7 Sheffield Resources Limited Annual Report 2024 CONTENTS FINANCIAL STATEMENTS YEAR IN REVIEW DIRECTORS’ REPORT CORPORATE DIRECTORY SHAREHOLDER INFORMATION Figure 3: Thunderbird Process Plant Thunderbird Operational and Financial Performance The construction phase of Thunderbird was completed on time and on budget. Following the successful first ore feed through the Dry Mining Unit (DMU) and Process Plant during the commissioning phase in October 2023, an initial shipment of packaged product was exported ahead of schedule in January 2024, followed by inaugural bulk exports of both ilmenite and zircon concentrate from the Port of Broome in March 2024. Mining operations commenced in mid-2023 with the first ore delivered to the plant in October 2023. Mining production totalled 4.3 million tonnes during the financial year, with 1.5 million bcm of waste stripping completed during the year. While initial ramp up of mining performance during the 2024 financial year met or exceeded expectations, higher oversize content than that expected and incorporated into the DMU design constrained plant feed and throughput. Mining costs were also higher than expected due to lower waste mining productivity, greater ore pre-conditioning and DMU maintenance requirements, and initial low ore mining productivity and DMU availability. However, the final quarter of the financial year saw significant DMU productivity improvements following modification. The June 2024 quarter performance of 2.5 million tonnes, with the process plant performing at or above design provides a solid platform for the September 2024 quarter onwards, with mine production expected to be sustained at 2.5 – 3.0Mt of ore mined per quarter. Total tonnes produced was 301,075 tonnes at a Rougher head Feed (RHF) grade of 22.9%. The lower than planned mine productivity was partially offset by the higher Wet Concentrator Plant recoveries. Product sales revenue at Thunderbird for the financial year was $72.0 million for a total 193,418 dry metric tonnes sold. The Company has multiple zircon concentrate offtake agreements with overseas partners. The agreements represent approximately 75% of planned zircon concentrate production. The remaining 25% of planned zircon concentrate production will be sold under a similar pricing mechanism as the contracted sales. KMS also has a binding life of mine offtake agreement for all ilmenite concentrate with its joint venture partner Yansteel. Under this agreement, the price KMS receives
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