Sandfire Resources Ltd · ASX:SFR
Sandfire Resources — Q1 FY2021 Earnings Presentation
23 slides from Sandfire Resources's earnings presentation, Oct 28, 2020
Slide 1: September 2020 Quarterly Report Presentation
September 2020 Quarterly Report Presentation Karl Simich, Managing Director & CEO 28 October 2020 Access this presentation at: https://webcast.boardroom.media/sandfire-resources- limited/20201028/NaN5f8e7a8427e1990019d00988 or http://www.sandfire.com.au SANDFIRE RESOURCES - CREATING VALUE FOR STAKEH
Slide 2: Important Information and Disclaimer
ImportantImportant Information and Disclaimer 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 indepen
Slide 3: Our Strategic Growth Plan
Execute delivery Our Strategic Growth Plan Sustainable production profile Creating Accelerate discovery Opportunity Align and empower our people Optimise capital structure 3 SANDFIRE RESOURCES - CREATING VALUE FOR STAKEHOLDERS THROUGH EXCELLENCE AND INNOVATION IN BASE AND PRECIOUS METALS
Slide 4: Quarter Highlights
● Record quarterly copper production: September 2020 Quarter 19,400t of contained copper, 11,683oz of contained gold at C1 US$0.53/lb ● FY2021 guidance: positioning for upper end of guidance 67-70kt of contained copper and 36-40koz of contained gold, at lower C1 US$0.85-$0.90/lb Quarter ● Old Highwa
Slide 5: HSEC
Safety, health and wellbeing • Continued focus on employee and contractor health and wellbeing during the COVID-19 global pandemic • DeGrussa Operations support for RUOK? Day to raise mental health awareness HSEC • Total Recordable Injury Frequency Rate (TRIFR) of 5.5 at Quarter-end (5.8 at June 202
Slide 6: DeGrussa
DeGrussa Strong foundations in Western Australia DeGrussa Operations, WA Exploration - DeGrussa Copper-Gold Mine - Greater Doolgunna Province, WA - Monty Copper-Gold Mine - East Coast Portfolio (NSW, Qld) 6 SANDFIRE RESOURCES - CREATING VALUE FOR STAKEHOLDERS THROUGH EXCELLENCE AND INNOVATION IN BAS
Slide 7: DeGrussa Operations │ September 2020 Quarter Production
DeGrussa Operations │ September 2020 Quarter Production 93.7% Cu recovery Record quarterly copper production: 19,400t Cu 11,683oz Au contained 50.1% Au recovery 7 SANDFIRE RESOURCES - CREATING VALUE FOR STAKEHOLDERS THROUGH EXCELLENCE AND INNOVATION IN BASE AND PRECIOUS METALS
Slide 8: DeGrussa Operations │ FY2021 Production Guidance
DeGrussa Operations │ FY2021 Production Guidance 92% Cu recovery Upper end of guidance band: 67-70,000t Cu 36-40,000oz Au contained 49% Au recovery 8 SANDFIRE RESOURCES - CREATING VALUE FOR STAKEHOLDERS THROUGH EXCELLENCE AND INNOVATION IN BASE AND PRECIOUS METALS
Slide 9: DeGrussa Operations │ September 2020 Quarter Costs
DeGrussa Operations │ September 2020 Quarter Costs Q1 FY2021 Unit operating costs Commentary (US$/lb) Mining 0.51 • Record quarterly copper production, driving Processing 0.25 lower C1 unit costs Business services 0.12 • Upper end of copper and gold production Transport 0.21 guidance driving lower e
Slide 10: DeGrussa │ Gold Transition Strategy
DeGrussa │ Gold Transition Strategy ● Transition to gold production at DeGrussa with potential development of Old Highway Gold Prospect: ● Synergies with the DeGrussa Tailings Gold Retreatment Project studies ● Initial phase of resource definition drilling designed to test the extent of gold mineral
Slide 11: 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 12: Doolgunna Multi-Pronged Exploration
