Sheffield Resources (SFX) Q2 2026 TU earnings summary

Executive summary

• Focus remains on Kimberley Mineral Sands (KMS) and the Thunderbird mine, with other assets deprioritized or divested to preserve cash for KMS support.

• Thunderbird Mine produced 2.8Mt of ore in Q4 2025, down 7% sequentially but up 17% year-over-year for the half year, with concentrate production of 212,974t.

• Taprobane/Capital Metals stake sold for AUD 4M in January 2026, realizing a gain and boosting cash reserves.

• South Atlantic Project funding paused, retaining option to acquire 20% by completing $15M payment.

• Shipments totaled 221,219t, with all zircon concentrate sold despite challenging market conditions.

Segment performance

• Mining operations transitioned between blocks, with ongoing in-pit tailings wall construction and improved waste mining productivity.

• Ore mined and production declined quarter-on-quarter due to equipment availability, contractor productivity, and weather impacts, including a tropical cyclone.

• Ilmenite concentrate production was 166,800t; zircon 40,100t; leucoxene 6,100t as production restarted.

• Sales of zircon and ilmenite remained robust, with deferred shipments due to weather and partner sales.

• Inventory levels at quarter end: ~100,000t ilmenite, ~20,000t zircon, with deferred shipments impacting ilmenite inventory.

Financial highlights

• Negative operating cash flow for the quarter, driven by shipment/payment timing, ramp-up, and higher inventory; net cash outflows were $5m.

• Operating deficit offset by prepayments and a AUD 6.5M equity injection from shareholders.

• Cash costs increased to A$242/t (C1, ex-inventory), with total C1 cash costs at A$275/t.

• Cash balance at 31 Dec 2025 was $1.4m; market capitalization: A$35m.

• No interest payments due to deferral and waiver agreement; lease repayments aligned with amortisation.