Sheffield Resources Limited · ASX:SFX
Sheffield Resources — Investor Presentation (March 2022)
31 slides from Sheffield Resources's investor presentation, Mar 28, 2022
Slide 1: BFS Results, Financing & Project Update
BFS Results, Financing & Project Update Investor Presentation Bruce Griffin – Executive Chair March 2022
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: Notice and Disclaimer
Notice and Disclaimer Not financial product advice The Kimberley Mineral Sands Bankable Feasibility Study (KMS BFS) announced by Sheffield on 24 March 2022 and related information in this document, and the information provided in it, does not constitute, and is not intended to constitute, investment
Slide 4: Highlights: BFS, Financing & Project Update
Highlights: BFS, Financing & Project Update LTR removed – leveraging Yansteel investment in China • Lowers capex, increases returns • 100% of LoM Stage 1 mag con contracted to Yansteel – 5 years fixed price per % TiO2 then market price Stage 1 Upfront Capex = $361m • Stage 2 capex $258m Robust Stage
Slide 5: LTR Removed – Simplified flowsheet utilising proven equipment
LTR Removed – Simplified flowsheet utilising proven equipment Mining Feed Preparation, Scrubbing, Screening Thickener underflow to mine void and Desliming CUP Finisher Spirals Concentrate Upgrade CUP Spirals CUP Finisher Plant WHIMS WHIMS Primary Wet Concentration Zircon Concentrate WCP Tails to min
Slide 6: Leveraging Yansteel Downstream Capability
Leveraging Yansteel Downstream Capability • Yansteel is part of Tangshan Yanshan Iron & Steel Co., Ltd, a privately owned Chinese steel manufacturer • Construction of Yansteel's vertically integrated smelter/pigment complex in China is well advanced • Feed preparation plant (FPP) includes fluidised
Slide 7: Production Volumes
Production Volumes Production averages 1.4mt per annum for all products over a 36 year mine life Stage 1 Stage 1 & 2 2,400 2,000 1,872 1,867 1,867 1,867 1,872 1,867 160 160 160 160 160 160 1,600 375 374 374 374 375 374 '000 tonnes 1,392 119 1,200 1,094 1,037 279 1,013 94 86 89 219 202 208 800 715 1,
Slide 8: Total Funding Requirement – Stage 1
Total Funding Requirement – Stage 1 Stage 1 capital investment of $361m and total funding requirement of A$484 million Cost A$m Comments Processing 171 • Fixed price EPC contract Infrastructure 51 Owners Costs 107 Contingency 33 Stage 1 Upfront Capex 361 • Includes 10% contingency Working Capital 20
Slide 9: Strong Stage 1 & 2 Economics
Strong Stage 1 & 2 Economics Metric 2022 BFS1 2019 BFSU2 2017 BFS3 NPV8 post-tax A$1.28B A$0.98B A$0.62B IRR post-tax 27.5% 24.0% 20.6% Revenue to Cost Ratio (first 10 yrs) 2.4 2.3 2.1 Project Capital (Stage 1) A$361m A$392m A$463m Total Funding Requirement (Stage 1) A$484m A$478m A$579m Process rat
Slide 10: Robust Stage 1 & 2 NPV
Robust Stage 1 & 2 NPV Pre-finance, post-tax NPV8 of A$1.3B compared to 10% shifts in key variables Base Case NPV Variance A$1,279m Variance Capital Costs +10%/-10% $1,230m $1,328m Site Operating Costs +10%/-10% $1,127m $1,431m Ore Grade (VHM) -10%/+10% $986m $1,504m Commodity Price (AUD) -10%/+10%
Slide 11: Long life with sustained value generation
Long life with sustained value generation Project NPV peaks at $2.3B in 2028 and is forecast to NPV of forecast Sheffield cash dividends from KMS peaks at remain above $1B until 2046 $1.1B from 2028 to 2032 and remains above $0.5B until 2046 Rolling NPV – Stage 1 & 2 (Post-tax, Pre-finance) Rolling
Slide 12: Improved project economics vs 2019 BFSU
Improved project economics vs 2019 BFSU 2022 BFS magnetic concentrate priced as a mixture of high-quality ilmenite and titano-hematite vs 2019 BFSU magnetic concentrate priced as low TiO2 ilmenite concentrate 12
Slide 13: Funding Strategy for Stage 1
Funding Strategy for Stage 1 Sheffield equity contribution fully funded from existing cash Sheffield equity contribution of ~$36m Debt facilities1 • $10m post-FID contribution + 50% of balance • $300 – $320m secured senior debt facilities Fully funded from $40m cash balance • Targeting c.60% gearing
Slide 14: Stage 1 Development Timeline
Stage 1 Development Timeline Q1 2022 Q2 2022 H2 2022 2023 2024 Project financing completion and timing subject to DECISION BFS Completion completion of due diligence, approvals, Pre-FID Early Works documentation and customary conditions precedent Long Lead Items INVESTMENT Project Financing
Slide 15: Deep discount to asset value
