Sandfire Resources Ltd · ASX:SFR
Sandfire Resources — Q3 FY2021 Earnings Presentation
25 slides from Sandfire Resources's earnings presentation, Apr 28, 2021
Slide 1: March 2021 Quarterly Report Presentation
March 2021 Quarterly Report Presentation Karl Simich, Managing Director & CEO 28 April 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 VALUE THROUGH OPPORTUNITY
Slide 2: Important Information and Disclaimer
ImportantImportant Information andand Information Disclaimer 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 independ
Slide 3: Strategy: Creating value through opportunity
Execute delivery Strategy Sustainable production Creating value Accelerate discovery through opportunity Align and empower our people Optimise capital structure Page: 3 SANDFIRE RESOURCES - CREATING VALUE THROUGH OPPORTUNITY
Slide 4: Highlights March 2021 Quarter
● DeGrussa copper production: 16,803t of contained copper (YTD: 52,593t) and 9,100oz of contained gold (YTD: 30,443oz) at C1 US$0.87/lb (YTD US$0.77/lb); pleasing safety performance: ● FY2021 guidance: positioning for upper end of guidance 67-70kt of contained copper and 36-40koz of contained gold,
Slide 5: HSEC: Safety, health and well-being
Safety, health and well-being • Total Recordable Injury Frequency Rate (TRIFR) of 4.7 at Quarter-end (3.1 at December 2020 Quarter-end) • Continued focus on employee and HSEC contractor health and well-being during the COVID-19 global pandemic and response The health and well-being of our • Our Bots
Slide 6: DeGrussa: Strong foundations in Western Australia
DeGrussa Strong foundations in Western Australia DeGrussa Operations, WA Exploration - DeGrussa Copper-Gold Mine - Greater Doolgunna Province, WA - Monty Copper-Gold Mine - East Coast Portfolio (NSW, Qld) Page: 6 S A N D F I R E R ES A ONU DR FC IERSE - RC ER SEOA U T IRNCGE SV-A CL U R E ATTHI N RO
Slide 7: DeGrussa Operations: March 2021 Quarter Production
DeGrussa Operations │ March 2021 Quarter Production 93.3% Cu recovery Copper production: 16,803t Cu 9,100oz Au contained Page:7 SANDFIRE RESOURCES - CREATING VALUE FOR STAKEHOLDERS THROUGH EXCELLENCE AND INNOVATION IN BASE AND PRECIOUS METALS
Slide 8: DeGrussa Operations: Operating costs and capital
DeGrussa Operations │ Operating costs and capital Q3 YTD FY2021 FY2021 Unit operating costs (US$/lb) (US$/lb) Commentary Mining 0.50 0.51 • Upper end of copper and gold production Processing 0.31 0.30 guidance driving expected FY2021 C1 costs reduced to US$0.80 - $0.85/lb Business services 0.11 0.11
Slide 9: DeGrussa Gold Transition Strategy
Potential transition to gold production at DeGrussa • Resource drilling continues at Old Highway Gold Prospect, 22km from DeGrussa • Mineralisation hosted in quartz veining associated with shearing in sediments • Scoping studies in progress • Potential to open other gold exploration opportunities in
Slide 10: Doolgunna: World-Class VMS Exploration Project
Doolgunna │ World-Class VMS Exploration Project • Strategic 7,189km2 footprint across the Bryah Basin • Over 90km strike length of prospective VMS lithologies – strategic focus on southern limb of Bryah Basin • Three centres of sulphide Original Tenements: 400km² mineralisation discovered to date –
Slide 11: DeGrussa Red Bore Exploration
Sandfire managed exploration on the strategically located Red Bore tenement (85% interest) • Commenced Moving Loop EM over the tenements and a review of historical data • Deep drill hole has progressed and is expected to complete in the June 2021 Quarter DeGrussa Red Bore Exploration Page: 11 SANDFI
Slide 12: Tshukudu: Expanding horizons in Botswana
Tshukudu Expanding horizons in Botswana Tshukudu, Botswana - T3-Motheo Copper-Silver Project - A4, T1 Expansion Projects - 26,650km2 exploration portfolio (Botswana and Namibia) Page: 12 S A N D F I R E R ESSAONUDRFCI ER SE - RCERSEOAUTRI N C EGS V- ACLRUEEA T H I NRGO UOGP H Tukuafu OPPORTUNITY
Slide 13: Tshukudu: Dominant position in the Kalahari Copper Belt
