Sandfire Resources Ltd · ASX:SFR
Sandfire Resources — Shareholder Meeting (November 2015)
31 slides from Sandfire Resources's shareholder meeting presentation, Nov 18, 2015
Slide 1: Opportunity Redefined – 2015 Annual General Meeting
For personal use only OPPORTUNITY REDEFINED 2015 Annual General Meeting – Wednesday 18 November 2015
Slide 2: Chairman's Address
For personal use only CHAIRMAN’S ADDRESS “Our flagship DeGrussa Copper- Gold Mine in Western Australia is now firmly established in steady- state production with 2015 marking our third successive year of strong, low-cost and, most importantly, safe operations.” – Sandfire Chairman, Derek La Ferla 2
Slide 3: Managing Director's Address
For personal use only MANAGING DIRECTOR’S ADDRESS “Against the backdrop of what has undoubtedly been a very difficult environment for resource companies, Sandfire’s strong performance remains centred on our high-grade, low-cost production base, underpinned at all times by a strong focus on safety, t
Slide 4: 2015 – Highlights and Achievements
2015 – Highlights and Achievements Delivering, innovating and improving across all parts of our business For personal use only Operations, Corporate • Strong production and financial performance and Financial • Increased dividend • Strong balance sheet • DeGrussa mine life extended to mid-2021 Explo
Slide 5: 2015 – Highlights and Achievements
2015 – Highlights and Achievements Delivering, innovating and improving across all parts of our business For personal use only Operations, Corporate • Strong production and financial performance and Financial • Increased dividend • Strong balance sheet • DeGrussa mine life extended to mid 2021 Explo
Slide 6: Operations, Corporate and Financial
Operations, Corporate and Financial For personal use only ► Third successive year of consistent, safe and profitable production ► Strong performance from both the underground mine and processing plant ► Increased in copper recoveries as a result of optimisation programs ► Annual net profit after tax
Slide 7: Strong and Consistent Low-Cost Copper and Gold Production
Strong and Consistent Low-Cost Copper and Gold Production Track record of achieving guidance with excellent safety performance For personal use only PRODUCTION OVERVIEW – Key Figures FY 2013 FY 2014 FY 2015 FY 2016 (guidance) Copper (Cu) 64,017t 67,690t 67,154t 65-68kt Production Gold (Au) 42,679oz
Slide 8: Financial Performance
Financial Performance For personal use only 8
Slide 9: Strong Operating Cash Flows
Strong Operating Cash Flows Deploying our cash to reduce debt, fund growth and underpin shareholder returns For personal use only $300m The amount of debt Sandfire has repaid in the past two and a half years 9 9
Slide 10: 2015 – Maintaining Value in a Challenging Environment
2015 – Maintaining Value in a Challenging Environment For personal use only Share Price 52-Week Low A$3.74 High A$6.80 Market Cap ~A$900 million Shares on issue – 156.9m 10
Slide 11: 2015 – Highlights and Achievements
2015 – Highlights and Achievements Delivering, innovating and improving across all parts of our business For personal use only Operations, Corporate • Strong production and financial performance and Financial • Increased dividend • Strong balance sheet • DeGrussa mine life extended to mid-2021 Explo
Slide 12: Doolgunna – World-Class Exploration Upside
Doolgunna – World-Class Exploration Upside For personal use only 130,787m The total amount of drilling ► Dominant 1,700km2 ground position in WA’s premier emerging copper belt: only completed on operating processing facility in the District Sandfire’s ► Outstanding potential: 65km strike length of p
Slide 13: Springfield Project – Talisman Farm-in
Springfield Project – Talisman Farm-in • Sandfire earning 70% interest via $15M farm-in with For personal use only Talisman Mining (ASX: TLM) • Two key areas of exploration focus • Monty – 10km east of DeGrussa • Significant new high-grade discovery – first discovery outside of DeGrussa • Growing fo
Slide 14: Monty – New High-Grade VMS Copper-Gold Discovery
Monty – New High-Grade VMS Copper-Gold Discovery ► +6000m of diamond drilling and +7000m of RC For personal use only drilling completed to date ► Two mineralised horizons defined, with significant intersections including (not true width): – 16.5m @ 18.9% Cu, 2.1g/t Au from 409.5m (TLDD0004A) – Lower
Slide 15: Monty – Vertical Longitudinal Projection
Monty – Vertical Longitudinal Projection For personal use only 15
Slide 16: Monty – Latest Developments
Monty – Latest Developments Step-out hole TLDD0026 For personal use only • 7.3m grading 6.2% Cu and 2.8g/t Au from 325.6m down-hole (down-hole width, top of intercept is 275m vertically below surface) • 21.6m grading 34.4% Cu and 0.4g/t Au from 339.4m down-hole (down-hole width, top of intercept is
Slide 17: Monty and Beyond – Next Steps
Monty and Beyond – Next Steps For personal use only ► In-fill resource drilling now underway within known mineralised envelope to define maiden Mineral Resource in Q1 CY2016 ► Further step-out drilling to test the broader extents of the mineralised system ► Interpretive work to define potential new
Slide 18: Homer – The Next Opportunity?
