Slide 1: FY24 Financial Results Presentation
For personal use only FY24 Financial Results Presentation 29 August 2024 Access the live webcast commencing at 10.00am (AWST) / 12.00pm (AEDT) here. We mine copper sustainably to energise the future
Slide 2: Important Information and Disclaimer
Important Information and Disclaimer This presentation has been prepared by Sandfire Resources Limited (ABN 55 105 154 185) (Sandfire or the Company) and Forward-Looking Statements contains information about Sandfire current at the date of this presentation. The presentation is in summary form, has
Slide 3: Brendan Harris, Chief Executive Officer
Brendan Harris Chief Executive Officer For personal use only Motheo | 3
Slide 4: Bringing our strategy to life: FY24 Highlights
Bringing our strategy to life FY24 Highlights TRIF Maintained at 1.6 ‘Unrelenting focus on safety’ For personal use only CuEq production1 47% to 133.5kt ‘Near faultless ramp-up of Motheo’ Underlying operating costs2 MATSA 5% to $72/t ‘Mitigated inflationary pressure’ Motheo - $42/t ‘On track in its
Slide 5: Our FY24 Achievements and FY25 Goals
Our FY24 Achievements and FY25 Goals FY24 Achievements FY25 Goals • Co-created and published our shared Purpose • Implement our operating model, policies, standards and procedures For personal use only • Progressed development of our operating model (The Sandfire Way) • Deliver on our commitments to
Slide 6: A safe business is a productive business
A safe business is a productive business Group TRIF maintained at 1.6 in FY24 For personal use only Nothing is more important than the health and well-being of our people FY24 FY25 MATSA TRIF – 2.3 Further improve safety performance Motheo operations TRIF – 0.8 Enhance our global risk management fra
Slide 7: Sustainability must permeate all we do
Sustainability must permeate all we do 73% of electricity sourced from renewables For personal use only • Our decarbonisation efforts have remained focused on sourcing renewable electricity • To ensure we deliver on our commitments we also: • Established our Scope 1 and 2 carbon emissions baselines
Slide 8: Megan Jansen, Chief Financial Officer
Megan Jansen Chief Financial Officer For personal use only MATSA | 8
Slide 9: FY24 | Financial results overview
FY24 | Financial results overview FY24 FY23 YoY • Delivered a 47% increase in CuEq production to 133.5kt Sales Revenue5 $M 935 804 16% For personal use only • Stronger volumes and good cost control delivered a $92M increase in MATSA Underlying operating cost2 $/t 72 76 (5%) Underlying Operations EBI
Slide 10: FY24 | Underlying earnings analysis
FY24 | Underlying earnings analysis Underlying EBITDA comparison by segment Depreciation & amortisation by segment (102) 5 186 16 For personal use only 362 259 245 57 2 $M FY23 MATSA Motheo DeGrussa Other FY24 MATSA Motheo Other 400 (37) 20 350 (10) (8) 139 300 H1 H2 FY24 250 Underlying EBITDA 136 2
Slide 11: FY24 | Group cash flow analysis
FY24 | Group cash flow analysis Construction Mine devp Sustaining Exploration 5 8 35 23 $M 34 75 51 For personal use only 700 7 MATSA Motheo Other 600 149 (142) 500 (75) 158 400 (239) 300 233 200 (4) (40) 100 183 142 - (100) (200) (579) (396) (430) (572) (300) (400) (500) a f a FY2023 Net FY2023 Deb
Slide 12: FY24 | Disciplined capital management
FY24 | Disciplined capital management Project Debt Facility repayment profile • Net debt of $396M at 30 June 2024 US$M • MATSA Facility A repaid For personal use only 200 • MATSA Facility B $313M outstanding 180 • Motheo Finance Facility $187M outstanding 159 160 • $200M Corporate Revolver Facility
Slide 13: Brendan Harris, Chief Executive Officer
Brendan Harris Chief Executive Officer For personal use only Motheo | 13
Slide 14: Our Values, Purpose and Strategic Pillars
Our Values Our Purpose We mine copper sustainably to energise the future For personal use only Honesty Our Strategic Pillars Accountability Deliver safe, consistent Reduce our Increase Demonstrate and predictable carbon intensity our reserves capital discipline performance Respect Our Sustainability
Slide 15: Our global footprint
Our global footprint Chief Executive Officer & Managing Director Brendan Harris Chief Financial Chief Operating Chief People Chief Development Chief Sustainability Chief Legal & Officer Officer Officer Officer Officer Compliance Officer Megan Jansen Jason Grace Scott Browne Richard Holmes Cath Bozan
