Sheffield Resources Limited · ASX:SFX
Sheffield Resources — Corporate Update (October 2022)
34 slides from Sheffield Resources's corporate update, Oct 10, 2022
Slide 1: Addendum to Investor Presentation
For personal use only 10 October 2022 The Manager ASX Limited Level 40, Central Park, 152-158 St Georges Terrace Perth WA 6000 Sheffield Resources Limited – Addendum to Investor Presentation Sheffield Resources Limited (Sheffield) (ASX:SFX) wishes to advise that the investor presentation titled “Fin
Slide 2: Investor Presentation: Final Investment Decision
INVESTOR For personal use only PRESENTATION F I N AL I N VE STMENT DE C I SI ON BRUCE GRIFFIN EXECUTIVE CHAIR October 2022 ASX: SFX www.sheffieldresources.com.au
Slide 3: Notice and Disclaimer
NOTICE AND DISCLAIMER IMPORTANT: You must read the following in conjunction with this document. Summary information in relation to Sheffield This document contains summary information about Sheffield Resources Limited (ACN 125 811 083) (Company or Sheffield), its subsidiaries and their activities wh
Slide 4: Thunderbird Mineral Sands Project Final Investment Decision
For personal use only THUNDERBIRD MINERAL SANDS PROJECT FINAL INVESTMENT DECISION 3
Slide 5: Thunderbird Mineral Sands Project
THUNDERBIRD MINERAL SANDS PROJECT • World’s largest high grade zircon reserve, in a low risk jurisdiction For personal use only • Stage 1 Production targeting 1.1mt of zircon and ilmenite rich concentrates1 • Offtake agreements in place for ~80% of Stage 1 revenue for first 5 years • Stage 1 & 2 eco
Slide 6: Largest Zircon Reserves Globally – In Low-Risk Jurisdiction
LARGEST ZIRCON RESERVES GLOBALLY – IN LOW -RISK JURISDICTION Contained Zircon in Ore Reserves and Grade for Selected Mineral Sands Deposits123 For personal use only Bubble size represents contained Zircon in Ore Reserves TiO2 Grade % Zircon Grade % Note: 1. Ore Reserve, published on the ASX on 24 Ma
Slide 7: Simple Flowsheet Producing Concentrates
SIMPLE FLOWSHEET PRODUCING CONCENTRATES For personal use only Feed Preparation, Mining Scrubbing, Screening and Thickener underflow to mine void Desliming CUP Spirals CUP Finisher Spirals Concentrate Upgrade CUP Finisher Plant WHIMS WHIMS Primary Wet Concentration Zircon Concentrate WCP Tails to min
Slide 8: Robust Stage 1 Economics
ROBUST STAGE 1 & 2 ECONOMICS For personal use only $1,731M 2022 2022 Metric $1,633M BFS1 FID $1,584M $1,574M NPV8 post-tax A$1.28B A$1.39B $1,441M $1,337M IRR post-tax 27.5% 26.6% $1,230M $1,223M Revenue to Cost Ratio (first 10 yrs) 2.4 2.5 $1,076M $1,049M $1,390M Project Capital (Stage 1) A$361m A$
Slide 9: Stage 1 Funding in Place
STAGE 1 FUNDING IN PLACE Stage 1 capex of A$379m with total funding requirement of A$484m1,2 For personal use only • >75% of Stage 1 capex (before contingency) is fixed price or already spent as at 30 June 2022 • Total funding requirement includes $40m cost overrun facility in addition to $36m of pr
Slide 10: Stage 1 Funding Progress – Significant Investment to Date
STAGE 1 FUNDING PROGRESS – SIGNIFICANT INVESTMENT TO DATE Stage 1 total funding requirement of A$484m For personal use only • >$115m of equity proceeds already invested into project construction as at 30 September 2022 • Total attributable equity contribution of $169m committed during 2022 • First d
Slide 11: First Production in Q1 2024
FIRST PRODUCTION IN Q1 2024 For personal use only Q2 2022 Q3 2022 Q4 2022 2023 2024 FINAL FIRST INVESTMENT PRODUCT DECISION SHIPMENT Secure NAIF and Orion Debt Facilities Document and CP’s Pre FID Construction Construction Commission Production EPC Contract Award Mining Mobilisation (Limited Notice
Slide 12: Deep Discount to Asset Value
DEEP DISCOUNT TO ASSET VALUE For personal use only >75% discount to NPV of SFX share in KMS despite: NPV of forecast Sheffield cash dividends from KMS • Low risk jurisdiction peaks at $1.2B from 2028 to 2031 and remains above • Robust BFS delivering compelling economic value • $315M of debt funding
Slide 13: Kimberley Mineral Sands – Cash Flows
KIMBERLEY MINERAL SANDS – CASH FLOWS 800 6,000 For personal use only 600 4,500 400 3,000 200 1,500 A$m A$m 0 0 (200) (1,500) (400) (3,000) (600) (4,500) Gross Revenue Royalties Site operating costs Tax paid Capex Change in Working Capital Cumulative Cash to Shareholders Sheffield Resources Limited I
Slide 14: Our ESG Approach
OUR ESG APPROACH Environmental For personal use only Full State and Federal environmental approvals granted following a detailed Public Environmental Review ("PER") process Rehabilitation throughout mine life – minimises disturbed area Environmental practices & protocols mirror Equator Princip
Slide 15: Mineral Sands Market
For personal use only MINERAL SANDS MARKET 14
Slide 16: Mineral Sands – Used in Everyday Life
MINERAL SANDS – USED IN EVERDAY LIFE For personal use only Titanium Minerals Zircon Primary market (90%) is TiO2 pigment Primary market is ceramics ► Key applications are paint, plastics and paper • Also used in refractories and foundry casting ► Delivers opacity and non-toxic UV protection • Growin
