Sandfire Resources Ltd · ASX:SFR
Sandfire Resources — Q4 FY2023 Earnings Presentation
33 slides from Sandfire Resources's earnings presentation, Jul 27, 2023
Slide 1: June 2023 Quarterly Presentation
June 2023 Quarterly Presentation 27 July 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.) 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 4: Brendan Harris, Chief Executive Officer
Brendan Harris Chief Executive Officer
Slide 5: A Strong Foundation From Which To Grow
A Strong Foundation From Which To Grow Dedicated to ESG Produced 132kt CuEq1 in FY2023 Growing production by 10%2 in FY2024 Achieved record low TRIFR of 1.6 Strong performance at MATSA Targeting higher recoveries and 3% saw its CuEq production marginally increase in CuEq production Confirmed employe
Slide 6: Group Production
FY2023 Q4 FY2023 FY2023 FY2023 CuEq1 Group Production 84,056t Cu 132kt CuEq Contained metal 17,460t Cu • Strong finish to the year as we continued to establish the foundations for more predictable performance at MATSA 25,345t Zn 85,929t Zn • Completed processing of (increasingly) low margin oxide st
Slide 7: MATSA Production
MATSA Production Q4 FY2023 FY2023 • Total CuEq production of 99kt in FY2023 marginally exceeded revised guidance 15,189t Cu 55,737t Cu Contained metal as lead and silver production continued to outperform expectations • Stability in our mine plan delivered a 13% increase in CuEq production in Q4 FY2
Slide 8: Motheo Commissioning
Motheo Commissioning • Commissioning of the crushing and grinding circuit completed in Q4 FY2023 and commissioning of the float cells was Q4 FY2023 FY2023 Contained metal well advanced at 30 June 2023 • Ore stockpiles have been established to support initial processing rate of 3.2Mtpa through H1 FY2
Slide 9: DeGrussa Production
DeGrussa Production Q4 FY2023 FY2023 • Oxide stockpile processing completed during Q4 FY2023, with ~9k of Contained metal concentrate (~3kt of copper) left to be sold Q1 FY2024 1,453t Cu 27,502t Cu • Decision to transition the Operation into care and maintenance was taken when 1,234oz Au 19,122oz Au
Slide 10: Matthew Fitzgerald, Chief Financial Officer
Matthew Fitzgerald Chief Financial Officer
Slide 11: FY2023 Performance metrics
FY2023 (Unaudited) MATSA DEGRUSSA FY2023 Performance metrics Sales revenue $545M $239M $784M In US$ (Unaudited) Operations EBITDA $214M $99M $313M Operations EBITDA Margin 39% 41% 40% Group EBITDA $246M Value of Payable Metal Sold Sales Operating costs Balance Sheet MATSA DEGRUSSA GROUP C1 $1.87/lb
Slide 12: MATSA Operating Costs
MATSA Operating Costs 500 Absolute Operating Costs (Millions) 450 +0.6% 400 -0.2% • Cost inflation was well contained in FY2023 as total controllable cost1 were 350 aligned with prior (implied C1 unit cost) guidance 300 • A material reduction in the zinc price in Q4 FY2023 did, however, reduce 250 2
Slide 13: Motheo Project Capital Expenditure
Motheo Project Capital Expenditure 23.6 • Construction of initial 3.2Mtpa Motheo Copper Project 80 400 successfully completed on budget ($325M), despite the challenges of COVID-19 and the virus’ impact on 70 350 mobility and broader supply chains • Motheo 5.2Mtpa cumulative project costs to date 60
Slide 14: MATSA Mining Complex
MATSA Mining Complex Scale and Life Significant Producing Asset Adds >10Yrs Life Pro Forma Indicative Copper Equivalent Production (ktpa) (1,2,3,4,6) Cornerstone Asset with minimum mine life of Brendan Harris ~12 years supported by Mineral Resources MATSA acquisition achieves Sandfire’s Sustained Ch
Slide 15: A strong foundation from which to grow
A strong foundation Indicative Cu Equivalent Production2 (tonnes, continuing operations only) from which to grow 160,000 32% 39% 140,000 120,000 100,000 1% Combined MATSA (4.7Mtpa) and Motheo 80,000 (5.2Mtpa) operating potential1: ~110-120ktpa Cu 60,000 ~80-100ktpa Zn Contained metal 40,000 >50% gro
Slide 16: Group Production Guidance
FY2024 FY2023 FY2024G FY2024G CuEq2 135kt CuEq Contained metal Group Production Guidance 84,056t Cu ~97kt Cu 85,929t Zn ~88kt Zn 143kt CuEq on • Group CuEq production to increase by 10% in FY2024 with the ramp-up of Motheo to be partially offset by the loss of production from DeGrussa 10,747t Pb ~10
Slide 17: FY2024 Production Guidance by Operation
FY2024 Production Guidance by Operation Cu Equivalent Production - Contained (t) MATSA FY2023 FY2024G FY2024G 120,000 6.3% 100,000 Cu Equivalent Tonnes 55,737t Cu ~58kt Cu Contained metal ~93kt CuEq 1 80,000 2.8% 60,000 85,929t Zn ~88kt Zn ~101kt CuEq2 40,000 10,747t Pb ~10kt Pb 20,000 0 2 2 1 1 2.6
