Slide 1: September 2022 Quarterly Presentation
September 2022 Quarterly Presentation 20 October 2022 Access the live webcast of this presentation commencing at 11.00am (AWST) / 2.00pm (AEDT) at the link below: SANDFIRE WEBCAST
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 Key assumptions current at the date of this presentation. The presentation is in summary form, has not been independently verified and
Slide 3: Our Strategy
Our Strategy Execute Sustain and Grow Accelerate Align and Empower Optimise Capital Delivery Our Production Discovery Our People Strategy and Pipeline Engagement Our Values Honesty Respect Collaboration Accountability Performance 3
Slide 4: Sustainable copper production
Sustainable copper production Feeding the global energy transition from high-quality operations in Tier-1 locations MATSA Copper Operations, Spain Black Butte Copper Project, USA (87%) FY2023G: 60-65kt Cu; 78-83kt Zn LOM Avg Production: 23ktpa Cu Cu Zn Pb Ag Cu Ag Feasibility 1.2Mtpa 8+ years Produc
Slide 5: Rising production: copper and zinc growth
Rising production 120,000 Copper Dominant Revenue Stream Copper and zinc growth 100,000 80,000 60,000 Combined MATSA (4.7Mtpa) and Motheo (5.2Mtpa DFS) operating Indicative Value of Payable Metal – FY2023-2025 scale1 producing: 40,000 Copper Zinc Lead Silver ~110-120ktpa contained copper ~80-100ktpa
Slide 6: Q1 FY2023 Operations Highlights
Q1 FY2023 Operations Highlights Production and costs Definitive Feasibility Study (DFS) for the 10Mtpa Operating Scale1 5.2Mtpa Motheo expansion delivered ~110-120ktpa contained copper 28,056t contained copper Motheo Copper Mine development 19,535t contained zinc ~80-100ktpa contained zinc progressi
Slide 7: Q1 FY2023 Delivering growth
Q1 FY2023 Delivering growth In US$ (Unaudited) $214.7M Delivering Production Global Motheo 5.2Mtpa $189.8M cash Sales revenue growth in and operating opportunities Expansion holding high-margin costs for near-mine Case approved $87.0M production extensions Net debt $374.7M Operations Q1 FY2023: and
Slide 8: Q1 FY2023 Group Production
Q1 FY2023 Group Production Copper Dominant Revenue Stream Q1 FY2023 Q1 FY2023 FY2023 Production: Guidance: Guidance lifted: 23% 28,056t Copper ~28kt Copper 83-91kt Copper 19,535t Zinc ~16kt Zinc 78-83kt Zinc 2,477 Lead ~2kt Lead 6-10kt Lead 71% 8koz Gold ~8koz Gold 12-14koz Gold 0.7Moz Silver ~0.6Mo
Slide 9: Q1 FY2023 Group Cash Flow Waterfall
700 Q1 FY2023 600 Group Cash 43.7 48.5 Flow Waterfall 500 463.1 (56.5) 400 In US$M (Unaudited) 300 (215.5) 200 9.6 189.8 (84.6) (18.6) 100 - Opening Cash - DeGrussa cash MATSA cash QP adjustments Debt repayments Growth Income tax Other Closing Cash - 1 July 2022 flows from flows from (net of hedge 3
Slide 10: FY2023 Debt facilities and hedging
FY2023 Debt facilities and hedging MATSA Facility Motheo Facility executed Hedge Book • US$532M following scheduled US$118M • US$140M T3 Project Finance Facility • Copper – FY2023 remaining: repayment completed 30 September 2022 based on T3 3.2Mtpa base case 20,090t at US$9,333/t (~25% above • US$80
Slide 11: Operations Review and Outlook
Operations Review and Outlook
Slide 12: Q1 FY2023 HSEC Snapshot
Q1 FY2023 HSEC Snapshot Our business is underpinned by a demonstrated commitment to the highest of standards for health, safety, environment and communities. Total Recordable Injury Continued focus on employee Sandfire released its 2022 Sustainability Frequency Rate (TRIFR) and contractor health and
