Slide 1: December 2022 Quarterly Presentation
December 2022 Quarterly Presentation 24 January 2023 Access the live webcast of this presentation commencing at 10.00am (AWST) / 1.00pm (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: Important Information and Disclaimer (cont.)
Important Information and Disclaimer (cont.) SFR Mineral Resources and Ore Reserves estimates The information in this Presentation that relates to SFR’s Mineral Resources or Ore Reserves is extracted from SFR’s ASX releases and is available at https://www.sandfire.com.au/where-we-operate/mineral-res
Slide 4: Our Strategy and Our Values
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 4
Slide 5: 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 6: 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 7: Q2 FY2023 Operations Highlights
Q2 FY2023 Operations Highlights Production and costs Motheo Copper Mine development MATSA Drilling progressing on schedule: • Early exploration success at San Pedro 20,031t contained copper • Construction activities nearing completion • Copper-zinc mineralisation defined over an 19,755t contained zi
Slide 8: Q2 FY2023 Delivering growth
Q2 FY2023 Delivering growth In US$ (Unaudited) $217.0M Delivering Production Global Motheo 5.2Mtpa $263.7M cash Sales revenue growth in and operating opportunities Expansion holding high-margin costs for near-mine $87.7M production extensions Concentrate Net debt $378.3M Operations Q2 FY2023: and ne
Slide 9: Q2 FY2023 Group Production
Q2 FY2023 Group Production Copper Dominant Revenue Stream Q2 FY2023 1H FY2023 FY2023 Production: Production: Guidance maintained: 20,031t Copper 48,088t Copper 83-91kt Copper 19% 19,755t Zinc 39,290t Zinc 78-83kt Zinc 1,921 Lead 4,398 Lead 6-10kt Lead 72% 4,562oz Gold 12,777oz Gold 12-14koz Gold 0.6
Slide 10: Q2 FY2023 Group Cash Flow Waterfall
500 110.0 Q2 FY2023 450 (33.4) (9.8) Group Cash 400 131.1 Flow Waterfall 350 (96.7) 300 (38.8) 263.7 250 40.4 (40.6) 11.8 200 189.8 In US$M (Unaudited) 150 100 50 - Opening Cash DeGrussa MATSA cash Net Equity Motheo Debt ANZ Interest and Growth Income tax Other Closing Cash - 1 October cash flows fl
Slide 11: FY2023 Debt facilities and hedging
FY2023 Debt facilities and hedging MATSA Facility Motheo Facility Hedge Book • $532M outstanding • $140M T3 Project Finance Facility based • Copper – FY2023 remaining: • $80M repayment scheduled for on 3.2Mtpa base case development 33,028t at US$8,715/t 31 January 2023 • First $55M drawdown complete
Slide 12: Operations Review and Outlook
Operations Review and Outlook
Slide 13: Q2 FY2023 Health & Safety Snapshot
Q2 FY2023 Health & Safety Snapshot Our business is underpinned by a demonstrated commitment to the highest of standards for health, safety, environment and communities. Total Recordable Injury Principle Hazard management Our Motheo team commemorated World Frequency Rate (TRIFR) program is being revi
Slide 14: Q2 FY2023 Sustainability Snapshot
Q2 FY2023 Sustainability Snapshot Sandfire responsibly produces the minerals required for the world to decarbonise. Kuke Solar Street Lights ESG Framework Biodiversity Communities Engagement and planning to Assessment of critical habitats Sandfire in conjunction with the Ghanzi define long-term ambi
Slide 15: FY2023 Group Guidance
FY2023 Group Guidance In US$ (Unaudited) Production: FY2023 C1 Mine development Exploration, evaluation MATSA D+A 83-91kt~95% Cu unit costs: $82-92M and studies ~$250M 78-83kt~84% Zn ~$1.74/lb Cu ~$40M Payable Motheo construction DeGrussa D+A 6-10kt~90% Pb ~$16M and development Corporate costs: 12-1
