Ann: Quarterly Activities/Appendix 5B Cash Flow Report, page-3

You're right to be asking the question - on the surface, a $25 million positive operating cash flow in a single quarter could imply around $100 million annually if sustained. With a current market cap of $71 million, it seems like the company is undervalued relative to its cash-generating potential.But there are a few key factors that help explain the disconnect.First, the project is still in a ramp-up phase toward full production levels. A lot of that operating cash is likely going back into working capital and the ongoing costs required to scale up to the target 16Mtpa mining rate. The mention of Yansteel's ilmenite prepayment arrangement suggests short-term liquidity is still being managed carefully, and external support is needed.Also, a significant portion of that cash is being used to pay down debt. The company recently repaid US$11 million on a secured loan, and there are likely further repayments scheduled that will continue to absorb operating cash flows.It’s also important to remember that Kimberley Mineral Sands is a 50:50 joint venture. So only half of the operating cash flow - around $12.5 million for the quarter - is attributable to Sheffield Resources. And even then, not all of that may be flowing through to Sheffield’s bank account if funds are being retained within the JV for reinvestment or debt servicing.On top of that, achieving the planned production increase by early FY27 will likely require ongoing capital expenditure. Productivity improvements and infrastructure investment are not cheap, so a good chunk of this early cash flow is probably being reinvested.Finally, the market may simply be cautious. It could be waiting for consistency, more visibility on sustainable margins, or watching for changes in commodity prices. There’s also always some execution risk with ramp-ups, which investors tend to discount until proven.So while the headline number looks great, the cash is currently doing the hard work of building a long-term operation. Once ramp-up and debt reduction are further along, and assuming commodity prices hold, there’s a good chance more value starts flowing through to shareholders - and the market cap should catch up.