Sheffield Resources is going ahead with Stage 1 of Thunderbird
Nick Sundich, October 7, 2022
Sheffield Resources (ASX:SFX) has announced its Thunderbird Mineral Sands Project (at least Stage 1 of the project) is going ahead, making the Final Investment Decision. It has been a long wait for shareholders to get this project into action, even though it is the first significant heavy mineral sand deposit to be discovered in its region (WA’s Canning Basin) and is one of the largest and highest-grade mineral sand deposits globally. So what is next?
No time to do stock research, but you still want to invest?
Stocks Down Under Concierge gives you timely BUY and SELL alerts on ASX-listed stocks!
GET A 3-MONTH FREE TRIAL TO CONCIERGE TODAY
Sheffield Resources says Thunderbird is go
Sheffield Resources has spent several years trying to get Thunderbird in action having completed its first Scoping Study back in 2014. So, it’s fair to say that today was a long time coming.
It already has funding in place with $315m in debt and $169m in equity, and has over 40% of construction activities complete. Production is still some time off, due to commence in the March quarter of CY24.
An NPV of A$1.3BN
The company’s Bankable Feasibility Study, completed in March this year, predicted a pre-finance post-tax Net Present Value (NPV) of A$1.3bn, a post-tax IRR of 28% and average annual EBITDA of $225m. Taking into account the company’s 50% stake in the project, this represents $121m in average EBITDA and an NPV of $695m.
But only Stage 1
It is important to note that today’s FID by Sheffield Resources only related to Stage 1 of the project. Stage 1 will see 1,085 dry tph processed at its Wet Concentrate Plant (WCP). Stage 2 will be nearly double this at 2,170tph and this is targeted during Year 5 of operations.
But considering Stage 2 won’t rely on additional deposits, an FID of Stage 2 is a question of when rather than if so long as mineral sand prices do not collapse.
No time to do stock research, but you still want to invest?
Stocks Down Under Concierge gives you timely BUY and SELL alerts on ASX-listed stocks!
GET A 3-MONTH FREE TRIAL TO CONCIERGE TODAY
No credit card needed and the trial expires automatically.
Blog Categories
Get Our Top 5 ASX Stocks for FY25
Recent Posts
Ioneer (ASX:INR): How has this ASX lithium stock gained 35% in 2024 in spite of the lithium bear market?
Ioneer (ASX:INR) is one of the few lithium stocks to have had a good 2024, even with lithium prices in…
Here’s what Black Friday means for investors and which stocks will benefit form the $6.7bn bonanza?
Because it is coming up in less than a fortnight’s time, let’s take a look at what Black Friday means…
How Come Zip Co (ASX: ZIP) is Doing So Well? Isn’t Buy Now, Pay Later Dead and Buried?
In recent years, Zip Co. has captured attention by defying the odds stacked against the Buy Now, Pay Later (BNPL)…