Sheffield Resources Limited · ASX:SFX
Sheffield Resources — Investor Presentation (May 2021)
27 slides from Sheffield Resources's investor presentation, May 5, 2021
Slide 1: Investor Roadshow
For personal use only Investor Roadshow Bruce Griffin – Executive Chair May 2021
Slide 2: Notice and Disclaimer
Notice and Disclaimer IMPORTANT: You must read the following in conjunction with this document. For personal use only 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: Sheffield Resources – ASX listed mineral sands developer
Sheffield Resources ASX listed mineral sands developer For personal use only • Market Cap of $170 million (346 million shares at $0.49/share)1 • $10.8 million cash balance (31 March 2021)* • Enterprise value of $159 million 50% owner of the Tier 1 Thunderbird Mineral Sands Project in Western Austral
Slide 4: Board and Management restructured for execution
Board and Management restructured for execution Sheffield Resources Board and Management (ASX:SFX) For personal use only Bruce Griffin John Richards Bruce McFadzean Executive Chairman Lead Independent Director Managing Director Previously Senior VP of Strategic Economist with more than 35 years’ (NE
Slide 5: Kimberley Mineral Sands
Kimberley Mineral Sands For personal use only Kimberley Mineral Sands1 • Owns 100% of the Thunderbird Project YGH Australia 9.9% Sheffield Resources • Yansteel (via YGH Australia) contributed A$130.1m in equity to acquire 50% Investment Limited Limited • Sheffield retains 50% 50% 50% • Four person B
Slide 6: 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 For personal use only • Large, mature mineral sands deposits globally typically show accelerating grade depletion trend with each new published Ore Reserve update •
Slide 7: Thunderbird – Quality products from simplified flowsheet
Thunderbird – Quality products from simplified flowsheet LTR (Low Temperature Roast) Ilmenite (35% of revenue) For personal use only • 500,0001 tonnes per annum in Phase 1 • 50% TiO2 and low in key contaminants • Suitable for chloride slag or sulphate pigment • Binding offtake with Yansteel ‒ Market
Slide 8: Thunderbird – Why Zircon Concentrate?
Thunderbird – Why Zircon Concentrate? For personal use only • The market for zircon concentrates is deep (around 800,000 tpa) • China zircon concentrate imports have grown to ~2x zircon sand imports • Large creditworthy counterparties • Contract pricing based upon contained minerals, recoveries, qua
Slide 9: Thunderbird – Why LTR Ilmenite?
Thunderbird – Why LTR Ilmenite? For personal use only • Thunderbird magnetic concentrate is a mix of ilmenite and titano-haematite ‒ The ilmenite is naturally high in TiO2 (~55%) and low in impurities (including Cr2O3, CaO, and MgO) ‒ The titano-haematite is physically similar to the ilmenite preven
Slide 10: 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 11: 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 12: Thunderbird – Product Pricing
For personal use only Thunderbird – Product Pricing Sulfate ilmenite • Price up ~40% since January 2020 • Long term price assumption ~$200/t real Premium Zircon • Q3 2020 recent low of $1340/t • Prices started to recover in Q1 2021 • Current price +/- $1400/t • Long term price assumption ~$1500/t re
Slide 13: Thunderbird – De-risking: Trial mining
For personal use only Thunderbird – De-risking: Trial mining • Trial Mining completed in Q4 2020 • 220kt including 120kt of ore and 100kt of waste • 30m deep including 21m of the high grade T2 ore • Utilised small scale equipment: ‒ 1 x 70t excavator, ‒ 1 x D9 dozer and ‒ 3 x 65t trucks • 25t bulk o
Slide 14: Thunderbird – De-risking: Site Works, Engineering and Long Lead Items
For personal use only Thunderbird – De-risking: Site Works, Engineering and Long Lead Items Site Works in 2H 2021 • Maximise construction in 2022 dry season • Complete site works prior to 2021/2022 wet season, including ‒ Access road ‒ Process plant site ‒ Village ‒ Construction water ‒ Communicatio
Slide 15: Thunderbird – Pathway to FID, Construction and Production
For personal use only Thunderbird – Pathway to FID, Construction and Production Kimberley Wet Season Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2-Q4 2022 2023 2024 Mar 2021: KMS Formed FID DFS Construction 2nd Mining Trial Production Site Works Detailed Engineering Long Lead Items EPC Agreement Other
Slide 16: Thunderbird – Capital and Funding
Thunderbird – Capital and Funding Process capital expected to be lower than BFSU1 with simplified flowsheet For personal use only • Added capital with reintroduction of the LTR; offset by • Simplified ilmenite circuit • Removal of zircon MSP including hot acid leach DFS to finalise capital and opera
Slide 17: Sheffield Resources – Funded through to FID
For personal use only Sheffield Resources – Funded through to FID A$10.8m cash balance at 31 March 2021 Kimberley Mineral Sands transaction and reorganisation costs payable in Q2 • A$4.0m expected net outflow in Q4 FY2021 Restructured Board and Management further reduces corporate cost • Annual Shef
Slide 18: Thunderbird – Optionality
For personal use only Thunderbird – Optionality Phase 2: Expansion in Year 5 Dampier Project • Offset decline in high grade • Increase production of ilmenite and zircon concentrate by ~40% • BFSU capital estimate for Phase 2 was $237 million1 Resource base to support further growth • Thunderbird res
Slide 19: Sheffield – Industry Context
Sheffield – Industry Context For personal use only Favourable outlook for sulfate ilmenite • Large sulfate pigment production base requires feedstock – sulfate ilmenite preferred • Chloride slag is a core feedstock for chloride pigment – sulfate ilmenite is used to make chloride slag • New pigment c
Slide 20: APPENDIX: Sheffield Resources Corporate Overview
APPENDIX: Sheffield Resources Corporate Overview Sheffield Resources is an ASX listed mineral sands developer which owns 50% of the large For personal use only scale shovel ready Thunderbird Mineral Sands Project Capital structure1 • Sheffield Resources Limited (“Sheffield” or the “Company”) is an A
Slide 21: 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 22: 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 23: 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 24: APPENDIX: Kimberley Mineral Sands
APPENDIX: Kimberley Mineral Sands Kimberley Mineral Sands For personal use only • In March 2021, Sheffield and Yansteel formed Kimberley Mineral Sands Pty Ltd (“KMS”) • KMS owns and will develop the Thunderbird Mineral Sands Project and adjacent tenements on the Dampier Peninsula • The parties have
Slide 25: 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 26: APPENDIX: Significant Regional Exploration Upside
APPENDIX: Significant Regional Exploration Upside Strategic value demonstrated through multiple discoveries made along a 120km long trend For personal use only • Exploration has delineated 12 zones of significant mineralisation along a 120km long highly mineralised trend which extends from Cisco in
Slide 27: Contact Us
For personal use only CONTACT US 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 27
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