Slide 13: FY2023 Group Guidance
FY2023 Group Guidance In US$ (Unaudited) Production: FY2023 C1 Mine development Exploration, evaluation MATSA D+A 83-91kt~95% Cu unit costs: $80-95M and studies ~$250M 78-83kt~84% Zn ~$1.72/lb Cu Motheo construction $35-40M Payable and development DeGrussa D+A 6-10kt~90% Pb ~$16M $200-210M Corporate
Slide 14: FY2023 Group Indicative Production Profile
FY2023 30,000 GROUP Indicative 25,000 Production Profile 20,000 15,000 Copper and Gold Zinc DeGrussa sulphide MATSA zinc production 10,000 production scheduled increasing to ~85,000t to complete around end annualised contained 5,000 October 2022, low- production rate grade stockpile processing to Ja
Slide 15: FY2023 Group Operations Guidance Summary
FY2023 Group Operations Guidance Summary MATSA DeGrussa Motheo Group Copper (kt) 60-65 19-21 ~4-5 83-91 Zinc (kt) 78-83 - - 78-83 Lead (kt) 6-10 - - 6-10 Gold (koz) - 12-14 - 12-14 Silver (Moz) 2.0-3.0 ~0.1 ~0.1 2.2-3.2 Operating costs (US$/lb Cu) 1.78 1.54 see note 1 1.72 Capital expenditure (US$)
Slide 16: MATSA Copper Operations
MATSA Copper Operations MATSA Operations Exploration • Aguas Teñidas Mine • Iberian Pyrite Belt tenure • Magdalena Mine • Sotiel Mine • 4.7Mtpa Processing Plant
Slide 17: MATSA: Establishing a base for multi-decade operations
MATSA Establishing a base for multi-decade operations Optimisation and implementation • Mineral Resource to Ore Reserve • Regional exploration campaign to of our 5-year Plan conversion to extend the mine life of underpin future expansions of throughput • Safety improvement – driving culture and exis
Slide 18: Q1 FY2023 MATSA Production
% t 1,200,000 8.0 23.6 23.4 7.0 Q1 FY2023 1,000,000 6.0 MATSA Production 800,000 5.2 5.0 4.1 600,000 4.0 In US$ (Unaudited) 3.2 3.0 3.0 3.0 400,000 Production: Sales: Operations EBITDA 2.4 13,747t Cu95% 13,090t Cu $39.7M 2.0 19,535t Zn83% 16,439t Zn Operations EBITDA 1.7 2,477t Pb85% 1,212t Pb Margi
Slide 19: FY2023 MATSA Production Guidance
t % 5,000,000 8.0 4,500,000 23.6 23.4 7.0 FY2023 4,000,000 6.0 MATSA Production 3,500,000 Guidance 3,000,000 5.0 2,500,000 4.0 4.0 In US$ (Unaudited) 3.4 2,000,000 3.0 2.7 Production: Capital expenditure: 1,500,000 2.4 60-65kt Cu~95% $80-90M Mine 2.2 2.2 2.0 78-83kt Zn~84% development 1,000,000 1.7
Slide 20: FY2023 MATSA Indicative Production Profile
FY2023 25,000 MATSA Indicative 20,000 Production Profile 15,000 10,000 5,000 0 Copper (t) Zinc (t) Lead (t) Silver (Koz) Q1A Q2I Q3I Q4I 20
Slide 21: FY2022 and FY2023 MATSA Operating Costs
140.00 120.00 FY2022 and FY2023 100.00 MATSA Operating Costs 80.00 In €M (Unaudited) 60.00 Operating costs guided for FY2023 are largely driven 40.00 by accessing new mining areas, annual mining rate increasing to 4.7Mpta and increasing zinc concentrate 20.00 volumes (transport, treatment and refini
Slide 22: MATSA Energy Costs
€ /MWh Spanish Daily Power Prices 600 MATSA Energy Costs 500 400 Historic spike in European Energy costs: Response: • Actual Electricity Price for 3 months • 20MW Sotiel Solar farm in 300 to SEP22 was €270/MWh. progress, estimated completion • EU approved Gas price cap for Sept 2023 Spain and Portug
Slide 23: Q1 FY2023 MATSA Unit Costs
