Sandfire Resources Ltd · ASX:SFR
Sandfire Resources — Diggers and Dealers Mining Forum 2013
38 slides from Sandfire Resources's conference presentation, Aug 6, 2013
Slide 1: Diggers and Dealers Mining Forum
For personal use only Diggers and Dealers Mining Forum Strong production and cash flow Organic growth through exploration Strong shareholder returns 6th Aug 2013
Slide 2: The Sandfire Overview
The Sandfire Overview A premier, low-cost Australian copper producer Ramp-up of 1.5Mtpa DeGrussa Copper Mine For personal use only • • Mineral Resource: 13.4Mt @ 4.7% Cu and 1.9g/t Au for 634,000t copper and 795,000oz of gold • Over 70,000t copper and 50,000oz gold produced to date: $500M sales reve
Slide 3: Sandfire – Our Vision
Sandfire – Our Vision A quality Australian mining company focused on shareholder returns For personal use only Rising production and cash flow • Deliver superior returns to our owners Maintain the highest standards of from the premier high-grade DeGrussa safety, intregrity and quality at all VMS cop
Slide 4: Corporate Snapshot
Corporate Snapshot A premier Australian copper producer Key Data Shareholders For personal use only Issued Capital 155.6M shares, 6.4M options OZ Minerals 19.2% Posco 15.2% Market Capitalisation ~$1 billion Institutions 30.6% Cash and Deposits: $77M (30 June 2013) Founders/Board 7.2% Debt: $285M (Pr
Slide 5: DeGrussa Overview
DeGrussa Overview A premier high-grade, low-cost copper mine For personal use only DeGrussa Project – Key Facts Location: 900km NW of Perth Discovery to first <3 years production: Project Development: 100% debt funded through $390M ANZ facility Initial open pit (completed) + 1.5Mtpa underground Mini
Slide 6: DeGrussa’s Past Months: Key Achievements
DeGrussa’s Past 12 Months: Key Achievements A strong performance in our ramp-up year Production and Operations For personal use only Open pit operations completed with Stage 2 mined out; all DSO now sold (34,169t Cu, 15,218oz Au) 6
Slide 7: DeGrussa’s Past Months: Key Achievements
DeGrussa’s Past 12 Months: Key Achievements A strong performance in our ramp-up year Production and Operations For personal use only 1.5Mtpa concentrator nameplate throughput achieved; focus on optimisation of recovery 7
Slide 8: DeGrussa’s Past Months: Key Achievements
DeGrussa’s Past 12 Months: Key Achievements A strong performance in our ramp-up year Production and Operations For personal use only Ramp-up of underground mine to 1.5Mtpa nearing completion; significant development progress 8
Slide 9: DeGrussa’s Past Months: Key Achievements
DeGrussa’s Past 12 Months: Key Achievements A strong performance in our ramp-up year Production and Operations For personal use only FY2013 production: 64,017 tonnes of copper and 42,679oz of gold 9
Slide 10: DeGrussa’s Past Months: Key Achievements
DeGrussa’s Past 12 Months: Key Achievements A strong performance in our ramp-up year Production and Operations For personal use only FY2013 sales: 62,154 tonnes of copper and 41,725oz of gold 10
Slide 11: DeGrussa’s Past Months: Key Achievements
DeGrussa’s Past 12 Months: Key Achievements A strong performance in our ramp-up year Exploration DeGrussa Mineral Resource increased: For personal use only 13.4Mt grading 4.7% Cu and 1.9g/t Au for 634,000t Cu, 795,000oz gold as at 31 March 2013 11
Slide 12: DeGrussa’s Past Months: Key Achievements
DeGrussa’s Past 12 Months: Key Achievements A strong performance in our ramp-up year Exploration DeGrussa Mineral Resource increased: For personal use only Addition of 66,000t of copper and 149,000oz of gold (following depletion to 31 March 2013) 12
Slide 13: DeGrussa’s Past Months: Key Achievements
DeGrussa’s Past 12 Months: Key Achievements A strong performance in our ramp-up year Exploration DeGrussa Mineral Resource increased: For personal use only Increase driven by extension to Conductor 4, significant thickening of Conductor 5 13
Slide 14: DeGrussa’s Past Months: Key Achievements
DeGrussa’s Past 12 Months: Key Achievements A strong performance in our ramp-up year Exploration DeGrussa Mineral Resource increased: For personal use only Additional high-grade Inferred Mineral Resource incorporated into DeGrussa mine plan 14
Slide 15: DeGrussa’s Past Months: Key Achievements
DeGrussa’s Past 12 Months: Key Achievements A strong performance in our ramp-up year Exploration DeGrussa Mineral Resource increased: For personal use only Mine life extended to late Calendar Year (CY) 2020 15
Slide 16: DeGrussa’s Past Months: Key Achievements
DeGrussa’s Past 12 Months: Key Achievements A strong performance in our ramp-up year Exploration DeGrussa Mineral Resource increased: For personal use only Strong ongoing focus on organic growth through exploration: confident of mine life extensions at depth and along exploration corridor 16
Slide 17: Mining Overview
Mining Overview Transition to wholly underground operations now complete Five stopes at various stages of development and production For personal use only • • Underground mining rate of 1.2Mtpa while development is progressed – targeted 1.5Mtpa steady-state from the end of the September 2013 Quarter
Slide 18: Processing Overview
Processing Overview Ramp-up and optimisation of DeGrussa Concentrator well advanced Nameplate target of 375,000t per quarter For personal use only • achieved: • Steady ramp-up since start of commissioning in October 2012 • Plant optimisations and enhancements completed • Achieved recoveries of 85-92
Slide 19: Production Guidance: FY2014
