Sheffield Resources Limited updated on activities at its 50% owned Thunderbird Mineral Sands Project (Thunderbird) in northern Western Australia. Thunderbird is now more than 75% complete as at 31 January 2023. Progressive installation of pipework and hoppers at the Wet Concentrate Plant is underway, and installation of steel structures at the Concentrate Upgrade Plant has commenced. Steel frameworks supporting ancillary service areas are continuing to be installed, with site electrical services also progressing well. Completion of construction activities and initiation of commissioning activities remains on target for late 2023. With more than 80% of EPC construction expenditures now fully committed, Kimberley Mineral Sands (KMS) management expect that EPC construction activities, which represented $336m of the total budget of $379m, including contingency, will be completed in accordance with the original budget Pre-Production Capitalised Operating Expenditures In addition to the construction activities, the KMS team has increased its focus on the pre-production activities and planned expenditures to maximise operational readiness once construction is complete. The expected on-budget completion of construction activities means that the overall funding envelope allows increased commitment of funds toward these activities. KMS intends to bring forward recruitment of operations personnel and other activities to minimise start up risk. The additional cost of these activities, together with inflationary pressure experienced throughout
the resources sector, and amendments to mine pre-strip and pre-production timing and cost estimates, will add $27m to the previous estimate of pre-production costs. KMS now estimates the total direct expenditures through to commencement of operations to be $407 million. After allowance for project financing costs, $54m of remaining contingency and working capital provisions are available, with a total funding requirement of $484 million. Remaining contingency and working capital represents approximately 40% of current uncommitted expenditure.