Unit Cost Summary 5.0 23.6 23.4 Q1 FY2023 4.0 MATSA Unit Costs 0.84 C1 cash cost buildup (US$/lb payable Cu) 3.0 0.72 0.29 0.72 0.93 2.19 0.32 2.0 0.21 0.26 1.00 1.78 1.81 0.84 0.73 0.65 1.0 In US$ (Unaudited) 0.94 1.53 1.31 1.19 1.16 - Mining and processing unit Controllable site costs driven by ma
Slide 24: MATSA Infill and Mine Exploration
Magdalena MATSA Infill and Mine Exploration R&R Growth and Extensional Targets Concepcion FY2023 drilling program targeting R&R growth and near-mine extensions • 67,000m of infill drilling across the three mines to lift Resources to higher-confidence categories and drive conversion to Reserves • 36,
Slide 25: MATSA Regional Exploration
MATSA Regional Exploration Exploration Potential Testing regional exploration targets and enhancing our understanding of the basin • Four drill rigs active on testing exploration targets in Spain, one in Portugal • Large airborne gravity gradiometry survey to aid understanding of the basin • Histori
Slide 26: DeGrussa Copper Operations
DeGrussa Copper Operations DeGrussa Operations Exploration • DeGrussa Copper-Gold Mine • Doolgunna VMS Province • Monty Copper-Gold Mine
Slide 27: DeGrussa: Continuing to deliver safely
DeGrussa Continuing to deliver safely Production Costs Processing Extension Strong quarterly production • Continuing cost pressures reflect • Full scale plant trials confirmed laboratory scale Extension of processing beyond October inflation in the mining industry and test work for transitional ore
Slide 28: Q1 FY2023 DeGrussa Production
Q1 FY2023 t 500,000 8.00 % DeGrussa Production 450,000 6.8 7.00 400,000 6.00 350,000 5.00 300,000 In US$ (Unaudited) 250,000 3.9 4.1 4.00 200,000 Production: Sales: Operations EBITDA: 3.1 3.00 14,309t Cu95% 11,769t Cu $47.3M 150,000 8,215oz Au93% 6,984oz Au Operations EBITDA 1.8 2.00 67koz Ag74% 44k
Slide 29: FY2023 DeGrussa Production Guidance
FY2023 t % 1,000,000 8.0 DeGrussa Production Guidance 900,000 6.8 7.0 7 months to January 2023 800,000 6.0 700,000 5.0 600,000 In US$ (Unaudited) 500,000 3.9 4.0 400,000 3.1 Production: Capital expenditure: 2.8 3.0 19-21kt Cu~95% $2.1M Mine 300,000 12-14koz Au~91% development 1.8 1.5 2.0 1.4 ~0.1Moz
Slide 30: Q1 FY2023 DeGrussa Unit Costs
Unit Cost Summary 4.0 23.6 23.4 Q1 FY2023 3.0 DeGrussa Unit Costs C1 cash cost buildup (US$/lb, payable Cu) 2.0 0.66 0.60 0.65 1.54 In US$ (Unaudited) 1.25 1.34 0.26 0.17 1.0 0.16 0.35 0.43 0.55 C1 unit costs expected to rise as activity reduces towards end of mine life along with processing of low
Slide 31: Australian Exploration: Repositioning the portfolio
Australian Exploration Repositioning the portfolio • Drilling continues on the DeGrussa Deeps program with no significant mineralisation intersected. Program scheduled to be complete in the December quarter of FY23 • Tenement rationalisation underway at DeGrussa with divestment process of 100% owned
Slide 32: Motheo Copper Project
Motheo Copper Project Motheo Copper Mine Exploration • T3 Deposit Development • Motheo Expansion Project • A4 Deposit Expansion Project • Kalahari Copper Belt tenure
Slide 33: Motheo Copper Project: Building a world-class copper mine
Motheo Copper Project Building a world-class copper mine Development of the 3.2Mtpa Positive 5.2Mtpa Motheo Expansion Sandfire is funding the development Motheo Copper Mine is proceeding Case Definitive Feasibility Study of the Motheo Copper Mine through a on time with first production scheduled (DF
