Sandfire Resources Ltd · ASX:SFR
Sandfire Resources — Investor Presentation (September 2015)
28 slides from Sandfire Resources's investor presentation, Sep 1, 2015
Slide 1: Delivering on Our Potential
For personal use only DELIVERING ON OUR POTENTIAL Investor Presentation – September 2015 Karl Simich, Managing Director and CEO Shannan Bamforth, Acting Chief Exploration Officer and GM Geology
Slide 2: Important Information and Disclaimer
Important Information and Disclaimer Forward-Looking Statements and Competent Person’s Statement Forward-Looking Statements For personal use only • This presentation has been prepared by Sandfire Resources NL. This document contains background information about Sandfire Resources NL current at the d
Slide 3: Overview
Overview • Leading ASX-200 copper-gold producer For personal use only • New chapter of discovery success and growth at DeGrussa • Recent exciting VMS discovery re-rates district exploration potential • Value underpinned by consistent, low-cost copper production • Strong balance sheet to fund growth
Slide 4: Company Snapshot
Company Snapshot Sandfire Resources NL (ASX: SFR) Share Price For personal use only 52-Week Low A$3.74 High A$6.80 Market Cap ~A$950 million Shares on issue – 156.9m FINANCIAL OVERVIEW: FY 2013 FY 2014 FY 2015 Dividends – FY2015 Revenue $507.3M $525.7M $548.6M Dividends declared A$0.13 Operating Cas
Slide 5: A Strong Platform for Growth
A Strong Platform for Growth For personal use only Discovery success and International world-class exploration growth pipeline potential at Doolgunna Exploring world-class provinces on Australia’s Sustainability East Coast 5
Slide 6: DeGrussa – the Cornerstone Asset
DeGrussa – the Cornerstone Asset For personal use only DeGrussa Project – Key Facts Production +200,000t of copper, +100,000oz of gold to date Revenues +$1.5 billion to date +1.5Mtpa via long-hole open stoping Mining 29km of underground development completed to date Underground Mine 9.6Mt @ 4.4% Cu
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 FINANCIAL OVERVIEW: FY 2013 FY 2014 FY 2015 FY 2016 (guidance) Copper (Cu) 64,017t 67,690t 67,154t 65-68kt Production Gold (Au) 42,679oz 33,893oz 37,38
Slide 8: Robust Underground Mine Performance
Robust Underground Mine Performance For personal use only • Mining rate lifted to 1.6Mtpa • C4 level development commenced with first development ore • Current production from DeGrussa and C1 deposits intersected and first stope ore in December Quarter • C4/5 Decline development well advanced: first
Slide 9: Process Plant Upgrades Delivering Strong Results
Process Plant Upgrades Delivering Strong Results For personal use only • Excellent results from recently completed plant enhancements: – Copper recoveries increased by ~2% as a result of flotation improvements and installation of column cell – Milling throughput increased by 11% following Primary Sc
Slide 10: A Powerful Platform for Growth
A Powerful Platform for Growth For personal use only Discovery success and International world-class exploration growth pipeline potential at Doolgunna Exploring world-class provinces on Australia’s Sustainability East Coast 10
Slide 11: Doolgunna – world-class exploration upside
Doolgunna – world-class exploration upside For personal use only • Dominant 1,700km2 ground position in WA’s premier emerging copper belt • Only operating processing facility in the District • Outstanding potential: 65km strike length of prospective VMS horizons • Significant new high-grade discover
Slide 12: Springfield Project – Talisman Joint Venture
Springfield Project – Talisman Joint Venture • Sandfire earning 70% interest via $15M farm-in For personal use only with Talisman Mining (ASX: TLM): $5M spent to date • Two emerging areas of exploration focus • Monty – 10km east of DeGrussa • Significant new high-grade discovery – first discovery ou
Slide 13: Monty – new high-grade VMS copper-gold discovery
Monty – new high-grade VMS copper-gold discovery • New area identified by For personal use only diligent, focused exploration including reworking and analysing data from historical Talisman drilling • Subtle off-hole EM conductor identified at historical Talisman hole SPD021 • Follow-up hole TLDD000
Slide 14: Monty – new high-grade VMS copper-gold discovery
Monty – new high-grade VMS copper-gold discovery • TLDD0004A – 16.5m grading 18.9% Cu and For personal use only 2.1g/t Au from 409.5m (true width unknown at this time, top of intercept is 365m below surface) • TLDD0005 – 9.2m grading 11.8% Cu and 2.9g/t Au from 417.0m down-hole (true width unknown a
Slide 15: Monty – new high-grade VMS copper-gold discovery
Monty – new high-grade VMS copper-gold discovery • TLDD0009 – 7.5m of massive sulphides from For personal use only 363.1m and 3.1m of massive sulphides from 386.5m – assays awaited (true width unknown at this time; top of upper intercept 320m vertically below surface) • TLDD0010 – 10.5m of massive s
Slide 16: Monty – new high-grade VMS copper-gold discovery
Monty – new high-grade VMS copper-gold discovery Next steps… For personal use only • Further diamond drilling up-dip and down-dip to test potential for extensions to mineralisation • Ongoing DHEM surveys to guide drilling • Diamond and RC drilling along strike to test the entire 5km long prospective
Slide 17: Homer – the next discovery opportunity?
