Slide 1: MATSA Copper Operations Site Tour Information Pack
For personal use only MATSA Copper Operations Site Tour Information Pack 30 June 2022
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 current at the date of this presentation. The presentation is in summary form, has not been independently verified and does not purport
Slide 3: Important Information and Disclaimer: Forward-Looking Statements
Important Information and Disclaimer Forward-Looking Statements For personal use only This presentation may include forward-looking statements regarding Sandfire’s Mineral Resources and Reserves, exploration and project development, operations, production rates, life of mine, projected cash flow, ca
Slide 4: A cornerstone copper mining operation in a Tier jurisdiction
MATSA | A cornerstone copper mining operation in a Tier 1 jurisdiction MATSA is comprised of three For personal use only Description of MATSA underground mines, and one central processing facility Ownership • 100% Sandfire effective 1 February 2022 located at Aguas Teñidas Property • 43 exploitation
Slide 5: Three mines and a central processing facility
MATSA | Three mines and a central processing facility For personal use only Aquas Teñidas Mine Sotiel mine Commercial Production1 • 2009 Commercial production • 2014 Ore Type • Cupriferous, stockwork & polymetallic Ore type • Cupriferous & polymetallic • Bottom-up longhole open stoping with Mining M
Slide 6: Asset History | USD1.7B of capital invested since 2005
Asset History | USD1.7B of capital invested since 2005 For personal use only 1980-2011 (Development stage) 2012-2015 (Growth stage) 2016-current (Steady stage) 1980s: Discovered in the early ’80s 2012: Trafigura completes the takeover of Iberian 2019: Formation of JV between MATSA and 2005: Iberian
Slide 7: A first class mining operation
MATSA | A first class mining operation For personal use only • Modern, well-invested and well-maintained mine and processing plant infrastructure • State-of-the-art paste backfill plants located at Aguas Teñidas and Magdalena mines. Maximises ore extraction and minimises environmental impact First c
Slide 8: Large-scale operation with a proven track record
MATSA | Large-scale operation with a proven track record For personal use only Key Statistics Copper is the dominant value driver(1) ~100ktpa Cu-eq. production In production for more than 10 years 26% Stable operating track record since plant expansion in 2015 66% USD1.7bn capital invested since 200
Slide 9: Large existing resource base with significant exploration potential
MATSA | Large existing resource base with significant exploration potential Substantial existing resource base 1 With a track record of successful reserve replacement2 For personal use only (Mt) Material Type Class Mt NSR ($/t) Cu (%) Zn (%) Driven by the development of 70 Magdalena and Sotiel as we
Slide 10: Located in a Tier established mining jurisdiction
MATSA | Located in a Tier 1 established mining jurisdiction Overview of current mining projects in Spain Spain is an excellent mining location For personal use only Salave • EU country El Valle • Established and transparent permitting process • Attractive fiscal regime: low-income tax and no mineral
Slide 11: Geology
For personal use only Geology
Slide 12: Overview of permits
MATSA | Overview of permits MATSA's operating mines have permits in place until the 2040s. Spain has a clear, well-established permitting regime MATSA mining licenses 53.3km2 For personal use only Overview • MATSA holds 43 exploitation concessions grouped into three mining projects Aguas Teñidas, Ma
Slide 13: Regional geology of the IPB
MATSA | Regional geology of the IPB For personal use only Geological Map of IPB Key Points Post-Paleozoic cover Thrust Continental sediments and volcanic Fault rocks (Stephanian to Permian) Ophiolitic sequence (Beja Acebuches • MATSA deposits are located along the Iberian Pyrite Belt (“IPB”), a zone
Slide 14: Aguas Teñidas | Geological Overview
Aguas Teñidas | Geological Overview East-West image showing drilling and modelled deposits at Aguas Teñidas For personal use only Type The mine comprises the Aguas Teñidas, Western Extension, Calanesa, and Castelijito deposits Castillejito Calanesa Western Extension Aguas Teñidas Geology and mineral
Slide 15: Magdalena | Geological Overview
Magdalena | Geological Overview Oblique image showing drilling type and modelled deposits at Magdalena For personal use only Type The mine comprises the Masa 1 and Masa 2 (including Masa 2 Gold) deposits Masa 1 Masa 2 Gold Masa 2 Geology and mineralisation • Magdalena is dominated by East-West shear
Slide 16: Sotiel | Geological Overview
Sotiel | Geological Overview Image looking south showing drilling type and modelled deposits at Sotiel For personal use only Type The mine comprises the Calabazar, Sotiel, Sotiel East, Migollas, and Elvira deposits Sotiel Sotiel East Calabazar Elvira Migollas Geology and mineralisation • Three style
Slide 17: Mineral Resources
