Slide 1: March 2016 Quarterly Report Presentation and Webcast
For personal use only March 2016 Quarterly Report Presentation and Webcast 14 April 2016 Access this presentation at: http://webcasting.brrmedia.com/broadcast/57031d12 c95e0de72337f098 or www.sandfire.com.au
Slide 2: Important Information and Disclaimer
Important Information and Disclaimer For personal use only 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
Slide 3: Important Information and Disclaimer: Competent Person's Statements
Important Information and Disclaimer For personal use only Competent Person’s Statement – Ore Reserves and Mine Plan The information in this report that relates to Ore Reserves and Mine Plan is based on information compiled by Mr. Neil Hastings who is a Member of The Australasian Institute of Mining
Slide 4: Agenda
Agenda For personal use only ► Highlights ► Safety ► Mining and Processing ► Sales ► Operating Costs and Guidance ► Ore Reserves and Mineral Resources ► Exploration ► Summary and Outlook 4
Slide 5: March 2016 Quarterly Highlights
March 2016 Quarterly Highlights For personal use only Production continues to deliver; Monty VMS maiden high-grade Mineral Resource; Maiden C5 Ore Reserve Production and Operations ► 16,095t copper and 9,080oz gold produced; C1 US$1.01/lb ► Mining at 1.6Mtpa, milling rate reduced to 1.5Mtpa with pla
Slide 6: March 2016 Quarterly Highlights: Corporate and Financial
March 2016 Quarterly Highlights For personal use only Production continues to deliver; Monty VMS maiden high-grade Mineral Resource; Maiden C5 Ore Reserve Corporate and Financial ► DeGrussa Finance Facility balance further reduced to $70M ($50M Revolver Facility and $20M Amortising Facility) ► Cash
Slide 7: Safety
Safety For personal use only Continued sound safety perfomance ► Total Recordable Injury Frequency Rate (TRIFR) of 10.3 at Quarter-end (vs. 2.7 at December 2015 Quarter-end) - reflects four low risk and low consequence hand and musculoskeletal injuries. ► Safety systems development and critical cont
Slide 8: Mining Overview
Mining Overview For personal use only Production rates on target Underground production and mine development ► Total ore production for the Quarter of 396,211 tonnes grading 4.3% Cu ► Production rates continue at ~1.6Mtpa ► Mine remains in balance between production and back-fill ► Conductor 4 and 5
Slide 9: Processing
Processing For personal use only Processing rates on target Mill throughput ► 374,955 tonnes milled at average head feed grade of 4.7% Cu ► Milling rates continue to match enhanced capabilities of the milling circuit ► Planned 8-day shutdown completed Recovery ► Quarterly copper recovery of 91.7%; G
Slide 10: Sales
Sales For personal use only Copper & Gold Sales ► Quarterly sales of 20,423 tonnes of contained copper and 11,352 ounces of contained gold ► Quarter end concentrate holding (~6,000t) reduced from high levels at end of December 2015 Quarter 10
Slide 11: Unit Operating Costs
Unit Operating Costs For personal use only C1 and total production costs Unit costs – DeGrussa Mine Q3 FY2016 (US$/lb) Commentary Mining (net of development) 0.33 Processing 0.42 Solid quarterly copper production maintaining low C1 cost levels Business services 0.12 Transport, treatment and refining
Slide 12: Doolgunna Exploration Overview
Doolgunna Exploration Overview For personal use only Monty resource drill-out completed; maiden resource delivered; exploration continuing • Monty resource drill-out finalised with 82 diamond drill-holes completed since discovery in June 2015 • Sandfire is Manager of the Springfield JV – interests S
Slide 13: Doolgunna Exploration Overview
Doolgunna Exploration Overview For personal use only Monty resource drill-out completed; maiden resource delivered; exploration continuing • Exploration continuing as a priority along highly prospective 5km long Monty VMS corridor: • Systematic aircore drilling to accurately delineate the interprete
Slide 14: Monty Mineral Resource (Springfield JV)
Monty Mineral Resource (Springfield JV) For personal use only Maiden Monty Mineral Resource • Two major massive sulphide lenses host 87% of the overall contained metal • Lowermost MS lens contains appreciable quantities of bornite – further drilling to be considered to determine potential DSO opport
Slide 15: Monty Mineral Resource (Springfield JV)
Monty Mineral Resource (Springfield JV) For personal use only Monty Mineral Resource delivered • Five subordinate massive sulphide lenses also carry high grades – 9.3%Cu and 2.0g/tAu 15
Slide 16: Monty Mineral Resource (Springfield JV)
Monty Mineral Resource (Springfield JV) For personal use only Monty Mineral Resource delivered • Two major massive sulphide lenses contain internal zones of halo mineralisation • External halo mineralisation, surrounding the MS lenses, is developed in certain locations 16
Slide 17: Monty Mineral Resource: Project development studies
Monty Mineral Resource (Springfield JV) For personal use only Project development studies • High-level studies underway to identify primary value-drivers and determine optimal development pathways, including: • Metallurgical testwork • Geotechnical/geo-hydrological drilling • Mining studies • Regula
Slide 18: DeGrussa Mine Plan, Mineral Resource and Ore Reserve
DeGrussa Mine Plan, Mineral Resource and Ore Reserve For personal use only Maiden C5 Ore Reserve delivered Tonnes Copper Gold Contained Contained DeGrussa Underground Mine (Mt) (%) (g/t) Copper (t) Gold (oz) Mine Plan 8.1 4.4 1.7 357,000 443,000 Ore Reserve 8.0 4.4 1.7 353,000 440,000 Mineral Resour
Slide 19: Summary & Outlook
Summary & Outlook For personal use only Strong quarter and outlook; robust balance sheet; growth through exploration and discovery success • FY2016 YTD production and cost performance: • 50,375t copper, 26,385oz gold production at C1 cost of US$1.00/lb • FY2016 guidance maintained: upper end 65-68kt
Slide 20: 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 20