Slide 17: Supply Lagging Demand
SUPPLY LAGGING DEMAND For personal use only New Ilmenite Projects Required to Meet Demand Zircon Supply Gap Forecast to Continue Sulfate Ilmenite Supply and Demand Actual and Forecast1 Zircon Supply and Demand Actual and Forecast1 7,000 End Use Demand 1,400 Demand Supply 6,500 Non-captive beneficiat
Slide 18: High Prices Sustained in Q3 2022
HIGH PRICES SUSTAINED IN Q3 2022 Sulfate Ilmenite Product Prices (nominal)1 For personal use only $2,700 $400 • Price up ~80% since January 2020 • Prices +/- flat in 2H 2022 $2,400 $350 • Long term price assumption ~$200/t real $2,100 $300 Premium Zircon $1,800 $250 Ilmenite US$/tonne • Current pric
Slide 19: Sheffield Resources
SHEFFIELD RESOURCES • Current Market Value = A$156 million (347m shares at $0.45/share)1 For personal use only • 50% owner of the Thunderbird Mineral Sands Project via Kimberley Mineral Sands Thunderbird Mineral Sands Project • World’s largest high grade zircon reserve, in a low risk jurisdiction •
Slide 20: Thank You
For personal use only THANKYOU Registered and Corporate Office Sheffield Resources Limited Level 2, 41-47 Colin Street West Perth WA 6005 +61 8 6555 8777 info@sheffieldresources.com ASX: SFX www.sheffieldresources.com.au
Slide 21: Appendices
For personal use only APPENDICES 20
Slide 22: Corporate Overview
CORPORATE OVERVIEW C A P I TA L S T R U C T U R E 1 For personal use only Item Unit Value Ordinary Shares #m 347 Share Price A$/sh 0.45 Market Capitalisation A$m 156 Cash Balance2 A$m 6 Debt Balance A$m - Enterprise Value A$m 150.0 S H A R E P R I C E I N F O R M AT I O N $0.70 $0.60 $0.50 $0.40 $0.
Slide 23: Sheffield Board & Management
SHEFFIELD BOARD & MANAGEMENT For personal use only Bruce Griffin John Richards Vanessa Kickett Ian Macliver Gordon Cowe Mark Di Silvio Executive Chair Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Chief Financial Officer & Lead Independent Director Compa
Slide 24: ESG - Environment
ESG - ENVIRONMENT All necessary State and Federal environmental approvals received For personal use only • 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 enviro
Slide 25: ESG - Environment
ESG - ENVIRONMENT For personal use only • 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 min
Slide 26: ESG - Environment
ESG - ENVIRONMENT Embracing the Climate Change challenge Our Goals for a Sustainable Future For personal use only • CO2 baseline Scope 1 emissions estimated in BFS 2017 at Seek Low Carbon Invest in Climate Promote Our Acceptance 11mt CO2e (c.40 year life of project)* Technology Safe Practices Climat
Slide 27: Our Community Stakeholders
OUR COMMUNIT Y STAKEHOLDERS ACTIVELY WORKING WITH COMMUNITY STAKEHOLDERS TO CREATE AND MAINTAIN A For personal use only 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 practi
Slide 28: Native Title Agreement
NATIVE TITLE AGREEMENT Native title agreement signed and is irrevocably binding on both For personal use only 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
Slide 29: Kimberley Mineral Sands
KIMBERLEY MINERAL SANDS For personal use only Kimberley Mineral Sands Yansteel • Owns 100% of the Thunderbird Project • Yansteel is a wholly-owned subsidiary of Tangshan Yanshan Iron & Steel Co., Ltd (Tangshan) • Yansteel (via YGH Australia) contributed A$130.1m in equity to acquire 50% • Tangshan i
Slide 30: Significant Regional Exploration Upside
SIGNIFICANT REGIONAL EXPLORATION UPSIDE Strategic value demonstrated through multiple discoveries made For personal use only along a 120km long trend • Exploration has delineated 14 zones of significant mineralisation along a 120km long highly mineralised trend • High grade Mineral Resource1 at Nigh
Slide 31: Thunderbird Ore Reserves
THUNDERBIRD ORE RESERVES THUNDERBIRD ORE RESERVES: VALUABLE HEAVY MINERAL IN-SITU GRADE1 For personal use only 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) (%) (%) (%) (%) (%) (%)
Slide 32: Thunderbird Mineral Resources
THUNDERBIRD MINERAL RESOURCES For personal use only 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 (M
Slide 33: Night Train Mineral Resources
NIGHT TRAIN MINERAL RESOURCES For personal use only THUNDERBIRD MINERAL RESOURCES: VALUABLE HEAVY MINERAL IN-SITU GRADE1 Valuable Heavy Mineral Grade (In-situ)3 Mineral In-situ HM HiTi Cut-off Resource Ore Tonnes Tonnes HM Grade2 Zircon Leucoxene Leucoxene Ilmenite Slimes Oversize (HM%) Category (Mt
Slide 34: Additional Peer Information
ADDITIONAL PEER INFORMATION For personal use only Company Company Material Reference Kenmare Resources 2020 Annual Report Strandline Resources 2019 Reserve Statement Eramet 2021 Universal Filing Tronox 2021 Annual Report Diatreme Resources 2016 Reserve Statement Rio Tinto 2021 Annual Report Base Res
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