MATSA | Mineral Resources Deposit Material Type Class Mt NSR ($/t) Cu (%) Zn (%) Pb (%) Ag (g/t) Cu (kt) Zn (kt) Pb (kt) Ag (koz) Measured 25.2 148.1 1.2 4.9 1.4 56.8 311 1,238 344 46,046 For personal use only Polymetallic Indicated 5.4 147.6 1.1 5.2 1.4 61.3 61 283 78 10,699 Inferred 2.1 192.5 1.8
Slide 18: Mining Operations
For personal use only Mining Operations
Slide 19: Simplified mining and processing flow sheet
MATSA | Simplified mining and processing flow sheet The three underground mines feed a central processing facility containing two crushing lines and three grinding/flotation lines For personal use only Central Processing Facility (capacity 4.7Mtpa) Processing plant #1 (PTM1) Cu concentrate Cuprifero
Slide 20: Aguas Teñidas | Overview
Aguas Teñidas | Overview Mining activities Design parameters For personal use only Principal mining • Transverse open stoping with paste backfill • Mining activities are split between owner and contractor mining and operate on a 3x seven- method hour shift pattern with c.150 workers underground on e
Slide 21: Aguas Teñidas | Aerial View
Aguas Teñidas | Aerial View For personal use only 21
Slide 22: Aguas Teñidas | Overview of key infrastructure
Aguas Teñidas | Overview of key infrastructure For personal use only Mine Entrance & Mine b Support Infrastructure Contractor Compounds Storage Areas Reagents Explosives Water Backfill Plant & Facilities Treatment Plant Magdalena 22
Slide 23: Magdalena | Overview
Magdalena | Overview Mining activities Design parameters For personal use only Principal mining • Bottom-up transverse open stoping with paste backfill • Mining activities are split between owner and contractor mining and operate on a 3x method • expected to transition to longitudinal retreat uphole
Slide 24: Magdalena | Aerial View
Magdalena | Aerial View For personal use only 24
Slide 25: Magdalena | Overview of key infrastructure
Magdalena | Overview of key infrastructure For personal use only Access Road Main Surface Facilities RoM Haulage Exit Portal Aguas Teñidas 25
Slide 26: Sotiel | Overview
Sotiel | Overview Mining Process overview Design parameters For personal use only Principal mining • Bottom-up longhole open stoping with unconsolidated rockfill and • All mining activities are undertaken by mining contractor and operate on a 3x seven-hour method cemented rockfill shift pattern with
Slide 27: Sotiel | Aerial View
Sotiel | Aerial View For personal use only 27
Slide 28: Sotiel | Overview of key infrastructure
Sotiel | Overview of key infrastructure Sotiel surface facilities layout For personal use only Administration Explosives Storage Water Treatment Mining Contractor RoM Pad & Loading Mine Entrance (Portal) 28
Slide 29: Paste Plants
MATSA | Paste Plants Paste Plants Overview For personal use only • MATSA has separate state-of-the-art paste backfill plants located at the Aguas Teñidas and Magdalena mines • Mined stopes at Aguas Teñidas and Magdalena are backfilled with a paste material produced from tailings waste material (hand
Slide 30: Processing
For personal use only Processing
Slide 31: Processing | Overview
Processing | Overview All ore is processed at a Central Processing Facility to produce copper, zinc and lead concentrates Processing plant at Aguas Teñidas For personal use only • A Central Processing Facility located at Aguas Teñidas treats ore from all three mine sites and has a capacity of 4.7Mtp
Slide 32: Processing | Recent performance
Processing | Recent performance Consistent recent performance meeting 4.7Mtpa capacity and delivering steady metal recoveries For personal use only Milling • Multiple improvements to process plant in 2020 expanded nominal capacity from 4.4Mtpa to 4.7Mtpa 2018 2019 2020 2021 20221 • All lines have de
Slide 33: Detailed flow sheet | Process Line (PL 1)
Detailed flow sheet | Process Line 1 (“PL 1”) Typical flowsheet for cupriferous ore from all mines For personal use only • PL1 is configured to treat cupriferous ore where Cu grade/Zn grade is >1.7% and Zn grade is <2.5% Zn • The circuit features the following basic elements: • Two stage crushing •
Slide 34: Detailed flow sheet | Process Line (PL 2)
Detailed flow sheet | Process Line 2 (“PL 2”) Typical flowsheet for polymetallic ore (from Sotiel)¹ For personal use only • PL2 circuit features the following basic elements: • Two-stage crushing • SAG mill, with oversize trommel and coarse recycle • Secondary ball mill • Tertiary mills (3), product
Slide 35: Detailed flow sheet | Process Line (PL 3)
Detailed flow sheet | Process Line 3 (“PL 3”) Typical flowsheet for polymetallic ore (from Aguas Teñidas and Magdalena)¹ For personal use only • PL3 circuit features the following basic elements: • Three-stage crushing • Primary ball mill, with oversize trommel and coarse recycle • Secondary ball mi
Slide 36: Site Infrastructure
For personal use only Site Infrastructure
Slide 37: Aguas Teñidas | Site Infrastructure
Aguas Teñidas | Site Infrastructure For personal use only Legend 29 28 27 1. Western gatehouse 17. 17. Process plant 6 26 25 2. Concentrate PTM2 24 weighbridge 18. 18. Electrical sub- 3. Wetland testing station 31 area 30 19. Storm water pond 4. Secondary ROM 20. Vent Raise VR6 stockpile 21. Vent Ra
