Sandfire Resources Ltd · ASX:SFR
Sandfire Resources — Citi Australia & New Zealand Investment Conference and Resource Rising Stars Conference 20 (October 2021)
27 slides from Sandfire Resources's conference presentation, Oct 13, 2021
Slide 1: Investor Notification
Investor Notification ASX:SFR 13 October 2021 For personal use only Presentation to Citi Australia & New Zealand Investment Conference and Resource Rising Stars Conference Sandfire Resources Ltd (Sandfire or the Company) is pleased to attach a copy of the presentation materials that will be provided
Slide 2: Investor briefing: MATSA acquisition transforms Sandfire
For personal use only Investor briefing MATSA acquisition transforms Sandfire into a leading global copper mining company with an exceptional growth pipeline October 2021 Page 1 SANDFIRE RESOURCES - CREATING VALUE THROUGH OPPORTUNITY SANDFIRE RESOURCES - CREATING VALUE THROUGH OPPORTUNITY
Slide 3: Important Information and Disclaimer
For personal use only Important Information Important and and Information Disclaimer Disclaimer Summary information This Presentation is for information purposes only and is a summary only which is current as at the date of this Presentation (unless stated otherwise). The information in this Present
Slide 4: Disclaimer (continued)
For personal use only Important Information Important and and Information Disclaimer Disclaimer (contined) JORC Code It is a requirement of the ASX Listing Rules that the reporting of ore reserves and mineral resources in Australia comply with the Joint Ore Reserves Committee’s Australasian Code for
Slide 5: A New Era of Growth and Opportunity
For personal use only Important Information A New andand Era of Growth Disclaimer Opportunity • One of the few ASX-listed pure-play copper producers • Transition to a diversified, international and sustainable mining company well underway • Refreshed senior leadership team, strongly aligned to our v
Slide 6: Strong alignment of Purpose, Vision and Strategy
For personal use only Sandfire Strong alignment of Purpose, Vision and Strategy Creating value To build an Our strategic through opportunity international imperatives We will continue to create diversified and value through opportunity for: • Execute Delivery sustainable mining • Build a Sustainable
Slide 7: A Global and Diversified Copper Miner
For personal use only Important Information A Global and Disclaimer and Diversified Copper Miner MATSA, Spain (100%) Sustainable production target of 150 – 200ktpa CuEq at C1 ~US$1.0/lb DeGrussa, Australia (100%) 12+ years 1 year(6) FY22F Producing FY22 Guidance Producing CuEq Production: CuEq Produ
Slide 8: Existing Operations Overview
For personal use only Existing Operations Overview Page: 7 SANDFIRE RESOURCES - CREATING VALUE THROUGH OPPORTUNITY
Slide 9: DeGrussa Operations: High-grade, high-margin production in Australia
CUMULATIVE PRODUCTION TO END OF FY2021 over 616,000 For personal use only TONNES OF CONTAINED COPPER DeGrussa 359,000 OUNCES OF CONTAINED GOLD Operations High-grade, high- margin production $2.6 billion in Australia $5.0 billion IN CUMULATIVE OPERATING CASH-FLOW IN CUMULATIVE SALES (prior to explora
Slide 10: DeGrussa Operations – High-Grade Production
For personal use only Important Information DeGrussa and –Disclaimer Operations High-Grade Production • 10 years of profitable and safe operations • High-margin mine, ideally positioned to capitalise on strong copper price • FY2021 production beat guidance – 70,845t Cu and 39,459oz Au at C1 US$0.82/
Slide 11: Kalahari: Motheo Copper Mine opens an exciting new growth horizon
Expansion PFS ESTIMATES (SEPTEMBER 2021) PEAK PRODUCTION OF For personal use only 60,000 TONNES OF CONTAINED COPPER AND Kalahari 2.7 million OUNCES OF SILVER Motheo Copper 0 Mine opens an US$3.6 US$1.24 exciting new billion* billion* growth horizon IN LIFE-OF-MINE REVENUE IN PRE-TAX FREE CASH-FLOW $
Slide 12: Kalahari Copper Belt: Extensive exploration ground in Botswana and Namibia
Ngamiland For personal use only Kalahari Copper Belt A4 Kalahari Extensive Copper Belt exploration ground in Priority exploration Botswana and targets for FY22 T23 Namibia $19 million EXPLORATION BUDGET FOR FY2022 Page: 11 SANDFIRE RESOURCES - CREATING VALUE THROUGH OPPORTUNITY
Slide 13: MATSA Summary
For personal use only Kalahari Copper Belt MATSA Extensive Summary exploration ground in Botswana and Namibia “The MATSA acquisition transforms Sandfire into a first quartile copper producer of global scale and allows us to leverage our skill set to deliver on our growth ambitions to create one of t
Slide 14: A Transformational Acquisition
