Sheffield Resources Limited

Report Highlights:

• Sheffield Resources Ltd. (ASX: SFX) has ramped up its production at the Thunderbird Mineral Sands Mine in Western Australia, with over five million tons of ore mined and 352,964 tons of concentrate produced. The mine maintained an annualized rate of ten to 12 million tons per annum, with total shipments reaching 330,532 dry metric tons, including a record 208,354 tons in the December quarter.
• The company has focused on optimizing operations and enhancing efficiency at Thunderbird as production scaled up, with strong recovery rates for titanium dioxide and zirconium dioxide. Kimberley Mineral Sands secured USD 22MM in offtake prepayment facilities from steel conglomerate Yansteel, ensuring steady cash flow to support continued growth.
• Sheffield continues expanding its mineral sands portfolio with a 20% option in Brazil’s South Atlantic Project, where mineral resource estimates and a pre-feasibility study are expected in 2025. With eleven approved offtake customers and strengthening zircon demand, the company anticipates higher sales volumes and improved financial performance in 2025.

Release Highlights:

• Sheffield Resources Ltd. (ASX: SFX) announced that mining and processing operations at the Thunderbird Mineral Sands Mine in Western Australia have resumed following a temporary suspension due to Cyclone Zelia and confirmed that production forecasts for ilmenite and zircon concentrates remain unchanged for the March 2025 quarter.
• Sheffield Resources holds a 50% stake in Kimberley Mineral Sands, which operates the Thunderbird Mineral Sands Mine, and has strategic investments in the South Atlantic Mineral Sands Project in Brazil and Capital Metals Plc, the owner of the Taprobane Mineral Sands Project in Sri Lanka, as part of its strategy to build a global portfolio of mineral sands assets.
• The company’s joint venture partner Yansteel operates a titanium dioxide processing facility that will consume Thunderbird’s magnetic concentrate under a take-or-pay offtake agreement and the company acknowledges that forward-looking statements in the announcement are subject to change due to market and industry variables.

Release Highlights:

• Sheffield Resources Ltd. (ASX: SFX) has increased its zircon sales guidance for the March 2025 quarter to between 55,000 and 70,000 tons, surpassing the previous estimate of 40,000 to 60,000 tons, while the total ilmenite concentrate shipment estimates remain unchanged at 160,000 to 180,000 tons.
• Due to Cyclone Zelia causing the temporary closure of the Great Northern Highway, liquified natural gas (LNG) supply to the Thunderbird Mineral Sands Mine has been constrained, leading to a temporary suspension of mining and processing operations, though product shipments and sales remain unaffected, with operations expected to resume once supply routes are restored.
• Sheffield Resources continues its transition to drill and blast mining, with a new waste mining contractor mobilizing to site, while ongoing business improvement initiatives aim to reduce costs and enhance throughput, with further updates to be provided on productivity-enhancing measures throughout 2025.

Release Highlights:

• Sheffield Resources Limited (ASX: SFX) is actively developing a robust portfolio of mineral sands assets, with a primary focus on the Thunderbird Mineral Sands Mine in Western Australia. The Thunderbird Project, a 50/50 joint venture with Yansteel, is recognized as one of the world’s largest zircon reserves and operates within a stable, low-risk jurisdiction. The mine has an estimated resource base of 750 million tons and is expected to produce approximately 900,000 tons per annum of ilmenite and zircon concentrates. With an anticipated mine life exceeding 30 years, Thunderbird is expected to generate strong, consistent cash flow while securing a significant position within the global mineral sands market. Sheffield is also leveraging its partnership with Chinese steel conglomerate Yansteel on its downstream processing capabilities in China, ensuring a consistent export market for its mineral products​.
• The company is expanding beyond Australia, with a key strategic focus on the South Atlantic Project, located in Rio Grande do Sul, Brazil. These emerging mineral sands project features an exploration target of 500 to 720 million tons at 3.2 to 4.0% heavy minerals (HM), primarily consisting of sulfate ilmenite and zircon, two valuable materials in global markets. The project is well-positioned in a region with established industrial infrastructure, including ports, roads, and power, supporting potential large-scale development. Sheffield has already invested USD 2.5MM / AUD 4.1MM of a total of USD 4MM / AUD 6.5MM commitment under an option agreement to acquire a 20% interest and is actively de-risking the project with ongoing exploration. A 10,000-meter drilling campaign was completed in Q3 2024, and a resource update is expected in Q1 2025, with a pre-feasibility study (PFS) currently underway to further assess the project’s long-term viability​.
• In response to evolving market conditions and operational challenges, Sheffield Resources has implemented a Business Improvement Initiative to enhance operational efficiency, reduce costs, and optimize production. A 20% reduction in the Kimberley Mineral Sands (KMS) workforce was executed in December 2024 as part of efforts to streamline operations. Additionally, the company is transitioning overburden mining to a drill-and-blast method, which commenced in January 2025, aiming to improve mine productivity and reduce unit costs. Other measures include evaluating alternative ore mining and in-pit processing methods to maximize plant throughput. These improvements are designed to ensure long-term sustainability and profitability, particularly as Sheffield prepares for future expansion phases of the Thunderbird Mine and evaluates additional mineral sands opportunities globally.

Report Highlights:

• Sheffield Resources Ltd (ASX: SFX) is pleased to announce that Kimberley Mineral Sands achieved record quarterly production of 198,704 tons of concentrate, shipped 208,354 tons of product, and expanded its zircon concentrate customer base to eleven approved offtakers, with shipments expected to grow further in 2025.
• The Thunderbird Mine maintained strong health, safety, and environmental performance with zero lost-time incidents and continued process plant efficiency, achieving higher-than-expected heavy mineral grades and consistently exceeding recovery design rates for TiO2 and ZrO2.
• Sheffield Resources reported a cash balance of approximately AUD 8.4 MM (USD 5.9 MM) at the end of December 2024, launched a cost-reduction initiative involving workforce restructuring, and secured AUD 22 MM (USD 15.4 MM) in offtake prepayments from Yansteel to support working capital needs.

Release Highlights:

• Sheffield Resources Ltd. (ASX: SFX) is pleased to announce consistent production at the Thunderbird Mineral Sands Mine, with ilmenite and zircon concentrate production and shipments expected to meet targets for the December 2024 quarter.
• Since being implemented in October 2024, the Business Improvement Initiative has identified cost-saving measures, including a 20% KMS workforce reduction and operational changes aimed at improving productivity and efficiency in overburden removal and ore processing.
• Sheffield Resources is transitioning waste mining operations to more efficient methods and continues to explore ways to optimize throughput at the process plant, with updates expected in the December Quarterly Report or earlier if significant developments occur.