Sheffield Resources (SFX) investor relations material

Executive summary

• Exited the Sri Lankan Capital Metals investment, realizing AUD 4 million to boost liquidity.

• Focused resources on corporate costs and Kimberley Mineral Sands (KMS), with South Atlantic in Brazil on hold; funding obligation for South Atlantic Project suspended in January 2026, but option retained.

• Thunderbird Mine experienced declining production in December and March quarters after a strong September quarter, with ore mined at 2.4Mt, down 17% from the previous quarter due to lower mining productivity, equipment outages, and weather impacts.

• Management implemented operational changes and a recovery plan, showing improvement in April.

• Market conditions for mineral sands remain challenging, but zircon concentrate prices stabilized and increased by quarter-end.

Financial highlights

• Realized AUD 4 million from asset sale in Sri Lanka, supporting cash reserves of A$4.4 million at quarter-end.

• Net operating cash inflows were A$20.4 million, reflecting shipment and payment timing, though normalized operating cash flow was negative due to poor production.

• No interest or debt payments were made in March due to lender deferrals and waivers.

• C1 cash costs were A$255/t, down from A$275/t in the previous quarter, with ongoing stringent cost focus.

• Finished goods inventory at quarter-end: 52,000t ilmenite, 18,000t zircon, 43,000t HiTi concentrate.

Outlook and guidance

• No formal production guidance provided as the company is in the midst of a turnaround and due to uncertainty around the ore mining recovery plan.

• Target remains to achieve 4 million tons per quarter mining rate, but not expected by Q1 2027; revised business plan targets 16mtpa by Q1 FY27, with production targets of 900,000–950,000 tpa ilmenite and 220,000–240,000 tpa zircon concentrate.

• Management expects to reach target production within FY 2027; Stage 2 expansion deferred until later in the decade.

• All zircon concentrate expected to be sold to third parties in the June quarter at similar pricing; HiTi concentrate sales commenced in April, dependent on market demand.