Sheffield Resources (SFX) Q3 2025 TU earnings summary

Executive summary

• Achieved first quarter of positive operating cash flow, driven by record zircon sales, expanded customer base, and operational improvements.

• Achieved one million operating hours LTI free and maintained a restricted injury frequency rate of 0.0 at Thunderbird during the March 2025 quarter.

• Implemented a revised business plan to address production challenges, focusing on increasing mining rates and operational efficiency.

• Developed a plan to ramp up mining to 16 million tons per annum by H2 2026/Q1 FY 2027, targeting 900,000–950,000 tons ilmenite and 220,000–240,000 tons zircon concentrate.

• Repaid US$14 million of Yansteel offtake prepayment and ended the quarter with a cash balance of $7.8 million.

Financial highlights

• Generated $32 million in operating cash flow for the quarter, driven by record zircon sales.

• C1 cash costs (excluding inventory movement) were $328/t, up from $297/t in the previous quarter due to lower production and higher logistics costs.

• Underlying C1 cash costs (including inventory movement) rose to $512/t from $273/t sequentially.

• Cash reserves stood at $7.8 million as of 31 March 2025.

• Market capitalisation was A$71 million at quarter end.

Outlook and guidance

• Targeting a mining rate of 16 million tons per annum by H2 2026/Q1 FY 2027, with expected annual production of 900,000–950,000 tons ilmenite concentrate and 220,000–240,000 tons zircon concentrate.

• June 2025 quarter mine production expected between 2.5–3 million tons of ore, with ilmenite concentrate production of 160,000–180,000 tons and zircon concentrate of 35,000–40,000 tons.

• Ilmenite shipments forecast at 180,000–200,000 tons and zircon shipments at 40,000–50,000 tons for the June quarter.

• C1 cash costs (excluding inventory movement) expected to range between A$285–A$315/t for the June quarter.

• No material capital expenditure or working capital required for the ramp-up; modifications are considered sustaining capital.