Sandfire Resources Ltd · ASX:SFR
Sandfire Resources — Q2 FY2015 Earnings Presentation
16 slides from Sandfire Resources's earnings presentation, Feb 11, 2016
Slide 1: December 2014 Quarterly Report Presentation and Webcast
December 2014 Quarterly Report Presentation and Webcast – Karl Simich, Managing Director & CEO Access this presentation at http://webcasting.brrmedia.com/broadcast/133416 or www.sandfire.com.au 28 January 2015
Slide 2: Important Information and Disclaimer
Forward-Looking Statements This presentation has been prepared by Sandfire Resources NL. This document contains background information about Sandfire Resources NL current at the date of this presentation. The presentation is in summary form and does not purport be all inclusive or complete. Recipien
Slide 3: Agenda
• Highlights Agenda • Safety • Mining • Processing • Sales • Operating Costs • Guidance • Exploration • Summary and outlook 3
Slide 4: December 2014 Quarterly Highlights
Production and Operations December 2014 • 15,350t copper and 9,058oz gold produced; C1 US$1.18/lb Quarterly • 1H FY2015 production exceeds guidance at 31,413t copper and 17,737oz gold • Installation of key process plant enhancements – expected to improve plant efficiency and boost copper Highlights
Slide 5: Safety
Safety Continued sound safety performance • Total Recordable Injury Frequency Rate (TRIFR) of 9.3 at Quarter-end (vs. 11.8 at September Quarter-end) • Work continues on initiatives to improve safety performance including development of safety systems, improved safety leadership, enhancement of safet
Slide 6: Mining Overview
Mining Overview Activities temporarily suspended for dewatering; production rates back on target by Quarter-end Underground • Mining temporarily suspended due to increased water flows into the Conductor 4/5 Decline • Occurred at the location of underground drill holes completed as part of a long- te
Slide 7: Processing
Processing Enhancement projects to boost recoveries in 2H FY2015 Mill throughput • 337,797t milled at average head feed grade of 5.1% Cu • Process improvement projects nearing completion: • Pebble crusher and SAG mill classification screen installed and commissioned • Immediate improvement to grind
Slide 8: Sales
Sales Copper & Gold Sales • Quarterly sales of 16,057 tonnes of contained copper and 8,838 ounces of gold • Port Hedland and Geraldton Ports both operating well • ~ 13,000 tonnes concentrate holding at site and at port at Quarter-end 8
Slide 9: Unit Operating Costs
Unit Operating Costs C1 and total production costs Q2 FY2015 Unit costs – DeGrussa Mine Commentary (US$/lb) Mining (net of development) 0.38 Factors assisting lower C1 unit costs: Processing 0.37 1. Plant improvements driving capacity and higher recoveries Business services 0.18 2. Operating cost co
Slide 10: Commodity Price & Exchange Rate
Commodity Price & Exchange Rate Fall in Australian dollar positive for DeGrussa operating margins • DeGrussa directly leveraged to AUD copper price per tonne • Cash costs and operating margins benefited from recent fall in AUD:USD exchange rate 8000 LME Copper Price (A Grade Cathode) 7500 7000 6500
Slide 11: Production Guidance: FY2015
Production Guidance: FY2015 Key physicals 1H FY2015 2H FY2015 FY2015 Production Guidance – DeGrussa Mine FY2014 (Actual) (Guidance) (Guidance) Contained Copper (t) 67,690 31,413 33-36,000 65-68,000 Contained gold (oz) 33,893 17,736 18-20,000 36-38,000 Head grade (Cu) 5.2% 5.0% 4.9% 4.9% Head grade (
Slide 12: Mine Life Extension and Ore Reserve Update
Mine Life Extension and Ore Reserve Update Maiden C4 Ore Reserve and Mineral Resource additions extend mine life to mid-2021 • Previously announced increases to high-grade Underground Mineral Resource incorporated into DeGrussa Mine Plan, extending mine life to mid-2021 • Maiden Ore Reserve reported
Slide 13: Exploration Summary
Exploration Summary Encouraging results from DeGrussa and international exploration • Focus on delineation of feeder zones in the footwall of the C1 deposit and initial in-fill drilling at C5 • Drilling underway to test 7km long geochemical anomaly at the North Robinson Range and extensive programs
Slide 14: Dominant Position in an Emerging VMS Province
Dominant Position in an Emerging VMS Province Consolidating a strong position in Western Australia’s emerging Bryah Basin • Only operating base metals processing plant in the region (1.5Mtpa DeGrussa Concentrator) • Outstanding organic growth potential – extensive 65km strike length of prospective V
Slide 15: Summary & Outlook
Summary & Outlook Key enhancement projects now in place; strong outlook for the remainder of FY2015 • Quarterly production and cost performance: 15,350t copper, 9,058oz gold production at C1 cost of US$1.18/lb Plant optimisation projects nearing completion • Operating cash flow: $20M repayment reduc
Slide 16: Contact Details: Sandfire Resources NL
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 Access this presentation at: http://www.brrmedia.com/event/133416 / http://www.sandfire.com.