Slide 1: FY2023 Strategy and Financial Results Presentation
FY2023 Strategy and Financial Results Presentation 31 August 2023 Access the live webcast of this presentation commencing at 10.00am (AWST) / 12.00pm (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.) 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 4: 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 5: Brendan Harris, Chief Executive Officer
Brendan Harris Chief Executive Officer
Slide 6: 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 7: FY2023 Performance and FY2024 Outlook
Quick reference guide FY2023 Performance and FY2024 Outlook FY2023 FY2024 Outlook • New company purpose co-created by our global team • Foster a shared belief in Our Purpose • Engagement score of 84% from global participation rate of 73% • Increase already high levels of employee engagement Empower
Slide 8: FY2023 Performance and FY2024 Outlook
Quick reference guide FY2023 Performance and FY2024 Outlook FY2023 FY2024 Outlook • 100% clean, emissions free electricity secured for MATSA • Finalise contract for dedicated solar facility at MATSA • Committed to 35% reduction in carbon emissions by 2035 • Complete tender for dedicated solar facili
Slide 9: A safe business is a productive business
A safe business is a productive business 58%1 reduction in Group TRIFR to 1.6 Record low safety outcomes a testament to our team’s safety mindset We can never be complacent when it comes to the safety of our people or the environment. FY2023 FY2024 • Maintain or improve safety MATSA TRIFR – 2.6 outc
Slide 10: An inclusive culture that values diversity
An inclusive culture that values diversity 24% gender diversity and 84% employee engagement Celebrate our cultural differences Empower our people so decisions are made closest to where the work is done and everyone can be their best. FY2023 FY2024 Gender diversity 24% Gender diversity +2% to minimum
Slide 11: Matthew Fitzgerald, Chief Financial Officer
Matthew Fitzgerald Chief Financial Officer
Slide 12: FY2023 Financial Results
FY2023 | Financial Results Group metal production by value • Underlying Group sales revenue of US$797M • Increased by US$13M from unaudited estimate with finalisation of hedge book revaluation • Underlying Group EBITDA of US$259M • Underlying Group EBITDA margin of 32% 21% • MATSA Underlying mine op
Slide 13: Underlying Earnings analysis (US$M)
FY2023 Underlying Earnings analysis (US$M) Impact of lower copper production and realised price at DeGrussa 500 474 255 FY2023G MATSA $250 DeGrussa $16 First full-year of operating costs at Total $266 400 MATSA and impact of elevated European energy prices in H1 FY2023 12 3 (133) MATSA DeGrussa Othe
Slide 14: FY2023 Operating costs analysis
FY2023 | Operating costs analysis Controllable costs well contained despite inflationary pressures MATSA metal production by value 0% • Underlying mine operating cost of US$76/t1 processed aligned with prior year at MATSA 3%5% • Equates to US$1.99/lb on a C1 basis • Material reduction in zinc price
Slide 15: Group cash flow waterfall (US$M)
FY2023 Mine devp Sustaining Constructon Exploration 11.0 Group Cash flow waterfall (US$M) MATSA syndicated 5.7 218.6 facility 30.8 1100 repayments completed December 140.0 82.0 17.3 2022 (218.0) 900 132.0 MATSA Motheo Other Motheo Capital exp. (FY2023G) 161.9 initial facility (130.9) Excludes sale o
Slide 16: Motheo Financial update
Motheo | Financial update Early financial performance aligned with DFS estimates Motheo deferred stripping costs1 • Received approval for the extension of our mining licence (to include A4) • Cumulative US$352M project investment to date rising to US$397M across FY2024 US$M Included in Deferred stri
Slide 17: Brendan Harris, Chief Executive Officer
Brendan Harris Chief Executive Officer
Slide 18: Strong foundation from which to grow
Strong foundation from which to grow Chief Executive Officer & Managing Director Chief Financial Chief Operating Chief People Chief Development Chief Sustainability Chief Legal & Officer Officer Officer Officer & Corporate Affairs Compliance Officer Megan Jansen Jason Grace Scott Browne Richard Holm
Slide 19: Refined Strategy
Refined Strategy Iberian Pyrite Belt Simple by design • We are 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
Slide 20: Carbon emissions reduction pathway
