Sheffield Resources (SFX) Q4 2026 earnings summary

Executive summary

• Focus remains on the Thunderbird mine, with all resources directed toward its success; South Atlantic Project option retained but not funded.

• Ore mined at KMS reached 2.8Mt, up 20% from the previous quarter, with improved productivity and reduced weather impacts.

• Concentrate production rose 11% to 205,426 tonnes, driven by higher ore volumes and plant recoveries.

• Operational improvements, including separating ore mining from DMU operations and management changes, led to increased production and plant recoveries.

• Market conditions for zircon have improved, with prices rising due to supply disruptions and steady demand, especially in China.

Financial highlights

• Operating cash flow was negative for the quarter due to timing of supply payments, but underlying operations are cash flow positive at current production and pricing.

• Net operating cash outflows for the quarter were A$2.3m, with cash reserves at 30 June 2026 of A$4.0m (unaudited).

• Average realised zircon concentrate price increased 8% quarter-on-quarter to US$564/t.

• Monthly cost burn is approximately AUD 20 million; cash flow volatility expected until steady state is reached.

• Liquidity is expected to improve as production and prices recover, with efforts to accelerate customer payments and build an operating buffer.

Outlook and guidance

• Production guidance for the September quarter targets similar or higher output than June, with potential for record zircon production if upper guidance is met.

• September quarter ore production expected between 2.8–3.2Mt; ilmenite concentrate forecast at 175,000–200,000 tonnes, zircon at 45,000–55,000 tonnes.

• Refurbishment works on the DMU apron feeder may impact ore mining, resulting in a wider range of production outcomes.

• C1 cash costs per tonne (excluding inventory movement) expected between A$245–A$265.

• Market outlook for zircon remains positive, with confidence that prices will hold or improve through the current quarter.