Sheffield Resources Limited · ASX:SFX
Sheffield Resources — Investor Presentation (February 2023)
38 slides from Sheffield Resources's investor presentation, Feb 28, 2023
Slide 1: Investor Presentation: Growth Strategy & Equity Raising
INVESTOR PRESENTATION GROW T H ST RATEGY & E QUI T Y RA I SI NG BRUCE GRIFFIN EXECUTIVE CHAIR February 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: Notice and Disclaimer
NOTICE AND DISCLAIMER Estimates of Mineral Resources and Ore Reserves and Exploration Results This document and the Primary Announcements contain estimates of Ore Reserves and Mineral Resources and information that relates to exploration results. The Company confirms that all material assumptions un
Slide 4: Contents
CONTENTS • Company Strategy • Thunderbird Project • South Atlantic Project • Equity Raise 4
Slide 5: 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 6: 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$/sh 0.595 Market Capitalisation A$m 207 Cash Balance2 A$m 5 Debt Balance A$m - Enterprise Value A$m 202 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 Dec-22 May-22
Slide 7: Sheffield Board & Management
SHEFFIELD BOARD & MANAGEMENT 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 was
Slide 8: Thunderbird Mineral Sands Project
THUNDERBIRD MINERAL SANDS PROJECT 8
Slide 9: 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 10: 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 >75% Complete Secure NAIF and Orion Debt Facilities Document and CP’s Pre FID Construction Construction Commission Production Major Contracts underway W
Slide 11: 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 12: South Atlantic Project
SOUTH ATLANTIC PROJECT ill SheffieldResources LIMITED
Slide 13: South Atlantic Project Overview
SOUTH ATLANTIC PROJECT OVERVIEW • The Company has executed an agreement pursuant to which it may advance RGM an up to US$2.5 million unsecured loan, providing the Company an option to acquire a 20% interest in the South Atlantic Project by converting the loan and paying a further US$12.5 million • T
Slide 14: South Atlantic Project Overview: Infrastructure
SOUTH ATLANTIC PROJECT OVERVIEW Existing local infrastructure in place ► Deposit ends in a deep water port ► Multiple port options available ► Power grid and sealed roads in place Dedicated project infrastructure required, including: ► Mine access roads ► Mine power distribution ….with available loc
Slide 15: High Quality Local Partner
HIGH QUALIT Y LOCAL PARTNER ► The project is 100% owned by Rio Grande Mineração S/A (RGM) ► RGM is controlled by the MSP Group (75%) ► MSP is a privately owned group from Brazil and has investments in Mining, Power Generation and Agribusiness ► One of the largest holders of mineral rights in Brazil,
Slide 16: Option Agreement
OPTION AGREEMENT 1 Option Period: 18 month period starting Feb 2023 through to July 2024 Mid-2024 onwards After Option Period, Sheffield may enter into a Sheffield investing a maximum of US$2.5m alongside existing RGM shareholder contributions exceeding US$3m to fund de-risking activities Joint Vent
Slide 17: Equity Raise Summary
EQUITY RAISE SUMMARY ill SheffieldResources LIMITED
Slide 18: Equity Raise Details
EQUIT Y RAISE DETAILS A$18M INSTITUTIONAL PLACEMENT AND A$12M NON-RENOUNCEABLE ENTITLEMENT OFFER A$30M equity raising comprising: • A$18m placement of approximately 36m new fully paid ordinary shares (New Shares) to sophisticated and professional investors (Placement). The Placement will take place
Slide 19: Sources and Uses of Funds
SOURCES AND USES OF FUNDS South Atlantic Project activities including1: ▸ Continued drilling and JORC Resource estimation Sources of Funds1 (A$m) ▸ Initiate trial mining program Placement Proceeds 18.0 ▸ Complete Definitive Feasibility Study Entitlement Offer Proceeds 12.4 ▸ Finalise licencing of Re
Slide 20: Indicative Timetable
INDICATIVE TIMETABLE EVENT DATE (2023) Trading halt lifted and announcement of Placement and Entitlement Offer 28 February Ex-Date of Entitlement Offer 2 March Record Date to determine Entitlement to New Shares (7.00pm AEDT) 3 March Settlement of Placement Shares 7 March Dispatch of Offer Booklet an
Slide 21: Summary
SUMMARY ill SheffieldResources LIMITED
Slide 22: 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 23: International Offer Restrictions
INTERNATIONAL OFFER RESTRICTIONS 23
Slide 24: International Offer Restrictions