Carbon emissions reduction pathway • Previously committed to: • Net Zero by FY2050 (Scope 1 and 2 emissions) • Sourcing 50% of electricity from renewables by FY2030 • New interim commitment to reduce carbon emissions by 35% by 2035: • From FY2024 baseline that includes Motheo • Multi-faceted approac
Slide 21: Motheo Production update
Motheo | Production update • Initial 3.2Mtpa Motheo Copper Project completed on budget (US$325M) • Ramp-up to rated capacity is continuing to go well FY2023 FY2024G • Commercial production achieved in 45 days Note: FY2023 metal produced represents Contained metal • Consolidated in the Group’s Profit
Slide 22: Motheo Near-mine potential
Motheo | Near-mine potential 22
Slide 23: Motheo FY2024 guidance
Motheo | FY2024 guidance • To achieve initial 3.2Mtpa throughput rate sustainably in Q1 FY2024 • Throughput rate ramps-up to 5.2Mtpa across H2 FY2024 Production Costs Capital expenditure • Mine operating costs guidance US$169m2 or US$41/t2 ore processed • Includes controllable costs of US$135M • 4.1
Slide 24: MATSA FY2024 guidance
MATSA | FY2024 guidance • CuEq production of 99kt2 in FY2023 marginally exceeded revised guidance • Strong lead and silver production FY2023 FY2024G • MATSA CuEq production +3% in FY2024 • Incremental improvement in copper (+1%) and zinc (+2%) Note: : All figures refer to contained metal. Contained
Slide 25: MATSA FY2024 guidance
MATSA | FY2024 guidance • Cost inflation was well contained in H2 FY2023: Production Unit Costs Capital expenditure • Controllable costs aligned with revised FY2023 C1 unit cost guidance • 10% fall in zinc price4 reduced by-product credits by US$23M5 in FY2023 • 4.5Mt throughput • Total mine operati
Slide 26: MATSA Operating strategy
MATSA | Operating strategy FY2024G 3 Underground mines Central Processing Facility (4.5Mt total ore processed) Port of Huelva (4.6Mt total ore mined) Improve stability and predictability Aguas Teñidas • Reduce mining dilution (2.05Mt) BUILD • Improve orebody knowledge • Build ROM stocks to improve o
Slide 27: MATSA Increase our Reserves
MATSA | Increase our Reserves Magdalena long-section • Identification of untapped geological potential underpinned acquisition case • Continue to enhance our understanding of the geological setting • Have achieved early exploration success: • Olivo Zone identified to the West of Magdalena • Within 1
Slide 28: Group Guidance
Group | Guidance FY2024 Guidance CORPORATE + MATSA MOTHEO GROUP1 (FY2023 comparative) OTHER Production Ore processed (Mt) 4.5 (4.4) 4.1 (0.2) 8.6 (4.6) Copper (kt) 58 (56) 39 (1) 97 (57) Zinc (kt) 88 (86) - (-) 88 (86) Lead (kt) 10 (11) - (-) 10 (11) Silver (Moz) 2.6 (2.6) 1.2 (-) 3.8 (2.6) 2 Copper
Slide 29: A strong foundation from which to grow
A strong foundation from which to grow +50% increase in CuEq production to 20251 Contained metal (kt) 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 FY23 FY24 FY25 Cu Contained (t) Zn Cu Eq Contained (t) Pb Cu Eq Contained (t) Ag Cu Eq Contained (t) 29 1. 1. Refers to continuing opera
Slide 30: Appendices
Appendices @ Sandfire
Slide 31: Appendices
Appendices Appendix 1 Operations Guidance Summary (FY2024) – GROUP Appendix 2 Operating physicals – GROUP Appendix 3a and 3b Operating physicals – MATSA Appendix 4a and 4b Operating physicals – DEGRUSSA Appendix 5a and 5b Operating physicals - MOTHEO Appendix 6a and 6b Operating costs (US$ and C1 US
Slide 32: Operations Guidance Summary (2024) - Group
Appendix 1 Operations Guidance Summary (2024) - GROUP FY2024 Guidance CONTINUING MATSA MOTHEO (DFS) DEGRUSSA GROUP (FY2023 comparative) OPERATIONS Copper Equivalent (~kt) 93 (90) 42 (1) 135 (91) - (32) 135 (123) Copper (~kt) 58 (56) 39 (1) 97 (57) - (27) 97 (84) Contained metal Zinc (~kt) 88 (86) -
Slide 33: Operating physicals - Group
Appendix 2 Operating physicals - GROUP Mining and Processing FY2023 (Actual) FY2024 (Guidance~) MATSA DEGRUSSA** MOTHEO* TOTAL MATSA DEGRUSSA MOTHEO TOTAL Ore mined (t) 4,386,400 448,706 1,073,675 5,908,781 4,600,000 - 4,600,000 9,200,000 Waste mined (BCM) - - 12,476,089 12,476,089 - - 15,000,000 15
Slide 34: Operating physicals - MATSA
Appendix 3a Operating physicals - MATSA Mining and Processing FY2023 (Actual) FY2024 (Guidance~) AT MG ST MINED PROC AT MG ST MINED PROC Ore (t) - Total 2,035,582 1,867,541 483,277 4,386,400 4,395,325 2,050,000 2,050,000 500,000 4,600,000 4,500,000 Ore – CUP (t) 670,557 449,881 214,656 1,335,094 1,3