A Transformational Acquisition For personal use only ● Sandfire to acquire the Minas de Aguas Teñidas S.A. (“MATSA”) mining complex from Mubadala Investment Company and Trafigura for US$1,865M (A$2,572M)(1) ● A rare cornerstone asset which immediately transforms Sandfire into a leading diversified g
Slide 15: Overview of the MATSA Mining Operation
Overview of the MATSA Mining Operation For personal use only MATSA comprises three significant underground mining operations and a world-class central processing facility with state-of-the-art infrastructure producing >100ktpa CuEq per annum Asset ● Minas de Aguas Teñidas S.A. (MATSA) MATSA located
Slide 16: MATSA – A World-Class Foundation for Sandfire's Future
MATSA – A world-Class Foundation for Sandfire’s Future For personal use only Significant regional upside potential across the Iberian Pyrite Belt (one of the world’s largest concentrations of VMS(1) copper-zinc mineralisation) – a strong foundation for Sandfire’s future Tier 1 Global Copper Cost Cur
Slide 17: MATSA Adds Significant Life to the Portfolio
MATSA Adds Significant Life to the Portfolio For personal use only Pro Forma Indicative Copper Equivalent Production (ktpa)(1,2,3,4,6) 300 Historical actuals Multiple Indicative Expansion Opportunities(5) ● Cornerstone asset with Exploration minimum mine life of ~12 years DeGrussa MATSA Americas 250
Slide 18: MATSA is a Robust Asset with Strong Cashflows
MATSA is a Robust Asset with Strong Cashflows For personal use only ● High quality cornerstone asset for Sandfire with MATSA Production (kt CuEq) and C1 Cash Cost (US$/lb)(1,2,3) demonstrated ability to generate sustainable cash flows 100 4.0 ● First quartile copper cost curve position with FY19 US$
Slide 19: Creates one of the Largest Copper Producers on the ASX
Creates one of the Largest Copper Producers on the ASX For personal use only Positions Sandfire to achieve its long term sustainable production target of 150-200ktpa CuEq FY22F production (LHS, kt CuEq) and C1 (RHS, US$/lb)(1,2,3,4) Market capitalisation (A$M)(5) 250 Transaction transforms Sandfire
Slide 20: Transaction Overview and Funding
Transaction Overview and Funding For personal use only ● Acquisition of 100% interest in Minas de Aguas Teñidas S.A. (“MATSA”) for US$1,865M (A$2,572M)(1) ─ A$1,248M (US$905M(1)) funded through a fully underwritten equity raising; ─ US$650M (A$897M(1)) syndicated and underwritten debt facility secur
Slide 21: Sandfire's Vision for Realising MATSA upside
Sandfire’s Vision for Realising MATSA upside For personal use only MATSA is a high quality operation with significant optimisation and life extension potential – the combination of the highly capable MATSA and Sandfire teams is well positioned to realise these opportunities and continue to grow MATS
Slide 22: MATSA Historical and Forecast Physicals
MATSA Historical and Forecast Physicals For personal use only Ore Milled (Mt) Grade Milled (% and g/t for Ag)(1) Recoveries (%)(2) 3.7% 3.0% 3.1% 80% 80% 4.3 4.3 4.5 75% 77% 4.2 2.7% 50 42 45 74% 76% 75% 38 71% 60% 2.0% 2.1% 48% 1.9% 1.9% 49% 48% 36% 33% 36% 1.0% 1.1% 27% 0.8% 0.8% FY19A FY20A FY21A
Slide 23: MATSA Cost Profile
MATSA Cost Profile For personal use only Cash Cost Summary ● Decrease in C1 cost from US$0.56/lb FY21A to forecast US$0.4 – 0.5/lb Cu FY22F(1) 4.0 Annual Production: 117kt CuEq 113kt CuEq 104kt CuEq 100 - 120kt CuEq(1) — By-product credit revenue based on consensus prices of Gross Cash Costs: US$1.2
Slide 24: Key Transaction Milestones
Key Transaction Milestones For personal use only Event Announced Dates(1) Status Signing of the SPA and announcement of the acquisition of 100% of MATSA Thursday, 23 September 2021 ✓ Launch of equity raising Thursday, 23 September 2021 ✓ Expected to be as soon as possible after Engagement with regul
Slide 25: Competent Person's Statements
Competent Person’s Statements For personal use only MATSA Mineral Resources The Competent Person who has reviewed the Mineral Resources is Mr Guy Dishaw, P.Geo, who is a full-time employee of and Principal Consultant (Resource Geology) at SRK. Mr Dishaw is a Professional Geoscientist (P. Geo.) regis
Slide 26: Competent Person's Statements
Competent Person’s Statements For personal use only Motheo Expansion Case The 5.2Mtpa Expansion Case where it relates to A4 and other prospects, is based on the T3 Mineral Resource Estimate and Ore Reserve, the 3.2Mtpa Definitive Feasibility Study completed in December 2020, A4 Mineral Resource Esti
Slide 27: Contact Details
For personal use only Contact Details Level 2, 10 Kings Park Road, West Perth WA 6005 Australia PO BOX 1495, WEST PERTH WA 6872 AUSTRALIA +61 8 6430 3800 +61 8 6430 3849 www.sandfire.com.au Page 26 SANDFIRE RESOURCES - CREATING VALUE THROUGH OPPORTUNITY SANDFIRE RESOURCES - CREATING VALUE THROUGH OP