Sheffield Resources Limited · ASX:SFX
Sheffield Resources — Diggers & Dealers 2014
25 slides from Sheffield Resources's conference presentation, Aug 4, 2014
Slide 1: Thunderbird: A New Tier 1 Mineral Sands Project
+ For personal use only SFX Thunderbird A New Tier 1 Mineral Sands Project Long Life High Margin Premium Product Tier 1 DIGGERS & DEALERS 4 AUGUST 2014
Slide 2: Disclaimer
+ Disclaimer For personal use only . PREVIOUSLY REPORTED INFORMATION FORWARD LOOKING STATEMENTS This report includes information that relates to Exploration Results which were prepared and first disclosed under the JORC Code 2012. The information was extracted from the Company’s previous ASX announc
Slide 3: Company Snapshot and Capital Structure
Shareholder Split No industry major or Top 20 offtake group on register For personal use only 40% Shareholders Directors 17.5% Company Snapshot Capital Structure Share price $0.89 Shares on issue 133.8m Employee Options 8.1m (Ave. Ex Price 68c) Market Cap (Undiluted) $119.1m Cash (30 June 2014) $10.
Slide 4: Board & Management
Board & Management For personal use only Board & Management PROVEN TRACK RECORD History of successful Exploration and Will Burbury Executive Chairman Corporate Transactions Built global scale HMS resource base Bruce McQuitty Managing Director in 3 years Completed Thunderbird Scoping Study demo
Slide 5: Key Messages
Key Messages THUNDERBIRD MINERAL SANDS For personal use only Long Life High Margin Premium Product Tier 1 Project 5
Slide 6: Strategic Location
Strategic Location For personal use only THUNDERBIRD MINERAL SANDS PROJECT LOCATION 30km north of sealed Broome - Derby highway 140km by road to either Broome or Derby ports Gas discoveries nearby providing potential power source for project Close to Asian markets CANNING BASIN Thunderbird
Slide 7: Large Scale, High Grade
Large Scale, High Grade For personal use only THUNDERBIRD MINERAL RESOURCE 19 MARCH 2014 Total Resource 2.62Bt @ 6.5% HM (at 3%HM cut-off) Mineral Valuable HM Grade (in situ) 2 NE Resources 1 Cut-off Material HM HiTi Leucoxene Leucoxene Resource Zircon % Ilmenite % HM% Mt % % % SW Total 3.0 2,620 6.
Slide 8: Tier 1 Project
Tier 1 Project For personal use only THUNDERBIRD MINERAL SANDS 7.00 In Situ TiO2 Mineral Grade (Rut+Lux+Ilm) % 6.00 Puttalam (ILU) Amongst the world’s largest Fairbreeze (TROX) 5.00 Douglas (ILU) Toliara (WTR) Thunderbird High Grade Zone and highest 4.00 Moma (KMR) 740Mt @ 12.1% HM @ 7.5% c/o (SFX)
Slide 9: Tier 1 Project: Large Zircon Deposits Discovered
Tier 1 Project For personal use only THUNDERBIRD MINERAL SANDS LARGE ZIRCON DEPOSITS DISCOVERED OVER PAST 30 YEARS 16 14 Most significant Contained zircon (Mt) 12 10 discovery in 8 decades: 6 Grade and 4 Scale 2 0 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1997 1998 1
Slide 10: Thunderbird Scoping Study
Thunderbird Scoping Study For personal use only SCOPING STUDY COMPLETED APRIL 2014 Long initial mine life of 32 years Targeting ~ 8% of zircon and ~4% of ilmenite global production Highly marketable products Strong cash margins Modest Capex $257m + $37m contingency 2 year payback Targe
Slide 11: Thunderbird Scoping Study: Mining Inventory
Discovery of additional high grade mineralisation in shallow up-dip Thunderbird Scoping Study areas would have a strong positive impact on project economics For personal use only MINING INVENTORY Mining inventory of 669Mt @ 10.2% HM (Measured & Indicated Resources only) In situ grades: 0.83% zir
Slide 12: Thunderbird Scoping Study: Mining
Thunderbird Scoping Study For personal use only MINING Dry mining at rate of 20.8mtpa (2,500tph) with dozers and scrapers 2 large mining unit plants High grades and very low strip ratio (particularly in first 10 years) Mining commences in shallow northeast sector of deposit Mining paramete
Slide 13: Long Life: Scoping Study Physicals