Slide 16: FY2023 Group Indicative Production Profile
FY2023 30,000 GROUP Indicative 25,000 Production Profile 20,000 15,000 Copper and Gold Zinc DeGrussa sulphide MATSA zinc production 10,000 production completed in increasing to ~90,000t October 2022, low-grade annualised contained 5,000 stockpile processing up production rate in to June 2023 (not Q4
Slide 17: MATSA Copper Operations
MATSA Copper Operations MATSA Operations Exploration • Aguas Teñidas Mine • Iberian Pyrite Belt tenure • Magdalena Mine • Sotiel Mine • 4.7Mtpa Processing Plant
Slide 18: MATSA: Establishing a base for multi-decade operations
MATSA Establishing a base for multi-decade operations Optimisation and implementation • Mineral Resource to Ore Reserve • Regional exploration campaign to of our 5-year Plan conversion to extend the mine life of underpin future expansions of throughput • Safety improvement – driving culture and exis
Slide 19: Q2 FY2023 MATSA Production
t % 1,200,000 8.0 23.6 23.4 7.0 Q2 FY2023 1,000,000 6.0 MATSA Production 800,000 5.0 600,000 4.0 3.7 In US$ (Unaudited) 3.4 3.2 3.1 3.0 400,000 Production: Sales: Operations EBITDA: 2.3 12,688t Cu95% 11,929t Cu $55M 2.0 19,755t Zn83% 16,374t Zn Operations EBITDA 1.6 1.9 1.7 1,921t Pb87% 2,913t Pb Ma
Slide 20: MATSA H2 FY2023 Ore Sources
MATSA FY23 H1 v H2 Cu Contained in Mined Ore Variance by Ore Source MATSA H2 FY2023 Ore Sources Magdalena Copper only ore originally scheduled for H1 FY23 has been deferred to H2 delivering higher expected Cu production for the period. 20
Slide 21: FY2023 MATSA Indicative Production Profile
FY2023 25,000 MATSA Indicative 20,000 Production Profile 15,000 10,000 5,000 0 Copper (t) Zinc (t) Lead (t) Silver (Koz) Q1A Q2A Q3I Q4I 21
Slide 22: FY2023 MATSA Production Guidance
t % 5,000,000 8.0 4,500,000 23.6 23.4 7.0 FY2023 4,000,000 6.0 MATSA Production 3,500,000 Guidance 3,000,000 5.0 4.1 2,500,000 4.0 In US$ (Unaudited) 3.4 2,000,000 3.0 2.7 Production: Capital expenditure: 1,500,000 2.3 2.4 60-65kt Cu~95% $80-90M Mine 2.2 2.0 78-83kt Zn~84% development 1,000,000 1.7
Slide 23: FY2022 and FY2023 MATSA Operating Costs
140.00 120.00 FY2022 and FY2023 100.00 MATSA Operating Costs 80.00 In €M (Unaudited) 60.00 Operating costs guided for FY2023 are largely 40.00 driven by accessing new mining areas, annual mining rate increasing to 4.7Mpta and increasing zinc concentrate volumes (transport, 20.00 treatment and refini
Slide 24: MATSA Energy Costs
€ /MWh Spanish Daily Power Prices MATSA 600 Energy Costs 500 400 Energy Costs moderated in the Qtr: Response: • Actual Electricity Spot Price for 3 • 20MW Sotiel Solar farm in progress 300 months to December 2022 by third party. was €140/MWh. • Study for construction of a second • Milder winter cond
Slide 25: Q2 FY2023 MATSA Unit Costs
Unit Cost Summary 5.0 23.6 23.4 Q2 FY2023 4.0 MATSA Unit Costs 0.84 0.86 C1 cash cost buildup (US$/lb payable Cu) 3.0 0.29 0.34 2.19 2.0 0.85 1.00 1.85 1.0 In US$ (Unaudited) 1.53 1.63 - Mining and processing unit Margins increasing with costs driven by lower energy increasing production (1.47) cost
Slide 26: MATSA Infill and Mine Exploration
San Pedro X-section MATSA Infill and Mine Exploration New zone of copper-zinc mineralisation at Aguas Teñidas Mine FY2023 drilling program targeting R&R growth and near-mine extensions • Early exploration success at San Pedro • Review and re-interpretation of existing geological models commenced in