Deep discount to asset value 700 75% discount to NPV of SFX interest in KMS despite: 600 • Low risk jurisdiction • BFS complete 500 • Funding in final stages of approval 400 75% of NPV A$m 300 200 100 0 NPV of SFX cashflows SFX Market Cap to/from KMS 1. Based upon ASX market price of Sheffield Resou
Slide 16: Thunderbird – large, high grade ore body … in a low risk jurisdiction
Thunderbird – large, high grade ore body … in a low risk jurisdiction Ore Reserves and Grade for selected mineral sands deposits 1,2,3 1.35% TiO2 Grade % Bubble size represents contained VHM in Ore Reserves 1.6% Zircon Grade % Note: 1. Thunderbird Ore Reserve as published on the ASX on 24 March 2022
Slide 17: Thunderbird – the world’s largest zircon reserves … in a low risk jurisdiction
Thunderbird – the world’s largest zircon reserves … in a low risk jurisdiction Contained zircon in Ore Reserves and Grade for selected mineral sands deposits 1,2,3 1.35% TiO2 Grade % Bubble size represents contained Zircon in Ore Reserves 1.6% Zircon Grade % Note: 1. Thunderbird Ore Reserve as publi
Slide 18: Our ESG Approach
Our ESG Approach Environmental Social Full State and Federal environmental approvals granted following a detailed Public Co-existence Agreement (Native Title Agreement) in place Environmental Review ("PER") process Targeted 40% Aboriginal Employment by year 8 of operations PER concluded all risk
Slide 19: Highlights: BFS, Financing & Project Update
Highlights: BFS, Financing & Project Update LTR removed – leveraging Yansteel investment in China Stage 1 Upfront Capex $361m Robust Stage 1 & 2 economics • Post Tax NPV8 $1.28b – $640m SFX share • IRR pre-tax 27.5% Total funding required for Stage 1 $484m NAIF + Commercial Debt facility ~ 65% geari
Slide 20: THANK YOU
THANK YOU Registered and Corporate Office Sheffield Resources Limited Level 2 41–47 Colin Street West Perth WA 6005 p. +61 8 6555 8777 e. info@sheffieldresources.com.au 20
Slide 21: Sheffield Resources Corporate Overview
Appendix: Sheffield Resources Corporate Overview Sheffield Resources is an ASX listed mineral sands developer which has a 50% joint venture interest in the large scale Thunderbird Mineral Sands Project Capital structure1 • Sheffield Resources Limited (“Sheffield” or the “Company”) is an ASX listed m
Slide 22: Sheffield Executive and Board
Appendix: Sheffield Executive and Board Bruce Griffin Mark Di Silvio Executive Chair Chief Financial Officer & Company Secretary • Most recently held the position of Senior Vice President • Mr Di Silvio is a CPA and MBA qualified finance professional with Strategic Development of Lomon Billions Grou
Slide 23: Thunderbird Ore Reserves
Appendix: Thunderbird Ore Reserves 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
Slide 24: Thunderbird Mineral Resources
Appendix: Thunderbird Mineral Resources Thunderbird Mineral Resources: Valuable Heavy Mineral in-situ grade1 In-situ HM Valuable Heavy Mineral Grade (In-situ)3 2 Cut-off Mineral Resource Ore Tonnes Tonnes HM Grade Zircon HiTi Leucoxene Leucoxene Ilmenite Slimes Oversize (HM%) Category (Mt) (Mt) (%)
Slide 25: Night Train Mineral Resources
Appendix: Night Train Mineral Resources Night Train Mineral Resources: Valuable Heavy Mineral in-situ grade1 Valuable Heavy Mineral Grade (In-situ)2,3 HiTi Leucoxene Mineral Resource Cut off Ore Tonnes HM Grade Zircon & Rutile Leucoxene Ilmenite Slimes Oversize Category (HM%) (Mt) (%) (%) (%) (%) (%
Slide 26: Significant Regional Exploration Upside
Appendix: Significant Regional Exploration Upside Strategic value demonstrated through multiple discoveries made along a 120km long trend • Exploration has delineated 14 zones of significant mineralisation along a 120km Dampier Project – Regional Plan1 long highly mineralised trend • High grade Mine
Slide 27: ESG – Environment
Appendix: ESG – Environment 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 impa
Slide 28: ESG – Environment
Appendix: ESG – Environment Continuous Rehabilitation • 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 rehabil
Slide 29: ESG – Environment
Appendix: ESG – Environment Embracing the Climate Change challenge • CO2 baseline Scope 1 emissions estimated in BFS 2017 at 11mt CO2e (c.40 year life of project)* • Significant reduction expected following removal of Low Temperature Roaster • Independent third-party validation of emissions commissi
Slide 30: ESG – Our Community Stakeholders
Appendix: ESG – Our Community Stakeholders 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 • S
Slide 31: ESG – Native Title Agreement
Appendix: ESG – Native 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 sig
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