Sheffield Resources operational update

Sheffield Resources Limited (ASX: $SFX) has reported a substantial ramp-up in production and product shipments at its Thunderbird Mineral Sands Mine in Western Australia. The company achieved a significant increase in mine production, with approximately 1,350,000 tonnes mined in the current quarter, marking a notable advancement from the previous quarter. Monthly mine production in May 2024 reached approximately 750,000 tonnes, in line with the ramp-up schedule towards an annualized ore mining rate of 10 million tonnes per annum as outlined in the 2022 Bankable Feasibility Study (BFS).

Executive commentary on production and market trends

Sheffield Resources Executive Chair, Mr Bruce Griffin, expressed satisfaction with the progress at Thunderbird, stating, 'The ramp up of activities at Thunderbird is progressing very well and the significant step change in production and shipment achievements during this quarter demonstrate that we are moving forward toward nameplate capacity in line with our original plans.' Mr Griffin also acknowledged observed cost pressures and near-term pressure on realized zircon concentrate pricing, while emphasizing Thunderbird's potential for solid production and cost performance over the long term.

Summary of operational update and future outlook

Sheffield Resources has made significant strides in ramping up production and product shipments at the Thunderbird Mineral Sands Mine, with a notable increase in mine production and product shipments. The company anticipates continued growth in product shipments for the June quarter, reflecting its commitment to achieving nameplate production capacity. Despite observed cost pressures and pricing challenges, Sheffield remains optimistic about Thunderbird's potential as a world-class mineral sands asset capable of delivering solid production and cost performance over the long term. Additionally, the company continues to advance its activities in the mineral sands sector, including its operations in Brazil and negotiations with Capital Metals Plc regarding a potential acquisition in Sri Lanka. Sheffield's focus on global mineral sands development and production assets underscores its commitment to generating cash returns and sustainable growth.