Sheffield (ASX:SFX) share price whizzes 34% higher, hitting 52-week-high

The Sheffield (ASX: SFX) share price hit a 52-week high today after the company gained approval for a joint venture investment with Yansteel.

Aaron Teboneras

Author bio Aaron Teboneras is an ASX investment writer with a background in business, marketing and finance. He has been a contributor to The Motley Fool since 2020, covering market news, company announcements, broker views and financial results. Aaron’s previous notable appointments include National Australia Bank, and Computershare where he discovered his passion for the Australian sharemarket. Aaron has been investing for almost 20 years, using both fundamental and technical analysis to find opportunities. Aaron completed a Technical Analysis course with Mint Analysis in 2022 and is currently studying Training and Assessment. Outside the market, he has travelled to more than 45 countries and enjoys trekking, meeting new people and seeing different parts of the world. Areas of expertise ASX growth shares Founder-led companies Company announcements and financial results Fundamental and technical analysis Education Bachelor of Business from RMIT University Social media LinkedIn Instagram Favorite investment quote “If you don't find a way to make money while you sleep, you will work until you die.” — Warren Buffett

Published December 15, 2020 5:49 pm AEDT

The Sheffield Resources Ltd (ASX: SFX) share price whizzed higher today, hitting a 52-week high of 48 cents in mid-afternoon trade before retreating. This comes after the Foreign Investment Review Board (FIRB) gave the nod for an investment by its proposed joint venture partner, YGH Australia Investment Pty Ltd.

At close of trade today, the Sheffield share price was swapping hands for 39 cents, up 21.87%.

a miner holds his thumb up as he holds a device in his other hand. — Image source: Getty Images

What's driving the Sheffield share price up today?

In today's release, Sheffield advised that FIRB has cleared the pathway for Yansteel to invest $130.1 million in a 50% stake of the Thunderbird Mineral Sands project. The favourable outcome will see Sheffield and Yansteel become equal strategic partners.

Both parties will finalise their joint venture agreements in coming weeks. They will also conduct a feasibility study to assess the project potential, with a final investment decision expected next year.

More on the Thunderbird joint venture

The Thunderbird project is considered a high-quality site, located in the north-west Western Australian region. A bankable feasibility study in March 2017 found the area contained one of the largest – and highest-grade – mineral sands discovered in the last 30 years.

Should the project fulfil its potential, the 42-year mine life is estimated to generate earnings before interest, tax, depreciation and amortisation (EBITDA) of $5.1 billion.

What did management say?

Sheffield managing director Bruce McFadzean welcomed the result, saying:

The advice from FIRB is a positive step forward for Yansteel, Sheffield and the development of the Thunderbird Mineral Sands Project. It is a significant event for shareholders and the Kimberley community, demonstrating state and federal governments' support for continued investment in the local resources sector.

Sheffield share price summary

The Sheffield share price reached a 52-week high of 48 cents today. While its shares dipped during the COVID-19 global crisis, the Sheffield share price has rebounded strongly since July.

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