Long Life For personal use only THUNDERBIRD SCOPING STUDY PHYSICALS Average annual production following ramp-up to a 20.8 Mtpa mining rate is estimated to be: 118,200tpa zircon (135,100tpa in first 10 years) 545,000tpa ilmenite 21,700tpa HiTi80 High grades and very low strip ratio in initi
Slide 14: Modest Capex
Modest Capex For personal use only THUNDERBIRD SCOPING STUDY PRE-PRODUCTION CAPEX Pre Production Capital Summary1 A$M Local site infrastructure 43.05 Mining Units 22.9 Wet Concentrator Plant 39.8 Concentrate Upgrade Plant 8.8 Mineral Separation Plant 47.6 Process Water System 22.9 Off-site Infrastru
Slide 15: High Margin: Scoping Study Financials
High Margin For personal use only THUNDERBIRD SCOPING STUDY FINANCIALS LOM revenue A$m 10,010 Long life, strong margin project Average Operating Cash Flow1 (first 10 yrs) A$mpa 204 $140mpa EBITDA for 32 years Average Operating Cash Flow1 (LOM) A$mpa 156 Production scheduling delivers higher ma
Slide 16: Premium Products
Premium Products For personal use only THUNDERBIRD MINERAL SANDS CONVENTIONAL PROCESSING Metallurgical testwork on two bulk samples totalling 11 tonnes confirms mineralisation responds well to conventional processing techniques Slimes have low clay content – requiring low flocculant dosages 30
Slide 17: Market Outlook
Market Outlook For personal use only THUNDERBIRD MINERAL SANDS DEMAND EXCEEDS SUPPLY ZIRCON SUPPLY DEFECIT FROM 2018 Forecast supply deficit from 2018 “...few new credible high quality sources of supply…” – Iluka annual report 2013 IMPROVING TiO2 FEEDSTOCK DEMAND “The additional demand growth
Slide 18: Key Focus: Value Enhancement Opportunities in 2014
Key Focus For personal use only VALUE ENHANCEMENT OPPORTUNITIES IN 2014 1. Exploration upside 2. Optimise mining schedule Discovery of additional shallow Infill drilling of up-dip areas will high grade enable optimisation of mine mineralisation could scheduling in early production years OPEN signifi
Slide 19: Red Bull Nickel-Copper
Red Bull Nickel-Copper For personal use only LARGE CONDUCTOR TO BE DRILLED THIS MONTH Located ~20km south of Nova in the Fraser Range Large, strong conductor identified from Fixed Loop EM survey Similar size and conductance to main Nova conductor* Coincident with major faults and an ultramaf
Slide 20: 2014 To Be A Defining Year For Sheffield
2014 To Be A Defining Year For Sheffield Upcoming 2014 Milestones Will Drive Shareholder Value For personal use only Drilling to target extensions of shallow, high grade mineralisation Resource Update Q4 2014 Project Optimisation Q4 2014 Regional Exploration - targeting another Thunderbird
Slide 21: Conclusion
For personal use only Conclusion A New Tier 1 HMS Project World class, large scale, long life project Long Life High estimated cash margins with leverage to multiple pricing cycles High Margin Modest estimated development capital with 2 year payback Premium Product Globally significant proje
Slide 22: Appendices
For personal use only Appendices 22
Slide 23: Appendix 1: Resource Inventory
Appendix 1: Resource Inventory SHEFFIELD’S CONTAINED VALUABLE HM (VHM)* For personal use only RESOURCE INVENTORY AT 19 MARCH 2014 Deposit Resource Category Zircon (‘000t) Rutile (‘000t) HiTi Leuc. (‘000t) Leuc. (‘000t) Ilmenite (‘000t) Total VHM (‘000t) Thunderbird Measured 510 - 150 140 1,660 2,450
Slide 24: Appendix 2: HMS Mineral Resources
Appendix 2: HMS Mineral Resources1 For personal use only INVENTORY 19 MARCH 2014 2 Cut-off Material HM Osize In-situ HM Zircon2 Rutile2 HiTi Leuc. % Leuc.2 Ilmenite2 Project Deposit Resource Category Bulk Density Slimes %3 (% HM)3 (Mt)* % % (Mt)* % % % % Thunderbird Measured 3.0 75 2.1 7.5 19 11 6 9
Slide 25: Appendix 3: Thunderbird Product Specifications
Appendix 3: Thunderbird Product Specifications For personal use only PRIMARY ZIRCON SPECIFICATIONS ZrO2 % Fe2O3 % TiO2% Al2O3% P2O5% 66.2 0.05 0.09 0.10 0.14 PRIMARY ILMENITE SPECIFICATIONS TiO2 % FeO % Fe2O3 % SiO2 % Al2O3% Cr2O3 % ZrO2 % 50.1 8.0 36.4 1.6 0.3 0.05 0.00 HiTi80 SPECIFICATIONS TiO2 %