Sandfire Resources Ltd · ASX:SFR
Sandfire Resources — Sandfire Resources NL — Q4 FY2017 Earnings Presentation
20 slides from Sandfire Resources's earnings presentation, Jul 28, 2017
Slide 1: June 2017 Quarterly Report
June 2017 Quarterly Report Presentation and Webcast 28 July 2017 Access this presentation at: http://webcasting.boardroom.media/broadcast/5962ded2c8d9977c 89ce70f3 or http://www.sandfire.com.au Earthworks underway for the box-cut at the new Monty copper-gold mine 1
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: Important Information and Disclaimer
Important Information and Disclaimer Competent Person’s Statement – Ore Reserves and Mine Plan The information in this report that relates to Ore Reserves and Mine Plan is based on information compiled by Mr Neil Hastings who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Has
Slide 4: Agenda
Agenda ► Highlights ► Safety ► Operations ► Guidance and costs ► Development ► Exploration ► Summary 4
Slide 5: June 2017 Quarterly Highlights
June 2017 Quarterly Highlights Production and Operations ► June 2017 Quarter: 17,092t copper and 9,721oz gold produced; C1 US$0.95/lb ► FY2017: 67,088t of contained copper, 38,623oz of contained gold; C1 costs US$0.93/lb ► Mining contract extension with Byrnecut Mining (4-year term) ► Updated Mine P
Slide 6: Safety
Safety ► Total Recordable Injury Frequency Rate (TRIFR) of 4.9 at Quarter-end (vs. 5.7 at March 2017 Quarter-end) ► Principal hazard management – ongoing ► Focus being applied to improving safety leadership, culture and assurance of critical controls 10 TRIFR 8 6 4 2 0 Sep'15 Dec'15 Mar'16 June'16 S
Slide 7: Operations – Mining
Operations – Mining Underground production ► Total ore production for the Quarter of 393,286 tonnes grading 4.6% Cu ► Mine remains in balance between production and back-fill ► DeGrussa and Monty mining contract extension awarded to Byrnecut (4 year term) 7
Slide 8: Operations – Processing
Operations – Processing Mill throughput ► 412,271 tonnes milled at average feed grade of 4.6% Cu Recovery ► Quarterly copper recovery of 90.8%; Gold recovery 46.7% (FY2018 guidance: copper ~92%, gold ~44%) ► Further improvements to recovery in FY2018 with additional rougher flotation capacity Concen
Slide 9: Operations – Capital programs
Operations – Capital programs Underground pumping station ► Expected to commence commissioning August 2017 ► Ahead of C4 and C5 drilling Rougher column cell ► Commenced commissioning early July 2017 ► Initial positive signs in copper recovery and concentrate grade – expecting ~1.4% improvement (base
Slide 10: Development – Monty Copper-Gold Project
Development – Monty Copper-Gold Project ► Sandfire is Manager of the Springfield JV – interests Sandfire 70%/Talisman 30% ► Mining contract awarded to Byrnecut (combined operations between DeGrussa and Monty JV) ► Approval for the Mining Proposal and Mine Closure Plan ► Civil works awarded to the Ya
Slide 11: Operations – Sales
Operations – Sales ► June 2017 Quarter: Sales of 72,525 tonnes of concentrate (dry) containing 17,350 tonnes of copper (16,614 tonnes payable) and 9,135 ounces of gold (8,443 ounces payable) ► FY2017: Sales of 272,925 tonnes of concentrate (dry) containing 65,403 tonnes of copper (62,663 tonnes paya
Slide 12: Operations – FY2017 Unit Operating Costs
Operations – FY2017 Unit Operating Costs Q4FY2017 FY2017 Unit costs – DeGrussa Mine Result Result Commentary (US$/lb) (US$/lb) Mining (net of development) 0.37 0.39 Processing 0.25 0.28 Business services 0.14 0.14 Pleasing cost performance at both a gross and unit cost level for the quarter and FY20
Slide 13: Operations – FY2018 Operating, Unit Cost and Capital Guidance
Operations – FY2018 Operating, Unit Cost and Capital Guidance DeGrussa Mine FY2018 Guidance Tonnes Cu Au Commentary Mining 1.6M 4.4% 1.6g/t C1 – 43%, DG – 10%. C4 – 19%, C5 – 21%, Devt – 7% Maintaining stockpile volumes following drawdown in Processing 1.6M 4.3% 1.6g/t FY2017 Lowered in line with Cu
Slide 14: Development and Growth – Black Butte Copper Project, USA
Development and Growth – Black Butte Copper Project, USA ► 61% stake in Black Butte Copper Project, central Montana (via stake in Tintina Resources Inc) ► Advanced, high quality copper project in stable jurisdiction: – NI 43-101 Measured and Indicated Resources of 15.7Mt grading 3.4% Cu for 533,600t
Slide 15: Doolgunna Exploration Overview
Doolgunna Exploration Overview ► Exploration continuing as a priority along highly prospective VMS corridor that hosts the DeGrussa and Monty deposits: – RC drilling at the Red Bore East Prospect to test the C5 host stratigraphy along strike from DeGrussa – The continuation of AC drilling at the Spr
Slide 16: Doolgunna Exploration Overview
Doolgunna Exploration Overview ► Exploration advancing at multiple prospects within Greater Doolgunna area: ► ~70,000m of AC/RAB and RC drilling during the quarter ► Committed to in-ground spend with over ~ 200,000m drilled FY to date ► Farm-in deal completed with Great Western Exploration (ASX: GTE
Slide 17: Donnington Prospect, Temora – 100% Sandfire
Donnington Prospect, Temora – 100% Sandfire ► 8 holes completed Schematic Section showing drilling results to date Location of Drilling on RTP Magnetic image Porphyry alteration over 1.2km strike Assays awaited ► Extended mineralisation along strike, down dip to A A’ > 700m and up dip ► TMRCD06 125m
Slide 18: Summary & Outlook
Summary & Outlook ► Strong and consistent production and cost performance – FY2017: 67,088t contained copper, 38,623oz contained gold, C1 costs $0.93/lb – FY2018 Guidance: 63-66kt contained copper, 35-38koz contained gold, C1 costs $1.00-1.05/lb – Monty permitted and under development; first ore Q2
Slide 19: Appendix: Mine Plan, Ore Reserve and Mineral Resource
Appendix: Mine Plan, Ore Reserve and Mineral Resource ► Updated Mine Plan, incorporating the Monty Mine and OSPA (100% basis): ► Total 7.0Mt grading 5.1% Cu and 1.6g/t Au for 359,000t of contained copper and 368,000oz of contained gold; ► DeGrussa’s 1.6Mtpa concentrator to be fed from DeGrussa at 1.
Slide 20: Contact Details: Sandfire Resources NL
Contact Details: Sandfire Resources NL Registered Office and Principal Place of Business Level 1, 31 Ventnor Avenue, West Perth, Western Australia 6005 T +61 8 6430 3800 F +61 8 6430 3849 www.sandfire.com.au 20
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