Sheffield Resources Limited · ASX:SFX
Sheffield Resources — Investor Presentation (April 2023)
37 slides from Sheffield Resources's investor presentation, April 2023
Slide 1: Investor Presentation – Thunderbird Is Go
INVESTOR PRESENTATION THUNDERBIRD IS GO BRUCE GRIFFIN EXECUTIVE CHAIR April 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 Project 3. South Atlantic Project 4. Mineral Sands Market 3
Slide 4: 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 5: 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 393 Share Price A$/sh 0.51 Market Capitalisation A$m 200 Cash Balance A$m 25 Debt Balance A$m - Enterprise Value A$m 175 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 May-22 Dec-22 J
Slide 6: Mineral Sands Market
MINERAL SANDS MARKET <i\|> SheffieldResources LIMITED
Slide 7: Mineral Sands – Used in Everyday Life
MINERAL SANDS – USED IN EVERDAY LIFE Titanium Minerals Zircon Primary market (90%) is TiO2 pigment Primary market is ceramics ► Key applications are paint, plastics and paper • Also used in refractories and foundry casting ► Delivers opacity and non-toxic UV protection • Growing use in catalytic con
Slide 8: Supply Driven Price Strength
SUPPLY DRIVEN PRICE STRENGTH Premium Zircon • Current price +/- US$2100/t • Prices +/- flat since mid 2022 • Main existing supply sources flat/declining Representing ~ 55% of current supply ► • Long term price assumption ~US$1710/t real Sulfate Ilmenite • Current price +/- US$350/t • Prices +/- flat
Slide 9: Thunderbird Mineral Sands Project
THUNDERBIRD MINERAL SANDS PROJECT 9
Slide 10: Thunderbird – The World's Largest Zircon Reserves in a Low Risk Jurisdiction
THUNDERBIRD – THE WORLD’S LARGEST ZIRCON RESERVES … IN A LOW RISK JURISDICTION CONTAINED ZIRCON IN ORE RESERVES AND GRADE FOR SELECTED MINERAL SANDS DEPOSITS 1,2,3 TiO2 Grade % Bubble size 1.5% represents contained Zircon in Ore Reserves 1.5% Zircon Grade % Note: 1. Thunderbird Ore Reserve as publis
Slide 11: Simple Flowsheet Producing Concentrates
SIMPLE FLOWSHEET PRODUCING CONCENTRATES Feed Preparation, Mining Scrubbing, Screening and Thickener underflow to mine void Desliming CUP Spirals CUP Finisher Spirals Concentrate Upgrade CUP Finisher Plant WHIMS WHIMS Primary Wet Concentration Zircon Concentrate WCP Tails to mine void CUP Spiral Tail
Slide 12: 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 • Construction of Yansteel's vertically integrated smelter/pigment complex in China completed • Start up underway • Yansteel desig
Slide 13: 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 14: 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 15: Thunderbird Process Plant – March 2023 Progress
THUNDERBIRD PROCESS PLANT - MARCH 2023 PROGRESS Sheffield Resources Limited I ASX: SFX I Assembling a portfolio of global mineral sands development and production assets to generate cash returns and growth 15
Slide 16: 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 17: 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 18: 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 19: South Atlantic Project
SOUTH ATLANTIC PROJECT ill SheffieldResources LIMITED
Slide 20: 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 • The project is located in the state of Rio Grande do Sul in Brazil • Continuous sequence of dunes and beach sands extending for 80km • Four continuous de
Slide 21: Summary
SUMMARY <i\|> SheffieldResources LIMITED
Slide 22: Fully Funded to Execute Proposed Work Program
FULLY FUNDED TO EXECUTE PROPOSED WORK PROGRAM A$25m cash balance at end of Q1 2023, with an equivalent forecast & contingent spend across the next 3 years ending CY2025 2023 2024 2025 2026 Thunderbird Stage 1 Cashflow from Thunderbird Stage 1 Fully Funded KMS to shareholders South Atlantic – Possibl
