Sheffield Resources Limited · ASX:SFX
Sheffield Resources — Investor Presentation (August 2023)
24 slides from Sheffield Resources's investor presentation, August 2023
Slide 1: Investor Presentation
INVESTOR PRESENTATION BRUCE GRIFFIN EXECUTIVE CHAIR August 2023 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 Project 4. South Atlantic Project 3
Slide 4: Sheffield Resources Strategy
SHEFFIELD RESOURCES STRATEGY Assembling a portfolio of global mineral sands development and production assets to generate cash returns and growth CORE ASSET KMS GROWTH S O U T H AT L A N T I C FUTURE GROWTH 50% interest Thunderbird Enhance KMS through South Atlantic Option Review of other quality mi
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 $0.75 $0.65 $0.55 $0.45 $0.35 $0.25 Aug-22 Oct-22 Sep-22 Mar-23 Jun-23 Jan-23 Apr-23 Nov-22 Dec-22 Jul-23 May-23 C A P I TA L S T R U C T U R E 1 MAJOR SHAREHOLDERS Item Unit Value Name % Holding Ordinary Shares #m 393 Yansteel 9.9% Share P
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: Thunderbird Mineral Sands Project
THUNDERBIRD MINERAL SANDS PROJECT 8
Slide 9: 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 TiO2 Grade % Bubble size 1.5% represents contained Zircon in Ore Reserves 1.5% Zircon Grade % Note: 1. Thunderbird Ore Reserve as publis
Slide 10: Simple Flowsheet Producing Concentrates
SIMPLE FLOWSHEET 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 Tail
Slide 11: 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 • Construction of Yansteel's vertically integrated smelter/pigment complex in China completed • Yansteel designed the plant to pro
Slide 12: Compelling Stage 1 Economics
COMPELLING STAGE 1 ECONOMICS $1,085M Metric Stage 11 $1,020M $1,000M $966M NPV8 post-tax A$842m $897M $828M IRR post-tax 26.6% $771M $842M $742M Revenue to Cost Ratio (first 10 yrs) 2.3 $654M $640M Project Capital A$379m Total Funding Requirement A$484m Process rate (tonnes p/hour) 1,085 Production
Slide 13: First Products Shipped in Q1 2024
FIRST PRODUCTS SHIPPED IN Q1 2024 Q2 2022 Q3 2022 Q4 2022 2023 2024 FINAL FIRST INVESTMENT PRODUCT DECISION SHIPMENT Current Progress: Construction >90% Complete Secure NAIF and Orion Debt Facilities Document and CP’s Pre FID Construction Construction Commission Production Major Contracts underway W
Slide 14: Thunderbird Process Plant – August 2023 Progress
THUNDERBIRD PROCESS PLANT – AUGUST 2023 PROGRESS Sheffield Resources Limited I ASX: SFX I Assembling a portfolio of global mineral sands development and production assets to generate cash returns and growth 14
Slide 15: 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 16: Our ESG Approach
OUR ESG APPROACH Environmental ► 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 the C
Slide 17: Thunderbird Mineral Sands Project
THUNDERBIRD MINERAL SANDS PROJECT • 50/50 JV with Yansteel • 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 • Yansteel pla
Slide 18: South Atlantic Project
SOUTH ATLANTIC PROJECT ill SheffieldResources LIMITED
Slide 19: South Atlantic Project Overview
SOUTH ATLANTIC PROJECT OVERVIEW • Investing up to US$2.5 million to earn an option to acquire a 20% interest by paying a further US$12.5 million • The project is located in the state of Rio Grande do Sul in Brazil • Continuous sequence of dunes and beach sands extending for 80km • Four continuous de
Slide 20: Summary
SUMMARY ill SheffieldResources LIMITED
Slide 21: Fully Funded to Execute Proposed Work Program
FULLY FUNDED TO EXECUTE PROPOSED WORK PROGRAM A$24m cash balance at end of Q2 2023, with adequate proceeds to fund work programs extending throughout CY2025 2H 2023 2024 2025 2026 Thunderbird Stage 1 Cashflow from Thunderbird Stage 1 Fully Funded KMS to shareholders South Atlantic – Possible further
Slide 22: Deep Discount to Asset Value
DEEP DISCOUNT TO ASSET VALUE 1 >70% discount to Sheffield NPV share of Stage 1&2 and NPV of forecast Sheffield cash dividends from KMS >50% discount to Stage 1 NPV share despite: peaks at $1.2B from 2028 to 2031 and remains above • Low risk jurisdiction $0.5B until 2048 • Project commissioning under
Slide 23: Sheffield Resources
SHEFFIELD RESOURCES Assembling a portfolio of global mineral sands development and production assets to generate cash returns and growth CORE ASSET KMS GROWTH S O U T H AT L A N T I C FUTURE GROWTH 50% interest Thunderbird Enhance KMS through South Atlantic Option Review of other quality mineral Min
Slide 24: Thank You
THANKYOU Registered and Corporate Office Sheffield Resources Limited Level 2, 41-47 Colin Street West Perth WA 6005 @Sheffield_ASX LinkedIn Sheffield +61 8 6555 8777 Resources info@sheffieldresources.com ASX: SFX www.sheffieldresources.com.au Sheffield Resources Sheffield Resources @Sheffield_ASX
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