Sandfire Resources Ltd · ASX:SFR
Sandfire Resources — Diggers & Dealers 2020
27 slides from Sandfire Resources's conference presentation, Oct 14, 2020
Slide 1: Expanding horizons from strong foundations
Expanding horizons From strong foundations Strategic reset to support global expansion Strong development, exploration pipeline Continued strong production and cash-flow Karl Simich, Managing Director & CEO Diggers & Dealers – 14 October 2020 Tshukudu T3 Drill Core SANDFIRE RESOURCES - CREATING VALU
Slide 2: Important Information and Disclaimer
ImportantImportant Information and Disclaimer 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 indepen
Slide 3: Overview
● Strategic growth plan, board and executive structures set for next stage of growth as a diversified international mining company ● Record FY2020 production 72,238t Cu, 42,263oz Au at C1 US$0.72/lb ● Record FY2020 revenue $656.8m, $74.1m net profit, $291.1m cash and no debt Overview ● Strong start
Slide 4: Our Strategic Growth Plan
Execute delivery Our Strategic Growth Plan Sustainable production profile Creating Accelerate discovery Opportunity Align and empower our people Optimise capital structure 4 SANDFIRE RESOURCES - CREATING VALUE FOR STAKEHOLDERS THROUGH EXCELLENCE AND INNOVATION IN BASE AND PRECIOUS METALS
Slide 5: Corporate Overview and Key Assets
Corporate │ Overview and Key Assets Key Corporate Data Key Assets Market Index ASX 200 Building a diversified portfolio of high-quality base metal assets Issued Capital 178.25 million shares Cash $291 million (30/06/2020) Debt Nil Market Capitalisation ~$757 million (at $4.35) Geographic Analysis of
Slide 6: Tshukudu: Expanding horizons in Botswana
Tshukudu Expanding horizons in Botswana Tshukudu, Botswana - T3 Copper-Silver Project - A4, T1 Expansion Projects - 18,400km2 exploration portfolio (Botswana and Namibia) 6 SANDFIRE RESOURCES - CREATING VALUE FOR STAKEHOLDERS THROUGH EXCELLENCE AND INNOVATION IN BASE AND PRECIOUS METALS
Slide 7: Tshukudu Overview
● Emerging significant Copper-Silver Project ● Dominant exploration licence-holding (~18,400km2) in under-explored Kalahari Copper Belt, Botswana ● Safe, democratic, politically stable and Tshukudu mining-friendly jurisdiction ● Supportive Government (rated #1 in Africa Overview and #45 globally by
Slide 8: Tshukudu Overview
Tshukudu │ Overview 8 SANDFIRE RESOURCES - CREATING VALUE FOR STAKEHOLDERS THROUGH EXCELLENCE AND INNOVATION IN BASE AND PRECIOUS METALS
Slide 9: Motheo Production Hub 5.2 Mtpa
● Emerging production hub concept within T3 Expansion Project Area ● Progressing in parallel with Optimised Feasibility Study Motheo (OFS) of T3: Production Hub ● 3.2Mtpa base case for OFS (T3 Pit) 5.2 Mtpa ● Operating scale scenarios: expansion case ● 5.2Mtpa expansion case (adding A4, maintaining
Slide 10: Motheo Production Hub Treatment Plant Layout
Motheo Production Hub Treatment Plant Layout 10 SANDFIRE RESOURCES - CREATING VALUE FOR STAKEHOLDERS THROUGH EXCELLENCE AND INNOVATION IN BASE AND PRECIOUS METALS
Slide 11: Tshukudu T3 Copper-Silver Project
Tshukudu │ T3 Copper-Silver Project ● Optimised Feasibility Study nearing completion ● ESIA approval received from Department of Environmental Affairs ● Mining Licence Application to be submitted ● Funding scenarios continue to progress in parallel – significant interest from financial institutions
Slide 12: Tshukudu Expanded Near-Mine Exploration Program
Tshukudu │ Expanded Near-Mine Exploration Program ● Expanded exploration under way to: Tshukudu Exploration: ● Target high-grade satellite discoveries North-East Area – Priority Targets with potential to expand T3 scale ● Delineate additional resources with the T1/T2 High Priority A1 Dome A27 Dome 1
Slide 13: Tshukudu A4 Resource Drilling Program
Tshukudu │ A4 Resource Drilling Program ● Discovery progressing towards maiden Mineral Resource: ● 6 diamond rigs at A4 with high- grade vein-hosted copper intersected in many holes at shallow depth ● A4 the first potential satellite deposit to be tested, only 8km from T3 ● After A4, drilling is pla
Slide 14: Tshukudu Regional Exploration
Tshukudu │ Regional Exploration ● Exploration strategy: ● Targeting high-grade satellite discoveries with potential to expand the scale of Motheo as a central production hub ● Identification of several new high-priority structural targets for drilling; drilling underway ● Re-processing of AEM data c
