Sheffield Resources Limited · ASX:SFX
Sheffield Resources — Diggers & Dealers 2015
25 slides from Sheffield Resources's conference presentation, Aug 4, 2015
Slide 1: The next major mineral sands project in the global development pipeline
THUNDERBIRD dll 2 The next major mineral sands project SheffieldResources @ in the global development pipeline LIMITED 6 uc DIGGERS & DEALERS 4 AUGUST 2015 ASX: SFX
Slide 2: Disclaimer
DISCLAIMER For personal use only PREVIOUSLY REPORTED INFORMATION The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and, in the case of estimates of Mineral This report includes information th
Slide 3: Investment Highlights: Thunderbird Tier 1 Mineral Sands Project
INVESTMENT HIGHLIGHTS Thunderbird For personal use only Tier 1 Mineral Sands Project Long life, high margin project in a stable jurisdiction Based on a very large, high grade, zircon-rich deposit Targeting 8% of global zircon and 4% of global TiO2 feedstock markets Leveraged to multiple pric
Slide 4: Company Snapshot
COMPANY SNAPSHOT For personal use only Shareholder Split Top 20 Shareholders 43% Directors 17.5% Capital Structure ASX Code: SFX Share price 48c Shares on issue 134.4m Employee Options (Ave. Ex Price 68c) 7.4 Market Cap (Undiluted) $64.5m Cash (30 June 2014) $5.1m Enterprise Value $59.4m 4 4
Slide 5: Board and Management
BOARD AND MANAGEMENT For personal use only Proven Track Record History of successful Exploration Will Burbury Bruce McQuitty David Archer and Corporate Transactions Executive Chairman Managing Director Technical Director Taken Thunderbird from discovery to pre-feasibility in 3 years 40 years o
Slide 6: Project Locations (All 100% SFX)
PROJECT LOCATIONS (ALL 100% SFX) For personal use only Thunderbird HMS Total Resource 3.24Bt @ 6.9% HM (93Mt VHM)1 including 1.09Bt @ 11.9% HM Eneabba HMS Total Resource 172Mt @ 3.0% HM (4.5Mt VHM)1 McCalls HMS Total Resource 4.4Bt @ 1.2% HM (50Mt VHM)1 Fraser Range “Walk-up” drill targets (Nickel)
Slide 7: Strategic Location
STRATEGIC LOCATION Thunderbird For personal use only Position 30km north of sealed Broome – Derby highway 140km by road to either Broome or Derby ports Canning Basin New mineral sands province 5,800km2 of exploration licences Western Australia Stable jurisdiction Pool of skilled workers
Slide 8: Large Scale, High Grade
THUNDERBIRD Large Scale, High Grade For personal use only Thunderbird Mineral Resource at 7.5% HM c/o 31 July 2015 Mineral Resources 1 Valuable HM Grade (in situ) 2 Measured Resource (at 7.5%HM cut-off) Resource Material HM Zircon HiTi Leuc Ilmenite trebled to 110Mt @ 14.9% HM Mt % % Leuc % % % Me
Slide 9: Large Scale, High Grade: Total Resource
THUNDERBIRD Large Scale, High Grade For personal use only Total Resource: 3.24Bt @ 6.9% HM (at 3% HM cut-off) NE Key to Thunderbird is continuous High Grade Zone This zone occurs at or near surface in the northern SW part of the deposit NE SW LEGEND b Block Model Grade >3% HM >7.5% HM >10% HM Hi
Slide 10: Amongst the world's largest and highest grade deposits
THUNDERBIRD For personal use only Tier 1 Project Amongst the world’s largest and highest grade deposits Bubble size proportional to contained VHM tonnes. Data compiled by SFX from open file sources Rio Tinto’s deposits excluded (unable to be sourced) 10
Slide 11: Analogy: Tronox's Namakwa vs Thunderbird PFS Metrics
THUNDERBIRD ANALOGY Tronox’s Namakwa Project1 Thunderbird PFS Metrics For personal use only Commenced mining in 1994 (+30 year life) +32 year mine life Reserves (2012) 432Mt @ 8.8% HM Mining Inventory2 580Mt @ 11.7% HM In situ grades: 0.80% zircon, 0.22% rutile, In situ grades: 0.92% zir
Slide 12: 2015 Milestones
2015 Milestones For personal use only 1 Initial PFS Completed May 2 Native Title negotiations Commenced & ongoing 3 Derby Port negotiations Commenced & ongoing 4 Mining lease Application lodged 5 Water extraction licence Application lodged 6 PFS Update H2 2015 Resource upgrade Completed July Low
