Sandfire Resources Ltd · ASX:SFR
Sandfire Resources — Sandfire Resources NL — LME Week (London Metals Exchange) October 2011
24 slides from Sandfire Resources's conference presentation, Oct 3, 2011
Slide 1: DeGrussa and beyond
For personal use only DeGrussa and beyond LME Week (London Metals Exchange) – October 2011 1
Slide 2: Important Information and Disclaimer
Important Information and Disclaimer Competent Person’s Statement For personal use only • The information in this public presentation that relates to Exploration Results and Mineral Resources is based on information compiled by Mr John Evans who is a Fellow of the Australasian Institute of Mining an
Slide 3: Our Mission
For personal use only Our Mission • To develop and operate the 100%-owned premier high-grade DeGrussa VMS copper-gold mine • To deliver superior returns to our owners • To discover additional VMS deposits within the emerging Doolgunna mineral field • To make new discoveries within our existing portf
Slide 4: Company Snapshot – cash flow imminent
For personal use only Company Snapshot – cash flow imminent • DeGrussa Project moving into production: • Discovery to development in two years (2009- 2011) • DFS* project operating cash flow of A$2.4 billion (pre-tax) on A$4.2 billion revenue • DFS does not include oxide copper (44,000 tonnes Cu con
Slide 5: Company Snapshot – the next phase of growth
Company Snapshot – the next phase of growth • Exploration ramping up targeting additional VMS For personal use only clusters within 400km2 Doolgunna Project: • Extensive bank of information now accumulated within prospective DeGrussa mine corridor • Prospective corridor extended to 22km, providing o
Slide 6: Recent Achievements
For personal use only Recent Achievements • DeGrussa Definitive Feasibility Study completed and approved • Development activities well advanced with ~450 personnel on site • Mining and process plant construction underway • First copper production on track for Q1 2012 (DSO) • Key project development
Slide 7: Corporate Summary
Corporate Summary Issued Capital: 150.9M ordinary shares Board For personal use only 9.4M options DEREK LA FERLA – Non-executive Chairman Cash (September 2011): ~A$40M KARL SIMICH – Managing Director/CEO Major Shareholders W. JOHN EVANS – Executive Technical Director Oz Minerals * 19.8% Posco 15.8%
Slide 8: Asset Overview
Asset Overview Western Australia Northern Territory – For personal use only Borroloola Project COPPER-GOLD LEAD-ZINC • Warramana • DeGrussa – production and exploration COPPER • Greater Doolgunna – exploration • Tawallah 1/2 GOLD IRON ORE • Greater Doolgunna – exploration • Roper Bar LEAD-ZINC URANI
Slide 9: From Concept to Cash
For personal use only From Concept to Cash Discovery to DFS in Discovered April 2009 2 years Maiden Mineral Resource February 2010 Pre-Feasibility Study, Ore Reserve March 2011 Mine development commenced April 2011 Definitive Feasibility Study June 2011 Today Plant construction underway Project fund
Slide 10: From Concept to Cash – DFS Outcomes
For personal use only From Concept to Cash DFS Outcomes First Production Q1 2012 (DSO), Q3 2012 (Conc.) 10.72Mt @ 5.1% Cu, 1.7g/t Au Life-of-mine extraction from Ore (541,000t contained copper, Reserves and Mineral Resources 599,000oz contained gold) discovered to date 93% Mineral Resource to Ore Re
Slide 11: Years, +200,000m of Drilling, Four Deposits
For personal use only 2 Years, +200,000m of Drilling, Four Deposits 11
Slide 12: DeGrussa Project – Open Pit Operations
For personal use only DeGrussa Project – Open Pit Operations • Early extraction of DSO Ore Reserves: • 0.14Mt @ 25.6% Cu, 2.5g/t Au • 37,000t copper, 12,000oz gold (Contained) • Early sulphide copper ore for plant commissioning • Oxide copper resources being stockpiled for proposed processing 12
