Sandfire Resources Ltd · ASX:SFR
Sandfire Resources — Sandfire Resources NL — Investor Presentation (February 2015)
31 slides from Sandfire Resources's investor presentation, Feb 19, 2015
Slide 1: Consolidating our Strengths, Expanding our Horizons
For personal use only Consolidating our Strengths, Expanding our Horizons Global Investor Presentation – February 2015 Karl Simich, Managing Director and CEO
Slide 2: Forward-Looking 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 form and does not purport be all inclusive or complete. Recipien
Slide 3: Overview
Overview Quality Australian copper-gold producer For personal use only • • Cornerstone asset: 1.5Mtpa DeGrussa Copper Mine in WA • High grade (4-5% Cu); bottom quartile C1 cash costs; strong margins • Three years of consistent, reliable and safe production since start-up in 2012: • +170,000t of Cu,
Slide 4: Key Financial and Corporate Data
Key Financial and Corporate Data Board Sandfire Resources NL (ASX: SFR) For personal use only Derek La Ferla Corporate and Non-executive Chairman Karl Simich Financial Managing Director / CEO Overview Paul Hallam Non-executive Director W. John Evans Non-executive Director Robert Scott Non-executive
Slide 5: Strong and Consistent Gold and Copper Production
Strong and Consistent Gold and Copper Production Track record of achieving guidance with excellent safety performance For personal use only 5
Slide 6: Past Financial Performance
Past Financial Performance - AUSTRALIAN DOLLARS For personal use only Key financial metrics Analyst/broker coverage: • Argonaut • Bell Potter • Commonwealth Bank of Australia • CIMB • Citi • CLSA • Credit Suisse • Deutsche Bank • Euroz Maiden final • Goldman Sachs Dividend: 10cps • Patersons • RBC •
Slide 7: Bottom Quartile Cash Costs: Robust Operating Margins
Bottom Quartile Cash Costs: Robust Operating Margins DeGrussa is capable of generating strong operating margins at all stages of the commodity price cycle… For personal use only 7
Slide 8: Commodity Price & Exchange Rate
Commodity Price & Exchange Rate Fall in Australian dollar positive for DeGrussa operating margins For personal use only • DeGrussa is directly leveraged to AUD copper price per tonne • Cash costs & operating margins benefit from a lower currency • Sandfire’s value should correlate directly with the
Slide 9: Copper Market Outlook
Copper Market Outlook Lower prices and falling investment in new supply may be sowing the seeds of the next boom For personal use only • Recent copper price weakness reflects global economic slowdown • This has led to a significant slowdown in investment in new supply • Global exchange stocks now at
Slide 10: Key Assets
For personal use only Key Assets A premier high-grade, high margin Australian copper-gold company with a strong growth outlook The DeGrussa engine room: a powerful platform for growth Organic growth pipeline Strong business development focus • 1.5Mtpa DeGrussa • +170,000t Cu, +100,000oz • A$250M in
Slide 11: Sandfire – DeGrussa Copper-Gold Mine Snapshot
Sandfire – DeGrussa Copper-Gold Mine Snapshot A premier copper-gold mine producing strong and consistent operating cash flows For personal use only DeGrussa Project – Key Facts 1.5Mtpa via long-hole open stoping Mining 24.5km of underground development completed to date Underground 9.6Mt @ 4.4% Cu a
Slide 12: DeGrussa Mine – Underground Development and Mining
DeGrussa Mine – Undergound Development and Mining • Underground mining rate Underground mine performing strongly with ore production maintained at 1.5Mtpa 1.5Mtpa For personal use only • Current production from DeGrussa and C1 deposits • C4/5 Decline development well advanced with first production f
Slide 13: Processing and Production
Processing and Production DeGrussa Concentrator operating well with optimisation programs continuing For personal use only • $14M of process improvement projects nearing completion: • Pebble crusher and SAG mill classification screen installed and commissioned • Immediate improvement to grind size a
Slide 14: DeGrussa Solar Power Initiative
DeGrussa Solar Power Initiative Renewable energy project with potential to reduce costs and CO2 emissions For personal use only • Proposed DeGrussa 10.6MW solar power station to be fully integrated with existing 20MW diesel-fired power station • $40M project being led by juwi Renewable Energy on Bui
Slide 15: Production Guidance: FY2015
Production Guidance: FY2015 Key physicals For personal use only 1H FY2015 2H FY2015 FY2015 Production Guidance – DeGrussa Mine FY2014 (Actual) (Guidance) (Guidance) Contained Copper (t) 67,690 31,413 33-36,000 65-68,000 Contained gold (oz) 33,893 17,736 18-20,000 36-38,000 Head grade (Cu) 5.2% 5.0%
Slide 16: Dominant Position in an Emerging VMS Province