Slide 27: DeGrussa Copper Operations
DeGrussa Copper Operations DeGrussa Operations Exploration • DeGrussa Copper-Gold Mine • Doolgunna VMS Province • Monty Copper-Gold Mine • Surface Stockpiles
Slide 28: DeGrussa: Continuing to deliver safely
DeGrussa Continuing to deliver safely 16,000 14,000 12,000 Production Processing Extension 7,343t Cu96% • Plant scale trials for oxide stockpile 10,000 4,562ozAu84% processing confirms potential 38koz Ag37% opportunity for up to ~600kt ore at 8,000 Containedpayable% ~2% Cu subject to ongoing technic
Slide 29: Q2 FY2023 DeGrussa Production
Q2 FY2023 t 350,000 % 4.5 DeGrussa Production 300,000 4.1 4.0 3.5 250,000 3.0 In US$ (Unaudited) 200,000 2.6 2.5 2.0 150,000 1.9 Production: Sales: Operations EBITDA: 1.5 7,343t Cu96% 9,217t Cu $32.7M 100,000 4,562ozAu84% 4,801oz Au Operations EBITDA 1.0 1.0 38koz Ag37% 19koz Ag 3.8 Containedpayable
Slide 30: YTD FY2023 DeGrussa Production
YTD FY2023 t 800,000 4.50 % DeGrussa Production 700,000 3.9 4.00 3.50 600,000 3.4 3.00 500,000 In US$ (Unaudited) 2.50 400,000 2.00 Production: Sales: Operations EBITDA: 300,000 1.50 1.5 21,652t Cu95% 20,986t Cu $80.0M 1.3 12,777oz Au89% 11,785oz Au Operations EBITDA 200,000 1.00 105kozAg57% 63koz A
Slide 31: Q2 FY2023 DeGrussa Unit Costs
Unit Cost Summary 4.0 23.6 23.4 Q2 FY2023 3.0 DeGrussa Unit Costs C1 cash cost buildup (US$/lb, payable Cu) 2.0 0.65 0.71 In US$ (Unaudited) 1.34 1.41 0.17 1.0 0.32 0.43 C1 unit costs rising marginally as expected as 0.75 overall activity reduces towards end of mine life 0.58 - 0.08 (0.49) (0.45) (1
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 Motheo Development of the 5.2Mtpa Sandfire is funding the development Copper Mine is proceeding on time Motheo Expansion underway: of the Motheo Copper Mine through a with first production scheduled from combination of cash
Slide 34: Motheo Copper Project production ramp-up
Motheo Copper 60,000 1.20 Project 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 34
Slide 35: 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 Mining Contractor Mobilisation & Establishment Mining – T3 3.2Mtpa Process Plant Construction
Slide 36: Motheo Construction & Development Capital
80 400 23.6 70 350 Motheo Copper Mine 60 300 5.2Mtpa Construction & Development Capital 50 250 Millions 40 200 Millions Development capital estimated at $397.4M 30 150 • Motheo (3.2Mtpa and T3) $325.5M • Motheo (5.2Mtpa expansion and A4) $71.9M 20 100 • $19M Contingency remains 10 50 At 31 Dec 2022,
Slide 37: Motheo Exploration: Building a Hub
Motheo Exploration Building a Hub Target testing within trucking distance of the Motheo copper mine • Drilling continued at A1 Dome and T1 prospect. • Six Induced Polarisation (IP) surveys lines completed at T1. Lines were spaced 800m apart, providing IP coverage across 4km of mineralised Lower DKF/
Slide 38: Summary
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Slide 39: Key Takeaways
Key Takeaways Strong growth platform Global vision Copper-dominant mining Our transformation into a diversified, operations generating strong international and sustainable copper operating cash-flows mining company New Production Hubs Strong Pipeline Refreshed and focused Group production from the M
Slide 40: Appendices
Appendices 23.6 23.4 Unaudited Appendix 1 Operations Guidance Summary – GROUP Appendix 2 Operating physicals – GROUP Appendix 3a and 3b Operating physicals – MATSA Appendix 4a and 4b Operating physicals – DEGRUSSA Appendix 5 Operating costs (US$) – GROUP Appendix 6 Operating costs (C1 US$/lb) – GROU
