Sandfire Resources Ltd · ASX:SFR
Sandfire Resources — H1 FY24 Earnings Presentation
28 slides from Sandfire Resources's earnings presentation, Feb 23, 2024
Slide 1: H1 FY24 Financial Results Presentation
H1 FY24 Financial Results Presentation 23 February 2024 Access the live webcast 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: Important Information and Disclaimer (cont.)
Important Information and Disclaimer (cont.) Statutory and Non-statutory measures Sandfire adopts a combination of International Financial Reporting Standards (IFRS) and non-IFRS financial measures to assess performance. Underlying earnings measures, cash flows from operating activities excluding ex
Slide 5: Brendan Harris, Chief Executive Officer
Brendan Harris Chief Executive Officer Motheo | 5
Slide 6: H1 FY24 Highlights
H1 FY24 Highlights Building consistency as we grow • TRIF 1.5 (-6%) • CuEq production of 63.2kt (-3.7kt or -6%) • Sales revenue of $418M (-$14M or -3%) • Mine operating costs of $231M (-$14M or -6%) • MATSA $72/t (-6%) • Motheo $39/t • Underlying Group EBITDA of $136M (-$2M) • MATSA $107M (+$16M) •
Slide 7: Progress towards our FY24 Goals
Progress towards our FY24 Goals FY24 Outlook FY24 Progress • Co-created and published our new, shared Purpose • Foster a shared belief in Our Purpose • Progressed development of our operating model (Sandfire Way) • Increase already high levels of employee engagement • Increased female participation
Slide 8: A safe business is a productive business
A safe business is a productive business Group TRIF decreased marginally to 1.5 in H1 FY24 TRIF of 1.6 recorded at 30 June 2023 H1 FY24 FY24 MATSA TRIF – 2.5 • Maintain or improve safety outcomes and reduce the likelihood Motheo operations TRIF – 0.5 of serious incidents • Enhance our global risk Mo
Slide 9: Sustainability permeates everything we do
Sustainability permeates everything we do DeGrussa to be retained and rehabilitated • Provides the best outcome for all stakeholders and allows our team to establish its rehabilitation credentials A multi-faceted process to divest discrete assets is underway • Expected to make a meaningful contribut
Slide 10: Megan Jansen, Chief Financial Officer
Megan Jansen Chief Financial Officer Motheo | 10
Slide 11: H1 FY24 | Financial Results
H1 FY24 | Financial Results Group metal production by value • Underlying Group sales revenue of $418M (H1 FY23: $432M) • Underlying Operations EBITDA of $165M (H1 FY23: $176M) • Largely replaced the contribution of DeGrussa which transitioned to care and maintenance in FY23 Motheo • Motheo contribut
Slide 12: H1 FY24 | Underlying Earnings analysis
H1 FY24 | Underlying Earnings analysis Underlying Group EBITDA comparison by segment 60 139 16 0 136 Depreciation & amortisation by segment (79) 121 28 1 175 H1 FY23 MATSA Motheo DeGrussa Other H1 FY24 MATSA Motheo Other 16 139 136 4 (8) 125 (14) Revenue comparison by nature 75 Price Volume Freight/
Slide 13: H1 FY24 | Group Cash Flow analysis
H1 FY24 | Group Cash Flow analysis Construction Mine devp Sustaining Exploration 1 5 10 12 11 41 29 5 40 MATSA Motheo Other 300 22 113 (31) (41) 200 142 (114) 105 100 (4) (22) - -100 -200 -300 -400 (430) (572) (476) (459) -500 (581) FY2023 Net FY2023 Debt ¹ Opening Cash MATSA cash Motheo cash Motheo
Slide 14: Debt facilities update
Debt facilities update Establishing $200M Corporate Revolver Facility FY24 & FY25 debt repayments US$M • Net debt of $476M at 31 December 2023 • MATSA Facility A $88M 250 Existing debt repayment schedule • MATSA Facility B $313M Revised debt repayment schedule • Motheo Finance Facility successfully
Slide 15: Motheo | Financial update
Motheo | Financial update First half year of operation for our newest mine Motheo deferred stripping costs1 • Rapid and low cost expansion remains on time and on budget US$M Included in Post commercial • $374M invested to date out of a budget of $397M (including contingency) 90 $397M production Proj
Slide 16: Brendan Harris, Chief Executive Officer
Brendan Harris Chief Executive Officer MATSA | 16
Slide 17: We mine copper sustainably to energise the future
Our Values Our Purpose We mine copper sustainably to energise the future Honesty Our Strategic Pillars Accountability Deliver safe, consistent Reduce our Increase Demonstrate and predictable carbon intensity our reserves capital discipline performance Respect Our ESG framework permeates everything w
Slide 18: 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 19: 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 targeted development options.