Slide 35: Operating physicals - MATSA
Appendix 3b Operating physicals - MATSA Product FY2023 (Actual) FY2024 (Guidance~) Cu-CUP Cu-Poly Zn Pb Cu-CUP Cu-Poly Zn Pb Recovery (%) 84% 68% 72% 28% 86% 73% 75% 32% Concentrate (t) 91,733 182,020 182,980 48,169 80,000 200,000 190,000 40,000 Concentrate grade (%) 21% 20% 47% 22% 22% 20% 47% 25%
Slide 36: Operating physicals - DeGrussa
Appendix 4a Operating physicals - DEGRUSSA Mining – ROM Ore FY2023 (Actual) FY2024 (Guidance~) DG MT MINED PROC DG MT MINED PROC Ore (t) 354,385 94,321 448,706 715,302 - - - - Grade - Cu (%) 3.2% 6.8% 3.9% 3.4% - - - - Grade – Au (g/t) 1.4g/t 1.8g/t 1.5g/t 1.3g/t - - - - Mining - Low Grade and Oxide
Slide 37: Operating physicals - DeGrussa
Appendix 4b Operating physicals - DEGRUSSA Product FY2023 (Actual) FY2024 (Guidance~) Cu Au Ag Cu Au Ag Recovery (%) 74% 43% 54% - - - Concentrate (t) 113,009 - Concentrate grade (%,g/t) 24% 5.3g/t 41.9g/t - - - Production Production Sold Price Production Production Sold C1 Guidance Metal Contained
Slide 38: Operating physicals - Motheo
Appendix 5a Operating physicals – MOTHEO Mining - ROM Ore FY2023 (Actual) FY2024 (Guidance~) T3 A4 MINED PROC T3 A4 MINED PROC Ore (t) 451,987 - 451,987 199,700 2,900,000 - 2,900,000 3,150,000 Grade - Cu (%) 1.1% - 1.1% 0.6% 1.3% - 1.3% 1.3% Grade – Ag (g/t) 7.6g/t - 7.6g/t 4.7g/t 14.1g/t - 14.1g/t
Slide 39: Operating physicals - Motheo
Appendix 5b Operating physicals – MOTHEO Product FY2023 (Actual) FY2024 (Guidance~) Cu Ag Cu Ag Recovery (%) 69% 51% 92% 88% Concentrate (t) 2,666 140,000 Concentrate grade (%,g/t) 31% 183g/t 28% 262g/t Production Production Sold Price Production Production Sold C1 Guidance Metal Contained Payable P
Slide 40: Operating costs (US$) - Group
Appendix 6a Operating costs (US$) - GROUP Operating Costs FY2023 (Actual) FY2024 (Guidance~) In US$M MATSA DEGRUSSA MOTHEO TOTAL MATSA MOTHEO TOTAL Mining 183 22 - 205 189 84 273 Processing 94 45 - 139 95 33 128 G&A 38 20 - 58 44 18 64 Transport 51 23 - 74 45 25 69 Treatment and refining charges 48
Slide 41: Operating costs (C1 US$/lb) - Group
Appendix 6b Operating costs (C1 US$/lb) - GROUP C1 Unit Costs/lb Cu payable FY2023 (Actual) FY2024 (Guidance~) In US$M/lb MATSA DEGRUSSA MOTHEO TOTAL MATSA MOTHEO TOTAL Mining 1.57 0.38 - 1.18 1.54 0.97 1.30 Processing 0.81 0.77 - 0.80 0.77 0.38 0.63 G&A 0.32 0.34 - 0.33 0.36 0.21 0.31 Transport 0.4
Slide 42: Capital expenditure - Group
Appendix 7 Capital expenditure - GROUP Capital Expenditure by Operation FY2023 (Actual) FY2024 (Guidance~) In US$M MATSA DEGRUSSA MOTHEO TOTAL MATSA DEGRUSSA MOTHEO TOTAL Mine development and deferred waste stripping * 82 2 - 84 91 - 58 149 Mine construction and development - - 198 198 - - 47 47 Sus
Slide 43: Underlying Sales revenue and Operations EBITDA Margin - Group
Appendix 8 Underlying Sales revenue and Operations EBITDA Margin - GROUP FY2023 (Actual) Commentary In US$M MATSA DEGRUSSA MOTHEO TOTAL Underlying sales revenue: Underlying value of payable metal sold 718 256 - 974 Includes QP adjustments & hedging Port services and sea freight (58) - - (58) Concent
Slide 44: Hedge book - Group
Appendix 9 Hedge book – GROUP Copper Zinc FY2024 FY2025 FY2026 TOTAL FY2024 FY2025 FY2026 TOTAL Historical Sales - Quotational Period (t) 19,721 - - 19,721 17,982 - - 17,982 Historical Sales - Quotational Period ($/t) 8,879 - - 8,879 2,518 - - 2,518 Future Sales (t) 16,369 11,664 - 28,033 22,080 15,
Slide 45: Reconciliation of Statutory to Underlying Earnings (FY2023)
Appendix 10 Reconciliation of Statutory Earnings to Underlying Earnings (FY2023) - GROUP FY2023 Net (loss) / profit after tax (Statutory) (53,661) Hedge adjustment (7,368) Gains on disposal or sale (2,757) Gain from modification of debt facilities (5,239) Change in rehabilitation estimate 1,162 DeGr
Slide 46: Reconciliation of Statutory to Underlying Earnings (FY2022)
Appendix 11 Reconciliation of Statutory Earnings to Underlying Earnings (FY2022) - GROUP FY2022 Net (loss) / profit after tax (Statutory) 109,432 Hedge adjustment 7,368 Gain on disposal or sale (3,931) Write off loan to non-related entity 5,338 DeGrussa wind down expenditure 4,246 Impairment of expl
Slide 47: 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