Slide 13: PFS Summary
THUNDERBIRD PFS Summary For personal use only Long initial mine life of 32 years Strong cash margins (LOM Annual EBITDA $120m) LOM operating cash flow $4.3 billion Significant de-risking of project Opportunities for project enhancement under investigation during current PFS update 13
Slide 14: PFS Physicals
THUNDERBIRD PFS Physicals For personal use only 32+ year mine life (potentially 44 years) Average annual production at 18mtpa mining rate: 114,000tpa zircon 439,000tpa ilmenite 30,000tpa HiTi84 Very low strip ratio (0.22:1 in first 10 years) 14
Slide 15: PFS Key Financials
THUNDERBIRD PFS Key Financials For personal use only LOM revenue A$m 9,479 Long Term Key Assumptions Average Operating Cash Flow1 (first 10 yrs) A$mpa 163 Average Operating Cash Flow1 (LOM) A$mpa 134 A$:US$ Exchange rate 0.78 EBITDA (first 10 years) A$mpa 148 Zircon Price US$/tonne 1,375 EBITDA A$mp
Slide 16: PFS Mining & Site Infrastructure
THUNDERBIRD PFS Mining & Site For personal use only Infrastructure Dry mining at rate of 18mtpa with dozers & traps WCP, MSP, & initial tailings dam adjacent to deposit Mining commences in shallow northern sector of deposit 16
Slide 17: Logistics
LOGISTICS Robust Mine-to-Market logistics chain For personal use only 1 2 3 4 Products to be Product storage Barging & Close trucked from mine & loading at transhipment proximity to port in covered Derby Port of products to potential road trains markets 17
Slide 18: Products: Product Quality
PRODUCTS Product Quality For personal use only Products derived from 12.5t bulk sample using conventional processing Product assessment by TZMI Primary zircon is suitable for ceramics (largest sector of zircon market) Primary ilmenite suitable for sulphate pigment process Primary ilmenite
Slide 19: Market Outlook
MARKET OUTLOOK Zircon For personal use only Prices now stable around US$1,100/t following 2011-12 spike Global demand is estimated grow at ~4% CAGR to ~1.3Mtpa by 2020 Forecast growing supply deficit beyond 2018 Sulphate Ilmenite Current price weakness due to oversupply Global demand is fo
Slide 20: Timeline to Production
TIMELINE TO PRODUCTION For personal use only Targeting Production in 2019 2015 2016 2017 2018 2019 ACTIVITY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 PFS update Permitting Definitive Feasibility Study Environmental Approvals LONG LIFE Offering leverage Infrastructure to multiple Engineer
Slide 21: Summary: Advancing Thunderbird Towards Development
SUMMARY For personal use only Advancing Thunderbird Towards Development World class, large scale, long life project One of very few large zircon-rich projects in the global development pipeline Strong cash margins with leverage to multiple pricing cycles Robust mine-to-market logistics PFS
Slide 22: Visit Us
= = fe) a) a) =) = VISIT US <i sheffieldresources.com.au SheffieldResources LIMITED For person DIGGERS & DEALERS 4 AUGUST 2015 ASX: SFX
Slide 23: Appendix 1: Resource Inventory
APPENDIX 1: RESOURCE INVENTORY Sheffield’s contained valuable HM (VHM)* resource inventory at 31 July 2015 For personal use only Deposit Resource Category Zircon (‘000t) Rutile (‘000t) HiTi Leuc. (‘000t) Leuc. (‘000t) Ilmenite (‘000t) Total VHM (‘000t) Thunderbird Measured 1,700 - 500 500 5,800 8,40
Slide 24: Appendix 2: HMS Mineral Resources
APPENDIX 2: HMS MINERAL RESOURCES1 Inventory at 31 July 2015 For personal use only 2 Project Deposit Resource Category Cut-off (% HM)3 Material (Mt)* Bulk Density HM % Slimes %3 Osize % In-situ HM (Mt)* Zircon2 % Rutile2 % HiTi Leuc. % Leuc.2 % Ilmenite2 % Thunderbird Measured 3.0 230 2.1 9.4 19 10
Slide 25: Appendix 3: Mining Method
APPENDIX 3: MINING METHOD Thunderbird Mineral Sands Project – Schematic site layout For personal use only 25