Slide 1: Global Investor Presentation – September 2017
Karl Simich CEO and Managing Director For personal use only Earthworks underway for the box-cut at the new Monty copper-gold mine Counting the cash: low cost and debt-free at a time of rising copper prices Global Investor Presentation – September 2017 A debt–free Australian copper–gold producer with
Slide 2: Important Information and Disclaimer
Important Information and Disclaimer 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 and does not purport b
Slide 3: Sandfire – Well-Positioned at a Time of Rising Copper Prices
For personal use only Sandfire – Well-Positioned at a Time of Rising Copper Prices ► 2nd largest ASX-listed copper producer ► 5 years of consistent, low-cost production ► Robust operating margins, growing cash-flows ► FY17: debt fully repaid, net profit up 62%, year-end cash $126.7M ► Rising product
Slide 4: Corporate and Financial Summary
Corporate and Financial Summary KEY DATA For personal use only Issued Capital Stock Market Index Market Cap. Consolidated Group Cash & Deposits Debt Dividends 157.8 S&P ~$965 $127 NIL 18c FY17 MILLION ASX MILLION MILLION Shares 200 at $6.12 at 30 June 2017 Repaid FY17 11c in FY16 FINANCIAL Current b
Slide 5: Summary of Key Assets
Summary of Key Assets DeGrussa Copper-Gold Operations, WA – For personal use only ► production ► Monty Copper-Gold Mine (70%-owned), WA – development underway ► Black Butte Copper Project, USA (78%) – Mine Operating Permit approved ► 5,846km2 exploration portfolio in world- class Doolgunna VMS provi
Slide 6: DeGrussa – Consistent, Reliable and Profitable
DeGrussa – Consistent, Reliable and Profitable PRODUCTION OVERVIEW – Key Figures For personal use only FY 2018 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 (guidance) Production Copper (Cu) 64,017t 67,690t 67,154t 68,202t 67,088t 63-66kt Gold (Au) 42,679oz 33,893oz 37,386oz 37,612oz 38,623oz 35-38oz C1 C
Slide 7: Robust Underground Mine – All Lenses Now On Stream
Robust Underground Mine – All Lenses Now On Stream ► DeGrussa and Monty For personal use only Mine Plan: 7.0Mt at 5.1% Cu and 1.6g/t Au (359,000t Cu, 368,000oz Au) ► Milling rates maintained at 1.6Mtpa ► Recoveries targeted at ~92% (LOM) DeGrussa and Monty Underground Tonnes Copper Gold Contained Co
Slide 8: Development – Monty Copper-Gold Project
Development – Monty Copper-Gold Project ► Satellite high-grade copper-gold deposit located 10km For personal use only east of DeGrussa ► Mining by underground method to 400m below surface ► Mine will be managed by Sandfire ► Ore Reserve: 0.92Mt at 8.7% Cu, 1.4 g/t Au ► Talisman 30% share of ore will
Slide 9: Development – Monty Site Infrastructure
Development – Monty Site Infrastructure ► Mining contract awarded For personal use only to Byrnecut (combined operations between DeGrussa and Monty JV) ► Civil works awarded to Yagahong Alliance ► Works well underway: - Haul and access roads - Excavation of box cut for underground access - Stockpile
Slide 10: Development – Monty Site Infrastructure
For personal use only Development – Monty Site Infrastructure June 2017 July 2017 Timeline - Early mobilisation - Project approval - DG tie-in - Start of infrastructure - Civils contractor Q2 FY 2018 Q2 FY 2019 - Start of decline - First ore from - U/G contractor development A debt–free Australian c
Slide 11: Development Pipeline – Doolgunna Growth Projects
Development Pipeline – Doolgunna Growth Projects Growth projects currently under evaluation against the backdrop of an improved For personal use only copper price environment Near-Mine Opportunities Oxide Copper Project Thaduna Copper Projects ► 3 structurally controlled ► UG Mineral Resources not ~
Slide 12: Development Pipeline – Black Butte Copper Project, USA
Development Pipeline – Black Butte Copper Project, USA 78% stake in copper development company Tintina Resources (TSX-V: TAU) – For personal use only ► ~A$31M invested to date ► Developing the Black Butte Copper Project, central Montana, USA ► Advanced, high quality copper project in stable jurisdic
Slide 13: Development Pipeline – Black Butte Copper Project, USA