Slide 16: Our Strategy | Simple by design
Our Strategy | Simple by design Kalahari Copper Belt Strongly placed to support the electrification and decarbonisation of the global economy through our ownership of two strategically valuable metal processing hubs in the Iberian Pyrite and Kalahari Copper belts, and For personal use only targeted
Slide 17: Motheo | A strong first year
Motheo | A strong first year • Ramped-up operations with throughput of 4.2Mt achieved across FY24 FY24 Production FY24 Costs • 5.4Mtpa rate in Q4 FY24, exceeding nameplate capacity • Established our outbound logistics chain with 13 shipments totalling 131kt of concentrate • 4.2Mtpa throughput • Unde
Slide 18: Motheo | Seeking to bring forward metal production
Motheo | Seeking to bring forward metal production • Optimised the mine plan to maximise value and reduce risk Motheo 5.2Mtpa DFS CuEq Productiona Profile • FY25 CuEq production1 guidance remains unchanged • Have alleviated the prior T3 ore supply constraint in FY26 and FY27 Contained metal (t) Esta
Slide 19: Motheo | FY25 Guidance
Motheo | FY25 Guidance • Sustain 5.2Mtpa nameplate rate before testing the facility’s potential • Increase contained CuEq1production by 31% to 59kt Production Costs Capital expenditure • Maintain Underlying operating costs2 at $42/t of ore processed • Underlying operating cost2 rises to $219M with t
Slide 20: Motheo | Increase our Reserves
KCB Basin Model Motheo | Increase our Reserves • Leveraging a step change in our geological knowledge of the belt • Developed a proprietary 3D basin model using all available information • Whole of basin airborne gravity survey For personal use only • Ground and airborne electromagentic surveys • ~5
Slide 21: MATSA | Building consistency in our underground mines
MATSA | Building consistency in our underground mines • Achieved record mining and processing rates of 4.7Mt and 4.5Mt, respectively, in FY24 FY24 Production FY24 Costs • Contained CuEq1 production declined by 1% to 88.8kt • A blockage in a paste fill line restricted access to higher grade ore in H2
Slide 22: MATSA | FY25 Guidance
MATSA | FY25 Guidance • Maintain our record 4.7Mtpa mining rate and establish a new processing Production Costs Capital expenditure throughput record of 4.6Mtpa • Increase contained CuEq1 production by 4% to 95kt • 4.7Mtpa mining rate • Underlying operating • Capital expenditure $122M • Limit the in
Slide 23: MATSA | Increase our Reserves
MATSA | Increase our Reserves Magdalena long-section • A granular, multi-year drilling program has been developed • Premised on extensive drilling and geophysical modelling • Orebodies and exploration targets have been modelled in 3D For personal use only • Block models have been developed and NSR v
Slide 24: Black Butte | Derisking the project
Black Butte | Derisking the project 2024 drilling highlights • Drillhole SC23-278 12.91m at 4.7% Cu from 433.46m • Montana Supreme Court ruled to reinstate the mine’s operating permit in February 2024 • Drillhole SC23-279 5.37m at 10.2% Cu from 461.73m • 8.8Mt ore reserve and 13.6Mt mineral resource
Slide 25: A strong foundation from which to grow
A strong foundation from which to grow Contained metal (t) For personal use only On track to deliver +50% increase in 160,000 CuEq productiona over two years 140,000 120,000 100,000 80,000 60,000 40,000 20,000 - FY23 FY24 FY25 Cu Contained (t) Zn Cu Eq Contained (t) Pb Cu Eq Contained (t) Ag Cu Eq C
Slide 26: Group FY25 Guidance
Group FY25 Guidance Corporate FY25 Guidance (FY24 Actual) MATSA Motheo & Other Groupa Production Ore processed (Mt) 4.6 (4.5) 5.2 (4.2) 9.8 (8.7) For personal use only Copper (kt contained) 56 (56.5) 53 (41.2) 109 (97.8) Zinc (kt contained) 92 (82.8) - (-) 92 (82.8) Lead (kt contained) 10 (7.5) - (-
Slide 27: Appendix: Exploration Results, Mineral Resources and Ore Reserves
Appendix SFR Exploration Results, Mineral Resources and Ore Reserves estimates The information in this announcement that relates to SFR’s Exploration Results, Mineral Resources or Ore Reserves is extracted from SFR’s ASX releases and is available at https://www.sandfire.com.au/where-we-operate/miner
Slide 28: Contact Details
For personal use only Contact Details +61 8 6430 3800 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