Sandfire Resources Ltd · ASX:SFR
Sandfire Resources — Shareholder Meeting (November 2020)
25 slides from Sandfire Resources's shareholder meeting presentation, Nov 27, 2020
Slide 1: 2020 Annual General Meeting – Expanding horizons from strong foundations
For personal use only Expanding horizons From strong foundations Strategic reset to support global expansion Strong development, exploration pipeline Continued strong production and cash-flow 2020 Annual General Meeting – Online Friday, 27 November 2020 Tshukudu T3 Drill Core Page: 1 SANDFIRE RESOUR
Slide 2: Important Information and Disclaimer
For personal use only ImportantImportant Information and Disclaimer Information and Disclaimer This presentation has been prepared by Sandfire Resources Ltd (Sandfire or the Company) and contains information about Sandfire current at the date of this presentation. The presentation is in summary form
Slide 3: FY2020 Highlights and Year in Review
● Record production and cost performance from DeGrussa: ● 72,238t contained copper, 42,263oz contained gold For personal use only ● Low C1 cash costs: US$0.72/lb ● Strong financial results: $74.1M NPAT; $273.6M cash-flow FY2020 from operating activities; $291M cash and deposits; no debt Highlights ●
Slide 4: Health, Safety, Environment, Community and Sustainability
● Safety is our top priority – TRIFR of 5.8 (down from 6.2 in FY2019) For personal use only ● Zero material adverse environmental or community incidents ● 12,908t of CO2 emissions saved through the DeGrussa Solar FY2020 Project Highlights ● Created value for our local communities ● $47.4M spent on e
Slide 5: Corporate Overview and Key Assets
Corporate │ Overview and Key Assets Key Corporate Data Key Assets For personal use only Building a diversified portfolio of high-quality base metal assets Market Index ASX-200 Issued Capital 178.25 million shares Cash $304 million (Sept 2020) Debt Nil Market Capitalisation ~$800 million (at $4.50) G
Slide 6: Creating value through opportunity
For personal use only Execute delivery Strategy Sustainable production Creating value Accelerate discovery through opportunity Align and empower our people Optimise capital structure Page: 6 SANDFIRE RESOURCES - CREATING VALUE THROUGH OPPORTUNITY
Slide 7: DeGrussa: Strong foundations in Western Australia
For personal use only DeGrussa Strong foundations in Western Australia DeGrussa Operations, WA Exploration - DeGrussa Copper-Gold Mine - Greater Doolgunna Province, WA - Monty Copper-Gold Mine - East Coast Portfolio (NSW, Qld) 7 7 Page: SANDFIRE RESOURCES - CREATING VALUE THROUGH OPPORTUNITY
Slide 8: DeGrussa Operations: High-grade, high-margin production profile
CUMULATIVE PRODUCTION TO END OF FY2020 over 554,000 For personal use only TONNES OF CONTAINED COPPER DeGrussa 319,000 OUNCES OF CONTAINED GOLD Operations High-grade, high- $2.1 billion margin production $4.2 billion IN CUMULATIVE OPERATING CASH- FLOW TO END OF FY2020 profile IN CUMULATIVE SALES REVE
Slide 9: DeGrussa Operations: Consistent High-Grade Production
DeGrussa Operations │ Consistent High-Grade Production 1.6Mtpa Concentrator fed by two underground For personal use only ● mines – DeGrussa and Monty ● Record FY2020 annual production and costs ● Concentrator performing well with FY2020 recoveries averaging 93% for Cu and 46% for Au ● Strong Septemb
Slide 10: Doolgunna: World-Class VMS Exploration Project
Doolgunna │ World-Class VMS Exploration Project For personal use only ● Strategic 7,189km2 footprint across the Bryah Basin ● Over 90km strike length of prospective VMS lithologies – strategic focus on southern limb of Bryah Basin ● Three centres of sulphide Original Tenements: 400km² mineralisation
Slide 11: Doolgunna Multi-Pronged Exploration Strategy
● Doolgunna exploration strategy: ● Accelerate discovery to extend DeGrussa For personal use only Operations mine life ● Focus on Mineral System Element Processes for deep targeting Doolgunna ● 22 favourable structural corridors identified in the Sandfire managed tenure Multi-Pronged Exploration ● B
Slide 12: DeGrussa Gold Transition Strategy
DeGrussa │ Gold Transition Strategy ● Transition to gold production at DeGrussa with potential development of Old Highway Gold Prospect: For personal use only ● Synergies with the DeGrussa Tailings Gold Retreatment Project studies ● Initial phase of resource definition drilling designed to test the
