Slide 1: June 2021 Quarterly Report Presentation
June 2021 Quarterly Report Presentation Karl Simich, Managing Director & CEO 29 July 2021 Access the live webcast of this presentation commencing at 10.00am (WST) / 12.00pm (AEDT) at the link below: SANDFIRE WEBCAST Page: 1 SANDFIRE RESOURCES - CREATING V A L U E T H R O U G H OPORTUNITY
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 current at the date of this presentation. The presentation is in summary form, has not been independently verified and does not purport
Slide 3: Strategy: Creating value through opportunity
Execute delivery Strategy Sustainable production Creating value through Accelerate discovery opportunity Align and empower our people Optimise capital structure Page: 3 Slide: 8
Slide 4: Highlights June 2021 Quarter
● DeGrussa copper production: 18,252t of contained copper (FY21: 70,845t) and 9,016oz of contained gold (FY21: 39,459oz) at C1 US$0.93/lb (FY21 US$0.82/lb); pleasing safety performance: ● FY2022 guidance: 64-68kt Cu and 30-33koz Au; C1 costs ~US$1.00-$1.10/lb ● Resource drilling at Old Highway Gold
Slide 5: HSEC: Safety, health and well-being
Safety, health and well-being • Total Recordable Injury Frequency Rate (TRIFR) of 4.0 at Quarter- end (4.7 at March 2021 Quarter- end) • Continued focus on employee and HSEC contractor health and well-being during the COVID-19 global The health and pandemic and response. well-being of our • DeGrussa
Slide 6: DeGrussa
DeGrussa Strong foundations in Western Australia DeGrussa Operations, WA Exploration - DeGrussa Copper-Gold Mine - Greater Doolgunna Province, WA - Monty Copper-Gold Mine - East Coast Portfolio (NSW, Qld) Page: 6 SANDFIRE RESOURCES - CREATING V A L U E T H R O U G H OPORTUNITY
Slide 7: DeGrussa Operations
MINING PROCESSING SALES ________________ ___________ _____ 23.6 404,421 22.0 375,298 C1 DeGrussa US$0.93/lb 293,579 Operations June 2021 Quarter: June Quarter Tonnes 18,252t Cu Physicals 9,016oz Au 110,842 contained 8.3 FY2021 Sales: Cu (%) Au(g/t) Production: 13,682t Cu Grade 70,854t 6,867ozCu 77,2
Slide 8: DeGrussa Operations
MINING PROCESSING SALES ________________ ___________ _____ 1,563,757 1,537,887 C1 23.6 23.4 US$0.82/lb FY2021 1,112,808 Annual production: Full Year Tonnes 70,845t Cu Physicals 39,459oz Au contained Sales: 425,079 Cu (%) Au(g/t) 65,689t Cu Grade 7.2 300,447 37,394oz Au contained 4.7 4.8 4.00 4.30 3.
Slide 9: DeGrussa Operations | Operating cost and capital
DeGrussa Operations | Operating cost and capital Q4 FY2021 FY2021 • Q4 FY2021 C1 operating costs of US$0.93/lb Cu which Unit operating costs (US$/lb) (US$/lb) was better than plan driven by higher grades, better than Mining 0.45 0.50 forecast recovery and a higher gold price which translated to high
Slide 10: FY2022 Guidance
MINING PROCESSING ____________ __________________ 1,600,000 1,575,000 FY2022 24.0 FY2022 Guidance Guidance: 1,200,000 64kt – 68kt Cu 30koz – 34koz Au Tonnes Full Year contained Physicals Operating cost Guidance: C1 US$1.00 - $1.10/lb Cu (%) Au(g/t)) 400,000 Grade 6.3 275,000 4.6 4.6 3.9 3.70 1.40 1.
Slide 11: FY21 v FY22 C1 Guidance Midpoint
FY22 FY21 GUIDANCE Cash Cost Payable Cu (US$/lb) Commentary (US$/lb) MID-POINT (US$/lb) Mining 0.50 0.48 Lower copper production FY21 v FY22 C1 Higher power costs due to diesel Processing 0.30 0.33 Guidance price and lower Cu production Labour and diesel cost increase Midpoint Operations Services 0.
