Sheffield Resources (ASX:SFX) has ramped up production and shipments from the Kimberley Mineral Sands (KMS) owned Thunderbird Mineral Sands Mine in Western Australia.
In June 2024 approximately 825,000 tonnes of ore was mined, with a quarterly expectation of 2.2 million tonnes – surpassing the 2022 Bankable Feasibility Study forecast by 20%.
“I am pleased with the further step change in mine performance in June, with KMS now ahead of the expected ramp-up,” Sheffield Resources Executive Chair Bruce Griffin said.
“Together with continued strong performance from the process plant and expected record export volumes in June 2024, this performance provides a strong basis for sustained positive operating cash flow starting from the September 2024 quarter.”
In June, the mine produced 55,000 tonnes of ilmenite concentrate and 13,000 tonnes of zircon concentrate, with quarterly totals reaching 120,000 tonnes and 33,000 tonnes respectively.
June is also set to be a record month for shipments for the company, with 48,000 tonnes of ilmenite and 22,000 tonnes of zircon concentrate already shipped, and another 30,000 tonnes of ilmenite concentrate began loading as of June 26.
Annual shipments are projected to reach 1.1 million tonnes.
Sheffield retains around $10 million in cash and may reallocate funds to support KMS if required. The company also anticipates positive cash flows for the September 2024 quarter.
Sheffield shares have plummeted since this exact time last month, when the stock was trading at 49 cents apiece. However, the market has responded positively to the update this morning, which could see Sheffield recover some of its losses.
SFX shares are up 11.3% at 11 am AEST, trading at 34.5 cents.