Sandfire Resources Ltd · ASX:SFR
Sandfire Resources — Shareholder Meeting (November 2017)
34 slides from Sandfire Resources's shareholder meeting presentation, Nov 29, 2017
Slide 1: A debt-free Australian copper-gold producer with a strong growth outlook
For personal use only 1 A debt–free Australian copper–gold producer with a strong growth outlook Page: 1
Slide 2: Forward-Looking Statements and Competent Persons' Statements
Forward-Looking Statements and Competent Persons’ Statements 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 for
Slide 3: Forward-Looking Statements and Competent Persons' Statements
Forward-Looking Statements and Competent Persons’ Statements Black Butte Mineral Resource For personal use only The information in this report that relates to Black Butte Mineral Resource is based on information compiled by Mr. Michael J. Lechner who is a Registered Member of SME, a CPG with AIPG, a
Slide 4: Our Vision and Core Values
Our Vision and Core Values Our Vision For personal use only Sandfire’s vision is to be a significant, mid-tier mining company that operates in the top quartile of international performance benchmarks for the industry. A debt–free Australian copper–gold producer with a strong growth outlook 4
Slide 5: Our Vision and Core Values: Core Values
Our Vision and Core Values Our Core Values For personal use only The Company has implemented a set of Core Values designed to guide the directors and all employees in their day-to-day dealings with each other, customers and the community: ► Safety – act safely and with care for the environment ► Com
Slide 6: Operations, Corporate and Financial
Operations, Corporate For personal use only and Financial Development Projects Exploration & Business Development Sustainability Outlook A debt–free Australian copper–gold producer with a strong growth outlook 6
Slide 7: Operations, Corporate and Financial
Operations, Corporate For personal use only and Financial Development Projects Exploration & Business Development Sustainability Outlook A debt–free Australian copper–gold producer with a strong growth outlook 7
Slide 8: 2017 Snapshot – Operations, Corporate and Financial
2017 Snapshot – Operations, Corporate and Financial COPPER AND GOLD PRODUCTION C1 CASH OPERATING COST For personal use only 67,088 tonnes of contained copper ► Fifth successive year of consistent, safe US$0.93/lb 38,623 (2016: US$0.95/lb) and profitable production ounces of contained gold TOTAL RECO
Slide 9: 2017 Snapshot – Development, Exploration and Growth
2017 Snapshot – Development, Exploration and Growth ► Strengthened project development pipeline For personal use only Development of Monty Copper-Gold Project well progressed following successful DFS Increased ownership of Black Butte Copper Project, USA to 78.1%, permitting significantly advanced ►
Slide 10: DeGrussa – Consistent, Reliable, Low-Cost
DeGrussa – Consistent, Reliable, Low-Cost PRODUCTION OVERVIEW – Key Figures For personal use only FY 2018 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 (guidance) Production Copper (Cu) 64,017t 67,690t 67,154t 68,202t 67,088t 63-66kt Gold (Au) 42,679oz 33,893oz 37,386oz 37,612oz 38,623oz 35-38oz C1 Cash O
Slide 11: Rising Production Profile in a Rising Copper Market
Rising Production Profile in a Rising Copper Market ► Ore from Monty to be introduced from Q2 FY 2019: rising high-grade production profile in strengthening copper market For personal use only ► DeGrussa and Monty Mine Plan: 7.0Mt at 5.1% Cu and 1.6g/t Au (359,000t Cu, 368,000oz Au) Debt-free from F
Slide 12: Development Projects
Operations, Corporate For personal use only and Financial Development Projects Exploration & Business Development Sustainability Outlook A debt–free Australian copper–gold producer with a strong growth outlook 12
Slide 13: Development Pipeline – Monty Project
Development Pipeline – Monty Project ► Satellite high-grade copper-gold For personal use only deposit located 10km east of DeGrussa ► One of highest grade VMS deposits discovered anywhere in the world in past 3 decades ► First VMS discovery outside of the DeGrussa Complex ► Positive DFS completed Ap
Slide 14: Development Pipeline – Monty Deposit
Development Pipeline – Monty Deposit ► Mining contract awarded to Byrnecut For personal use only (combined operations between DeGrussa and Monty JV) ► Civil works awarded to Yagahong alliance: Haulage and access roads Stockpile and laydown area pads Infrastructure works and drainage ► Project develo
Slide 15: Development Pipeline – DeGrussa Growth Projects
Development Pipeline – DeGrussa Growth Projects Growth projects currently under evaluation against the backdrop of an improved For personal use only copper price environment Near-Mine Opportunities Oxide Copper Project Thaduna Copper Projects ► UG Mineral Resource not ~2.8Mt oxide stockpiles ► ► 2 s
Slide 16: Development Pipeline – Black Butte Copper Project, USA
For personal use only Development Pipeline – Black Butte Copper Project, USA ► 78% stake in copper development company Tintina Resources (TSX-V: TAU) – ~A$40M invested to date ► Developing the Black Butte Copper Project, central Montana, USA ► Advanced, high quality copper project in stable jurisdic
Slide 17: Development Pipeline – Black Butte Copper Project, USA
Development Pipeline – 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 ► M