Slide 20: Motheo | H1 FY24 update
Motheo | H1 FY24 update • Throughput rate of 3.5Mtpa in Q2 FY24 exceeded initial nameplate capacity of 3.2Mtpa H1 FY24 Production H1 FY24 Cost • Underlying mine operating costs of $65M2 or $39/t2 of ore processed as we added concentrate filtration capacity and ramped-up activity across our supply ch
Slide 21: Motheo | Increase our Reserves
Motheo | Increase our Reserves A1 – Phase 2 drilling underway to support maiden T3 – Drilling to resource estimate test footwall extension target in Q4 FY24 Drilling program to test high priority targets A4 – Drilling to within ~70km of our test dip and strike processing facility extensions underway
Slide 22: Motheo | Rapid and low-cost growth
Motheo | Rapid and low-cost growth • Ramp up to 5.2Mtpa underway with ball mill installed and commissioned H1 FY24 FY24G FY24 production & cost guidance • Filter constraint resolved with installation of temporary capacity • Permanent solution on track for commissioning in the September • 4.1Mt throu
Slide 23: MATSA | H1 FY24 update
MATSA | H1 FY24 update • Achieved annualised mining rate of 4.6Mt and processing throughput rate of 4.6Mt across H1 FY24 H1 FY24 Production H1 FY24 Cost • Contained metal production increased by 8% from the prior period to 45.3kt CuEq • 6% improvement in mining rate and 8% improvement in processing
Slide 24: MATSA | Operating strategy
MATSA | Operating strategy FY24G 3 Underground mines Central Processing Facility (4.5Mt total ore processed) Port of Huelva (4.6Mt total ore mined) Improve stability and predictability Aguas Teñidas • Reduce mining dilution (2.05Mt) BUILD • Improve orebody knowledge • Build RoM stocks to improve ore
Slide 25: MATSA | Increase our Reserves
MATSA | Increase our Reserves Magdalena long-section • Update of MATSA Mineral Resource and Ore Reserve estimates underway • Incorporates improved orebody knowledge and previously announced Olivo and San Pedro mineralisation • Olivo Zone previously identified to the West of Magdalena • Within 100m o
Slide 26: A strong foundation from which to grow
A strong foundation from which to grow +50% increase in CuEq production to 20251 Contained metal (kt) 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 FY23 FY24 FY25 Cu Contained (t) Zn Cu Eq Contained (t) Pb Cu Eq Contained (t) Ag Cu Eq Contained (t) 1. 1. Refers to continuing operatio
Slide 27: Group | Unchanged Guidance
Group | Unchanged Guidance Corporate FY24 Guidance (December-23 YTD) MATSA Motheo & Other Group(a) Production Ore processed (Mt) 4.5 (2.3) 4.1 (1.7) 8.6 (3.9) Copper (kt contained) 58 (28.6) 39 (16.8) 97 (45.4) Zinc (kt contained) 88 (42.6) - (-) 88 (42.6) Lead (kt contained) 10 (4.2) - (-) 10 (4.2)
Slide 28: 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