As a new (small) holder, the more I look into Sheffield, the more curious (and comfortable ) I get .
I have friends invested in Derby who are hurting badly since the detention centre was closed several years ago (2015) and 400 jobs lost.
https://www.abc.net.au/news/2015-06...after-curtin-detention-centre-closure/6549674I have a feeling their luck may be turning as, beyond shares in the company, there seems to be an enormous amount of investment in Sheffield Resources.
This is in terms of government support relative to doubly powerful stimuli: Port of Derby development and indigenous engagement :
in case this is of value to anyone else:
The WA Premier opened the Sheffield Derby office in July last year .
For anyone interested in the company who has not already seen this information, here’s a bit of a report that is worth reading :
.... “Central to the Project is the Port of Derby, from which Sheffield plans to export mineral sands products having signed a binding Port Access Agreement with the Shire of Derby-West Kimberley in May. The agreement will see bulk commodities exported through Derby for the first time since 2009, bolstering the Port and stimulating growth and jobs.
Plans to prepare the Port for exports include upgrading existing infrastructure and constructing a new shed capable of storing up to 40,000 tonnes of product...... “https://broomechamber.com.au/hon-mark-mcgowan-premier-opens-sheffield-resources-derby-office/More recently ( earlier this month ) the new shire chief executive was seeing “real” growth opportunities.
“Shire chief sees growth opportunities”Jakeb WaddellBroome Advertiser
Monday, 4 March 2019 6:04PM
... “
I know Derby are coming off the back of somewhat of a downturn, but I believe there are opportunities to find a new way forward and they are already going the right way about achieving it.”...https://thewest.com.au/news/regional/shire-chief-sees-growth-opportunities-ng-b881110420zSome significant events from last year :
“Sheffield Resources wins native title ruling over Thunderbird project in WA”August 29, 2018News Vanessa Zhouhttps://www.australianmining.com.au...rces-wins-native-title-ruling-at-thunderbird/Three weeks later “new rules” enable a $69 million NAIF grant to “provide strong inter generational opportunities”
The story below (20/09/19) notes SFX is targeting 42% indigenous employment over 42 years LOM.
“Sheffield Resources shares touch new high on $95m Northern Australia Infrastructure help for Thunderbird”Stuart McKinnonThe West Australian
Thursday, 20 September 2018 9:13AM
... “The funding will allow Sheffield to have its own gas-fired power station, storage facilities and worker camp at Thunderbird 60km west of Derby, rather than third parties owning them under build, own and operate agreements.
The cash will also be spent on site access roads and upgrading port facilities at Derby, from where Sheffield plans to export its product...”
..........
... “The new rules removed a 50 per cent funding cap, allowing NAIF to fund up to 100 per cent of a project’s debt, removed a stipulation that funding could only be provided if the project was impossible without it and broadened the definition of infrastructure. Projects also had to show they would have a public benefit and an indigenous engagement strategy.
Federal Resources Minister Matt Canavan said that the Government had set up a robust and independent process to assess projects to make sure it picked those which provided major benefits for the people of northern Australia.
The $348 million Thunderbird project is expected to generate 400 jobs in construction and 280 local jobs in production with Sheffield targeting indigenous employment of 40 per cent over a 42-year mine life.
Sheffield shares surged 8.5¢, or 8 per cent, to $1.13 yesterday after touching an all-time high of $1.15.”https://thewest.com.au/business/min...astructure-help-for-thunderbird-ng-b88965788zThen:
“Sheffield falls as Thunderbird budget expands”Stuart McKinnonThe West Australian
Friday, 19 October 2018 1:50PM
...... “The company noted 80 per cent of the budget increase would be covered by the proposed NAIF facilities.
“As a result, the project requires $20 million of additional equity funding compared to the previous estimate, representing a less than 6 per cent increase in the capital cost to shareholders over the past two years,” Sheffield said in a statement.
However this did not include ramp-up working capital, corporate overheads or financing costs....”.....https://thewest.com.au/business/mining/sheffield-falls-as-thunderbird-budget-expands-ng-b88995996zSo the price has continued to fall, and
GREngineering is champing at the bit as per link in my first post in this thread
(Here’s a link to it winning a
$366millioncontract with Sheffield last November 12, 2018;
https://www.australianmining.com.au/news/sheffield-resources-awards-366m-contract-to-gr-engineering/ )
.....but the gas fired power station was going ahead as of January 22:
“Sheffield secures LNG deal with Woodside and EDL for Thunderbird”January 22, 2019News Ewen Hosie..........
https://www.australianmining.com.au...g-deal-with-woodside-and-edl-for-thunderbird/In mid January, two weeks before the Woodside deal, UBS was appointed as corporate advisor .
https://hotcopper.com.au/documentdownload?id=uOMxKKzFkiWRTLKhOROKAxjvTDYD4gi9zxWZs%2FFhke92GA%3D%3DUBS will assist the Company in considering third party strategic partner interest for the funding and development of the Thunderbird Mineral Sands Project (Thunderbird) in northern Western Australia.
Thunderbird is now fully permitted and construction ready, with offtake agreements in place, an executed fixed price EPC contract concluded and loan facilities substantially in place. Interest from a number of credible potential strategic partners, particularly in relation to the funding of Thunderbird, has increased following completion of key permitting, offtake and debt funding milestones.”
Apparently it was paid in shares (as per closing price on Feb 15? ) (Which was 64c)
https://hotcopper.com.au/documentdownload?id=uOMxKKzFkiWRTLKhOROKAxjvTDYD4Qy7zRaZs/Fhke92GA==“1,043,713 fully paid ordinary shares (Shares) voluntarily escrowed from 15 February 2019 will be released from escrow on 25 March 2019. The Shares are currently quoted on the ASX.”
View attachment 1478853This is less than the number of options which were exercisable before March 10 :
2018 Annual Report View attachment 1478863(I presume most of these were converted during recent highs ?)
I also presume Stuart McIntyre of Blue Ocean equities (from FinFeed story in earlier post ) may have been prompted by UBS ?
https://finfeed.com/opinion/speculate/sheffield-prepares-for-thunderbirds-are-go/“Possible decision in eight weeks
While it is impossible to accurately predict the timing of a funding statement, Blue Ocean Equities’ analyst Stuart McIntyre is of the view that it will occur in the next 6 to 8 weeks....”Six to eight weeks from then is somewhere between April 17 and May 1.
I’d appreciate any thoughts that will further expand my grasp of things here and for the record my interest is partly fuelled at this stage by investment in another company that may potentially be involved in future civil works here.
Cheers
PS: A curious although potentially irrelevant aside : Name of project: “THUNDERBIRD” :
View attachment 1478843“Description :The thunderbird is a legendary creature in certain North American indigenous peoples' history and culture. It is considered a supernatural being of power and strength.
Wikipedia”
(20min delay)