Slide 38: MATSA | Power Supply
Power Supply Split (2019) MATSA | Power Supply Coal Other 7% 10% For personal use only Commentary Combined cycle gas 29% Nuclear 29% • MATSA is connected to the Spanish National Grid at the Calañas substation, owned by Endesa Co- generation Renewable • The transmission line from the Endesa substatio
Slide 39: Solar PV project | Reducing emissions and cost
Solar PV project | Reducing emissions and cost For personal use only • Solar generated power will reduce the total cost of electrical energy as well as assist in emission off-sets Rationale • Located close to MATSA, solar generated power may push out the need for the Phase 2 expansion of the transmi
Slide 40: Water Supply
MATSA | Water Supply Overview of water supply system Commentary For personal use only Legend Sewage water • All three mines are located within the Odiel River catchment Clean rain run-off • Fresh water supply for Aguas Teñidas is sourced from local Olivargas Mine treated water dam, located approxima
Slide 41: Tailings Management Facility Overview
MATSA | Tailings Management Facility Overview Overview Primary Environmental Approvals For personal use only • The Aguas Teñidas Tailings Management Facility ("TMF") consists of a paste tailings management facility, which was commissioned during 2009 • ~50%% of tailings produced at the processing pl
Slide 42: Exploration & Growth
For personal use only Growth Exploration &
Slide 43: Exploration program has a proven track record of success
MATSA | Exploration program has a proven track record of success Well established team and process Exploration success: Magdalena discovery For personal use only • Opportunity identified: Geophysical (VTEM) • Clear approach based on: anomaly, basis for first exploratory holes in 2013 • Disciplined e
Slide 44: Current Exploration Strategy
MATSA | Current Exploration Strategy Upside potential For personal use only Exploration Infill drilling at existing Step-out drilling Advanced targets Conceptual stage Regional JVs strategy mines Key focus • Replenish reserves and • Extend known resources • High potential intercepts with • Identify
Slide 45: Aguas Teñidas | Planned in-mine exploration drilling
Aguas Teñidas | Planned in-mine exploration drilling Step-out drilling targeting extensional targets at a Aguas Teñidas Deeps, Western Extension and Castillejitos East For personal use only 45
Slide 46: Magdalena | Planned in-mine exploration drilling
Magdalena | Planned in-mine exploration drilling Step-out drilling targeting down-plunge extensions to Masa 2 West, Masa 2 Deeps and Masa Gold extensions For personal use only 46
Slide 47: Sotiel | Step-out drilling
Sotiel | Step-out drilling Step-out drilling targeting off-sets at Migolas East and Elvira For personal use only 47
Slide 48: Exploration potential | Eastern Structural Corridor
Exploration potential | Eastern Structural Corridor For personal use only Magdalena Located 28 km from the Aguas Teñidas plant Concepción Proximity of Poderosa and Concepción will allow to share infrastructure San Platón Poderosa Located 41 km from the Aguas Teñidas plant • Similar geology to Magdal
Slide 49: Our People & HSEC
For personal use only & HSEC Our People
Slide 50: Human Resources
MATSA | Human Resources Overview Commitment to gender diversity and equality For personal use only • Average number of total employees in 2020 was 754 with over 90% on a permanent basis • Women account for 20% of the company’s workforce • 80% of employees come from the towns closest to MATSA in Huel
Slide 51: Health and Safety
MATSA | Health and Safety Lost time incident frequency rate 25 Overview of key health and safety framework For personal use only 20 • MATSA is committed to ensuring that production operations are carried out with the highest health and safety standards 15 • MATSA has engaged with industry leading st
Slide 52: Response to COVID-19
MATSA | Response to COVID-19 Overview of key health and safety framework Historical cases from MATSA employees and contractors (Mar-20 to Mar-21) For personal use only • Recommendation for workers and contractors maintain preventive measures: HISTORIC CASES • Use of mask • Wash hands frequently Posi
Slide 53: Improved Water Performance
MATSA | Improved Water Performance Recent Developments Water Treatment Plant • Through the development of a water management sustainable system, MATSA has successfully reduced water intake For personal use only by 80% over 2015-2017. This has been achieved through: • Reduced water loss, identifying
Slide 54: Environmental performance and permits
MATSA | Environmental performance and permits MATSA has a strong environmental track record Primary Environmental Approvals For personal use only • MATSA has achieved a reduction in number of reported environmental incidents Description of primary approval Year issued from twenty in 2016 to three in
Slide 55: Contact Details
For personal use only 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