Tshukudu Dominant position in the Kalahari Copper Belt – 26,650km2 Page: 13 SANDFIRE RESOURCES - CREATING VALUE THROUGH OPPORTUNITY
Slide 14: Motheo Production Hub 5.2Mtpa expansion case
• Definitive Feasibility Study (DFS) for T3 3.2Mtpa Project completed • Clear visibility to rapidly expand production to Motheo 5.2Mtpa through the Production Hub addition of the A4 deposit • T3-Motheo construction 5.2Mtpa includes US$20M upfront investment to facilitate cost expansion case effectiv
Slide 15: T3-Motheo Development Timeline
T3-Motheo Development Timeline T3 Definitive Feasibility Study Project implementation Page: 15 Page:15 S A N D F I R E R ESSAONUDRFCI ER SE - RCERSEOAUTRI N C EGS V- ACLRUEEA T H I NRGO UOGP H Tukuafu OPPORTUNITY
Slide 16: Motheo Production Hub: Key progress
• Submitted the T3 Definitive Feasibility Study to the Government of Botswana • Commenced recruitment of in-country team • Secured land access Motheo Production Hub • Project debt funding term sheet submission by nine Banks Key progress • Completed in-fill drilling at the A4 deposit as the basis for
Slide 17: Motheo Production Hub: Next steps
• Complete final permitting and secure grant of the Mining Licence for the T3 Project • Finalise recruitment of in-country team • Finalise land access Motheo Production Hub • Project debt funding evaluation and shortlisting for credit approvals and funding agreement negotiation Next steps • Ordering
Slide 18: Motheo Production Hub: A4 Maiden Mineral Resource
• Maiden A4 Inferred Mineral Resource was based on 79 holes and is approximately 70% higher Cu grade than T3, and 1.75% Cu equivalent grade • Valuable additional feed potential, forming the initial basis of the proposed expansion to 5.2Mtpa processing rate • Additional in-fill and extensional diamon
Slide 19: Motheo Production Hub Expansion Area
• Expanded exploration underway to: ‐ Target high-grade satellite discoveries within the Motheo Expansion Project area with the potential to increase the scale of the Motheo Production Hub ‐ Delineate additional resources with the potential to extend mine life ‐ Target major new regional discoveries
Slide 20: Black Butte, Montana, USA
Black Butte Montana, USA Black Butte Copper Project, Montana, USA (87%) Page: 20 S A N D F I R E R E S O U RS C A ENSD -F ICRREE ARTEISNOGU R VCA EL SU E- CT RH ERAOTUI G NGH OPPORTUNITY
Slide 21: Black Butte Copper Project: Current activities and outlook
● Early project works complete ● Enhancement of Feasibility Study being progressed Black Butte ● Exploration program within the Mining Copper Project Lease targeting potential extensions and other near-mine opportunities Current activities ● Continuing to respond to and deal with and outlook legal c
Slide 22: Key highlights March 2021 Quarter
Strong foundations – high-margin production and cash-flow, strong and building debt-free balance sheet New long-life production hub being developed in Botswana with development Key highlights of T3 commenced in Q3 FY2021 Highly prospective global exploration March 2021 portfolio to drive organic gro
Slide 23: Competent Person's Statements
Competent Person’s Statements T3 Ore Reserve The information in this report that relates to Open Pit Ore Reserves, is based on information compiled by Mr Jake Fitzsimons who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Fitzsimons is employed by Orelogy Consulting Pty Ltd an
Slide 24: Disclaimer
Disclaimer Exploration and Resource Targets Any discussion in relation to the potential quantity and grade of Exploration and Resource Targets is only conceptual in nature. While Sandfire is continuing exploration programs aimed at reporting additional JORC compliant Mineral Resources, there has bee
Slide 25: March 2021 Quarterly Report Presentation
March 2021 Quarterly Report Presentation Karl Simich, Managing Director & CEO 28 April 2021 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: 25 SANDFIRE RESOURCES - CREATING V