Slide 18: Black Butte Copper Project, USA – Community Engagement
Black Butte Copper Project, USA – Community Engagement ► We are committed to expanding our business in North America by For personal use only developing the Black Butte Copper Project ► We are a committed, long-term investor in the State of Montana with a desire to become a productive part of the co
Slide 19: Exploration & Business Development
Operations, Corporate For personal use only and Financial Development Projects Exploration & Business Development Sustainability Outlook A debt–free Australian copper–gold producer with a strong growth outlook 19
Slide 20: Exploration and Business Development – Group Mineral Resource
For personal use only Exploration and Business Development – Group Mineral Resource Black Butte 18.0Mt @ 3.3% Cu, 14g/t Ag 597kt Cu and 0.10% Co 7,980koz Ag DeGrussa 18kt Co 9.5Mt @ 4.2% Cu, 1.6g/t Au and 21g/t Ag Thaduna & Green Dragon 400kt Cu 8.2Mt @ 1.8% Cu and 4g/t Ag 500koz Au 150kt Cu 963koz
Slide 21: Doolgunna – Dominant Position in a World-Class VMS Province
Doolgunna – Dominant Position in a World-Class VMS Province ► Sandfire has more than tripled its ground position in the past two years For personal use only ► Greater Doolgunna region: 5,846km2 including 65km strike length of prospective VMS DeGrussa lithologies 9.5Mt @ 4.2% Cu, 1.6g/t Au and 21g/t
Slide 22: Exploration – New Technology, New Ground = Fresh Impetus
Exploration – New Technology, New Ground = Fresh Impetus ► Aggressive push into new areas – Enterprise JV, Great Western JV For personal use only and Yerrida ► Revisiting “old” areas using cutting-edge new technologies, e.g. ultra-high powered MLEM (~15% more powerful than previous systems) ► Major
Slide 23: Exploration – New Technology, New Ground = Fresh Impetus
For personal use only Exploration – New Technology, New Ground = Fresh Impetus ► Exploration continuing as priority along prospective VMS corridor hosting DeGrussa and Monty ► RC drilling along strike from Monty ► RC drilling within Vulcan and Vulcan West prospects ► 600-hole initial aircore program
Slide 24: Australian East Coast – Base Metal Exploration Initiative
Australian East Coast – Base Metal Exploration Initiative Targeting world-class discoveries in Australia’s premier exploration provinces For personal use only Northern Territory ► Active drilling by JV partners in Borroloola tenements Queensland Base Metals ► 2,400km² in Mt Isa-Cloncurry province in
Slide 25: Sustainability
Operations, Corporate For personal use only and Financial Development Projects Exploration & Business Development Sustainability Outlook A debt–free Australian copper–gold producer with a strong growth outlook 25
Slide 26: 2017 Safety
2017 Safety Improved safety performance For personal use only ► Increased focus on risk management and assurance processes implemented ► Governance enhanced ► Ongoing initiatives have included further development of safety systems, improved safety leadership and enhancement of safety culture 10 TRIF
Slide 27: 2017 Sustainability Report
For personal use only 2017 Sustainability Report A debt–free Australian copper–gold producer with a strong growth outlook 27
Slide 28: Supporting Regional Economic Development
Supporting Regional Economic Development Supporting regional economic development is a key focus area of our Sustainability For personal use only Strategy We acknowledge that our success supports the economic development of individuals and communities and we aim to maximise benefits and minimise neg
Slide 29: Supporting Local Businesses
For personal use only Supporting Local Businesses ► Joint Venture in place between local Native Title Group and Centrals Earthmoving for provision of ROM pad and Site Services contract ► This Joint Venture recently won the bulk earthworks contract for the new Monty copper-gold mine ► Supporting loca
Slide 30: Outlook
Operations, Corporate For personal use only and Financial Development Projects Exploration & Business Development Sustainability Outlook A debt–free Australian copper–gold producer with a strong growth outlook 30
Slide 31: Copper – An Upbeat Outlook for 2018 and Beyond
Copper – An Upbeat Outlook for 2018 and Beyond ► Copper price up more than 20 per cent this year, driven by For personal use only strong and synchronous global growth, depreciating US Dollar and repeated supply disruptions ► Recent rally in line with fundamental economic indicators, including Chines
Slide 32: Corporate – Positioned for Growth and Success
For personal use only Corporate – Positioned for Growth and Success Current broker coverage A debt–free Australian copper–gold producer with a strong growth outlook 32
Slide 33: Summary – Positioned for Growth and Success
For personal use only Summary – Positioned for Growth and Success ► Consistent low-cost production ► Strong balance sheet ► Growing free cash-flows ► Committed to organic growth via exploration ► Unlocking the potential at Doolgunna ► Developing a growth pipeline for the future Sandfire is a high-ma
Slide 34: 2017 AGM
2017 AGM Wednesday, 29th November Opportunity Redefined For personal use only • Thank you. Refreshments served. A debt–free Australian copper–gold producer with a strong growth outlook 34
Sandfire Resources — Shareholder Meeting (November 2017) on 6ix