Sandfire Resources Ltd · ASX:SFR
Sandfire Resources — Sandfire Resources NL — Diggers and Dealers 2015
28 slides from Sandfire Resources's conference presentation, Aug 3, 2015
Slide 1: Delivering on Our Potential
For personal use only DELIVERING ON OUR POTENTIAL Diggers and Dealers – August 2015 Karl Simich, Managing Director and CEO
Slide 2: Important Information and Disclaimer
Important Information and Disclaimer Forward-Looking Statements and Competent Person’s Statement For personal use only Forward-Looking Statements • This presentation has been prepared by Sandfire Resources NL. This document contains background information about Sandfire Resources NL current at the d
Slide 3: Six Years Ago…
Six Years Ago… For personal use only “Doolgunna: More spectacular hits, massive sulphides intersected in three new diamond drill holes further extending the area of known mineralisation” Sandfire ASX Announcement, 2 August 2009 The DeGrussa copper-gold discovery • Initial diamond drilling underway •
Slide 4: June 2015 – a major breakthrough
June 2015 – a major breakthrough For personal use only Massive sulphides with visible chalcopyrite, similar to the massive sulphides seen at DeGrussa ~10km east of the DeGrussa Copper Mine Doolgunna Project – Exploration Update “Sandfire Resources is pleased to advise that diamond drilling at the Sp
Slide 5: A Strong Platform for Value Creation and Growth
A Strong Platform for Value Creation and Growth For personal use only • Leading ASX-200 copper-gold producer • New chapter of discovery success and growth at DeGrussa • Recent exciting VMS discovery re-rates district exploration potential • Value underpinned by consistent, low-cost copper production
Slide 6: Company Snapshot
Company Snapshot Sandfire Resources NL (ASX: SFR) Share Price For personal use only 52-Week Low A$3.74 High A$6.80 Market Cap ~A$1 billion Shares on issue – 156.9m FINANCIAL OVERVIEW: Dividends – Past 12 Months FY 2013 FY 2014 1H FY 2015 Dividends paid A$0.13 Operating Cashflow* $272.4M $249.5M $112
Slide 7: A Powerful Platform for Growth
A Powerful Platform for Growth For personal use only Discovery success and International world-class exploration growth pipeline potential at Doolgunna Exploring world-class provinces on Australia’s Sustainability East Coast 7
Slide 8: DeGrussa – the Cornerstone Asset
DeGrussa – the Cornerstone Asset For personal use only DeGrussa Project – Key Facts Production +200,000t of copper, +100,000oz of gold to date Revenues +$1.5 billion to date +1.5Mtpa via long-hole open stoping Mining 28.8km of underground development completed to date Underground Mine 9.6Mt @ 4.4% C
Slide 9: Strong and Consistent Low-Cost Gold and Copper Production
Strong and Consistent Low-Cost Gold and Copper Production Track record of achieving guidance with excellent safety performance For personal use only FINANCIAL OVERVIEW: FY 2013 FY 2014 FY 2015 FY 2016 (guidance) Copper (Cu) 64,017t 67,690t 67,154t 65-68kt Production Gold (Au) 42,679oz 33,893oz 37,38
Slide 10: Robust Underground Mine Performance
Robust Underground Mine Performance For personal use only • Mining rate lifted to 1.6Mtpa • C4 level development commenced with first development ore • Current production from DeGrussa and C1 deposits intersected and first stope ore in December Quarter • C4/5 Decline development well advanced: first
Slide 11: Process Plant Upgrades Delivering Strong Results
Process Plant Upgrades Delivering Strong Results For personal use only • Excellent results from recently completed plant enhancements: – Copper recoveries increased by ~2% as a result of flotation improvements and installation of column cell – Milling throughput increased by 11% following Primary Sc
Slide 12: A Powerful Platform for Growth
A Powerful Platform for Growth For personal use only Discovery success and International world-class exploration growth pipeline potential at Doolgunna Exploring world-class provinces on Australia’s Sustainability East Coast 12
Slide 13: Doolgunna – world-class exploration upside
Doolgunna – world-class exploration upside For personal use only • Dominant 1,700km2 ground position in WA’s premier emerging copper belt • Only operating processing facility in the District • Outstanding potential: 65km strike length of prospective VMS horizons • Significant new high-grade discover
Slide 14: Springfield Project – Talisman Joint Venture
Springfield Project – Talisman Joint Venture • Sandfire earning 70% interest via $15M farm-in For personal use only with Talisman Mining (ASX: TLM): $5M spent to date • Two emerging areas of exploration focus • Monty – 10km east of DeGrussa • Significant new high-grade discovery – first discovery ou
Slide 15: Monty – new high-grade VMS copper-gold discovery
Monty – new high-grade VMS copper-gold discovery • New area identified by diligent, focused exploration including reworking and analysing For personal use only data from historical Talisman drilling • Subtle off-hole EM conductor identified at historical Talisman hole SPD021 • Follow-up hole TLDD000
Slide 16: Monty – next steps
Monty – next steps • Further diamond drilling up-dip and down-dip For personal use only • Ongoing DHEM surveys • Diamond and RC drilling along strike to test the entire 5km long prospective sequence • Two rigs operating with potential for further drilling capacity to be added in coming weeks 16
Slide 17: Homer – the next discovery opportunity?
