Slide 1: September 2021 Quarterly Report Presentation
September 2021 Quarterly Report Presentation Karl Simich, Managing Director & CEO 28 October 2021 Access the live webcast of this presentation commencing at 10.00am (AWST) / 1.00pm (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 Build a Sustainable Production Profile Our Purpose Accelerate Discovery ‘Creating value through opportunity’ Align and Empower Our People Optimise Capital Strategy and Engagement Page: 3 Slide: 8
Slide 4: Highlights September 2021 Quarter
● DeGrussa copper production: 15,946t of contained copper and 7,515oz of contained gold at C1 US$1.13/lb: ● FY2022 guidance maintained: 64-68kt Cu and 30-34koz Au; C1 costs ~US$1.00-$1.10/lb ● Maiden Mineral Resource estimate pending and Scoping Study in progress for the Old Highway Gold Prospect an
Slide 5: HSEC
Safety, health and wellbeing • Total Recordable Injury Frequency Rate (TRIFR) of 5.6 at Quarter- end (4.0 at June 2021 Quarter- end). HSEC • Continued focus on employee and The safety, health contractor health and wellbeing during the COVID-19 pandemic and wellbeing of and response. our people is in
Slide 6: Doolgunna: Strong foundations in Western Australia
Doolgunna 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 Page: 6 SANDFIRE RESOURCES - CREATING V A L U E T H R O U G H OPORTUNITY
Slide 7: DeGrussa Operations September Quarter Physicals
MINING PROCESSING SALES ________________ ___________ _____ 419,152 23.6 23.4 405,048 C1: DeGrussa US$1.13/lb Operations 303,102 Production: September 15,946t Cu Quarter Physicals 7,515oz Au Tonnes contained FY2021 Sales: Production: 16,872t Cu 116,050 70,854t 8,694ozCu 6.0 39,459oz containedAu C1 US
Slide 8: DeGrussa Operations | Operating costs and capital
DeGrussa Operations | Operating costs and capital Q1 FY2022 • Q1 FY2022 C1 operating costs of US$1.13/lb Cu Unit operating costs (US$/lb) was marginally above plan (+2%) driven by Mining 0.53 increased ore tonnes mined at a lower grade, Processing 0.32 higher power costs due to diesel price and high
Slide 9: Doolgunna | Old Highway Gold Project Resource Definition
Doolgunna | Old Highway Gold Project Resource Definition Remaining resource definition drilling programs currently ongoing. Central Deeps: • 25m x 25m diamond pattern revised to 50m x 100m spacing designed to test for down-dip extensions to mineralisation at Old Highway. • Planned total of 25 diamon
Slide 10: Doolgunna Dual-track exploration strategy
Gold Processing Pipeline East Shed Well, Cow Hole Bore and SE Robinson Range Red Bore Copper Exploration 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 Pi
Slide 11: Kalahari: Expanding horizons in Botswana and Namibia
Kalahari Expanding horizons in Botswana and Namibia Kalahari (Botswana and Namibia) - Motheo Copper Mine - Motheo Expansion Project - Extensive Kalahari exploration portfolio (Botswana and Namibia) Page: 11 SANDFIRE RESOURCES - CREATING V A L U E T H R O U G H OPORTUNITY
Slide 12: Motheo Production Hub: A4 Mineral Resource update
July 2021 A4 Mineral Resource Cu% Mineral Resource Copper Grade Silver Grade Contained Contained Ag Cut-Off Category Weathering Tonnes (%Cu) (ppm Ag) Cu (t) (oz) Indicated Saprolite 550,000 1.0 7.0 6,000 100,000 Saprock 1,340,000 1.5 14.0 20,000 600,000 Motheo Fresh 7,000,000 1.4 24.0 99,000 5,400,0
Slide 13: Motheo Production Hub: A4 Maiden Ore Reserve
A4 Open Pit Ore Reserve Ore Reserve Tonnes Copper Grade Contained Silver Contained Category (Mt) (%) Copper (Kt) Grade (g/t) Silver (Moz) Probable 9.7 1.2 114 18.0 5.7 Total 9.7 1.2 114 18.0 5.7 Motheo Notes: 1. The Probable Ore Reserve is based on the Indicated category of the Mineral Resource. No
