Slide 1: Thunderbird Mineral Sands Project
For personal use only Thunderbird Mineral Sands Project IMARC Conference – Melbourne October 2019
Slide 2: Notice and Disclaimer
Notice and Disclaimer 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 which is current, unless otherwise indicated. The information in this docume
Slide 3: Notice and Disclaimer
Notice and Disclaimer Not financial product advice For personal use only 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 Bankable Feasibility Study Update
Thunderbird Bankable Feasibility Study Update1 For personal use only Metric 2019 BFSU • A$1 billion post tax NPV8 • 24% post tax IRR NPV8 post-tax A$0.98B • 30% pre-tax IRR IRR post-tax % 24.0% • A$335m long tenor debt NPV10 pre-tax A$1.13B ̶ Taurus (7 year) IRR pre-tax % 30.1% ̶ NAIF (15 & 20 year)
Slide 5: Optimally Positioned to Supply Key End Markets
Optimally Positioned to Supply Key End Markets Sheffield has a clear competitive advantage in supplying the Asian markets For personal use only • Low risk jurisdiction • Fully permitted • Simple mine to market logistics • Major highway links to 2 ports 140km • Local access to labour and industrial s
Slide 6: One of the Highest Margin Projects Globally - TZMI
One of the Highest Margin Projects Globally - TZMI Thunderbird is in the first quartile - one of the highest margin projects globally For personal use only Independent TZMI Feedstock Cost Study for CY 2022 (Published 2018) R/C Ratio 4.0 1st quartile 2nd quartile 3rd quartile 4th quartile 3.5 3.0 Thu
Slide 7: Largest, high grade, zircon rich mineral sands projects globally
Largest, high grade, zircon rich mineral sands projects globally Comparison of contained zircon within JORC Ore Reserves of key global mineral sands deposits1 For personal use only 7 6 5 Contained Zircon Mt 4 3 2 1 0 Notes: 1. Thunderbird Ore Reserve (red) as published on the ASX on 31 July 2019. Co
Slide 8: 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 indicate a strong trend of accelerating grade depletion with each new published Ore Res
Slide 9: Thunderbird is a High Grade, Thick Deposit
Thunderbird is a High Grade, Thick Deposit Deposit exhibits strong continuity and high Valuable Heavy Mineral (“VHM”) grades For personal use only Thunderbird Site Layout of VHM Grade x Thickness (>7.5% HM) • Typical of an off-shore, sub-wave base deposit • Zircon & Ilmenite dominant VHM • Flat, thi
Slide 10: Simple and Conventional Processing Circuit
Simple and Conventional Processing Circuit For personal use only Stages 1 & 2 • Simple and typical mineral sands flowsheet • 3 finished products ̶ Premium zircon ̶ Zircon concentrate ̶ Primary Ilmenite • Dry mining via conventional dozer trap • Pits back filled and rehabilitated as mining progresses
Slide 11: Well Positioned Near Existing Port Infrastructure
Well Positioned Near Existing Port Infrastructure Thunderbird is conveniently located between two existing ports For personal use only Port of Broome • Close proximity to two existing ports ̶ Port of Broome is 148km away ̶ Port of Derby is 146km away • Products to be trucked from mine to port • Port
Slide 12: Stage Funding Sources
Stage 1 Funding Sources With c. A$335m of debt funding secured through the Taurus and NAIF facilities. For personal use only A$143m of equity funding is required to commence construction of Thunderbird Stage 1 Stage 1 Funding (A$m)1 c. A$143m in equity funding is required in addition to the Taurus a
Slide 13: A Substantial Supply Gap in the Zircon Market is Emerging
A Substantial Supply Gap in the Zircon Market is Emerging Thunderbird ideally positioned to help bridge part the expected supply gap For personal use only Significant zircon supply gap expected1 Key observations • Supply decline of 2.9% p.a. expected up to 2023 • Ore Reserve depletion and Forecast s
Slide 14: Substantial Supply Gap in the Titanium Market is Emerging
Substantial Supply Gap in the Titanium Market is Emerging Significant supply gap for high grade TiO2 feedstocks on the horizon1 For personal use only Key observations Opportunities Rutile supply declines of 10.5% p.a. to 2023 Production of Chloride Slag to fill void ̶ Supply declines by 330,000 TiO2
Slide 15: Primary Approvals, Leases & Agreements in Place
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) Department
Slide 16: Stage Development & Commissioning Timeline
Stage 1 Development & Commissioning Timeline The proposed timetable takes into account all foreseeable seasonal events, such as the wet season. Early works have already commenced For personal use only Note: This timetable is subject to obtaining FID. Continuing further construction on early works is
Slide 17: Sheffield Resources Corporate Overview
APPENDIX: Sheffield Resources Corporate Overview Sheffield Resources is an ASX listed mineral sands developer which owns 100% of the large scale shovel ready Thunderbird Mineral Sands Project For personal use only • Sheffield Resources Limited (“Sheffield” or the “Company”) is an ASX Capital structu
Slide 18: Thunderbird Ore Reserves
APPENDIX: Thunderbird Ore Reserves For personal use only Thunderbird Ore Reserves: Valuable Heavy Mineral in-situ grade1 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 19: Thunderbird Mineral Resources
APPENDIX: Thunderbird Mineral Resources For personal use only 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%) C
Slide 20: Operating Assumptions
APPENDIX: Operating Assumptions Key physical and cost assumptions which underpin the BFSU Financial Model For personal use only Physical assumptions overview Operating cost breakdown Stage 11 Stage 22 LOM3 A$/t ore mined Stage 11 Stage 22 LOM3 Mining 3.19 2.98 3.37 Volume Processing 4.36 3.65 3.69 O
Slide 21: US$175m Taurus facility summary
APPENDIX: US$175m Taurus facility summary Sheffield expects to conclude similar debt package with an experienced metals & mining specialist private equity fund For personal use only Taurus Overview Tranche A Key Terms • Experienced specialist global investor based in Australia, targeting small to Fa
Slide 22: A$95m NAIF Loan Facility Summary
APPENDIX: A$95m NAIF Loan Facility Summary Sheffield expects to conclude debt financing with Government support to provide very long tenor financing demonstrates conviction and support for Thunderbird For personal use only NAIF Overview Tranche C Key Terms2 • Northern Australia Infrastructure Fund (
Slide 23: Stage Total Funding Requirement
APPENDIX: Stage 1 Total Funding Requirement The total Stage 1 funding requirement is estimated at approximately A$478 million For personal use only Stage 1 upfront capex1 Total funding requirement Amount Amount Description (A$m) Description (A$m) Comments Wet Concentrator Plant 52.9 Processing 174.9
Slide 24: Royalty Regime and Fiscal Assumptions
APPENDIX: Royalty Regime and Fiscal Assumptions Key royalty and fiscal arrangements are outlined below For personal use only Arrangement or Calculation State government royalty • WA State government royalty of 5% of Total Sales Revenue Taurus royalty • Royalty for years 1 to 4, starting on first sal
Slide 25: 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 long highly mineralised t