2 Sheffield Resources Limited Annual Report 2023 Chair’s Letter “ I am pleased to present to you the 2023 Annual Report for Sheffield Resources. It has been an exciting and successful year for your Company.” Dear Shareholders, The 2023 financial year was company defining, with several major milestones achieved at the Thunderbird Mineral Sands Project. We were delighted to make a final investment decision (FID) on Thunderbird Mineral Sands Project, an outstanding, world class mineral sands project, and see construction substantially completed during the year. At FID, Thunderbird Project economics demonstrated the significant value that will be created from the development of one of the world’s largest zircon reserves. With a total after-tax NPV of $1.39 billion and an IRR of 27% for Stage 1 & 2 of Thunderbird, the project was fully funded during the financial year and is set to deliver $695m in NPV to Sheffield’s shareholders over its 36 year life. Development of Thunderbird commenced in mid-2021 utilising equity proceeds provided by Yansteel following inception of the 50/50 Kimberley Mineral Sands joint venture. With Thunderbird construction now entering the commissioning phase, the project remains on track for first customer shipment in the March 2024 quarter, enabling the delivery of strong cashflows and benefits to all stakeholders across the mine life. A total of $484 million was secured to fund Thunderbird into first production during the year. A $160 million facility, including a $40 million cost overrun facility from the Northern Australia Infrastructure Facility (NAIF), combined with a US$110 million facility from Orion Resource Partners (Orion) contributed $315 million in project financing. The NAIF and Orion project finance package was complimented by $169 million of equity contributed since the inception of the joint venture in 2021 from Kimberley Mineral Sands shareholders, with Yansteel contributing $135m and Sheffield $34 million. Construction activities at Thunderbird continued to advance rapidly and in line with schedule and budget throughout the year. With construction activities substantively complete, commissioning activities commenced in July 2023 with first production scheduled in the December 2023 quarter. First delivery of product to customers is expected in the March 2024 quarter. Given the backdrop of inflationary pressures and economic headwinds globally experienced throughout this financial year, delivery of the Thunderbird project into production within our original $484 million funding envelope is a tremendous achievement. Bruce Griffin | Executive Chair
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