Sheffield Resources Limited · ASX:SFX
Sheffield Resources — Investor Presentation (October 2024)
31 slides from Sheffield Resources's investor presentation, October 2024
Slide 1: Investor Presentation
I N V E S TO R P R E S E N TAT I O N BRUCE GRIFFIN EXECUTIVE CHAIR October 2024 ASX: SFX www.sheffieldresources.com.au
Slide 2: 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 3: Contents
CONTENTS 1. Corporate Overview 2. Mineral Sands Market 3. Thunderbird Mineral Sands Mine 4. South Atlantic Project 3
Slide 4: Corporate Overview
CORPORATE OVERVIEW Mineral Sands production and development Targeting advanced projects with potential to unlock value by applying Sheffield’s mineral sands and SHEFFIELD RESOURCES commercial experience Generating growing cash returns Corporate Management and Capital Allocation 50% 20% Optio
Slide 5: Corporate Overview
CORPORATE OVERVIEW S H A R E P R I C E I N F O R M AT I O N $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 Aug-24 Oct-23 Mar-24 Jun-24 Oct-24 Jan-24 Apr-24 Nov-23 Dec-23 Jul-24 May-24 C A P I TA L S T R U C T U R E 1 MAJOR SHAREHOLDERS BROKER COVERAGE & RESEARCH Item Unit Value % Holding Ordinary S
Slide 6: Mineral Sands Market
MINERAL SANDS MARKET <i\|> SheffieldResources LIMITED
Slide 7: Mineral Sands – Used in Everyday Life
MINERAL SANDS – USED IN EVERDAY LIFE 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 catalytic con
Slide 8: Zircon – Constructive Industry Structure
ZIRCON – CONSTRUCTIVE INDUSTRY STRUCTURE PAU L YO U N G , G O L D M A N S AC H S @ Z I R C O N I N D U S T RY A S S O C I AT I O N C O N F E R E N C E M AY 2 0 24 19 Sheffield Resources Limited I ASX: SFX I Assembling a portfolio of global mineral sands development and production assets to generate
Slide 9: Thunderbird Mineral Sands Mine
THUNDERBIRD MINERAL SANDS MINE 9
Slide 10: Thunderbird – The World's Largest Zircon Reserves
THUNDERBIRD – THE WORLD’S LARGEST ZIRCON RESERVES … STRATEGICALLY SIGNIFICANT ASSET IN A LOW-RISK JURISDICTION CONTAINED ZIRCON IN ORE RESERVES AND GRADE FOR SELECTED MINERAL SANDS DEPOSITS 1,2,3 6 In Situ Titanium Minerals (Ilm+Lux+Rut) % Toliara (BSE) Atlas (IMA) 5 Atlas-Campaspe (TROX) Cataby (IL
Slide 11: Thunderbird Mine
THUNDERBIRD MINE PROCESS PLANT AND PRODUCT STOCKPILES SEPTEMBER 2024 MINE SEPTEMBER 2024 Sheffield Resources Limited I ASX: SFX I Assembling a portfolio of global mineral sands development and production assets to generate cash returns and growth 11
Slide 12: Mine Throughput – Sustainable 2.5Mt to 3Mt Ore Mined per Quarter
MINE THROUGHPUT – SUSTAINABLE 2.5MT TO 3MT ORE MINED PER QUARTER 1,200,000 1,000,000 Ore Tonnes Mined 800,000 600,000 400,000 200,000 0 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Ore Mined Basis of Design Ore Mined Actual Sheffield Resources Limited I ASX: SFX I Assembling a port
Slide 13: WCP (Rougher Head Feed) Throughput and Grade
WCP (ROUGHER HEAD FEED) THROUGHPUT AND GRADE 800,000 30.00 700,000 25.00 600,000 RHF (tonnes) 20.00 500,000 HM Grade (%) 400,000 15.00 300,000 ► RHF Grade consistently higher than resource block model 10.00 200,000 July lower due to trial mining of T2+T1 ore From August, mined T2 + high Zr ore z
Slide 14: Process Plant Recovery and Grade – Zircon
PROCESS PLANT RECOVERY AND GRADE – ZIRCON 90% 80% 70% 60% 50% 40% 30% ► ZrO2 content now consistently above design 20% ► ZrO2 recovery consistently above design 10% 0% Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 ZrO2 Recovery (RHF to Zircon Concentrate) - Design ZrO2 Recovery (RHF
Slide 15: Process Plant Recovery and Grade – Ilmenite
PROCESS PLANT RECOVERY AND GRADE – ILMENITE 90% 80% 70% 60% 50% 40% 30% ► TiO2 consistently at or above design 20% ► TiO2 recovery consistently above design 10% 0% Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 TiO2 Recovery (RHF to Ilmenite Concentrate) - Design TiO2 Recovery (RHF t
Slide 16: Cumulative Ore Production: Actual vs 2022 BFS Assumptions
CUMULATIVE ORE PRODUCTION: ACTUAL vs 2022 BFS ASSUMPTIONS 10.0 ► Ore mined ahead of BFS and sustainable 2.5Mt to 3Mt ore mined per quarter ► Oversize results in ~75% of forecast RHF per tonne of ore mined ► Limited opportunity to reduce oversize with current mining method and in-pit process 8.0 Ore
Slide 17: Cumulative Product Volume: Actual vs 2022 BFS Assumptions
