Sandfire Resources Ltd · ASX:SFR
Sandfire Resources — H1 FY2020 Earnings Presentation
20 slides from Sandfire Resources's earnings presentation, Feb 20, 2020
Slide 1: December 2019 Half Year Presentation
December 2019 Half Year Presentation 20 February 2020 Access this presentation at: https://webcasting.boardroom.media/broadcast/5 e38d9d694389b6d97e099f7 or http://www.sandfire.com.au
Slide 2: Important Information and Disclaimer
Important Information and Disclaimer This presentation has been prepared by Sandfire Resources Ltd (Sandfire or the Company). This document contains information about Sandfire current at the date of this presentation. The presentation is in summary form and does not purport to be all inclusive or co
Slide 3: Competent Person's Statements
Competent Person’s Statements DeGrussa and Monty Ore Reserve The information in this report that relates to the DeGrussa and Monty Ore Reserve is based on information compiled by Mr Neil Hastings who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Hastings is a permanent emplo
Slide 4: Overview
Overview Karl Simich – Chief Executive Officer Slide: 4
Slide 5: Overview – Beginning our Transformation
Overview – Beginning our Transformation ► Platform for growth: leveraging off our strong financial position and depth of expertise to build a long-term growth strategy ► Gearing up for the future: focused team across production, development and exploration assets ► DeGrussa Operations: continued str
Slide 6: Operations and Growth
Operations and Growth Jason Grace – Chief Operating Officer Slide: 6
Slide 7: Operations and Growth
Operations and Growth ► Safety TRIFR: 6.0 (Dec 2019) vs 6.2 (Jun 2019) ► Operating results: • 1HFY2020: 34,988t of contained copper and 19,370oz of contained gold produced; C1 US$0.84/lb • FY2020 Guidance: 70-72kt of contained copper and 38-40koz of contained gold; C1 costs ~US$0.90/lb ► Monty Coppe
Slide 8: Operations and Growth – Monty Mine Head Grade Increasing
Operations and Growth – Monty Mine Head Grade Increasing ► Extensive grade control drilling program completed recently on existing Ore Reserve of 0.92Mt at 8.7% Cu and 1.4g/t Au for 80kt Cu and 42koz Au* ► Geometry of ultra-high grade deposit and stope design now defined to high level of detail ► Up
Slide 9: Operations and Growth – Tshukudu Operations, Botswana
Operations and Growth – Tshukudu Operations, Botswana ► 100% owned T3 Copper-Silver Project and dominant Significant Landholding (~11,700km2) exploration licence-holding (~11,700km2) in highly prospective, under-explored Kalahari Copper Belt, Botswana ► Optimisation of T3 Project Feasibility Study u
Slide 10: Operations and Growth - Emerging Discovery at A4 Dome
Operations and Growth - Emerging Discovery at A4 Dome ► Significant zone of vein-hosted copper intersected at Cross Section through A4 Dome shallow depth with best intercepts in the first 5 holes including: • MO-A4-022D: 38m @ 1.1% Cu and 9g/t Ag from 44m down-hole, including: 13m @ 1.8% Cu and 6g/t
Slide 11: Operations and Growth - A4 Dome
Operations and Growth - A4 Dome A4 Dome: Testing high-grade vein hosted and blanket NPF contact mineralisation over a wide area Slide: 11
Slide 12: Financial Results – 1HFY2020
Financial Results – 1HFY2020 Matthew Fitzgerald – Chief Financial Officer Slide: 12
Slide 13: Financial Results – 1HFY2020
Financial Results – 1HFY2020 Sandfire maintains strong financial performance ► Revenue of $313.1M net of treatment and refining charges and price adjustment gains ► Strong cash flow from operating activities of $109.1M ($140.3M prior to payments for exploration and evaluation expenses) ► DeGrussa Op
Slide 14: Sandfire continues dividend payments
Financial Results – 1HFY2020 Sandfire continues dividend payments ► Maintaining dividend stream from profitable operations ► Interim dividend for 1HFY2020 of 5.0cps (fully franked) following final and interim dividends for FY2019 of 23.0cps (fully franked) ► Dividend record date 26 February 2020, pa
Slide 15: Income Statement Review – Key Results
Financial Results – 1HFY2020 Income Statement Review – Key Results in $000 Dec 2019 Dec 2018 Revenue 313,052 272,286 Profit before net finance income and 49,982 70,144 income tax expense Net finance income 74 2,997 Profit before income tax expense 50,056 73,141 Income tax expense (16,770) (24,812) N
Slide 16: Balance Sheet Review - Assets
Financial Results – 1HFY2020 Balance Sheet Review - Assets in $000 Dec 2019 Jun 2019 ►Cash and cash equivalents – refer to ASSETS Cash and cash equivalents 201,736 247,449 slide 13 Trade and other receivables 19,177 15,325 ►Financial investments – fair value of the Inventories 37,589 45,143 Company’
Slide 17: Balance Sheet Review - Liabilities
Financial Results – 1HFY2020 Balance Sheet Review - Liabilities in $000 Dec 2019 Jun 2019 ► Interest bearing liabilities – increased LIABILITIES with the adoption of AASB 16 Leases Trade and other payables 54,119 56,550 ► Deferred tax liabilities – reducing for Interest bearing liabilities 13,655 19
Slide 18: Cash Generation and Investment
Financial Results – 1HFY2020 Cash Generation and Investment Slide: 18
Slide 19: Summary and Outlook
Summary and Outlook Rising production and strong pipeline ► Consistent, low-cost copper-gold production at DeGrussa Operations • 1HFY2020: 34,988t of contained copper and 19,370oz of contained gold produced; C1 US$0.84/lb • FY2020 Guidance: 70-72kt of contained copper and 38-40koz of contained gold;
Slide 20: Contact Details: Sandfire Resources Ltd
Contact Details: Sandfire Resources Ltd Registered Office and Principal Place of Business Level 2, 10 Kings Park Road, West Perth, Western Australia 6005 T +61 8 6430 3800 / F +61 8 6430 3849 www.sandfire.com.au Slide: 20