2 Sheffield Resources Limited Annual Report 2025 Chair’s Report Dear Shareholders, The 2025 financial year saw the first full year of production from the Thunderbird Mineral Sands Mine, which began operations in October 2023. half of the year, to accommodate greater volumes of waste movement. Modifications to the DMU to improve oversize handling and overall DMU availability were also completed. By the end of the 2025 financial year, the mining operations were achieving an annualised production rate of 12mtpa, consistent with the revised business plan. The business improvement initiative also led to a reduction in KMS workforce requirements which regrettably resulted in approximately 20% of KMS staff and some contractors leaving the business. KMS provided impacted personnel with appropriate support during this difficult process. Looking forward to FY2026, the focus of the Thunderbird team will be upon continuing business initiatives to increase production in line with the revised business plan. During the year, KMS undertook a series of production trials that successfully demonstrated that the existing fleet of dozers and DMU could sustain a mining rate equivalent to 16mtpa. Based upon this, KMS has developed an operating plan to progressively increase mine production capacity to 16mtpa by the second half of FY2026. KMS plans to then vary mine production to allow for variations in the ore body to ensure sufficient feed to fill the process plant which is designed to process 1085tph of rougher head feed, and this should result in a concentrate production rate of 900,000 – 950,000 tpa of ilmenite concentrate and 220,000 – 240,000 tpa of zircon concentrate by the second half of FY2026. KMS continue to focus on employing as many local people as possible and maintain a residential workforce and their families within the Kimberley region. This approach ensures local economic benefit is maximised. As of 30 June 2025, 85% of the direct workforce are permanent residents of Broome, Derby and surrounding The Thunderbird Mineral Sands Mine is a long life world class mineral sands mine, and we look forward to continued growth in our mineral sands business over the coming years. The health, safety and environmental performance at Thunderbird is impressive. With over 750,000 hours of work completed throughout this year, we have achieved a restricted work injury frequency rate of 1.32, well below comparable mining industry benchmarks. This is an outstanding achievement by the Kimberley Mineral Sands (KMS) team and all contractors involved with the Thunderbird Mine. Operations at Thunderbird throughout 2025 were not without their challenges. Higher than expected oversize material continued to be observed, constraining Dry Mining Unit (DMU) output available to feed the processing plant. Productivity was also challenged by lower waste mining rates compared to plan, and greater than expected DMU maintenance requirements impacting upon DMU availability. Addressing this challenge, the KMS team implemented a business improvement initiative during the financial year, geared toward maximising throughput to the process plant. Waste mining capacity and productivity grew via the implementation of a drill and blast program and mobilisation of a new waste mining contractor with a larger excavation and trucking fleet during the second
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