CUMULATIVE PRODUCT VOLUME: ACTUAL vs 2022 BFS ASSUMPTIONS 800,000 ► The WCP and CUP continue to achieve higher than expected recovery of ilmenite and zircon concentrates 700,000 600,000 500,000 Product Tonnes 400,000 300,000 200,000 100,000 0 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2022 BFS Assumpti
Slide 18: Cumulative Ilmenite Sales Volume: Actual vs 2022 BFS Assumptions
CUMULATIVE ILMENITE SALES VOLUME: ACTUAL vs 2022 BFS ASSUMPTIONS 600,000 ► Shipments commenced in April following commissioning of bulk loading facilities at Broome port ► Sales ahead of BFS since shipping commenced 500,000 400,000 Product Tonnes 300,000 200,000 100,000 0 Q1 2024 Q2 2024 Q3 2024 Q4
Slide 19: Cumulative Zircon Sales Volume: Actual vs 2022 BFS Assumptions
CUMULATIVE ZIRCON SALES VOLUME: ACTUAL vs 2022 BFS ASSUMPTIONS 140,000 ► Shipments in line with BFS for March and June quarters ► No shipments in the September quarter due to 120,000 Weak market conditions in China Prior shipments still being processed and caution on holding inventory 100,000 ►
Slide 20: Thunderbird Q4 2024 Cashflow (100% Basis)
THUNDERBIRD Q4 2024 CASHFLOW (100% BASIS) ► KMS managing cashflow and working capital requirements ► Inventory of 50,000 zircon tonnes & 75,000 ilmenite tonnes at end of September ► $7m interest charges deferred to December quarter ► US$14m offtake prepayment in early October from Yansteel to facili
Slide 21: Thunderbird Business Improvement Initiative
THUNDERBIRD BUSINESS IMPROVEMENT INITIATIVE ► Context ‒ 75% lower RHF due to oversize ‒ Costs, mining in particular, higher than expected at FID ‒ Zircon market weakness + Process plant recoveries higher than design ► Business Improvement Initiative underway Reduce costs, especially mining Incre
Slide 22: Stage 2 Adds Significant Value
STAGE 2 ADDS SIGNIFICANT VALUE • Double mining capacity • 50% increase in final products • Mine life increased from 33 to 36 years – all from existing reserves • Capex $258m (2022 real) • Post Tax NPV8 A$548m ($274m SFX 50% share)1 • Post Tax IRR 27%1 • March 2022 BFS assumed execution in 2026/27 wi
Slide 23: Leveraging Yansteel Downstream Capability
LEVERAGING YANSTEEL DOWNSTREAM CAPABILIT Y • Thunderbird is a 50/50 JV with Yansteel, part of Tangshan Yanshan Iron & Steel, a privately owned Chinese steel manufacturer • Yansteel’s integrated smelter complex in China operational • Yansteel designed the plant to process ilmenite feedstock from vari
Slide 24: Our ESG Approach
OUR ESG APPROACH E N V I R O N M E N TA L ► Full State and Federal environmental approvals ► Progressive mine rehabilitation throughout mine life ► Practices aligned with Equator Principles - Addressing the Climate Change challenge SOCIAL ► Native Title Agreement with Traditional Owners in place ► 2
Slide 25: Thunderbird Mineral Sands Mine
THUNDERBIRD MINERAL SANDS MINE • World’s largest high grade zircon reserve, in a low-risk jurisdiction • 50/50 JV with Yansteel • Stage 1 nearing nameplate mining capacity of 10 to 12 mtpa • Ramping up to 1.1mt of zircon and ilmenite rich concentrates • Operating cashflow positive from September 202
Slide 26: South Atlantic Project
SOUTH ATLANTIC PROJECT <i\|> SheffieldResources LIMITED
Slide 27: South Atlantic Project Overview
SOUTH ATLANTIC PROJECT OVERVIEW • Invested US$2.5 million of US$4m to earn an option to acquire a 20% interest by paying a further US$11 million • Located Southeast Brazil (Rio Grande do Sul) • Continuous sequence of dunes and beach sands extending for 80km split into deposits • Exploration target f
Slide 28: Summary
SUMMARY ill SheffieldResources LIMITED
Slide 29: Sheffield Resources
SHEFFIELD RESOURCES Assembling a portfolio of global mineral sands development and production assets to generate cash returns and growth CORE ASSET THUNDERBIRD S O U T H AT L A N T I C FUTURE GROWTH GROWTH Thunderbird Mineral Sands Enhance Thunderbird through South Atlantic Option Review of other qu
Slide 30: 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 Sheffield Resources Sheffield Resources @Sheffield_ASX
Slide 31: Appendix: Additional Peer Information
APPENDIX: ADDITIONAL PEER INFORMATION Company Exchange Ticker & Company Material Date Mine/Project Reserves Reference Proved Probable Total Mt % THM Mt % THM Mt % THM Sheffield Resources (ASX:SFX) 2024 Annual Report 14 October 2024 Thunderbird 235 12.9% 515 10.1% 750 11.0% Kenmare Resources Plc (LSE
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