Slide 14: Motheo Production Hub Expansion Case PFS key elements
• Open pit mine at A4 – 1.2km long x 0.5km wide to • Open pit dewatering infrastructure be mined in 2 stages • Haul road and services corridor linking A4 to the • Expansion of the Motheo Processing Plant to Motheo Processing Plant 5.2Mtpa capacity • Light vehicle access road linking A4 to the • Supp
Slide 15: Motheo Production Hub Expansion case
5.2Mtpa • 47% increase in estimated life-of-mine 3.2Mtpa Expansion Var. % revenue to US$3.6 billion (A$4.9 Key drivers Unit Base Case Case billion) using an updated forecast long- Physicals term copper price of US$3.49/lb Life of Mine (processing) Years 12.5 10.5 -16% • 116% increase in pre-tax NPV7
Slide 16: Motheo Development Timeline
Motheo Development Timeline Mining License Approval & Land Titles Accommodation Village EMP Process Plant Engineering & Pre-Construction Works Accommodation Facility 132KV Powerline & Substations Design & Construction Process Plant Construction Mining Contractor Mobilisation & Establishment Mining P
Slide 17: Motheo Copper Mine Key Progress
• Development is proceeding to plan Crusher Base earthworks • Perenti is on track to commence mobilisation to site in November 2021 • Country Head and GM Operations now in- Motheo Copper country Mine • The major earthworks contractor has mobilised to site and commenced works Mill and Thickener Area
Slide 18: Kalahari Copper Belt: Consolidation of exploration ground
Kalahari Copper Belt Consolidation of exploration ground in Botswana Page: 18
Slide 19: Kalahari Exploration – Priority Target Areas
Kalahari Exploration – Priority Target Areas T14, T5, T45 • Currently 8 diamond and reverse 3 AEM and geochem targets circulation drill rigs in operation – along >60km structural zone increasing to 10 drill rigs in 1 drill rig testing T45 A1 Dome, T1 and T2E November Follow up initial intersections
Slide 20: Black Butte, Montana, USA
Black Butte Montana, USA Black Butte Copper Project (Montana, USA) (87%) - Johnny Lee Copper Deposit - Lowry Deposit Page: 20 SANDFIRE RESOURCES - CREATING V A L U E T H R O U G H OPORTUNITY
Slide 21: Black Butte, Montana, USA
• Acquisition of key mine property • Enhancement of Feasibility Study being progressed • Exploration program within the Mining Lease targeting potential extensions Black Butte and other near-mine opportunities Montana, USA • Continuing response to legal challenges to permitting Page: 21 SANDFIRE RES
Slide 22: Montana, USA Exploration
Montana, USA Exploration • Hole SC21-262 – Strawberry West Upper Copper Zone – 6.8m of 1.2% copper and 33.0g/t silver • Hole SC21-263 – Lowry North extension in Lowry Middle Copper Zone - 9.8m of 1.7% copper and 12.2g/t silver • Hole SC21-263 – Lowry North extension in Lowry Lower Copper Zone - 7.1m
Slide 23: Key takeaways September 2021 Quarter
Global vision – transformational acquisition of the MATSA Mining Complex Strong growth platform – DeGrussa cash-flows, $405.5m cash at 30 September 2021 Key takeaways New production hub – construction of expanded September 2021 5.2Mtpa Motheo Copper Mine in Botswana underway Quarter Strong pipeline
Slide 24: Competent Person's Statements
Competent Person’s Statements A4 Ore Reserve The information in this presentation 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
Slide 25: Contact Details
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 VALUE THROUGH OPPORTUNITY