Slide 41: Appendix 1: Operations Guidance Summary - Group
Appendix 1 Operations Guidance Summary - GROUP FY2023 MATSA DeGrussa Motheo Group Copper (kt) 60-65 Note 1 19-21 Note 2 ~4-5 83-91 Zinc (kt) 78-83 - - 78-83 Lead (kt) 6-10 - - 6-10 Gold (koz) - 12-14 - 12-14 Silver (Moz) 2.0-3.0 ~0.1 ~0.1 2.2-3.2 Operating costs (US$/lb Cu) 1.82 1.46 See note 3 1.74
Slide 42: Appendix 2: Operating physicals - Group
Appendix 2 Operating physicals - GROUP 23.6 23.4 December 2022 Quarter (Actual) YTD FY2023 (Actual) FY2023 (Guidance) MATSA DEGRUSSA MATSA DEGRUSSA MATSA DEGRUSSA MOTHEO (3 mths) (3 mths) TOTAL (6 mths) (6 mths) TOTAL (12 mths) (7 mths) (3 mths) TOTAL Ore mined (t) 1,052,960 11,510 1,064,470 2,178,2
Slide 43: Appendix 3a: Operating physicals - MATSA
Appendix 3a 23.6 23.4 Operating physicals - MATSA December 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) (6 mths) (6 mths) (6 mths) (12 mths) (12 mths) (12 mths) Ore (t) - Total 490,566 448,622 113,7
Slide 44: Appendix 3b: Operating physicals - MATSA
Appendix 3b 23.6 23.4 Operating physicals - MATSA December 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) (6 mths) (6 mths) (6 mths) (6 mths) (12 mths) (12 mths) (12 mths) (12 mths) Recovery
Slide 45: Appendix 4a: Operating physicals - DeGrussa
Appendix 4a Operating physicals - DEGRUSSA December 2022 Quarter (Actual) YTD FY2023 (Actual) FY2023 (Guidance) DG MT DG MT MINED PROC DG MT MINED PROC MINED PROC (3 mths) (3 mths) (4 mths) (3 mths) (4 mths) (6 mths) (4 mths) (3 mths) (4 mths) (7 mths) Ore (t) 11,510 - 11,510 330,192 354,385 94,321
Slide 46: Appendix 4b: Operating physicals - DeGrussa
Appendix 4b 23.6 Operating physicals - DEGRUSSA 23.4 December 2022 Quarter (Actual) YTD FY2023 (Actual) FY2023 (Guidance) Cu Au Ag Cu Au Ag Cu Au Ag (3 mths) (3 mths) (3 mths) (6 mths) (6 mths) (6 mths) (7 mths) (7 mths) (7 mths) Recovery (%) 86% 42% 50% 89% 44% 54% 88% 45% 52% Concentrate (t) 32,10
Slide 47: Appendix 5: Operating costs (US$) - Group
Appendix 5 23.6 23.4 Operating costs (US$) - GROUP Operating Costs December 2022 Quarter (Actual) YTD FY2023 (Actual) FY2023 (Guidance) MATSA DEGRUSSA MATSA DEGRUSSA MATSA DEGRUSSA In US$M (Unaudited) TOTAL TOTAL TOTAL (3 mths) (3 mths) (6 mths) (6 mths) (12 mths) (7 mths) Mining 43 1 46 87 19 106 1
Slide 48: Appendix 6: Operating costs (C1 US$/lb) - Group
Appendix 6 23.6 Operating costs (C1 US$/lb) - GROUP 23.4 C1 Unit Costs/lb Cu December 2022 Quarter (Actual) YTD FY2023 (Actual) FY2023 (Guidance) payable MATSA DEGRUSSA MATSA DEGRUSSA MATSA DEGRUSSA In US$M/lb (Unaudited) TOTAL TOTAL TOTAL (3 mths) (3 mths) (6 mths) (6 mths) (12 mths) (7 mths) Minin
Slide 49: Appendix 7: Capital expenditure - Group
Appendix 7 23.6 23.4 Capital expenditure - GROUP In US$M (Unaudited) December 2022 Quarter (Actual) YTD FY2023 (Actual) FY2023 (Guidance) MATSA DEGRUSSA MOTHEO MATSA DEGRUSSA MOTHEO MATSA DEGRUSSA MOTHEO (3 mths) (3 mths) (3 mths) TOTAL (6 mths) (6 mths) (6 mths) TOTAL (12 mths) (7 mths) (12 mths) T
Slide 50: Appendix 8: Revenue and Operations EBITDA Margin
Appendix 8 23.6 23.4 Revenue and Operations EBITDA Margin - GROUP December 2022 Quarter (Actual) YTD FY2023 (Actual) Commentary MATSA DEGRUSSA MATSA DEGRUSSA In US$M (Unaudited) TOTAL TOTAL (3 mths) (3 mths) (6 mths) (6 mths) Revenue: Value of payable metal sold 175 86 261 332 186 518 Includes QP ad
Slide 51: 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