Slide 12: Old Highway Resource Definition
Old Highway Resource Definition Remaining resource definition drilling programs to commence in Q1: Central Deeps (Q1 – Q3): • 25m x 25m diamond drill pattern planned for extension drilling of Old Highway Deeps • Multiple high-grade intercepts showing good continuity of mineralisation at depth • Plan
Slide 13: Doolgunna Dual-track exploration
Gold Processing Pipeline East Shed Well, Cow Hole Bore and SE Robinson Range Red Bore Copper Pipeline Data integration and First-pass exploration of tenure DHEM Doolgunna south of Horseshoe Lights Gold Processing Pipeline In-fill drilling at Cuba Dual-track exploration Gold Processing Pipeline Morck
Slide 14: Kalahari
Kalahari Expanding horizons in Botswana and Namibia Kalahari (Botswana and Namibia) - Motheo Copper Mine - A4 Expansion Project - Extensive Kalahari exploration portfolio (Botswana and Namibia) Page: 14 SANDFIRE RESOURCES - CREATING V A L U E T H R O U G H OPORTUNITY
Slide 15: Kalahari Copper Belt
MOTHEO EXPANSION PROJECT Kalahari A4 Copper Belt MOTHEO COPPER MINE Extensive A4 Resource 9.8 Mt @ 1.36% Cu exploration ground & 21g/t Ag in Botswana and T20 PROJECT Namibia T3 – Open Pit Resource 53.3Mt @ 0.90% Cu & 12.7g/t Ag Page: 15 15
Slide 16: Motheo Production Hub
• Motheo Copper Mine 3.2Mtpa full-scale T3 construction commenced (Construction) • Resource update for A4 - study work continues in Motheo support of satellite Production Hub operation • Clear visibility to rapidly 3.2Mtpa expand production to A4 base case with 5.2Mtpa through the A1 (Target) (Feasi
Slide 17: T3-Motheo Development Timeline
T3-Motheo Development Timeline Mining License Approval & Land Titles Camp EMP Process Plant Engineering & Pre-Construction Works Accommodation Facility 132KV Powerline & Substations Design & Construction Process Plant Construction Mining Contractor Mobilisation & Establishment Mining Prestrip Proces
Slide 18: Motheo Production Hub Key Progress
• T3 Mining Licence granted • T3 Mining Contract awarded to AMS (Perenti) • County Head of Botswana and GM operations appointed Motheo • Project debt funding final term sheets Production Hub underway • A4 Mineral Resource update supports Key Progress Feasibility and Engineering Studies • Detailed en
Slide 19: Motheo Production Hub – A4 resource update
Motheo Production Hub – A4 resource update • A4 Copper-Silver Deposit, located 8km west of the Motheo Copper Mine in Botswana: • Indicated and Inferred Mineral Resource: 9.8Mt at 1.4% Cu and 21g/t Ag for 134,000t of contained copper and 6.6Moz of contained silver (using a 0.5% Cu cut- off): • Update
Slide 20: Motheo Production Hub – Expansion targets
Motheo Production Hub – Expansion targets • Vein-hosted mineralisation within the A4 Mineral T1/T2 Zone Diamond drilling, target Resource has delivered some Zone 5 type sheared NPF outstanding intersections contact Cu deposits including a standout 35.7m at 7.1% Cu and 116g/t A4. A4 West There is pot
Slide 21: Black Butte Montana, USA
Black Butte Montana, USA Black Butte Copper Project, Montana, USA (87%) - Johnny Lee early works completed - Enhanced Feasibility Study - Mine Lease exploration drilling Page: 21 SANDFIRE RESOURCES - CREATING V A L U E T H R O U G H O P O R T U N I T Y21
Slide 22: Black Butte Montana, USA
• Early project works complete • Enhancement of Feasibility Study being progressed • Exploration program within the Mining Lease targeting potential extensions and other near-mine opportunities Black Butte • Initial results for hole SC21-256 which intercepted 12.45m grading 3.4% copper and 6.5g/t si
Slide 23: Key takeaways June 2021 Quarter
Global vision – our transformation into a diversified, international and sustainable mining company is underway Strong growth platform – DeGrussa cash-flows, debt-free Key takeaways balance sheet and $570m in group cash June 2021 New production hub – construction of Motheo Copper Quarter Mine in Bot
Slide 24: Thank you
Thank you 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: 24 SANDFIRE RESOURCES - CREATING VALUE THROUGH OPPORTUNITY