INTERNATIONAL OFFER RESTRICTIONS New Zealand This document has not been registered, filed with or approved by any New Zealand regulatory authority under the Financial Markets Conduct Act 2013 (FMC Act). The New Shares are not being offered or sold in New Zealand (or allotted with a view to being off
Slide 25: International Offer Restrictions
INTERNATIONAL OFFER RESTRICTIONS Hong Kong WARNING: This document has not been, and will not be, registered as a prospectus under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong, nor has it been authorised by the Securities and Futures Commission in Hong Kong
Slide 26: Key Risks
KEY RISKS ill SheffieldResources LIMITED
Slide 27: Key Risks
KEY RISKS 1. Introduction An investment in New Shares is subject to risks, some of which are beyond the control of SFX. The existence of risk means that the performance of the Company or the New Shares could be adversely affected. SFX does not guarantee any particular rate of return or the performan
Slide 28: Key Risks (Continued)
KEY RISKS (CONTINUED) Competition Risk The mineral sands industry is a concentrated market with a relatively small number of large producers dominating the market, coupled with a variety of much smaller producers. According to analysis undertaken by TZMI, the mineral sands industry is expected to se
Slide 29: Key Risks (Continued)
KEY RISKS (CONTINUED) Reliance on Key Personnel (continued) In addition, the Thunderbird Project is located in a relatively remote area where lack of access to skilled labour could be an issue. Any inability by KMS or its key contractors to obtain skilled workers when required could have a material
Slide 30: Key Risks (Continued)
KEY RISKS (CONTINUED) Title Risk Interests in tenements in Western Australia are governed by the Mining Act. Each tenement is granted for a specific term and carries with it annual expenditure and reporting commitments, as well as various other terms and conditions. There is a risk that title to the
Slide 31: Key Risks (Continued)
KEY RISKS (CONTINUED) Aboriginal Heritage (cont’d) Although there is a State register of known Aboriginal sites maintained by the Department of Aboriginal Affairs, it is not comprehensive and Aboriginal sites are protected whether or not they have been identified on the register. Agreements negotiat
Slide 32: Key Risks (Continued)
KEY RISKS (CONTINUED) 3. South Atlantic Project Risks Local Currency Risk The market value of securities issued by companies that operate in Latin America is affected, to varying degrees, by economic and market conditions in Latin America and in other countries, including emerging economies. The inv
Slide 33: Key Risks (Continued)
KEY RISKS (CONTINUED) Land Access The South Atlantic Project tenements, may be subject to access restrictions. These may relate to freehold ownership of the land on which the tenements are located, or the rights of government or local indigenous people. In those circumstances, resolution of access a
Slide 34: Key Risks (Continued)
KEY RISKS (CONTINUED) Reliance on information provided by RGM The investment follows preliminary due diligence undertaken by Sheffield in respect of the South Atlantic Project, which relied (and will continue to rely in confirmatory due diligence), in part, on the review of financial and other infor
Slide 35: Key Risks (Continued)
KEY RISKS (CONTINUED) 4. General Risks Securities investments There are risks associated with any securities investment. The prices at which the securities of the Company trade may fluctuate in response to a number of factors. Furthermore, the stock market, and in particular the market for biotech c
Slide 36: Key Risks (Continued)
KEY RISKS (CONTINUED) Economic The financial performance and value of the Company may be influenced by various economic factors such as commodity prices, inflation, interest rates, domestic and international economic growth, taxation policies, legislative change, political stability, stock market co
Slide 37: Key Risks (Continued)
KEY RISKS (CONTINUED) Financial covenants The Group is subject to various financial covenants in relation to its banking facilities. These covenants may, for example, require one or more Group members to maintain a minimum net worth, net tangible assets or interest cover ratio or a maximum gearing o
Slide 38: Thankyou
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
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