Sheffield Resources Limited · ASX:SFX
Sheffield Resources — Corporate Update (October 2022)
32 slides from Sheffield Resources's corporate update, Oct 7, 2022
Slide 1: Investor Presentation: Final Investment Decision
INVESTOR PRESENTATION FI N A L I NV E S T MENT D E CI S IO N BRUCE GRIFFIN EXECUTIVE CHAIR October 2022 ASX: SFX www.sheffieldresources.com.au
Slide 2: Notice and Disclaimer
N OTICE A N D DIS CLAIMER 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 activitie
Slide 3: Thunderbird Mineral Sands Project Final Investment Decision
THUNDERBIRD MIN ERA L S AN DS PROJECT F IN A L IN VESTMENT DECIS ION 3
Slide 4: Thunderbird Mineral Sands Project
THUN DERBIRD MINERAL S ANDS PROJECT • World’s largest high grade zircon reserve, in a low risk jurisdiction • 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 economics improved from
Slide 5: Largest Zircon Reserves Globally – In Low-Risk Jurisdiction
LA RGEST ZIRCON RES ERVES GLOBA LLY – IN LOW -RISK JURIS DICTION Contained Zircon in Ore Reserves and Grade for Selected Mineral Sands Deposits123 Bubble size represents contained Zircon in Ore Reserves TiO 2 Grade % Zircon Grade % Note: 1. Ore Reserve, published on the ASX on 24 March 2022. Thunder
Slide 6: Simple Flowsheet Producing Concentrates
S IMPLE F LOWSHEET PRODUCING CONCENTRATES 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 mine void CUP Spiral Ta
Slide 7: Robust Stage 1 Economics
ROBUS T S TAGE 1 & 2 ECONOMICS $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$379m $1,279M Total F
Slide 8: Stage 1 Funding in Place
S TAGE 1 F UN DING IN PLACE Stage 1 capex of A$379m with total funding requirement of A$484m1,2 • >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 project contingency •
Slide 9: Stage 1 Funding Progress – Significant Investment to Date
S TAGE 1 F UN DING PROGRES S – S IGNIFICANT IN VES TMENT TO DATE Stage 1 total funding requirement of A$484m • >$115m of equity proceeds already invested into project construction as at 30 September 2022 • Total attributable equity contribution of $169m committed during 2022 • First drawdown of NAIF
Slide 10: First Production in Q1 2024
F IRS T PRODUCTION IN Q1 2 0 24 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 to Proceed) WCP St
Slide 11: Deep Discount to Asset Value
DEEP DIS COUNT TO A S S ET VA LUE >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 • $315M of debt funding complete with dra
Slide 12: Kimberley Mineral Sands – Cash Flows
KIMBERLEY MIN ERAL S AN DS – CA S H F LOW S 800 6,000 600 4,500 400 3,000 200 1,500 A$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 ASX: SFX I Dev
Slide 13: Our ESG Approach
OUR ES G A PPROACH E nvironmental 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 Principles - Addressing th
Slide 14: Mineral Sands Market
MINERAL SANDS MARKET <i\|> SheffieldResources LIMITED
Slide 15: Mineral Sands – Used in Everyday Life
MIN ERA L S AN DS – US ED IN EVERDAY LIF E 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 • Growing use in catalyt
Slide 16: Supply Lagging Demand
S UPPLY LAGGING DEMA ND 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 beneficiation 6,000 Chloride D
Slide 17: High Prices Sustained in Q3
HIGH PRICES S US TAINED IN Q3 2 0 2 2 S u l f a t e I l m e n i te Product Prices (nominal)1 • Price up ~80% since January 2020 $2,700 $400 • Prices +/- flat in 2H 2022 $2,400 $350 • Long term price assumption ~$200/t real $2,100 $300 P r emi um Z i rcon $1,800 $250 Ilmenite US$/tonne • Current pric
Slide 18: Sheffield Resources
S HEF FIELD RES OURCES • Current Market Value = A$156 million (347m shares at $0.45/share)1 • 50% owner of the Thunderbird Mineral Sands Project via Kimberley Mineral Sands Thunderbird Mineral Sands Project • World’s largest high grade zircon reserve, in a low risk jurisdiction • Stage 1 Production
Slide 19: Thank You
THANKYOU Registered and Corporate Office Sheffield Resources Limited Level 2, 41-47 Colin Street West Perth WA 6005 +61 8 6555 8777 info@sheffieldresources.com ASX: SFX www.sheffieldresources.com.au
Slide 20: Appendices
APPENDICES ill SheffieldResources LIMITED
Slide 21: Corporate Overview
CORPORATE OVERVIEW C A P I TA L S T R U C T U R E 1 Item Unit Value Ordinary Shares #m 347 Share Price A$/sh 0.45 Market Capitalisation A$m 156 Cash Balance2 A$m 6 Debt Balance A$m - Enterprise Value A$m 150.0 S HA RE PRI CE I N FORMATI ON $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 May-22 Sep-21 Jan-22 Apr
Slide 22: Sheffield Board & Management
S HEF FIELD BOA RD & MA NAGEMENT 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 Company Secretary Bruce
Slide 23: ESG - Environment
ES G - EN V IRON MENT 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 ass
Slide 24: ESG - Environment
ES G - EN V IRON MENT • 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 areas occurs co
Slide 25: ESG - Environment
ES G - EN V IRON MENT Embracing the Climate Change challenge Our Goals for a Sustainable Future • 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 Climate Policy • Signifi
Slide 26: Our Community Stakeholders
OUR COMMUN IT Y S TA KEHOLDERS 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 focu
Slide 27: Native Title Agreement
N ATIVE 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-existe
Slide 28: Kimberley Mineral Sands
KIMBERLEY MIN ERAL S AN DS 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 is a privately owned
Slide 29: Significant Regional Exploration Upside
S IGN IFICANT REGIONAL EXPLORATION UPS IDE Strategic value demonstrated through multiple discoveries made 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 Night Train ► 130Mt @ 3
Slide 30: Thunderbird Ore Reserves
THUN DERBIRD ORE RES ERVES 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 1
Slide 31: Thunderbird Mineral Resources
THUN DERBIRD MINERA L RES OURCES 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 32: Night Train Mineral Resources
N IGHT TRA IN MIN ERA L RES OURCES 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) (Mt) (%) (%) (%
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