Sandfire Resources Ltd · ASX:SFR
Sandfire Resources — Resources Rising Stars (May 2017)
22 slides from Sandfire Resources's conference presentation, May 30, 2017
Slide 1: A debt-free Australian copper-gold producer with a strong growth outlook
For personal use only Karl Simich CEO and Managing Director Resources Rising Stars 31 May 2017 A debt-free Australian copper-gold producer with a strong growth outlook A debt–free AustralIan copper–gold producer wIth a strong growth outlook Page: 1
Slide 2: Important Information and Disclaimer
Important Information and Disclaimer Forward-Looking Statements This presentation has been prepared by Sandfire Resources NL. This document contains background information about Sandfire Resources NL current at the date of this presentation. The presentation is in summary form and does not purport b
Slide 3: Investment Overview
Investment Overview For personal use only Strong organic ASX-200 mid-tier Safe, consistent Debt-free balance pipeline includes new High quality copper-gold operational sheet with Monty mine in WA exploration portfolio producer performance over outstanding growth and Black Butte with strong discovery
Slide 4: Mid-Tier Copper-Gold Miner with a Strong Growth Focus
Mid-Tier Copper-Gold Miner with a Strong Growth Focus Market Capitalisation High-grade, high quality project portfolio – in Australia and USA For personal use only ~$958M at $6.08 Issued Capital 157.7M Shares Dividends 11c FY16 5c 1HFY17 Cash and Deposits $90M 31 March 2017 Debt Nil Our vision is to
Slide 5: Strong Financial Performance, Disciplined Capital Management
Strong Financial Performance, Disciplined Capital Management FINANCIAL ► Strong financial performance OVERVIEW: FY 2013 FY 2014 FY 2015 FY2016 1HFY2017 For personal use only throughout commodity price cycle Revenue $507.3M $525.7M $548.6M $497.2M $248.0M Operating Cash- ► Revenues to date of more th
Slide 6: DeGrussa Operations – Consistent, Reliable, Low-Cost
DeGrussa Operations – Consistent, Reliable, Low-Cost Five successive years of consistent, safe and profitable production For personal use only Milling rates maintained at 1.6Mtpa and recoveries targeted at ~92% (LOM) Decline development completed to LOM design: mine development now focused on
Slide 7: Robust Underground Mine – All Lenses Now On Stream
Robust Underground Mine – All Lenses Now On Stream For personal use only ► Production now sourced from all four lenses (DeGrussa, C1, C4, C5) ► Blending of mine ore feeds allows process optimisation ► 40+km of mine development completed DeGrussa and Monty Tonnes Copper Gold Contained Copper Containe
Slide 8: Development – Monty Copper-Gold Mine
Development – Monty Copper-Gold Mine ► Satellite deposit located 10km from DeGrussa Concentrator, part For personal use only of the Springfield JV (Sandfire: 70% and Manager/Talisman 30%) ► Feasibility Study completed: ► Ore Reserve ► 0.92Mt at 8.7% Cu and 1.4g/t Au for 80,000t Cu and 42,000oz Au ►
Slide 9: Development – Black Butte Copper Project, USA
Development – Black Butte Copper Project, USA ► 61% stake in copper development company Tintina Resources For personal use only (TSX-V: TAU) – ~$24M invested to date ► Developing the Black Butte Copper Project, central Montana, USA ► Advanced, high quality copper project in stable jurisdiction: ► NI
Slide 10: Development – Black Butte Copper Project, USA
Development – Black Butte Copper Project, USA ► Upfront capital expenditure of For personal use only ~US$220M ► 2 year construction period with operations over 11-14 years ► Very small surface footprint – will be 100% reclaimed ► Highly engineered, state-of-the-art underground mine ► Mine design, la
Slide 11: Tightening Copper Market – Driven by Disruption and Demand
Tightening Copper Market – Driven by Disruption and Demand Chinese demand contines to For personal use only strengthen….and supply is continuing to be challenged China’s transition from an investment-led to a services-based market means more electrical appliances, more EV’s, and more renewable energ