Production Guidance: FY2014 Key physicals – targets and guidance for FY2014 Key Operational Targets FY2014 – Guidance For personal use only 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 20: Production Guidance: FY2014
Production Guidance: FY2014 Guidance for metal production – copper and gold Metal production FY2014 – Guidance FY2013 – Actual For personal use only 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 21: Life-of-Mine Underground Development Profile, Sources & Grade
Life-of-Mine Underground Development Profile, Sources & Grade Bulk of underground development in first three years; including to access Conductor 4 & 5 deposits For personal use only Life-of-mine head grade: 4.9% Cu 21
Slide 22: Opportunity Redefined – DeGrussa and Beyond
Opportunity Redefined – DeGrussa and Beyond Growth through exploration For personal use only 22
Slide 23: Resource Growth
Resource Growth High Grade Mineral Resource increased, underpinning mine life extension Growth through exploration For personal use only • Strong ongoing commitment to near-mine and regional exploration: • $20M budget for DeGrussa / Doolgunna • $10M budget for Australia-wide exploration for FY2014 •
Slide 24: Underground Exploration Gathering Momentum
Underground Exploration Gathering Momentum Commencement of C4/C5 declines marks beginning of a new chapter for DeGrussa For personal use only • Development of the C1 and C4/C5 declines now underway from junction off Evans Decline • Underground drilling positions to be established in 2H 2013 to targe
Slide 25: DeGrussa Resource Growth
DeGrussa Resource Growth A strong track record of resource development since discovery in 2009 Growth through exploration For personal use only Note: Shown prior to Production Dilution 25
Slide 26: DeGrussa Resource Growth
DeGrussa Resource Growth A strong track record of resource development since discovery in 2009 Growth through exploration For personal use only 100% 85% 90% Note: Shown prior to Production Dilution 26
Slide 27: DeGrussa Mineral Field – Regional Exploration
DeGrussa Mineral Field – Regional Exploration Strategic land-holding in the heart of the emerging Bryah Basin copper-gold province Growth through exploration For personal use only 27
Slide 28: DeGrussa– “Corridor of Riches”
DeGrussa– “Corridor of Riches” Minimal exploration conducted along +30km long mine corridor Growth through exploration For personal use only +30km strike length prospective for VMS mineralisation 150m • VMS mineralising environment confirmed over +30km long, 2km wide corridor • Minimal exploration b
Slide 29: Australian Regional Exploration
Australian Regional Exploration Extensive portfolio with a focus on discovering Tier One deposits The next chapter: business development For personal use only • Reviewing high-quality, asset-driven exploration opportunities in Australia • Focus outside Doolgunna is on IOCG copper-gold, porphyry- sty
Slide 30: 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$1.05-1.15/lb • Str
Slide 31: Diggers and Dealers Mining Forum
For personal use only Diggers and Dealers Mining Forum Strong production and cash flow Organic growth through exploration Strong shareholder returns 6th Aug 2013
Slide 32: Appendix: Competent Person’s Statements
Appendix: Competent Person’s Statements For personal use only Competent Person’s Statement – Mineral Resources and Open Pit Ore Reserves • The information in this report that relates to Mineral Resources and Open Pit Ore Reserves is based on information compiled by Mr. Ekow Taylor who is a Member of
Slide 33: Appendix: Competent Person’s Statements
Appendix: Competent Person’s Statements Exploration and Resource Targets For personal use only • Any discussion in relation to the potential quantity and grade of Exploration Targets is only conceptual in nature. While Sandfire is confident that it will report additional JORC compliant resources for
Slide 34: Life-of-Mine Outlook
Life-of-Mine Outlook Mine Plan, Mineral Resource and Ore Reserve For personal use only As at 31 March 2013 Mine Plan Mineral Resource Ore Reserve Tonnes (Mt) 10.5 10.2 7.9 - DeGrussa 1.6 1.4 1.6 - Conductor 1 5.5 5.2 5.3 - Conductor 4 1.9 2.1 1.0 - Conductor 5 1.5 1.4 - Cu grade (%) 4.9 5.7 5.0 Gold
Slide 35: Operating Cost and Capital Guidance: FY2014
Operating Cost and Capital Guidance: FY2014 Unit costs and capital expenditure For personal use only Key financial parameters FY2014 Guidance Q4 FY2013 Actual Key financial parameters FY2014 Guidance Unit costs – DeGrussa Mine US$/lb US$/lb Capital expenditure A$M Mining (net of development) 0.33 0.
Slide 36: JORC Compliance Statement for U/G Mineral Resources & Ore Reserves
JORC Compliance Statement for U/G Mineral Resources & Ore Reserves Summary of the information used in this presentation is as follows: For personal use only The DeGrussa VHMS (volcanic-hosted massive sulphide) copper-gold deposit is located 900 kilometres north of Perth and 150 kilometres north of M
Slide 37: Ore Reserve & Mineral Resource
Ore Reserve & Mineral Resource Appendix 1 – Ore Reserve and Mineral Resource For personal use only DeGrussa Mine - Underground As at 31 March 2013 Ore Reserve Mineral Resource Deposit Reserve category Tonnes (Mt) Copper (%) Gold (g/t) Contained Copper (t) Contained Gold (oz) Resourcecategory Tonnes
Slide 38: Ore Reserve & Mineral Resource
Ore Reserve & Mineral Resource For personal use only Appendix 1 – Ore Reserve and Mineral Resource DeGrussa Mine - Total As at 31 March 2013 Ore Reserve Mineral Resource Resourcecategor Deposit Reserve ategory Tonnes (Mt) Copper (%) Gold (g/t) Contained Copper (t) Contained Gold (oz) Tonnes (Mt) Cop
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