Notes to the Consolidated Financial Statements for the year ended 30 June 2025 1. Coporate information The consolidated financial report for the year ended 30 June 2025 covers Sheffield Resources Limited (Sheffield, parent entity or the Company) and its controlled entities (collectively known as the Group or consolidated entity). The principal activities during the year were mineral sands operations in Australia and mineral sands evaluation in Brazil and Sri Lanka. Sheffield is a for-profit company limited by shares whose shares are publicly traded on the Australian Securities Exchange. The Company and its controlled entities were incorporated and domiciled in Australia. The registered office and principal place of business of the Company is Level 1, 45 Ventnor Avenue, West Perth, WA 6005. The consolidated financial report of Sheffield for the year ended 30 June 2025 was authorised for issue in accordance with a resolution of the Directors on 17 September 2025. 2. Basis of preparation These general-purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) and the Corporations Act 2001. The consolidated financial statements also comply with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). The financial statements have been prepared on a going concern basis. (a) Functional and presentation currency Both the functional and presentation currency of Sheffield is Australian Dollars. Each entity in the Group determines its own functional currency and items included in the financial statements of each entity are measured using that currency. (b) Rounding of amounts The amounts contained in the financial report have been rounded to the nearest $1,000 (unless otherwise stated) pursuant to the option available to the Company under ASIC Class Order 2016/191. The Company is an entity to which this class order applies. (c) Going concern The financial statements have been prepared on a going concern basis. The Group recorded a net loss after tax for the year ended 30 June 2025 of $22.1m (2024: net loss after tax of $32.2m). At 30 June 2025, the Group had $7.1m in cash and cash equivalents (2024: $9.9m). The Group’s net assets were $116.6m (2024: $138.1) and the net cash outflows from operating activities were $2.4m (2024: $2.3m). Kimberley Mineral Sands Pty Ltd (KMS) became jointly owned by Sheffield and YGH Australia Investment Pty Ltd (Yansteel) as at 12 March 2021. The Thunderbird mineral sands project (Thunderbird) was previously held by Sheffield through its 100% owned subsidiary KMS prior to the formation of the joint venture. The project is located in north-west Western Australia. KMS made a Final Investment Decision (FID) to construct and develop the Thunderbird project on 7 October 2022. KMS reached financial close on a combined $315m senior loan facilities provided by Northern Australia Infrastructure Facility (NAIF) and OMRF (Th) LLC, a related entity of Orion Mineral Royalty Fund (Orion). The Thunderbird project was fully funded through to first production. Operations at Thunderbird continued to observe higher than expected oversize material, constraining Dry Mining Unit (DMU) output available to feed the processing plant. Productivity was also challenged by lower waste mining rates compared to plan greater than expected DMU maintenance requirements impacting DMU availability. The KMS team implemented a business improvement initiative during the financial year, geared toward maximizing throughput to the process plant. Waste mining capacity and productivity grew and 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 business the revised business plan. The Directors have prepared a cash flow forecast for the next 12 month period. Whilst the Directors are confident that any potential future funding requirements for the Group will be successfully covered, the timing and costs of any additional funding remains uncertain. Should the Company be unsuccessful in obtaining such funding, there is a material uncertainty which may cast significant doubt whether the Group will be able to continue as a going concern and therefore, whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report. The Directors have discretion regarding the level and timing of expenditure to be incurred against forecast expenditure. Steps can be taken to contain operating and investment activities, ensuring the Group’s ability to manage the timing of cash flows to meet committed obligations of the business as and when they fall due. 46 Sheffield Resources Limited Annual Report 2025
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