Sheffield Resources Limited · ASX:SFX
Sheffield Resources — Macquarie Western Australia Forum (November 2023)
24 slides from Sheffield Resources's conference presentation, Nov 30, 2023
Slide 1: Macquarie Western Australia Forum
M AC Q UA R I E W E S T E R N AU S T R A L I A FO R U M BRUCE GRIFFIN EXECUTIVE CHAIR 30 November 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. Thunderbird Mineral Sands Mine 3. South Atlantic Project 3
Slide 4: 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 Thunderbird Mineral Sands Enhance KMS through South Atlantic Option Review of other quality mineral 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 Dec-22 Jun-23 Jan-23 Mar-23 Feb-23 Apr-23 Jul-23 Sep-23 Aug-23 Nov-23 Oct-23 C A P I TA L S T R U C T U R E 1 MAJOR SHAREHOLDERS BROKER COVERAGE & RESEARCH Item Unit Value Name % Holding Ordinary Shares #
Slide 6: Thunderbird Mineral Sands Mine
THUNDERBIRD MINERAL SANDS MINE 6
Slide 7: First Ore Production in October 2023
FIRST ORE PRODUCTION IN OCTOBER 2023 TA I L I N G S S T O R A G E FA C I L I T Y NOVEMBER 2023 MINE NOVEMBER 2023 PROCESS PLANT HMC AND PRODUCT STOCKPILES NOVEMBER 2023 Sheffield Resources Limited I ASX: SFX I Assembling a portfolio of global mineral sands development and production assets to genera
Slide 8: Build Completed on Time and Budget, Well Funded for Ramp Up
BUILD COMPLETED ON TIME AND BUDGET, WELL FUNDED FOR RAMP UP $600m $484m $484m $484m $484m $484m $500m $33m $60m $62m $60m $60m $45m $400m $62m $43m $45m $70m $68m $300m $424m $200m $361m $379m $336m $311m $100m $0m Mar 2022 - DFS Oct 2022 - FID Plan Feb 2023 - Revised Plan Oct 2023 - End Constructio
Slide 9: Design for Key Risks
DE RISKING RAMP UP Mining fleet and DMU sized for 1800tph vs WCP at 1,085tph ++ Main variability is proportion of oversize/undersize ++ Sub 12mm ore to WCP can be maintained even with high oversize Starter pit open in all directions ++ Main variability is proportion of oversize/undersize ++ Can mana
Slide 10: Production Commenced October 2023: Outlook Through 2024
PRODUCTION COMMENCED OCTOBER 2023 OUTLOOK THROUGH 2024 (2022 BFS ASSUMPTIONS) 300,000 3,000,000 2024 Tonnes Mined = 8.7mt 250,000 2024 Product Volume = 685,000t 2,500,000 9,000 200,000 2,000,000 46,000 8,000 Ore Tonnes Mined Product Tonnes 37,000 150,000 1,500,000 6,000 5,000 30,000 25,000 100,000 1
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 • Yansteel’s integrated smelter complex in China operational • Yansteel designed the plant to process ilmenite feedstock from vari
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: Thunderbird – The World's Largest Zircon Reserves
THUNDERBIRD – THE WORLD’S LARGEST ZIRCON RESERVES … STRATEGICALLY SIGNIFICANT ASSET IN A LOW-RISK JURISDICTION CONTAINED ZIRCON IN ORE RESERVES AND GRADE FOR SELECTED MINERAL SANDS DEPOSITS 1,2,3 6 Atlas (IMA) In Situ Titanium Minerals (Ilm+Lux+Rut) % Toliara (BSE) Atlas-Campaspe (TROX) 5 TiO2 Grade
Slide 14: 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 15: Our ESG Approach
OUR ESG APPROACH E N V I R O N M E N TA L ► Full State and Federal environmental approvals ► Progressive mine rehabilitation throughout mine life ► Practices aligned with Equator Principles - Addressing the Climate Change challenge SOCIAL ► Native Title Agreement with Traditional Owners in place ► 2
Slide 16: Thunderbird Mineral Sands Mine
THUNDERBIRD MINERAL SANDS MINE • 50/50 JV with Yansteel • Stage 1 Production commenced October 2023 targeting 1.1mt of zircon and ilmenite rich concentrates1 • First product shipment expected in Q1 2024 • Offtake agreements in place for ~80% of Stage 1 revenue for first 5 years • Stage 1 Post Tax NP
Slide 17: South Atlantic Project
SOUTH ATLANTIC PROJECT ill SheffieldResources LIMITED
Slide 18: 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 • Located Southeast Brazil (Rio Grande do Sul) • Continuous sequence of dunes and beach sands extending for 80km • Four continuous deposits; Retiro, Estrei
Slide 19: Summary
SUMMARY ill SheffieldResources LIMITED
Slide 20: Fully Funded to Execute Proposed Work Program
FULLY FUNDED TO EXECUTE PROPOSED WORK PROGRAM A$24m cash balance at end of Q3 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 21: 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 • Stage 1 production commence
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 Thunderbird Mineral Sands Enhance KMS through South Atlantic Option Review of other quality mineral Mi
Slide 23: Thank You
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 Sheffield Resources Sheffield Resources @Sheffield_ASX
Slide 24: Appendix: Additional Peer Information
APPENDIX: ADDITIONAL PEER INFORMATION Company Company Material Reference Kenmare Resources 2020 Annual Report Strandline Resources 2019 Reserve Statement Eramet 2021 Universal Filing Tronox 2022 Annual Report Diatreme Resources 2016 Reserve Statement Rio Tinto 2022 Annual Report Base Resources 2022
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