Sheffield Resources (ASX:SFX) has lauded month-on-month production gains at its Thunderbird Mineral Sands Mine in Western Australia, with 825,000 tonnes of ore mined in June this year.
For the June quarter, the total ore mined is anticipated to hit 2.2 million tonnes, a 20% increase from the operating rate assumed in a 2022 Bankable Feasibility Study.
Sheffield, which has a market capitalisation of $123.84 million, says the increase in mine production resulted in increased production of concentrates, with 55,000 tonnes of ilmenite concentrate produced in June, totalling 120,000 tonnes for the June quarter.
Meanwhile, production of zircon concentrate was 13,000 tonnes for June and 33,000 tonnes for the quarter.
Sheffield also notes that shipments for June are expected to deliver a record month, with 48,000 tonnes of ilmenite concentrate and 22,000 tonnes of zircon concentrate shipped for the month to date.
A further 30,000 tonnes of ilmenite concentrate was loaded on 26 June for shipping.
On an annualised basis, the projected June shipments will be close to 1.1 million tonnes per year. Sheffield says this is “particularly pleasing” given the busy high season for passenger vessels transiting via the Port of Broome.
The increase in shipments throughout the quarter — along with a transition from prepayment to typical payment terms for mineral sands — has resulted in an increase in short-term receivables for Kimberley Mineral Sands (KMS), which holds the Thunderbird Mine.
On 26 June, the 50-50 owners of KMS — Sheffield and privately held Yansteel — contributed $7.5 million to fund working capital requirements. KMS expects to generate positive operating cashflows for the September quarter.
Following the contribution, Sheffield retains $10 million in cash on hand, and expects to reallocate and reduce cash that may have been applied to current growth opportunities in favour of retaining flexibility to support KMS, alongside Yansteel.
“Together with continued strong performance from the process plant and expected record export volumes in June 2024, the June performance provides a strong basis for sustained positive operating cashflow starting from the September 2024 quarter,” Sheffield Resources executive Chairman Bruce Griffin says.
Write to Aaliyah Rogan at Mining.com.au
Images: Sheffield Resources