Development Pipeline – Black Butte Copper Project, USA ► Upfront capital expenditure of For personal use only ~US$220M * ► 2 year construction period with operations over 11-14 years * ► Very small surface footprint – will be 100% reclaimed ► Highly engineered, state-of-the- art underground mine ► M
Slide 14: Doolgunna – Dominant Position in a World-Class VMS Province
Doolgunna – Dominant Position in a World-Class VMS Province ► Sandfire has more than tripled its ground position in the past two years For personal use only ► Greater Doolgunna region: 5,846km2 including 65km strike length of prospective VMS lithologies ► Recent farm-in deals: ► Enterprise Metals (A
Slide 15: Exploration – New Ground, New Technology = Fresh Impetus
Exploration – New Ground, New Technology = Fresh Impetus ► Aggressive push into new areas – Enterprise JV, Great Western JV For personal use only and Yerrida ► Revisiting “old” areas using cutting-edge new technologies, e.g. ultra-high powered MLEM (~15% more powerful than previous systems) ► Major
Slide 16: Doolgunna Exploration – Aggressive Drilling Commitment
For personal use only Doolgunna Exploration – Aggressive Drilling Commitment ► >200,000m of drilling completed in FY17 ► Aggressive upcoming program with two AC rigs working full-time for most of the year ► RC and diamond drilling to be undertaken on campaign basis ► Turtle prospect identified from
Slide 17: Turtle Prospect – Fresh Opportunities from Old Data
Turtle Prospect – Fresh Opportunities from Old Data ► Review of hole drilled For personal use only in 2011 identified copper mineralisation in favourable stratigraphy ► Broad spectrum exhalative geochemistry ► Two anomalous zones which have not been fully drill or DHEM tested ► Drill planning underw
Slide 18: Australian Regional Exploration Projects
Australian Regional Exploration Projects Targeting world-class discoveries in Australia’s premier exploration provinces For personal use only Northern Territory ► Active drilling by JV partners in Borroloola tenements Queensland Base Metals ► 2,400km² in Mt Isa-Cloncurry province including 100km str
Slide 19: NSW Exploration – Lachlan Fold Belt
NSW Exploration – Lachlan Fold Belt Significant regional exploration portfolio in a world-class mineral province For personal use only ► Focused exploration in the highly prospective Lachlan Fold Belt, NSW ► Attractive regime for development of large-scale gold and copper-gold projects ► Shallow cov
Slide 20: Donnington Prospect, Temora – 100% Sandfire
Donnington Prospect, Temora – 100% Sandfire Schematic Section showing drilling results to date Location of Drilling on RTP Magnetic image ► 8 holes to date – 1.2km mineralised strike For personal use only ► Mineralisation extended along strike, A A’ down- dip to >700m and up-dip ► Significant result
Slide 21: Summary – Positioned for Growth and Success
For personal use only Summary – Positioned for Growth and Success ► Consistent low-cost production ► Strong balance sheet – net cash position ► Growing free cash-flows ► Committed to organic growth via exploration ► Unlocking the potential at Doolgunna ► Developing a growth pipeline for the future S
Slide 22: For personal use only
Karl Simich CEO and Managing Director For personal use only Earthworks underway for the box-cut at the new Monty copper-gold mine Counting the cash: low cost and debt-free at a time of rising copper prices Global Investor Presentation – September 2017 A debt–free Australian copper–gold producer with
Slide 23: Mine Plan, Ore Reserve and Mineral Resource
Mine Plan, Ore Reserve and Mineral Resource Table 1 – Underground Mine Plan, Ore Reserve and Mineral Resource DeGrussa and Monty Underground Mines Tonnes (Mt) Copper (%) Gold (g/t) Contained Copper (t) Contained Gold (oz) DeGrussa basis Monty basis For personal use only Mine Plan 7.0 5.1 1.6 359,000
Slide 24: Donnington, NSW Intercepts Table
Donnington, NSW Intercepts Table Hole Easting Northing total Depth Interval C Au Prospect azimuth dip Number (m) (m) depth (m) From (m) (m) u (%) (g/t) Table 5 – Donnington For personal use only Donnington TMMRD006 534602 6218740 460 90 -60 287 125 0.32 0.46 Drill holes including 314 44 0.41 0.62 an