Slide 1: Full Year Results Presentation and Operations Update – Webcast
For personal use only June 2013 Full Year Results Presentation and Operations Update – Webcast Access this presentation at: http://www.brrmedia.com/event/115085/ http://www.sandfire.com.au 1 J u n e 2 0 1 3 F u l l Y e a r R e s u l t s P r e s e n t a t I o n a n d O p e r a t I o n s 28th August 2
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: Introduction and Overview: Karl Simich – Managing Director and CEO
For personal use only Introduction and Overview: Karl Simich – Managing Director and CEO 3 J u n e 2 0 1 3 F u l l Y e a r R e s u l t s P r e s e n t a t I o n a n d O p e r a t I o n s U p d a t e
Slide 4: Headline Financial Results for the Year to June 2013
Headline Financial Results for the Year to 30 June 2013 Maiden annual profit following a solid performance in a transitional and ramp-up year: strong outlook for FY2014 Sales revenue of $507.3M from 62,154t copper, 41,725oz gold For personal use only • • Strong cash flow from operating activities of
Slide 5: FY2013 Highlights – Year in Review
FY2013 Highlights – Year in Review FY2013 production; ramp-up of Concentrator and underground mine; FY2014 guidance and costs • Open pit operations completed & ramping-up of underground mine on track For personal use only • Optimisation of 1.5Mtpa Concentrator: FY13 production 64,017t copper, 42,679
Slide 6: Financial Results to June 2013: Matthew Fitzgerald – CFO
For personal use only Financial Results to June 2013: Matthew Fitzgerald – CFO 6 J u n e 2 0 1 3 F u l l Y e a r R e s u l t s P r e s e n t a t I o n a n d O p e r a t I o n s U p d a t e
Slide 7: Headline Income – Statement of Comprehensive Income Review
June 2013 Full Year Presentation – Headline Income Statement of Comprehensive Income Review – Key Results ($’000) June 2013 June 2012 For personal use only Sales revenue 507,331 20,684 Profit before net finance and income tax 142,136 (33,543) Net finance income (expense) (16,468) 982 Profit before i
Slide 8: Sales Revenue and Contained Metal
June 2013 Full Year Presentation Statement of Comprehensive Income Review – Sales Revenue and Contained Metal Copper in Gold in Silver in Gold – toll For personal use only Sales revenue Total concentrate concentrate concentrate treatment $M $M $M $M $M DSO 232.8 19.6 - - 252.4 Concentrator 213.8 21.
Slide 9: Commodity Prices and Exchange Rate
Commodity Prices and Exchange Rate Market rates – copper, gold and currency COPPER PRICE ($/tonne) GOLD PRICE ($/ounce) For personal use only • Copper price weakened significantly in the second half below US$7,000 per tonne • Impact on revenue partly offset by the falling Australian Dollar to around
Slide 10: Statement of Comprehensive Income Review
June 2013 Full Year Presentation Statement of Comprehensive Income Review DeGrussa Mine Other Operations Group For personal use only ($’000) FY 2013 Expl and BD Corporate Treasury FY 2013 Sales revenue 507,331 - - - 507,331 Metal and price adjustment gains (losses) (6,878) - - (7,695) (14,573) Other
Slide 11: Statement of Financial Position Review – Assets
June 2013 Full Year Presentation Statement of Financial Position Review ($‘000) June 2013 June 2012 • Cash – includes $70M For personal use only ASSETS relating to finance facility Cash and cash equivalents 77,070 100,389 Trade and other receivables 8,491 7,015 • Receivables – QP pricing Inventories
Slide 12: Statement of Financial Position Review – Liabilities
June 2013 Full Year Presentation Statement of Financial Position Review ($’000) June 2013 June 2012 Finance facility – For personal use only • LIABILITIES $380M fully drawn Trade and other payables 43,932 49,626 ($30M Sept 2012), Interest bearing liabilities 163,906 94,146 $95M repaid March Provisio
Slide 13: Operations Update & Outlook: Karl Simich, Managing Director
For personal use only Operations Update & Outlook: Karl Simich, Managing Director 13 J u n e 2 0 1 3 F u l l Y e a r R e s u l t s P r e s e n t a t I o n a n d O p e r a t I o n s U p d a t e
Slide 14: Mining Update
Mining Update Ramp-up of underground mine progressing well: significant capital development underway For personal use only • Five stopes at various stages of development and production • Underground mining rate increasing while development is progressed – targeted 1.5Mtpa steady-state from the end o