● Doolgunna exploration strategy: ● Accelerate discovery to extend DeGrussa Operations mine life ● Focus on Mineral System Element Processes for deep targeting Doolgunna ● 22 favourable structural corridors identified in the Sandfire managed tenure Multi-Pronged Exploration ● Basin-scale geodynamics
Slide 13: Tshukudu
Tshukudu Expanding horizons in Botswana Tshukudu, Botswana - T3 Copper-Silver Project - A4, T1 Expansion Projects - 26,650km2 exploration portfolio (Botswana and Namibia) 13 SANDFIRE RESOURCES - CREATING VALUE FOR STAKEHOLDERS THROUGH EXCELLENCE AND INNOVATION IN BASE AND PRECIOUS METALS
Slide 14: Tshukudu │ Overview
Tshukudu │ Overview 14 SANDFIRE RESOURCES - CREATING VALUE FOR STAKEHOLDERS THROUGH EXCELLENCE AND INNOVATION IN BASE AND PRECIOUS METALS
Slide 15: Motheo Production Hub
● Optimised Feasibility Study (OFS) for T3, now nearing completion: ● 3.2Mtpa base case for OFS (T3 Pit) Motheo ● In parallel with the OFS, Production Hub Sandfire is evaluating an emerging Motheo Production 5.2 Mtpa Hub concept within the T3 expansion case Expansion Project area ● Operating scale s
Slide 16: Tshukudu │ A4 Resource Drilling Program
Tshukudu │ A4 Resource Drilling Program ● Discovery progressing towards maiden Mineral Resource: ● 6 diamond rigs at A4 with high-grade vein-hosted copper intersected in many holes at shallow depth ● Resource drilling programme: ● Phase 1 (50m x 50m pattern) completed September ● Phase 2 (25m x 25m)
Slide 17: Tshukudu │ Expanded Near-Mine Exploration Program
Tshukudu │ Expanded Near-Mine Exploration Program ● Expanded exploration underway to: Tshukudu Exploration: ● Target high-grade satellite discoveries with North-East Area – Priority Targets potential to support the emerging Motheo Production Hub T1/T2 A1 Dome A27 Dome 12 km strike length Near surfac
Slide 18: Black Butte
Black Butte Montana, USA Black Butte Copper Project, Montana, USA (85%) 18 SANDFIRE RESOURCES - CREATING VALUE FOR STAKEHOLDERS THROUGH EXCELLENCE AND INNOVATION IN BASE AND PRECIOUS METALS
Slide 19: Black Butte Copper Project Maiden Johnny Lee Ore Reserve
Advanced, high-grade copper project: Cu Grade Contained Cu Ore Reserve – Johnny Lee (100%) Mt (%) (kt) Proved 2.0 3.0 61 Black Butte Probable 6.8 2.4 165 Copper Project Total 8.8 2.6 226 Cu Grade Contained Cu Mineral Resource – Johnny Lee (100%) Mt (%) (kt) Maiden Johnny Measured & Indicated 10.9 2.
Slide 20: Black Butte Copper Project Key Johnny Lee Feasibility Study results
● Maiden Ore Reserve of 8.8Mt at 2.6% Cu for 226,100t of contained copper ● Underpins an 8-year mine life at 1.2 million tonnes per annum Black Butte ● Forecast LOM production totaling 805,000 dry metric tonnes of copper concentrate containing Copper Project 189,500t of copper metal ● Average annual
Slide 21: Summary
Record production continues into Q1 FY2021 at DeGrussa Growing pipeline of quality global copper development assets Summary Project development studies being delivered Building a global, Committed to organic growth via diversified and exploration sustainable Strong balance sheet, no debt mining comp
Slide 22: Competent Person’s Statements
Competent Person’s Statements Johnny Lee and Lowry Mineral Resource The information in this announcement that relates to the Johnny Lee and Lowry Mineral Resources is based on information compiled by Mr Erik Ronald (M. Eng., P.Geo, RM- SME, Principal Resource Geology Consultant, SRK). Mr Ronald has
Slide 23: 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 23 SANDFIRE RESOURCES - CREATING VALUE FOR STAKEHOLDERS THROUGH EXCELLENCE AND INNOVATION IN BASE AND PRECIOUS METALS