Slide 18: Focused Exploration Program
San Pedro plan section Focused Exploration Program • Continue to enhance our understanding of the geological setting at MATSA and build on early exploration success • Have now completed fundamental review and re-interpretation of prior geological models that commenced in Q2 FY2023 • Drilling has ext
Slide 19: Near-term Priorities
Near-term Deliver on ESG commitments Optimise performance at MATSA Build a sustainable level of RoM stocks Priorities Maintain momentum in safety performance and establish a to support an increase in recoveries credible pathway to materially Continue to prioritise investment in reduce our carbon emi
Slide 20: Supporting Slides
ides SI ing te Support @ Sancti
Slide 21: Our global growth platform
Our global growth platform MATSA, Spain Black Butte Copper Project, USA (87%) 3 underground mines, central concentrator Underground mine, concentrator Cu Zn Pb Ag Cu Ag Feasibility 1.2Mtpa 8+ years Producing Capacity 4.7Mtpa Lowry deposit Near-mine Resource growth Regional exploration Iberian Pyrite
Slide 22: Motheo 5.2Mtpa Copper Mine
Motheo 5.2Mtpa Copper Mine Ramping up production and delivering low-cost, rapid expansion Production ramping up to >50ktpa contained copper in concentrate (DFS) 60,000 1.2 50,000 1.0 40,000 0.8 Cu Grade (%) Tonnes 30,000 0.6 20,000 0.4 10,000 0.2 - - 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Slide 23: Appendices
Appendices
Slide 24: Appendices
Appendices Unaudited Appendix 1 Operations Guidance Summary – GROUP Appendix 2 Operating physicals – GROUP Appendix 3a and 3b Operating physicals – MATSA Appendix 4a and 4b Operating physicals – DEGRUSSA Appendix 5 Revenue and Operations EBITDA Margin Appendix 6 Hedge book 24
Slide 25: Operations Guidance Summary
Appendix 1 Operations Guidance Summary CONTINUING FY2024 Guidance (FY2023 comparative) MATSA MOTHEO (DFS) DEGRUSSA GROUP OPERATIONS Copper Equivalent (~kt) 93 (90) 42 (1) 135 (91) - (32) 135 (123) Copper (~kt) 58 (56) 39 (1) 97 (57) - (28) 97 (85) Contained metal Zinc (~kt) 88 (86) - (-) 88 (86) - (
Slide 26: Operating physicals - GROUP
Appendix 2 Operating physicals - GROUP June 2023 Quarter (Actual) FY2023 (Actual) FY2024 (Guidance~) MATSA DEGRUSSA MOTHEO* TOTAL MATSA DEGRUSSA MOTHEO* TOTAL MATSA DEGRUSSA MOTHEO TOTAL Ore mined (t) 1,101,797 - 555,175 1,656,971 4,386,400 448,706 1,073,810 5,908,916 4,600,000 - 4,600,000 9,200,000
Slide 27: Operating physicals - MATSA (3a)
Appendix 3a Operating physicals - MATSA June 2023 Quarter (Actual) FY2023 (Actual) AT MG ST MINED PROC AT MG ST MINED PROC Ore (t) - Total 512,899 458,803 130,095 1,101,797 1,160,079 2,035,582 1,867,541 483,277 4,386,400 4,395,325 Ore - CU (t) 142,694 110,512 57,241 310,448 329,459 670,557 449,881 2
Slide 28: Operating physicals - MATSA (3b)
Appendix 3b Operating physicals - MATSA June 2023 Quarter (Actual) FY2023 (Actual) Cu-CU Cu-Poly Zn Pb Cu-CU Cu-Poly Zn Pb Recovery (%) 83% 67% 73% 35% 84% 68% 72% 28% Concentrate (t) 25,181 49,716 53,813 19,147 91,733 182,020 182,980 48,169 Concentrate grade (%) 21% 20% 47% 21% 21% 20% 47% 22% Prod
Slide 29: Operating physicals - DEGRUSSA (4a)
Appendix 4a Operating physicals - DEGRUSSA June 2023 Quarter (Actual) FY2023 (Actual) DG MT MINED PROC DG MT MINED PROC Ore (t) - - - 196,303 354,385 94,321 448,706 1,244,439 Grade - Cu (%) - - - 2.4% 3.2% 6.8% 3.9% 3.0% Grade – Ag (g/t) - - - 0.7g/t 1.4g/t 1.8g/t 1.5g/t 1.1g/t Legend DG: DeGrussa U
Slide 30: Operating physicals - DEGRUSSA (4b)
Appendix 4b Operating physicals - DEGRUSSA June 2023 Quarter (Actual) FY2023 (Actual) Cu Au Ag Cu Au Ag Recovery (%) 31% 29% 50% 74% 43% 54% Concentrate (t) 3,942 113,009 Concentrate grade (%,g/t) 37% 9.7g/t 64.2g/t 24% 5.3g/t 41.9g/t Production Production Sold Price Production Production Sold Price
Slide 31: Revenue and Operations EBITDA Margin
Appendix 5 Revenue and Operations EBITDA Margin June 2023 Quarter (Actual) FY2023 (Actual) Commentary In US$M (Unaudited) MATSA DEGRUSSA MOTHEO TOTAL MATSA DEGRUSSA MOTHEO TOTAL Revenue: Value of payable metal sold 188 48 - 236 705 256 - 962 Includes QP adjustments & hedging Port services and sea fr
Slide 32: Hedge book
Appendix 6 Hedge book Copper Zinc FY2024 FY2025 FY2026 TOTAL FY2024 FY2025 FY2026 TOTAL Historical Sales - Quotational Period (t) 21,536 - - 21,536 20,577 - - 20,577 Historical Sales - Quotational Period ($/t) 8,831 - - 8,831 2,496 - - 2,496 Future Sales (t) 16,369 11,664 - 28,033 22,080 15,010 - 37
Slide 33: 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