Slide 23: Deep Discount to Asset Value
DEEP DISCOUNT TO ASSET VALUE >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 • ~12 months to Stage 1 product
Slide 24: 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 25: 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
Slide 26: 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 27: Appendix: Kimberley Mineral Sands
APPENDIX: KIMBERLEY MINERAL SANDS Kimberley Mineral Sands1 • Owns 100% of the Thunderbird Project • Yansteel (via YGH Australia) contributed A$130.1m in equity to acquire 50% • Sheffield retains 50% • Four person Board with two Yansteel and two Sheffield directors • Key decisions require unanimous a
Slide 28: Appendix: Thunderbird Ore Reserves
APPENDIX: THUNDERBIRD ORE RESERVES THUNDERBIRD ORE RESERVES: VALUABLE HEAVY MINERAL IN-SITU GRADE1 Valuable Heavy Mineral Grade (In-situ)2 Ore Reserve Ore Tonnes In-situ HM HM Grade Zircon HiTi Leucoxene Leucoxene Ilmenite Oversize Slimes Category (Mt) Tonnes (Mt) (%) (%) (%) (%) (%) (%) (%) Proved
Slide 29: Appendix: Thunderbird Mineral Resources
APPENDIX: THUNDERBIRD MINERAL RESOURCES 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%) Category (Mt) (Mt) (%)
Slide 30: Appendix: Night Train Mineral Resources
APPENDIX: NIGHT TRAIN MINERAL RESOURCES NIGHT TRAIN MINERAL RESOURCES: VALUABLE HEAVY MINERAL IN-SITU GRADE1 Valuable Heavy Mineral Grade (In-situ)2,3 HiTi Leucoxene Mineral Resource Cut off Ore Tonnes HM Grade Zircon & Rutile Leucoxene Ilmenite Slimes Oversize Category (HM%) (Mt) (%) (%) (%) (%) (%
Slide 31: Appendix: Significant Regional Exploration Upside
APPENDIX: SIGNIFICANT REGIONAL EXPLORATION UPSIDE Strategic value demonstrated through multiple discoveries made along a 120km DAMPIER PROJECT – REGIONAL PLAN1 long trend • Exploration has delineated 14 zones of significant mineralisation along a 120km long highly mineralised trend • High grade Mine
Slide 32: Appendix: ESG – Environment
APPENDIX: ESG – ENVIRONMENT All necessary State and Federal environmental approvals received • Strong social licence to operate is supported by full State and Federal environmental approvals following an extensive Public Environmental Review ("PER") • The PER process required full environmental impa
Slide 33: Appendix: ESG – Environment
APPENDIX: ESG – ENVIRONMENT Continuous Rehabilitation • Proposed dry mining via conventional dozer trap mineral sand mining • Topsoil and overburden excavated and transported using truck and excavators • Topsoil is deposited and seeded following completion of mining within each zone • Active rehabil
Slide 34: Appendix: ESG – Environment
APPENDIX: ESG – ENVIRONMENT Embracing the Climate Change challenge OUR GOALS FOR A SUSTAINABLE FUTURE ► CO2 baseline Scope 1 emissions estimated in BFS 2017 at 11mt CO2e (c.40 year life of project)* ► Significant reduction expected following removal of Low Temperature Roaster ► Independent third-par
Slide 35: Appendix: ESG – Our Community Stakeholders
APPENDIX: ESG – OUR COMMUNITY STAKEHOLDERS ACTIVELY WORKING WITH COMMUNITY STAKEHOLDERS TO CREATE AND MAINTAIN A ROBUST RELATIONSHIP ►Central to the Kimberley regional strategy is our social licence to operate ̶ Built over ten years and based on formal and informal community relations practices ►Str
Slide 36: Appendix: ESG – Native Title Agreement
APPENDIX: ESG – NATIVE TITLE AGREEMENT NATIVE TITLE AGREEMENT SIGNED AND IS IRREVOCABLY BINDING ON BOTH SHEFFIELD AND THE TRADITIONAL OWNERS • Signed the Co-existence Agreement (Native Title Agreement) for Thunderbird on 31 October 2018 • The Traditional Owners authorised the Named Applicants to sig
Slide 37: Additional Peer Information
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 Reserve St
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