Slide 34: 5.2Mtpa Motheo Expansion Case DFS
5.2Mtpa Motheo Expansion Expansion Case DFS Positive DFS confirms strong DFS shows outstanding project Total development capital for the business case for development of economics from an expanded 5.2Mtpa Motheo Copper Project expansion case the A4 Deposit as part of an processing operation, mining
Slide 35: 5.2Mtpa Motheo Expansion copper production
5.2Mtpa Motheo 60,000 1.20 Expansion 50,000 1.00 Copper production ramping up to peak ~55ktpa 40,000 0.80 Tonnes 30,000 0.60 20,000 0.40 10,000 0.20 - - 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Financial Year T3 Copper Contribution A4 Copper Contribution Mined Copper Grade 35
Slide 36: 5.2Mtpa Motheo Expansion Case DFS Key Outcomes
5.2Mtpa Motheo Expansion Expansion Case DFS Key Outcomes Key Drivers Unit 5.2Mtpa DFS Key Drivers Unit 5.2Mtpa DFS Physicals Economic Life of Mine (processing) Years 10.0 Cu price (LOM average)1 US$/lb 3.57 Waste : Ore (inc. pre-strip) 6.2 Ag price (LOM average) US$/oz 20.00 Cu grade % 0.94 LOM Reve
Slide 37: Motheo Copper Mine Proposed Mine Layout
Motheo Copper Mine Proposed Mine Layout 37
Slide 38: Motheo Copper Mine 5.2Mtpa Processing Facility
Motheo Copper Mine | 5.2Mtpa Processing Facility Reagent Store Clinic Laboratory Administration Workshop Grinding Ball Mill Raw Water Primary Crushing Tails Pond Thickener Pebble Crushing Feed Conveyor Coarse Ore Water Stockpile & Reclaim Concentrate Services Thickening Flotation Concentrate Storage
Slide 39: Motheo Copper Mine Development Timeline
Motheo Copper Mine | Development Timeline Mining Licence Approval & Land Titles Process Plant Engineering & Pre-Construction Works Accommodation Facility 132KV Powerline & Sub-stations Design & Construction 3.2Mtpa Process Plant Construction Mining Contractor Mobilisation & Establishment Mining – T3
Slide 40: Motheo 5.2Mtpa Construction & Development Capital
23.6 Motheo Copper Mine 70 400 5.2Mtpa Construction 60 350 & Development Capital 300 50 250 Millions 40 Millions In US$ 200 Development capital estimated at $397.4M 30 (displayed in graph) 150 • Motheo (3.2Mtpa and T3) $325.5M 20 100 • Motheo (5.2Mtpa expansion and A4) $71.9M At 31 July 2022, $185.4
Slide 41: Motheo Exploration: A1 Satellite Prospect
Motheo Exploration A1 Satellite Prospect A1 Dome, an emerging mineral system 19km from the Motheo Copper Mine • Mineralisation identified over 1.8km and remains open to the NE and up/down dip • 35 holes completed on ~200m spaced grid, assays received for 25 holes1 • Mineralisation occurs as semi-mas
Slide 42: Summary
Summary
Slide 43: Key Takeaways
Key Takeaways Strong growth platform Global vision Copper-dominant mining Our transformation into a diversified, operations generating strong international and sustainable copper operating cash-flows mining company New Production Hubs Strong Pipeline Refreshed and focused Group production from the M
Slide 44: Appendices
Appendices 23.6 23.4 Unaudited Appendix 1 Operating physicals – GROUP Appendix 2a and 2b Operating physicals – MATSA Appendix 3a and 3b Operating physicals – DEGRUSSA Appendix 4 Operating costs (US$) – GROUP Appendix 5 Operating costs (C1 US$/lb) – GROUP Appendix 6 Capital expenditure – GROUP Append
Slide 45: Appendix 1: Operating physicals - GROUP
