Probably a project with big potential only let down by the quality of the offtakes and the JV. Although the attractiveness and size of their Thunderbird mineral sands project can't be ignored, I can't help but think about the capital cost and the trade-offs Sheffield has made or are making to get the project moving forward.
Looking at the last investment slide and the latest offtake announcement here are my thoughts:
I suppose the negatives are too hard to ignore and it was a "sell the news" event on the recent offtake announcement.
At the end of the day, what really counts is the quality of the offtake agreements as that will attract financing.
The big challenge now is securing a better offtake with a reputable customer for the remaining share of the project which would derisk the project significantly.
I have no intention of downramping this for any holders out there but just trying to highlight the risks.
31 July 2019: Thunderbird Ore Reserve Update
31 July 2019: BFS Update Materially Improves Project Economics
22 July 2019: Additional Binding Zircon Offtake Agreement Signed