Sandfire Resources Ltd · ASX:SFR
Sandfire Resources — Q1 FY24 Earnings Presentation
23 slides from Sandfire Resources's earnings presentation, Oct 26, 2023
Slide 1: September 2023 Quarterly Presentation
September 2023 Quarterly Presentation 26 October 2023 Access the live webcast of this presentation commencing at 10.00am (AWST) / 1.00pm (AEDT) at the link below: SANDFIRE WEBCAST
Slide 2: Important Information and Disclaimer
Important Information and Disclaimer This presentation has been prepared by Sandfire Resources Ltd (Sandfire or the Company) and contains information about Sandfire Key assumptions current at the date of this presentation. The presentation is in summary form, has not been independently verified and
Slide 3: Important Information and Disclaimer (cont.)
Important Information and Disclaimer (cont.) SFR Mineral Resources and Ore Reserves estimates The information in this Presentation that relates to SFR’s Mineral Resources or Ore Reserves is extracted from SFR’s ASX releases and is available at https://www.sandfire.com.au/where-we-operate/mineral-res
Slide 4: Statutory and Non-statutory measures
Important Information and Disclaimer (cont.) Statutory and Non-statutory measures Sandfire adopts a combination of International Financial Reporting Standards (IFRS) and non-IFRS financial measures to assess performance. Underlying earnings measures, cash flows from operating activities excluding ex
Slide 5: Brendan Harris, Chief Executive Officer
Brendan Harris Chief Executive Officer
Slide 6: We mine copper sustainably to energise the future
Our Values Our Purpose We mine copper sustainably to energise the future Honesty Our Strategic Pillars Accountability Deliver safe, consistent Reduce our Increase Demonstrate and predictable carbon intensity our reserves capital discipline performance Respect Our ESG framework permeates everything w
Slide 7: Progress towards our FY24 goals
Quick reference guide Progress towards our FY24 goals FY24 Outlook Q1 FY24 Progress • Foster a shared belief in Our Purpose • Executive Committee female representation increased • Increase already high levels of employee engagement to >40% Empower our people and • Increase female representation defi
Slide 8: A safe business is a productive business
A safe business is a productive business Group TRIF declined to 1.2 Record low safety outcome achieved in Q1 FY24 We are still experiencing high-potential incidents and have more work to do We can never be complacent when it comes to the safety of our people or the environment Q1 FY24 FY24 • Maintai
Slide 9: Megan Jansen, Chief Financial Officer
Megan Jansen Chief Financial Officer
Slide 10: Q1 FY24 | Group summary
Q1 FY24 | Group summary Group metal production by value • Group copper equivalent production of 30.8kt • MATSA copper equivalent production of 22.2kt 18% • MATSA Underlying mine operating unit cost at $70/t of ore processed • C1 cost of $2.04/lb with lower by-product credit revenue (zinc) • Motheo c
Slide 11: Q1 FY24 Group cash flow waterfall
Q1 FY24 Construction Mine devp Sustaining Exploration 1 2 2 Group cash flow waterfall ($M) 3 2 20 15 4 MATSA Motheo Other Motheo $22M 16 MATSA $22M 45 8 200 142 (5) (18) 113 100 (48) (26) - -100 -200 -300 -400 (430) (572) (567) (454) -500 FY2023 Net FY2023 Debt ¹ Opening Cash MATSA cash Motheo cash
Slide 12: Brendan Harris, Chief Executive Officer
Brendan Harris Chief Executive Officer
Slide 13: Our global footprint
Our global footprint Chief Executive Officer & Managing Director Chief Financial Chief Operating Chief People Chief Development Chief Sustainability Chief Legal & Officer Officer Officer Officer Officer Compliance Officer Megan Jansen Jason Grace Scott Browne Richard Holmes Catherine Bozanich Victor
Slide 14: Our Strategy
Our Strategy Iberian Pyrite Belt Simple by design • We are strongly placed to support the electrification and decarbonisation of the global economy through our ownership of two strategically valuable metal processing hubs in the Iberian Pyrite and Kalahari Copper belts, and targeted development opti
Slide 15: Motheo | Q1 FY24 update
Motheo | Q1 FY24 update • Annualised throughput rate of 3.1Mtpa against initial capacity of 3.2Mtpa Q1 FY24 Production Q1 FY24 Cost • Throughput rate expected to ramp-up to 5.2Mtpa across H2 FY24 • Mine operating costs of $28M or $37/t ore processed, below guidance primarily • 3.1Mt throughput • Und
Slide 16: Motheo | Ramp-up largely tracking to plan
Motheo | Ramp-up largely tracking to plan • Initial 3.2Mtpa Motheo Copper Project completed on budget ($325M) Q1 FY24 FY24G FY24 production & cost guidance • Ramp-up to initial capacity of 3.2Mtpa is continuing to go well • Consolidated in the Group’s Profit & Loss statement from 1 July 2023 • 4.1Mt
Slide 17: Motheo | Increase our Reserves
Motheo | Increase our Reserves A1 - Infill drilling to support maiden resource estimate anticipated in Q3 FY24 Drilling program to test high priority targets A4 – Drilling to within ~70km of our test dip and strike processing facility extensions 17
Slide 18: MATSA | Q1 FY24 update
MATSA | Q1 FY24 update • Record annualised mining rate of 4.6Mtpa and processing throughput rate of 4.5Mtpa Q1 FY24 Cost Q1 FY24 Production aligned with our plan to build RoM stocks • Substantial improvement in copper recovery in our polymetallic line, increasing • 4.6Mtpa mining rate • Underlying m
Slide 19: MATSA | Operating strategy
MATSA | Operating strategy FY2024G 3 Underground mines Central Processing Facility (4.5Mt total ore processed) Port of Huelva (4.6Mt total ore mined) Improve stability and predictability Aguas Teñidas • Reduce mining dilution (2.05Mt) BUILD • Improve orebody knowledge • Build RoM stocks to improve o
Slide 20: MATSA | Increase our Reserves
MATSA | Increase our Reserves Olivo zone long-section • Have achieved early near-mine exploration success: • Confirmed the presence of two geophysical anomalies in Q1 FY24 down plunge from Masa 2 (Magdalena): • Anomaly A down plunge of Masa 2 • Anomaly B north-west of Masa 2 west • Olivo Zone previo
Slide 21: A strong foundation from which to grow
A strong foundation from which to grow +50% increase in CuEq production to 20251 Contained metal (kt) 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 FY23 FY24 FY25 Cu Contained (t) Zn Cu Eq Contained (t) Pb Cu Eq Contained (t) Ag Cu Eq Contained (t) 1. 1. Refers to continuing operatio
Slide 22: Group | Guidance
Group | Guidance FY24 Guidance Corporate MATSA Motheo and Other Groupa (September-23 Quarter) Production Ore processed (Mt) 4.5 (1.1) 4.1 (0.8) 8.6 (1.9) Copper (kt contained) 58 (15) 39 (8) 97 (23) Zinc (kt contained) 88 (18) - (-) 88 (18) Lead (kt contained) 10 (1.6) - (-) 10 (1.6) Silver (Moz con
Slide 23: Contact Details
Contact Details +61 8 6430 3800 +61 8 6430 3849 www.sandfire.com.au Corporate Head Office Level 2, 10 Kings Park Road West Perth WA 6005 Australia PO Box 1495 West Perth WA 6872 Australia