Sheffield Resources Limited · ASX:SFX
Sheffield Resources — Corporate Update (March 2021)
23 slides from Sheffield Resources's corporate update, Mar 24, 2021
Slide 1: 2021 Project Update
For personal use only 2021 Project Update March 2021
Slide 2: Notice and Disclaimer
Notice and Disclaimer For personal use only 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 a
Slide 3: Notice and Disclaimer
Notice and Disclaimer For personal use only Not financial product advice This document does not constitute, and is not intended to constitute, investment or financial product advice (nor tax, accounting or legal advice). This document should not be relied upon as advice to investors or potential inv
Slide 4: Thunderbird – From JV to FID
For personal use only Thunderbird – From JV to FID Kimberly Mineral Sands Board Restructure Project Update Market Opportunity Pathway to FID 4
Slide 5: Kimberley Mineral Sands transaction completed
Kimberley Mineral Sands transaction completed For personal use only Kimberley Mineral Sands1 • Yansteel contributed A$130.1m in equity to acquire its 50% interest • Sheffield retains 50% Placement2 • Yansteel paid A$12.9m for 9.9% of Sheffield in a placement completed on 12 August 2020 • The shares
Slide 6: Board and Management restructured for execution
Board and Management restructured for execution For personal use only Sheffield Resources Limited - Board and Management (ASX:SFX) John Richards Bruce McFadzean Bruce Griffin Non-Executive Chairman Managing Director Commercial Director Economist with more than 35 years’ Mining engineer with over 40
Slide 7: One of the Largest, Highest Grade Ore Reserves Globally
One of the Largest, Highest Grade Ore Reserves Globally Comparison of Ore Reserves and grade between the key large mineral sands deposits globally1,2,3 For personal use only • Large, mature mineral sands deposits globally typically show accelerating grade depletion trend with each new published Ore
Slide 8: Thunderbird – Simplified flowsheet
For personal use only Thunderbird – Simplified flowsheet Non-mag concentrate • Removes zircon MSP from BFS and BFSU LTR Ilmenite • Ilmenite circuit from BFS flowsheet 8
Slide 9: Thunderbird – Yansteel equity to fill funding gap
Thunderbird – Yansteel equity to fill funding gap Process capital expected to be lower with simplified flowsheet For personal use only + Cost of reintroduction of LTR offset by - Simplified ilmenite circuit - Removal of zircon MSP JV BFS will update project capital and operating costs Overall Projec
Slide 10: Thunderbird – Trial mining confirms mining method and cost
For personal use only Thunderbird – Trial mining confirms mining method and cost • Trial Mining Program was completed in Q4 2020. The pit was 220kt containing 120kt of ore and 100kt of waste material. • Trial pit was 30m deep and mined through the high grade T2 ore zone c. 21m thick. • Program succe
Slide 11: Thunderbird – Attractive product mix
Thunderbird – Attractive product mix For personal use only • LTR Ilmenite − 400,0002 tonnes per annum in Phase 1 % Revenue1 − Suitable for TiO2 slag or sulphate pigment feedstock − 53% TiO2 and low in key contaminants Projected First Four Full Production Years − 100% binding offtake with Yansteel 1.
Slide 12: Thunderbird – Aligned with emerging zircon supply gap
Thunderbird – Aligned with emerging zircon supply gap Zircon supply gap forecast from 2021/22 onwards For personal use only Covid-19 Observations • Covid-19 2020 demand impact significant but less than predicted • Major suppliers have adjusted supply to match reduced demand • This supply response ea
Slide 13: Thunderbird – New ilmenite supply is required
Thunderbird – New ilmenite supply is required New non-captive projects required to meet non-captive demand For personal use only Observations • Sulfate ilmenite demand remained strong during 2020 • Sulfate pigment provides solid demand base • New Chinese chloride slag smelters driving increasing ben
Slide 14: Pathway from Joint Venture to FID
For personal use only Pathway from Joint Venture to FID Q3 2020 Q4 2020 Q1 2021 Q2 2021 Aug 2020: Mar 2021: FID Non Binding JV Term Sheet and Ilmenite Offtake KMS Formed FIRB Application Application submitted Approval expected JV Documentation Draft Execute Lender Agreement for JV Execute Yansteel C
Slide 15: Summary
Summary • Kimberly Mineral Sands (KMS) formed on 12 March For personal use only • KMS cash balance A$130.1m • Thunderbird targeted to be a large, long life zircon and ilmenite producer • Overall project capital and financial metrics are expected to be similar to the BFSU • Cash on hand + reconfirmed
Slide 16: APPENDIX: Sheffield Resources Corporate Overview
APPENDIX: Sheffield Resources Corporate Overview Sheffield Resources is an ASX listed mineral sands developer which owns 100% of the For personal use only large scale shovel ready Thunderbird Mineral Sands Project Capital structure1 • Sheffield Resources Limited (“Sheffield” or the “Company”) is an
Slide 17: APPENDIX: Thunderbird Ore Reserves
APPENDIX: Thunderbird Ore Reserves Thunderbird Ore Reserves: Valuable Heavy Mineral in-situ grade1 For personal use only Valuable Heavy Mineral Grade (In-situ)2 In-situ HM Ore Reserve Ore Tonnes Tonnes HM Grade Zircon HiTi Leucoxene Leucoxene Ilmenite Oversize Slimes Category (Mt) (Mt) (%) (%) (%) (
Slide 18: APPENDIX: Thunderbird Mineral Resources
APPENDIX: Thunderbird Mineral Resources Thunderbird Mineral Resources: Valuable Heavy Mineral in-situ grade1 For personal use only 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%) C
Slide 19: APPENDIX: Primary Approvals, Leases & Agreements in Place
APPENDIX: Primary Approvals, Leases & Agreements in Place Thunderbird is fully permitted and construction ready For personal use only Party Topic Scope Date Complete In Place Dept of Environment & Environmental Approval Federal Government environmental approval for project Sep 2018 Energy (Cwth) D
Slide 20: APPENDIX: Kimberley Mineral Sands
APPENDIX: Kimberley Mineral Sands Kimberly Mineral Sands For personal use only • In January 2021, Sheffield and Yansteel executed binding agreements for the formation of a 50:50 Joint Venture (Kimberly Mineral Sands Pty Ltd, KMS) • KMS owns and will develop the Thunderbird Mineral Sands Project and
Slide 21: APPENDIX: Bankable Feasibility Study Update (BFSU)
APPENDIX: Bankable Feasibility Study Update (BFSU)1 • c. A$1 billion post tax NPV8 For personal use only Metric 2019 BFSU • 24% post tax IRR NPV8 post-tax A$0.98B • A$1.1 billion pre-tax NPV10 IRR post-tax % 24.0% • 30% pre-tax IRR NPV10 pre-tax A$1.13B • 2.3 Revenue to cost ratio IRR pre-tax % 30.1
Slide 22: CONTACT US
CONTACT US For personal use only Registered and Corporate Office Sheffield Resources Ltd Level 2 41–47 Colin Street West Perth WA 6005 p. +61 8 6555 8777 e. info@sheffieldresources.com.au 23 March 2021 22
Slide 23: APPENDIX: Significant Regional Exploration Upside
APPENDIX: Significant Regional Exploration Upside Strategic value demonstrated through multiple discoveries made along a 160km long trend For personal use only • Exploration has delineated 14 zones of significant mineralisation along a 160km Dampier Project – Regional Plan1,2 long highly mineralised