Slide 1: Thunderbird – From JV to FID
For personal use only Thunderbird – From JV to FID TZMI Congress November 2020
Slide 2: Notice and Disclaimer
Notice and Disclaimer IMPORTANT: You must read the following in conjunction with this document. For personal use only Summary information in relation to Sheffield This document contains summary information about Sheffield Resources Limited (ACN 125 811 083) (Company or Sheffield), its subsidiaries a
Slide 3: Notice and Disclaimer
Notice and Disclaimer Not financial product advice For personal use only 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 – From JV to FID
Thunderbird – From JV to FID For personal use only Yansteel Joint Venture Project Update Market Opportunity Pathway to FID 4
Slide 5: Yansteel Joint Venture
Yansteel Joint Venture Thunderbird Joint Venture For personal use only • Non-binding term sheet signed in August 20201 • 50/50 joint venture with Yansteel for the Thunderbird Project • Yansteel to contribute A$130.1m in equity to acquire its 50% interest • Formal Joint Venture Agreements on track fo
Slide 6: Thunderbird – Simplified flowsheet
Thunderbird – Simplified flowsheet1 For personal use only Flow sheet agreed within Joint Venture Term Sheet Non-mag concentrate • Removes zircon MSP from BFS and BFSU LTR Ilmenite • Ilmenite circuit from BFS flowsheet (excluding IDP) 1. Expected flowsheet pre-BFS JV completion 6
Slide 7: Thunderbird – Yansteel equity to fill funding gap
Thunderbird – Yansteel equity to fill funding gap Process capital expected to be lower with simplified flowsheet For personal use only + Cost of reintroduction of LTR off set by - Simplified ilmenite circuit - Removal of zircon MSP JV BFS will update project capital and operating costs (including no
Slide 8: Thunderbird – Attractive product mix
Thunderbird – Attractive product mix For personal use only • LTR Ilmenite % Revenue1,2 − 315,000 tonnes per annum in Phase 1 − Suitable for TiO2 slag or sulphate pigment feedstock − 53% TiO2 and low in key contaminants − 100% binding offtake with Yansteel • Non-Magnetic Concentrate Non-Mag 65% − 200
Slide 9: Thunderbird – Aligned with emerging zircon supply gap
Thunderbird – Aligned with emerging zircon supply gap Zircon supply gap forecast from 2021/22 onwards For personal use only Covid-19 Observations • Covid-19 impacted demand significantly during 2020 • Major suppliers have adjusted 2020 supply to match reduced demand • This supply response eased the
Slide 10: Thunderbird – New ilmenite supply is required
Thunderbird – New ilmenite supply is required New non-captive projects need to meet non-captive demand For personal use only Covid-19 Observations • Sulfate ilmenite demand remains strong – recent updates suggest stronger than forecast demand post COVID • Sulfate pigment provides solid demand base •
Slide 11: Pathway from Joint Venture to FID
Pathway from Joint Venture to FID For personal use only Q3 2020 Q4 2020 Q1 2021 Q2 2021 Aug 2020: Non Binding JV Term Sheet and Ilmenite Offtake JV Formed FID FIRB Application Application submitted Approval expected JV Documentation Draft Execute Early Works Program Early Works Program Update engine
Slide 12: Summary
Summary • Yansteel Joint Venture Agreements on track for execution in 1H November For personal use only • FIRB application submitted in August • Thunderbird targeted to be a large long life zircon/ilmenite producer • Overall project capital is expected to be similar to the BFSU • Yansteel project eq
Slide 13: 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 14: 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 15: 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 16: Primary Approvals, Leases & Agreements in Place
APPENDIX: 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 D
Slide 17: Yansteel Joint Venture
APPENDIX: Yansteel Joint Venture Joint Venture • Non-binding term sheet signed in relation to 50/50 joint venture with Yangang (Hong Kong) Co., Ltd (Yansteel) for Thunderbird Project and associated tenements For personal use only (Joint Venture). • Yansteel will make a A$130.1m equity investment to
Slide 18: Bankable Feasibility Study Update
APPENDIX: 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$1
Slide 19: 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 Plan1,2 long highly mineralised