Sheffield Resources (SFX) Q2 2026 earnings summary

Executive summary

• Focus remains on Kimberley Mineral Sands (KMS) and the Thunderbird mine, with operational updates and production targets discussed.

• 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 (Capital Metals interest) was sold for AUD 4 million, realizing a gain and increasing cash reserves.

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

Financial highlights

• Negative operating cash flow for the quarter, mainly due to shipment and payment timing, with net cash outflows of $5m.

• 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.

• Operating deficit offset by prepayments and a joint equity injection of about AUD 6.5 million in November.

• Inventory levels for zircon and ilmenite are within expected ranges, with ilmenite higher due to deferred shipment.

Outlook and guidance

• Mining rate targeted to reach 16 million tonnes by the first quarter of the next financial year.

• March 2026 quarter ore production expected between 2.8–3.2Mt; ilmenite production 170,000–190,000t, zircon 40,000–50,000t.

• Ilmenite shipments forecast at 190,000–210,000t, zircon at 35,000–45,000t, with similar pricing to Q4 2025.

• Expectation to achieve 55,000 tonnes per quarter of zircon and 220,000 tonnes per quarter of ilmenite from the first quarter of the next financial year.

• No rapid recovery in zircon prices anticipated; market expected to remain stable or vary slightly through the first half of the year.