICALS PHYSICALS YEARS 1-7 LOM For personal use only Average ore mined (Mtpa) 12.2 17.1 Average head grade (%HM) 15.4 11.5 Strip ratio (waste:ore) 0.20:1 0.66:1 HMC PRODUCED (MT) 13.2 52.0 PRODUCTION YEARS 1-7 LOM Zircon (tpa) 88,000 100,000 HiTi88 (tpa) 21,000 26,000 LTR Ilmenite (tpa) 311,0
Slide 13: Conventional Processing
CONVENTIONAL PROCESSING For personal use only Conventional heavy mineral sands processing circuit to deliver a suite of zircon, ilmenite, and HiTi88 products1 The process includes an ilmenite upgrade step using a low temperature (450o for 15 mins) roast (“LTR”) LTR upgrades the primary ilmenite by 2
Slide 14: PFS Infrastructure & Logistics
PFS INFRASTRUCTURE & LOGISTICS For personal use only MINING & SITE INFRASTRUCTURE THUNDERBIRD SITE LAYOUT PLAN • Dry mining rate of 12mtpa, ramping up to 18Mtpa by Year 8 • Conventional dozer trap mining • Mining commences in shallow northern sector of deposit • WCP, MSP, & initial tailings dam adja
Slide 15: PFS Capital Costs
PFS CAPITAL COSTS For personal use only COST AREA A$M Pre-production owners cost Sub-total pre-production owners cost 19.7 Project direct costs Mining1 6.8 Process Water System 9.0 Wet Concentrator Plant 42.0 Mineral Separation Plant 93.0 LTR Plant 27.7 Site Infrastructure2 16.6 Power Infrastructure
Slide 16: Revenues
REVENUES For personal use only PRODUCTION AND REVENUE TOTALS LOM Primary PRODUCT LOM TONNES LOM REVENUE (A$M) Ilmenite LTR 1% Ilmenite Zircon 4,006,000 6,910 32% HiTi88 1,052,000 995 LTR Ilmenite 15,283,000 3,821 Primary Ilmenite 559,000 103 Zircon 59% TOTAL PRODUCTS 20,900,000 11,829 HiTi 88 8% FOR
Slide 17: Key Financial Outcomes & Assumptions
KEY FINANCIAL OUTCOMES & ASSUMPTIONS For personal use only FINANCIALS Key Item A$M LOM Revenue (LOM total) A$M 11,829 Operating Cash Flow (LOM Average) A$M pa 149 EBITDA (LOM Average) A$M pa 135 EBIT (LOM Average) A$M pa 122 Key Item A$/tonne of LOM Unit Revenue product 566 Unit Revenue MUP feed 17.
Slide 18: Product Assessment Study by TZMI
PRODUCT ASSESSMENT STUDY BY TZMI For personal use only ZIRCON (59% OF REVENUE) • Primary zircon product meets the requirements for premium classification for use in the ceramic sector LTR ILMENITE (32% OF REVENUE) • LTR ilmenite (56.1% TiO2) is suitable feedstock for sulphate pigment manufacture and
Slide 19: Thunderbird Analogy
THUNDERBIRD ANALOGY For personal use only TRONOX’S NAMAKWA PROJECT1 • Commenced mining in 1994 (+30 year life) • Reserves (2012) 432Mt @ 8.8% HM • In situ grades: 0.80% zircon, 0.22% rutile, 0.48% leucoxene, 3.09% ilmenite • 21Mtpa mining rate (truck & shovel) • Annual production approximately 125kt
Slide 20: Regional Exploration Potential
REGIONAL EXPLORATION POTENTIAL For personal use only NEW PROVINCE – MULTIPLE DISCOVERIES Discoveries from limited scout drilling: Night Train – best 7.5m @ 8.2% HM Nomad – best 13.5m @ 3.0% HM Seagull/Bells - best 6m @ 5.2% HM Night Train has high value mineral assemblage: 92% VHM, includi
Slide 21: Thunderbird Key Points
THUNDERBIRD KEY POINTS TARGETS NEXT STEPS For personal use only • Further reductions in capital • Secure exclusive port access – completed • BFS – complete in 2016 • Appointment of BFS Study Manager – completed • Native title agreement • 20t bulk sample met testwork and flow sheet optimisation – com
Slide 22: Appendix: Thunderbird Deposit Ore Reserves
APPENDIX 1 THUNDERBIRD DEPOSIT ORE RESERVES1,2 For personal use only Valuable Heavy Mineral (VHM) in-situ grade In-situ HM Valuable HM Grade (In-situ)2 Ore Reserve Ore Tonnes HM Grade Slimes Osize Tonnes Zircon HiTi Leuc Leuc Ilmenite Category (millions) (%) (%) (%) (millions) % % % % Proved 115.1 1
Slide 23: Appendix: Thunderbird Deposit Mineral Resource
APPENDIX 1 THUNDERBIRD DEPOSIT MINERAL RESOURCE1,2 Valuable HM Grade (In-situ)3 For personal use only Mineral Material In-situ HM Cut-off HM Grade Slimes Osize Resource Tonnes Tonnes Zircon HiTi Leuc Leuc Ilmenite (HM%) (%) (%) (%) Category (millions) (millions) (%) (%) (%) (%) Measured 230 21 9.4 0
Sheffield Resources — Mineral Sands Conference - Melbourne 2016 on 6ix