Slide 12: Tightening Copper Market – Looming Supply Shortfall
Tightening Copper Market – Looming Supply Shortfall ► A glimpse into the future…what could play out in the copper market over the next two years For personal use only Copper demand forecast to exceed supply by 2019/2020, which should drive prices higher and incentivise new investment in supply. Sour
Slide 13: An Outstanding Track Record of Growth through Exploration
An Outstanding Track Record of Growth through Exploration ► 67% increase in Mine Plan contained copper since initial discovery of For personal use only DeGrussa in 2009 Five high-grade, high-value VMS lenses discovered to date A debt–free AustralIan copper–gold producer wIth a strong growth outlook
Slide 14: Doolgunna VMS Province – Exploration Overview
Doolgunna VMS Province – Exploration Overview ► Exploration advancing at multiple prospects within Greater Doolgunna area: For personal use only ► Greater Doolgunna region: 5,846km2 including 65km strike length of prospective VMS lithologies ► Recent farm-in deals: ► Enterprise Metals (ASX: ENT) to
Slide 15: Doolgunna Exploration – Advancing on Multiple Fronts
Doolgunna Exploration – Advancing on Multiple Fronts ► Systematic, multi- For personal use only pronged exploration campaign leveraging Sandfire’s vast database and IP ► More than 120,000m of drilling FY17 to date and accelerating ► $20M annual budget (non-success basis) ► Priority areas of focus in
Slide 16: Australian Regional Exploration Projects
Australian Regional Exploration Projects Targeting world-class discoveries in Australia’s premier exploration provinces For personal use only EXPLORATION: Northern Territory ► Active drilling by JV partners in Borroloola tenements EXPLORATION: Queensland Base Metals ► 2,400km² in Mt Isa-Cloncurry pr
Slide 17: NSW Exploration – Lachlan Fold Belt
NSW Exploration – Lachlan Fold Belt Significant regional exploration portfolio in a world-class mineral province For personal use only ► Focused exploration in the highly prospective Lachlan Fold Belt, NSW ► Attractive regime for development of large-scale gold and copper-gold projects ► Shallow cov
Slide 18: Donnington Prospect, Temora (NSW) – 100% Sandfire
Donnington Prospect, Temora (NSW) – 100% Sandfire ► Follow-up drilling continues at the Donnington prospect following discovery For personal use only hole, which intersected: – 125m @ 0.3% copper and 0.5g/t gold including – 44m and 28m at 0.4% copper and 0.6g/t gold ► Drilling 100m south of this int
Slide 19: Donnington Prospect, Temora (NSW) – 100% Sandfire
Donnington Prospect, Temora (NSW) – 100% Sandfire Mineralisation hole TMMRD011 (415.2m) Follow up drilling at For personal use only Donnington Prospect on RTP 1VD magnetics Alteration ► Follow up drilling 100m south of hole TMMRD006 identifies strong mineralisation in hole TMMRD011 ► Drilling 100m n
Slide 20: Summary – Positioned for Growth and Success
Summary – Positioned for Growth and Success For personal use only ► Consistent low-cost production ► Strong balance sheet – net cash position ► Growing free cash-flows ► Committed to organic growth via exploration ► Unlocking the potential at Doolgunna ► Developing a growth pipeline for the future S
Slide 21: For personal use only
For personal use only Karl Simich CEO and Managing Director Resources Rising Stars 31 May 2017 A debt-free Australian copper-gold producer with a strong growth outlook A debt–free AustralIan copper–gold producer wIth a strong growth outlook Page: 21
Slide 22: Mine Plan, Ore Reserve and Mineral Resource
Mine Plan, Ore Reserve and Mineral Resource Table 1 – Underground Mine Plan, Ore Reserve and Mineral Resource Tonnes Copper Gold Contained Contained DeGrussa Monty For personal use only DeGrussa and Monty Underground Mines (Mt) (%) (g/t) Copper (t) Gold (oz) basis basis Mine Plan 7.0 5.1 1.6 359,000
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