Sheffield Resources guides 13.5 million tonnes
Key points
- Sheffield Resources projected mining up to 13.5 million tonnes of ore at Thunderbird for FY27.
- The company's shares traded unchanged at $0.037 following the operational update.
- A business improvement plan was launched to cut unit costs and renegotiate senior debt facilities.
Sheffield Resources (ASX:SFX) announced that Kimberley Mineral Sands expects to mine between 12.5 and 13.5 million tonnes of ore at the Thunderbird mine in FY27.
The mine operator developed a business improvement plan to stabilise production and support discussions with senior lenders regarding a debt standstill agreement.
Sheffield Resources Executive Chair Bruce Griffin said, “It provides a solid basis for negotiating a restructure of KMS’s debt obligations during the proposed standstill and demonstrates the potential to generate returns to KMS’s shareholders, including Sheffield.”
Kimberley Mineral Sands expects to produce 670,000 to 720,000 tonnes of ilmenite concentrate and 190,000 to 210,000 tonnes of zircon concentrate during the period.
The company stated that the business improvement plan targets up to 16 million tonnes per annum mining capacity without requiring material capital expenditure.
Following the announcement, the Sheffield Resources share price was unchanged at $0.037.
The joint-venture operation has faced debt restructuring talks with its senior lenders after earlier operational and cash flow challenges.
The updated financial model excludes a Stage 2 expansion and assumes ilmenite concentrate shipments will sell at a contract price of US$123 per tonne.