Slide 13: Black Butte, Montana, USA
For personal use only Black Butte Montana, USA Black Butte Copper Project, Montana, USA (85%) 13 13 Page: SANDFIRE RESOURCES - CREATING VALUE THROUGH OPPORTUNITY
Slide 14: Black Butte Copper Project: Current activities and outlook
● Early project works For personal use only ● Enhancement of Feasibility Study being progressed Black Butte ● Exploration underway within the Mining Copper Project Lease targeting potential extensions and other near-mine opportunities Current activities ● Continuing to respond to and deal with and o
Slide 15: Black Butte Copper Project: Key Johnny Lee Feasibility Study results
● Maiden Ore Reserve of 8.8Mt at 2.6% Cu for 226,100t of contained copper Underpins an 8-year mine life at 1.2 million For personal use only ● tonnes per annum Black Butte ● Forecast LOM production totaling 805,000 dry metric tonnes of copper concentrate Copper Project containing 189,500t of copper
Slide 16: Black Butte Copper Project: Ore Reserve and Mineral Resources
Advanced, high-grade copper project: Cu Grade Contained Cu Ore Reserve – Johnny Lee (100%) For personal use only Mt (%) (kt) Proved 2.0 3.0 61 Black Butte Probable 6.8 2.4 165 Total 8.8 2.6 226 Copper Project Cu Grade Contained Cu Mineral Resource – Johnny Lee (100%) Mt (%) (kt) Johnny Lee and Measu
Slide 17: Tshukudu: Expanding horizons in Botswana
For personal use only Tshukudu Expanding horizons in Botswana Tshukudu, Botswana - T3 Copper-Silver Project - A4, T1 Expansion Projects - 26,650km2 exploration portfolio (Botswana and Namibia) 17 17 Page: S A N D F I R E R E S O U R C E S - C R E A T I N G V A L U E F O R S T A K E H O L D E R S T H
Slide 18: Motheo Production Hub: 5.2 Mtpa expansion case
● Definitive Feasibility Study (DFS) for T3 imminent: For personal use only ● 3.2Mtpa base case for DFS (T3 Pit) Motheo ● In parallel with the DFS, Sandfire is evaluating an emerging Production Hub Motheo Production Hub concept within the T3 Expansion Project 5.2 Mtpa area expansion case ● Operating
Slide 19: Tshukudu Overview
Tshukudu │ Overview For personal use only Page: 19 SANDFIRE RESOURCES - CREATING VALUE THROUGH OPPORTUNITY
Slide 20: Motheo Production Hub Treatment Plant Layout
For personal use only Motheo Production Hub Treatment Plant Layout Page: 20 SANDFIRE RESOURCES - CREATING VALUE THROUGH OPPORTUNITY
Slide 21: Tshukudu Expanded Near-Mine Exploration Program
Tshukudu │ Expanded Near-Mine Exploration Program ● Expanded exploration underway to: For personal use only ● Target high-grade satellite discoveries with Tshukudu Exploration: North-East Area – Priority Targets potential to support the emerging Motheo Production Hub T1/T2 A1 Dome A27 Dome 12 km str
Slide 22: Tshukudu A4 Resource Drilling Program
Tshukudu │ A4 Resource Drilling Program ● Maiden Mineral Resource imminent For personal use only ● 6 diamond rigs at A4 with high-grade vein-hosted copper intersected in many holes at shallow depth ● Resource drilling programme: ● Phase 1 (50m x 50m pattern) completed September ● Phase 2 (25m x 25m)
Slide 23: Summary: Building a global, diversified and sustainable mining company
Record production continues into Q1 FY2021 at DeGrussa For personal use only Growing pipeline of quality global copper development assets Summary Project development studies being delivered Building a global, Committed to organic growth via diversified and exploration sustainable Strong balance shee
Slide 24: Competent Person's Statements
Competent Person’s Statements For personal use only Johnny Lee and Lowry Mineral Resource The information in this announcement that relates to the Johnny Lee and Lowry Mineral Resources is based on information compiled by Mr Erik Ronald (M. Eng., P.Geo, RM- SME, Principal Resource Geology Consultant
Slide 25: 2020 Annual General Meeting – Expanding horizons
For personal use only Expanding horizons From strong foundations Strategic reset to support global expansion Strong development, exploration pipeline Continued strong production and cash-flow 2020 Annual General Meeting – Online Friday, 27 November 2020 Tshukudu T3 Drill Core Page: 25 SANDFIRE RESOU
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