Sheffield Resources Ltd
ASX:SFX
Sheffield Resources Ltd
Sheffield Resources Ltd. engages in the provision of exploration and development of mineral sands such as zircon and titanium minerals, as well as nickel, potash, iron, talc within the state of Western Australia. The company is headquartered in Perth, Western Australia. The company went IPO on 2010-12-15. The firm is focused on developing the Thunderbird Mineral Sands Project. Thunderbird Mineral Sand Project is in the Kimberley region in northern Western Australia on the Dampier Peninsula and lies 70 kilometer (km) west of Derby and 30 km north of the sealed Great Northern Highway (GNH) joining Derby and Broome. The Thunderbird generates mineral sands products with specifications suited to market requirements. The firm's products include a zircon products and ilmenite suitable for manufacturing titanium dioxide pigment or smelting into chloride slag.
Sheffield Resources Ltd. engages in the provision of exploration and development of mineral sands such as zircon and titanium minerals, as well as nickel, potash, iron, talc within the state of Western Australia. The company is headquartered in Perth, Western Australia. The company went IPO on 2010-12-15. The firm is focused on developing the Thunderbird Mineral Sands Project. Thunderbird Mineral Sand Project is in the Kimberley region in northern Western Australia on the Dampier Peninsula and lies 70 kilometer (km) west of Derby and 30 km north of the sealed Great Northern Highway (GNH) joining Derby and Broome. The Thunderbird generates mineral sands products with specifications suited to market requirements. The firm's products include a zircon products and ilmenite suitable for manufacturing titanium dioxide pigment or smelting into chloride slag.
Production Down: Kimberley Mineral Sands' December quarter production declined compared to the prior quarter, mainly due to lower equipment availability and weather impacts.
Business Plan On Track: Management remains confident in achieving the planned mining rate increase by mid-2024, despite the recent dip in production.
Cash Preservation: Sheffield halted funding of South Atlantic and sold its Taprobane stake for AUD 4 million to conserve cash for potential Kimberley Mineral Sands needs.
Negative Cash Flow: The quarter saw negative operating cash flow, attributed to shipment timing and payments, but was supported by equity injection and prepayments.
Zircon Market Stabilizing: Management sees zircon prices stabilizing at current levels, with no rapid recovery expected in the first half of 2024.
Debt Restructuring Ongoing: Discussions continue on restructuring debt with new counterparty Sheng Feng after the loan's transfer; no further details provided.
Cost Initiatives: Higher production rates and cost-saving measures are beginning to lower the overall cost base, with further opportunities identified.