Slide 15: DeGrussa: Strong foundations in Western Australia
DeGrussa Strong foundations in Western Australia DeGrussa Operations, WA Exploration - DeGrussa Copper-Gold Mine - Greater Doolgunna Project, WA - Monty Copper-Gold Mine - East Coast Portfolio (NSW, Qld) 15 SANDFIRE RESOURCES - CREATING VALUE FOR STAKEHOLDERS THROUGH EXCELLENCE AND INNOVATION IN BAS
Slide 16: Cumulative Production to End of FY2020
CUMULATIVE PRODUCTION TO END OF FY2020 over 554,000 TONNES OF CONTAINED COPPER DeGrussa 319,000 OUNCES OF CONTAINED GOLD Operations High-grade, high- $2.1 billion margin production $4.2 billion IN CUMULATIVE OPERATING CASH- FLOW TO END OF FY2020 profile IN CUMULATIVE SALES REVENUE (prior to explorat
Slide 17: DeGrussa Operations Consistent High-Grade Production
DeGrussa Operations │ Consistent High-Grade Production ● 1.6Mtpa Concentrator fed by two underground mines – DeGrussa and Monty ● Record FY2020 annual production and costs ● Concentrator performing well with FY2020 recoveries averaging 93% for Cu and 46% for Au ● Strong September 2020 Quarter: 19,40
Slide 18: DeGrussa Operation Gold Resource Strategy
DeGrussa Operation │ Gold Resource Strategy ● Transition to gold production at DeGrussa with potential development of Old Highway: ● Synergies with the DeGrussa Tailings Gold Retreatment Project studies ● Initial phase of resource definition drilling designed to test the extent of gold mineralisatio
Slide 19: World-Class VMS Exploration Project
DeGrussa │ World-Class VMS Exploration Project ● Strategic 7,189km2 footprint across the Bryah Basin ● 80km strike length of prospective VMS lithologies – strategic focus on southern limb of Bryah Basin ● Three centres of sulphide Original Tenements: 400km² mineralisation discovered to date – DeGrus
Slide 20: DeGrussa Multi-Pronged Exploration Strategy
● DeGrussa exploration strategy: ● Accelerate discovery to extend mine life ● Focus on Mineral System Element Processes for deep targeting DeGrussa ● 22 favourable structural corridors identified in the Sandfire managed tenure Multi-Pronged ● Basin-scale geodynamics review underway Exploration ● Rol
Slide 21: Black Butte Montana, USA
Black Butte Montana, USA Black Butte Copper Project, Montana, USA (85%) 21 SANDFIRE RESOURCES - CREATING VALUE FOR STAKEHOLDERS THROUGH EXCELLENCE AND INNOVATION IN BASE AND PRECIOUS METALS
Slide 22: Black Butte Project High-grade development asset in Montana, USA
● Advanced, high-grade copper resource: ● Environmental Impact Statement (EIS) and Record of Decision (ROD) issued ● Legal challenge to state permitting process ● Feasibility Study (FS) completing Black Butte ● NI 43-101 Mineral Resource estimate for Project the Johnny Lee Deposit: High-grade Minera
Slide 23: Summary
Strong foundations with 8-year track record of delivery Record production continues into Q1 FY2021 Summary Strong balance sheet, no debt Growing pipeline of quality global copper Building a global, development assets diversified and Committed to organic growth via sustainable exploration mining comp
Slide 24: Competent Person's Statements
Competent Person’s Statements DeGrussa and Monty Mineral Resource The information in this presentation that relates to the DeGrussa and Monty Mineral Resource is based on information compiled by Mr Callum Browne who is a Member of The Australasian Institute of Mining and Metallurgy (AusIMM). Mr Brow
Slide 25: Strong and Consistent Financial Performance
Sandfire │ Strong and Consistent Financial Performance FINANCIAL FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 OVERVIEW: Revenue A $492.8M $529.6M $532.0M $485.8M $532.5M $570.0M $592.2M $656.8M Operating $272.4M $249.5M $250.1M $166.5M $248.3M $284.6M $257.4M $331.0M Cash-flow B NPAT C $8
Slide 26: Clear Vision for Growth and Value Creation
Clear Vision for Growth and Value Creation Corporate History – Strong track record of discovering, developing and delivering…. 2004 2009 2011 2013 2016 2019 Sandfire listed on the Acquisition of MOD Discovery of high- DFS, development Official opening of Millionth tonne of ASX Resources Ltd, first o
Slide 27: Contact Details
Contact Details Level 2, 10 Kings Park Road, West Perth WA 6005 Australia PO BOX 1495, WEST PERTH WA 6872 AUSTRALIA +61 8 6430 3800 +61 8 6430 3849 www.sandfire.com.au 27 SANDFIRE RESOURCES - CREATING VALUE FOR STAKEHOLDERS THROUGH EXCELLENCE AND INNOVATION IN BASE AND PRECIOUS METALS