Slide 15: Processing Update
Processing Update Record plant throughput achieved with processing of open pit sulphide ore nearing completion For personal use only • Record mill throughput of 131,807t in July 2013 Copper Recovery • Production of 5,674t Cu for July 2013 and on 89% 86% track for targeted August production • Recover
Slide 16: Production Guidance: FY2014 – Key physicals
Production Guidance: FY2014 Key physicals – targets and guidance for FY2014 For personal use only Key Operational Targets FY2014 – Guidance Ore mined 1.45Mt Solely from underground operations. Ore processed 1.50Mt Includes stockpile of open pit sulphide (blending Q1 FY2014). Mined grade – copper 5.2
Slide 17: Production Guidance: FY2014 – Copper and gold
Production Guidance: FY2014 Guidance for metal production – copper and gold For personal use only Metal production FY2014 – Guidance FY2013 – Actual Cu(kt) Au(koz) Cu(kt) Au(koz) Concentrator 65-75 30-40 34 18 DSO - - 30 13 Oxide Gold - - - 12 TOTAL 65-75 30-40 64 43 DSO 4 2 Oxide Gold - 1 Total – F
Slide 18: Operating Cost and Capital Guidance: FY2014
Operating Cost and Capital Guidance: FY2014 Unit costs and capital expenditure For personal use only Key financial parameters FY2014 Guidance Q4 FY2013 Actual Key financial parameters FY2014 Guidance Unit costs – DeGrussa Mine US$/lb US$/lb Capital expenditure A$M Mining (net of development) 0.33 0.
Slide 19: Life-of-Mine Outlook: Mine Plan, Mineral Resource and Ore Reserve
Life-of-Mine Outlook Mine Plan, Mineral Resource and Ore Reserve As at 31 March 2013 Mine Plan Mineral Resource Ore Reserve For personal use only Tonnes (Mt) 10.5 10.2 7.9 - DeGrussa 1.6 1.4 1.6 - Conductor 1 5.5 5.2 5.3 - Conductor 4 1.9 2.1 1.0 - Conductor 5 1.5 1.4 - Cu grade (%) 4.9 5.7 5.0 Gold
Slide 20: Life-of-Mine Underground Development Profile, Ore Sources and Grade
Life-of-Mine Underground Development Profile, Ore Sources and Grade Bulk of underground development in first three years, including to access Conductor 4 & 5 deposits For personal use only $70M decline, lateral and vertical development capital includes: • Jumbo development • Ore body drilling, inclu
Slide 21: Summary
Summary DeGrussa ramp-up nearing completion; strong production and margin outlook; exploration gathering momentum • Strong production performance in ramp-up year For personal use only • Strong production and cost outlook for FY2014: • Guidance of 65-75,000t copper @ C1 cost of US$1.05-1.15/lb • Stro
Slide 22: Full Year Results Presentation and Operations Update – Webcast
For personal use only June 2013 Full Year Results Presentation and Operations Update – Webcast Access this presentation at: http://www.brrmedia.com/event/115085/ http://www.sandfire.com.au 22 J u n e 2 0 1 3 F u l l Y e a r R e s u l t s P r e s e n t a t I o n a n d O p e r a t I o n s 28th August
Slide 23: Appendix: Competent Person’s Statements
Appendix: Competent Person’s Statements Competent Person’s Statement – Mineral Resources and Open Pit Ore Reserves For personal use only • The information in this report that relates to Mineral Resources and Open Pit Ore Reserves is based on information compiled by Mr. Ekow Taylor who is a Member of
Slide 24: Appendix: Competent Person’s Statements – Exploration and Resource Targets
Appendix: Competent Person’s Statements Exploration and Resource Targets For personal use only • Any discussion in relation to the potential quantity and grade of Exploration Targets is only conceptual in nature. While Sandfire is confident that it will report additional JORC compliant resources for
Slide 25: Appendix: DeGrussa – Mining & Production Summary
Appendix: DeGrussa – Mining & Production Summary Strong production and sales performance Grade Grade Contained Contained FY2013 Tonnes For personal use only (% Cu) (g/t Au) Copper (t) Gold (oz) Mined 127,591 23.4 3.1 29,845 12,703 DSO Crushed 128,730 23.4 3.1 30,130 12,880 DSO sales 138,397 23.1 3.2
Slide 26: Appendix: DeGrussa – Mining & Production Summary (Project to date)
Appendix: DeGrussa – Mining & Production Summary Strong production and sales performance Grade Grade Contained Contained For personal use only Project to date Tonnes (% Cu) (g/t Au) Copper (t) Gold (oz) Mined 144,887 23.6 3.3 34,169 15,218 DSO Crushed 144,887 23.6 3.3 34,169 15,218 DSO sales 144,887