Homer – the next discovery opportunity? Located 4km directly east of For personal use only • DeGrussa • Hole TLDD0003 completed recently to test eastern strike extension of interpreted C5 host horizon • Followed up encouraging results from TLDD0001 completed last year • TLDD0003 intersected haematit
Slide 18: Other Opportunities – Seismic Surveys
Other Opportunities – Seismic Surveys • 34km HiSeis seismic data acquisition program commenced For personal use only April 2015 over DeGrussa Mine Corridor • Key objective is to investigate if seismic surveying is suitable for direct detection of massive sulphides • A unique approach of testing targ
Slide 19: A Powerful Platform for Growth
A Powerful Platform for Growth For personal use only Discovery success and International world-class exploration growth pipeline potential at Doolgunna Exploring world-class provinces on Australia’s Sustainability East Coast 19
Slide 20: Australian Regional Exploration Projects
Australian Regional Exploration Projects Targeting world-class discoveries in Australia’s premier exploration provinces EXPLORATION: For personal use only Queensland Base Metals • 2,300km² in Mt Isa-Cloncurry province • 100km strike length with outstanding potential for Broken Hill/Cannington-style
Slide 21: A Powerful Platform for Growth
A Powerful Platform for Growth For personal use only Discovery success and International world-class exploration growth pipeline potential at Doolgunna Exploring world-class provinces on Australia’s Sustainability East Coast 21
Slide 22: 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) with clear pathway to 53% and control • Developing the Black Butte Copper Project, central Montana, USA • Advanced, high quality copper project in stable jurisdiction: • N
Slide 23: A Powerful Platform for Growth
A Powerful Platform for Growth For personal use only Discovery success and International world-class exploration growth pipeline potential at Doolgunna Exploring world-class provinces on Australia’s Sustainability East Coast 23
Slide 24: 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 25: Summary and Outlook
Summary and Outlook Continued strong outlook for FY2016 and beyond For personal use only • Consistent, low-cost copper-gold production • FY2015 performance: 67,154t Cu, 37,386oz gold at C1 US$1.09/lb • FY2016 guidance: 65-68,000t Cu, 35-40,000oz Au at C1 US$0.95-1.05/lb • New chapter of discovery su
Slide 26: Contact Details
For personal use only CONTACT DETAILS: Sandfire Resources NL Registered Office and Principal Place of Business Level 1, 31 Ventnor Avenue, West Perth, Western Australia 6005 T +61 8 6430 3800 F +61 8 6430 3849 www.sandfire.com.au
Slide 27: Mineral Resource, Ore Reserve and Mine Plan
Mineral Resource, Ore Reserve and Mine Plan Maiden C4 Ore Reserve and Mineral Resource additions extend 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 • Maid
Slide 28: 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 TLDD0001 1099 -62° 357° MGA94_50 740146 7174149 589 E52/2313 Complete TLDD0002A 463 -61° 110° MGA94_50 743544 7171211 602 E52/2282 Complete TLDD0003 658 -62°
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