Dominant Position in an Emerging VMS Province Consolidating a strong position in Western Australia’s emerging Bryah Basin For personal use only • Only operating base metals processing plant in the region (1.5Mtpa DeGrussa Concentrator) • Outstanding organic growth potential: 65km strike length of pr
Slide 17: Underground Exploration – A Major Growth Focus
Underground Exploration – A Major Growth Focus • Major underground exploration program continuing targeting near- For personal use only mine and lateral extensions, potential new discoveries • Recent drilling has identified potential feeder zones in C1 footwall position: work ongoing • In-fill drill
Slide 18: Conductor – Recent High-Grade Copper Intercepts
Conductor 5 – Recent High-Grade Copper Intercepts For personal use only Outstanding results from recent in-fill drilling demonstrates exceptional grade and robustness of the C5 deposit 18 18
Slide 19: Doolgunna – A Multi-Pronged Campaign to find the Next DeGrussa
Doolgunna –Doolgunna Completed Drillholes FY2015 A Multi-Pronged Campaign to find the Next DeGrussa Extensive programs of geophysics, Aircore/RAB, RC and diamond drilling across multiple target areas For personal use only • Focused, multi-disciplined exploration program • $20 million annual budget (
Slide 20: Doolgunna – A Multi-Pronged Campaign to find the Next DeGrussa
Doolgunna –Doolgunna Completed Drillholes FY2015 A Multi-Pronged Campaign to find the Next DeGrussa Extensive programs of geophysics, Aircore/RAB, RC and diamond drilling across multiple target areas For personal use only • Focused, multi-disciplined exploration program • $20 million annual budget (
Slide 21: Growth and Business Development
Growth and Business Development AUSTRALIA For personal use only • Developing high-quality, asset-driven exploration opportunities in Australia • Focusing on Tier-1 opportunities in world-class mineral provinces: • ~2,100km2 of tenure in Lachlan Fold Belt, NSW (single largest ground-holder) • ~2,300k
Slide 22: Investment in Tintina Resources / Black Butte Copper Project
Investment in Tintina Resources / Black Butte Copper Project Sandfire leading ongoing evaluation and development of high-grade USA 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, cent
Slide 23: Black Butte Project Overview
Black Butte Project Overview Pre-Feasibility Study commenced and permitting advancing in a considered and consultative manner • Three flat-lying sedimentary hosted copper deposits For personal use only • Very large sulphide system with thick pyrite units demonstrating the system size • District-wide
Slide 24: Investment in WCB Resources
Investment in WCB Resources Targeting a potential Tier-1 porphyry copper-gold discovery on Misima Island, PNG For personal use only • 36% stake in WCB Resources (TSX-V: WCB) • Key asset: 70% interest in Misima Project alongside Pan Pacific Copper (PPC) – a joint venture between JX Nippon Mining & Me
Slide 25: Investment in WCB Resources
Investment in WCB Resources Opportunity to participate in a potential Tier-1 porphyry copper-gold discovery on Misima Island For personal use only • Principal target is the Misima Porphyry on Mt Sisa, located on edge of historical gold deposit Deep diamond drilling commenced Q4 2014 and continuing.
Slide 26: Summary and Outlook
Summary and Outlook For personal use only • Consistent mining, development and production • Proven performer • Strong operating cash-flow • Relentless focus on reducing costs, enhancing performance • Excellent exposure to an improving AUD copper price • Outstanding exploration potential: at depth an
Slide 27: Quality and consistency
For personal use only Quality and consistency High grades, high margins, low costs Strong cash flows Organic growth Business development Shareholder returns A premier Australian copper-gold company 27
Slide 28: Contact Details: Sandfire Resources NL
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 28
Slide 29: Mine Life Extension and Ore Reserve Update
Mine Life Extension and Ore Reserve Update 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 • Maide
Slide 30: Australian Regional Exploration
Australian Regional Exploration Extensive Portfolio with a focus on discovering Tier One Deposits For personal use only • Developing high-quality, asset-driven exploration opportunities in Australia • Focus outside Doolgunna is on IOCG copper-gold, porphyry-style copper-gold and lead-zinc-silver • C
Slide 31: Conductor – Recent In-fill Drilling
Conductor 5 – Recent In-fill Drilling Downhole True Intersection HoleID From (m) To (m) For personal use only Thicknesses (m) Thicknesses (m) Cu [%] Au [g/t] Zn [%] DGUR0045 103.54 120.46 16.92 12.98 9.06 2.89 1.84 DGUR0033 151.56 178.75 27.19 23.59 4.89 2.24 2.48 DGUR0059 96.62 112.12 15.50 14.06 7
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