Homer – the next discovery opportunity? Located 4km directly east of For personal use only • DeGrussa • Hole TLDD0003 completed recently to test eastern strike extension of interpreted C5 host horizon • Followed up encouraging results from TLDD0001 completed last year • TLDD0003 intersected haematit
Slide 18: Other Opportunities – Seismic Surveys
Other Opportunities – Seismic Surveys • 34km HiSeis seismic data acquisition program commenced For personal use only April 2015 over DeGrussa Mine Corridor • Key objective is to investigate if seismic surveying is suitable for direct detection of massive sulphides • A unique approach of testing targ
Slide 19: A Powerful Platform for Growth
A Powerful Platform for Growth For personal use only Discovery success and International world-class exploration growth pipeline potential at Doolgunna Exploring world-class provinces on Australia’s Sustainability East Coast 19
Slide 20: Australian Regional Exploration Projects
Australian Regional Exploration Projects Targeting world-class discoveries in Australia’s premier exploration provinces EXPLORATION: For personal use only Queensland Base Metals • 2,300km² in Mt Isa-Cloncurry province • 100km strike length with outstanding potential for Broken Hill/Cannington-style
Slide 21: A Powerful Platform for Growth
A Powerful Platform for Growth For personal use only Discovery success and International world-class exploration growth pipeline potential at Doolgunna Exploring world-class provinces on Australia’s Sustainability East Coast 21
Slide 22: Investment in Tintina Resources / Black Butte Copper Project
Investment in Tintina Resources / Black Butte Copper Project For personal use only • 36% stake in Tintina Resources (TSX-V: TAU) with clear pathway to 53% and control • Developing the Black Butte Copper Project, central Montana, USA • Advanced, high quality copper project in stable jurisdiction: • N
Slide 23: A Powerful Platform for Growth
A Powerful Platform for Growth For personal use only Discovery success and International world-class exploration growth pipeline potential at Doolgunna Exploring world-class provinces on Australia’s Sustainability East Coast 23
Slide 24: Sustainability – DeGrussa Solar Power Project
Sustainability – DeGrussa Solar Power Project First-mover renewable energy project with potential to reduce costs and CO2 emissions For personal use only • 10.6MW solar power station being constructed at DeGrussa • To be fully integrated with existing 19MW diesel-fired power station • $40M project b
Slide 25: Summary
Summary For personal use only • Consistent production • Robust operating cash flows and balance sheet • Commitment to safety, operational efficiency and optimisation • Unlocking outstanding exploration potential at Doolgunna • Strong organic growth and business development A clear focus on value cre
Slide 26: Contact Details
For personal use only 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
Slide 27: Mineral Resource, Ore Reserve and Mine Plan
Mineral Resource, Ore Reserve and Mine Plan Maiden C4 Ore Reserve and Mineral Resource additions extend mine life to mid-2021 For personal use only • Previously announced increases to high-grade Underground Mineral Resource incorporated into DeGrussa Mine Plan, extending mine life to mid-2021 • Maid
Slide 28: Drill-hole Information Summary, Springfield Project
Drill-hole Information Summary, Springfield Project For personal use only