Slide 13: DeGrussa – Key Parameters
DeGrussa – Key Parameters • Life-of-mine extraction of 10.72Mt @ 5% Cu, 1.7g/t Au (541,000t For personal use only copper, 599,000oz gold – contained) • Conventional open pit mining operation (~2 years) and long-term underground mine (initial 7+ year mine life) • Conventional 1.5Mtpa on-site concentr
Slide 14: DeGrussa – Annual Grade and C1 Cost Profile
For personal use only DeGrussa – Annual Grade and C1 Cost Profile 14
Slide 15: DeGrussa – Annual Grade and C1 Cost Profile
For personal use only DeGrussa – Annual Grade and C1 Cost Profile • Definitive Feasibility Study optimises project cash flows • Higher grades + lower C1 costs in first three years = increased cash flow 15
Slide 16: DeGrussa Project – Development Underway
DeGrussa Project – Development Underway • Box-cut excavation completed – For personal use only development of Evans Decline advanced to +500m (950 m remaining to first ore) • Pre-strip of open pit commenced April 2011 – two years from discovery • Bulk earthworks for process plant completed and concr
Slide 17: DeGrussa Project – Development
For personal use only DeGrussa Project – Development Pre-Feasibility Definitive Feasibility Study Project Financing Infrastructure Construction Major Equipment Concentrator Construction Open Pit Direct Shipping Ore Underground Massive Sulphide Concentrator Ramp-up Shipment 17
Slide 18: Summary
Summary • Development of DeGrussa Project underway For personal use only • On track to produce first copper next year: • First DSO ore from open pit due Q1 2012 • First underground ore expected Q2 2012 • High-margin production profile – positioned to take advantage of strong copper, gold and other c
Slide 19: DeGrussa and beyond
For personal use only DeGrussa and beyond LME Week (London Metals Exchange) – October 2011 19
Slide 20: Appendix – DeGrussa: Financial Evaluation and Price Assumptions
Appendix – DeGrussa: Financial Evaluation and Price Assumptions Life-of-mine (LOM) For personal use only $ Billion Project revenue 4.2 Royalties (5% weighted average) (0.2) Operating costs and sustaining capital (1.6) Project operating cash flow (pre-tax) 2.4 Pre-production capital expenditure (0.4)
Slide 21: Appendix – DeGrussa: Capital and Operating Costs
For personal use only Appendix – DeGrussa: Capital and Operating Costs Capital Cost Breakdown A$M Construction (plant, equipment and infrastructure) 267 Open pit mining to access DSO 44 Underground mine development 56 Other pre-production 17 Total pre-production capital 384 Life-of-Mine Operating Co
Slide 22: Appendix – DeGrussa: Mineral Resources
Appendix – DeGrussa: Mineral Resources Table 1: DeGrussa Copper-Gold Project – March 2011 JORC Resource Statement For personal use only Resource Contained Contained Competent Zone Location Tonnes (Mt) Copper (%) Gold (g/t) Category Copper (t) Gold (oz) Person Gold Measured Open Pit 0.14 - 1.5 - 7,00
Slide 23: Appendix – DeGrussa: Ore Reserves
Appendix – DeGrussa: Ore Reserves Table 2: DeGrussa Copper-Gold Project – March 2011 Ore Reserve Statement Reserve Mining Contained Copper Contained Gold For personal use only Deposit Tonnes (Mt) Copper (%) Gold (g/t) Category Method (t) (oz) Open Pit - DeGrussa Probable 0.14 25.6 2.5 37,000 12,000
Slide 24: Appendix: Competent Person's Statements
Appendix: Competent Person’s Statements Competent Person’s Statement – Mineral Resources For personal use only • The information in this report that relates to Mineral Resources (except the Indicated Resource of Supergene Chalcocite) is based on information compiled by Diederik Speijers who is a Fel
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