Sheffield Resources (SFX) Q2 2026 TU earnings summary

Executive summary

• Focus remains on Kimberley Mineral Sands (KMS) and the Thunderbird mine, with other assets deprioritized or sold to preserve cash for KMS support.

• Thunderbird mine produced 2.8Mt of ore in Q4 2025, down 7% sequentially but up 17% year-over-year for the half year, with concentrate production of 212,974t, down 15% sequentially but up 31% for the half year.

• Shipments totaled 221,219t, with all zircon concentrate sold despite challenging market conditions.

• Taprobane stake sold for AUD 4M, realizing a gain and boosting cash reserves.

• Cash balance at 31 Dec 2025 was $1.4m; divestment of Capital Metals shares in Jan 2026 realized $4m before costs.

Segment performance

• Mining operations transitioned between blocks, with ongoing in-pit tailings wall construction.

• Waste mining productivity improved, removing constraints on mining activities.

• December quarter saw lower ore mined and production due to equipment availability and weather impacts, including a tropical cyclone.

• Ilmenite concentrate production was 166,800t (down from 203,300t prior quarter); zircon 40,100t (down from 45,800t); leucoxene 6,100t (up from 0t as production restarted).

• Ilmenite shipments were 168,102t; zircon shipments 53,117t.

Financial highlights

• Negative operating cash flow for the quarter, driven by shipment/payment timing and higher inventory.

• Operating deficit offset by prepayments and a AUD 6.5M equity injection from shareholders.

• Ilmenite realized sales price was US$122/t, zircon US$466/t, with average realized price A$306/t.

• C1 cash costs (excluding inventory movement) rose to A$242/t from A$218/t in the prior quarter, with total C1 cash costs at A$275/t.

• Net cash outflows for the quarter were $5m, mainly due to lower sales prices and shipment timing.