Homer – The Next Opportunity? ► High priority target located 4km For personal use only directly east of DeGrussa – immediate extension of DeGrussa Mine Corridor ► Hole TLDD0003 completed earlier this year to test eastern strike extension of interpreted C5 host horizon ► Followed up encouraging resul
Slide 19: 2015 – Highlights and Achievements
2015 – Highlights and Achievements Delivering, innovating and improving across all parts of our business For personal use only Operations, Corporate • Strong production and financial performance and Financial • Increased dividend • Strong balance sheet • DeGrussa mine life extended to mid-2021 Explo
Slide 20: Australian Regional Exploration Projects
Australian Regional Exploration Projects Targeting world-class discoveries in Australia’s premier exploration provinces For personal use only EXPLORATION: Queensland Base Metals ► 2,300km² in Mt Isa-Cloncurry province ► 100km strike length with outstanding potential for Broken Hill/Cannington-style
Slide 21: Investment in Tintina Resources / Black Butte Copper Project
Investment in Tintina Resources / Black Butte Copper Project For personal use only ► 36% stake in Tintina Resources (TSX-V: TAU) ► Developing the Black Butte Copper Project, central Montana, USA ► Advanced, high quality copper project in stable jurisdiction: • NI 43-101 Measured and Indicated Resour
Slide 22: 2015 – Highlights and Achievements
2015 – Highlights and Achievements Delivering, innovating and improving across all parts of our business For personal use only Operations, Corporate • Strong production and financial performance and Financial • Increased dividend • Strong balance sheet • DeGrussa mine life extended to mid-2021 Explo
Slide 23: 2015 Safety
2015 Safety Improved safety performance For personal use only TRIFR 20 18 ► Increased focus on risk 16 management and assurance 14 12 processes implemented 10 8 ► Board oversight and governance 6 enhanced 4 2 ► Ongoing initiatives have included 0 Jul '13 Aug '13 Sep '13 Oct '13 Nov '13 Dec '13 Jan '
Slide 24: 2015 Sustainability Report
2015 Sustainability Report ► Inaugural Sustainability Report published in October For personal use only 2015 ► Complies with the G4 Global Reporting Initiative, the leading international framework for sustainability reporting ► Provides a comprehensive overview of the Company’s sustainability perfor
Slide 25: 2015 Sustainability Report
2015 Sustainability Report For personal use only 25
Slide 26: Sustainability – DeGrussa Solar Power Project
Sustainability – DeGrussa Solar Power Project First-mover renewable energy project with potential to reduce costs and CO2 emissions For personal use only ► 10.6MW solar power station being constructed at DeGrussa ► To be fully integrated with existing 19MW diesel-fired power station ► $40M project b
Slide 27: A premier Australian copper-gold producer
For personal use only ► Quality & consistency ► Strong cash flows & profits ► New chapter of exploration success ► Strong business development pipeline ► Shareholder returns A premier Australian copper-gold producer
Slide 28: Important Information and Disclaimer
Important Information and Disclaimer Forward-Looking Statements and Competent Person’s Statement For personal use only Forward-Looking Statements ► This presentation has been prepared by Sandfire Resources NL. This document contains background information about Sandfire Resources NL current at the d
Slide 29: Mineral Resource, Ore Reserve and Mine Plan
Mineral Resource, Ore Reserve and Mine Plan Maiden C4 Ore Reserve and Mineral Resource additions extended mine life to mid-2021 For personal use only • Previously announced increases to high-grade Underground Mineral Resource incorporated into DeGrussa Mine Plan, extending mine life to mid-2021 • Ma
Slide 30: Drill-hole Information Summary, Springfield Project
Drill-hole Information Summary, Springfield Project Hole ID Depth Dip Azimuth Grid_ID East North RL Lease ID Hole Status For personal use only TLDD0002A 463 -61° 110° MGA94_50 743544 7171211 602 E52/2282 Complete TLDD0004A 817 -60° 148° MGA94_50 743588 7171281 601 E52/2282 Complete TLDD0005 478 -62°
Slide 31: Drill-hole Information Summary, Springfield Project
Drill-hole Information Summary, Springfield Project Intersection Downhole Estimated True For personal use only Hole ID Interval From (m) To (m) Width (m) Width (m) Cu (%) Au (g/t) Zn (%) TLDD0004A 409.5 426.0 16.5 10.9 18.9 2.1 1.5 TLDD0005 417.0 426.2 9.2 6.1 11.8 2.9 2.3 TLDD0008 574.2 579.3 5.1 3
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