Appendix 1 Operating physicals - GROUP 23.6 23.4 September 2022 Quarter (Actual) YTD FY2023 (Actual) FY2023 (Guidance) MATSA DEGRUSSA MATSA DEGRUSSA MATSA DEGRUSSA MOTHEO (3 mths) (3 mths) TOTAL (3 mths) (3 mths) TOTAL (12 mths) (7 mths) (3 mths) TOTAL Ore mined (t) 1,125,250 437,196 1,562,446 1,125
Slide 46: Appendix 2a: Operating physicals - MATSA
Appendix 2a 23.6 Operating physicals - MATSA 23.4 September 2022 Quarter (Actual) YTD FY2023 (Actual) FY2023 (Guidance) AT MG ST AT MG ST AT MG ST MINED PROC MINED PROC MINED PROC (3 mths) (3 mths) (3 mths) (3 mths) (3 mths) (3 mths) (12 mths) (12 mths) (12 mths) Ore (t) - Total 525,463 483,939 115,
Slide 47: Appendix 2b: Operating physicals - MATSA
Appendix 2b 23.6 Operating physicals - MATSA 23.4 September 2022 Quarter (Actual) YTD FY2023 (Actual) FY2023 (Guidance) Cu-CU Cu-Poly Zn Pb Cu-CU Cu-Poly Zn Pb Cu-CU Cu-Poly Zn Pb (3 mths) (3 mths) (3 mths) (3 mths) (3 mths) (3 mths) (3 mths) (3 mths) (12 mths) (12 mths) (12 mths) (12 mths) Recovery
Slide 48: Appendix 3a: Operating physicals - DeGrussa
Appendix 3a Operating physicals - DEGRUSSA September 2022 Quarter (Actual) YTD FY2023 (Actual) FY2023 (Guidance) DG MT DG MT MINED PROC DG MT MINED PROC MINED PROC (3 mths) (3 mths) (3 mths) (3 mths) (3 mths) (3 mths) (4 mths) (3 mths) (4 mths) (7 mths) Ore (t) 342,875 94,321 437,196 385,110 342,875
Slide 49: Appendix 3b: Operating physicals - DeGrussa
Appendix 3b 23.6 Operating physicals - DEGRUSSA 23.4 September 2022 Quarter (Actual) YTD FY2023 (Actual) FY2023 (Guidance) Cu Au Ag Cu Au Ag Cu Au Ag (3 mths) (3 mths) (3 mths) (3 mths) (3 mths) (3 mths) (7 mths) (7 mths) (7 mths) Recovery (%) 91% 46% 56% 91% 46% 56% 88% 45% 52% Concentrate (t) 60,6
Slide 50: Appendix 4: Operating costs (US$) - GROUP
Appendix 4 23.6 Operating costs (US$) - GROUP 23.4 Operating Costs September 2022 Quarter (Actual) YTD FY2023 (Actual) FY2023 (Guidance) MATSA DEGRUSSA MATSA DEGRUSSA MATSA DEGRUSSA In US$M (Unaudited) TOTAL TOTAL TOTAL (3 mths) (3 mths) (3 mths) (3 mths) (12 mths) (7 mths) Mining 44 17 62 44 17 62
Slide 51: Appendix 5: Operating costs (C1 US$/lb) - GROUP
Appendix 5 23.6 Operating costs (C1 US$/lb) - GROUP 23.4 C1 Unit Costs/lb Cu September 2022 Quarter (Actual) YTD FY2023 (Actual) FY2023 (Guidance) payable MATSA DEGRUSSA MATSA DEGRUSSA MATSA DEGRUSSA In US$M/lb (Unaudited) TOTAL TOTAL TOTAL (3 mths) (3 mths) (3 mths) (3 mths) (12 mths) (7 mths) Mini
Slide 52: Appendix 6: Capital expenditure - GROUP
Appendix 6 23.6 Capital expenditure - GROUP 23.4 In US$M (Unaudited) September 2022 Quarter (Actual) YTD FY2023 (Actual) FY2023 (Guidance) MATSA DEGRUSSA MOTHEO MATSA DEGRUSSA MOTHEO MATSA DEGRUSSA MOTHEO (3 mths) (3 mths) (3 mths) TOTAL (3 mths) (3 mths) (3 mths) TOTAL (12 mths) (7 mths) (12 mths)
Slide 53: Appendix 7: Revenue and Operations EBITDA Margin
Appendix 7 23.6 Revenue and Operations EBITDA Margin 23.4 September 2022 Quarter (Actual) YTD FY2023 (Actual) Commentary MATSA DEGRUSSA MATSA DEGRUSSA In US$M (Unaudited) TOTAL TOTAL (3 mths) (3 mths) (3 mths) (3 mths) Revenue: Value of payable metal sold 157 100 257 157 100 257 Includes QP adjustme
Slide 54: Contact Details
Contact Details +61 8 6430 3800 +61 8 6430 3849 www.sandfire.com.au Corporate Head Office Level 2, 10 Kings Park Road West Perth WA 6005 Australia PO Box 1495 West Perth WA 6872 Australia