Slide 1: Record year sets foundations for a new growth chapter
For personal use only Record year sets foundations for a new growth chapter Net debt-free Building free cash-flow Strong growth pipeline Diggers & Dealers – 1 August 2016 Karl Simich, Managing Director and CEO
Slide 2: Important Information and Disclaimer
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 F
Slide 3: Investment Overview
Investment Overview Market Capitalisation For personal use only ~$950M at $6.00 ASX Stock Issued Capital Dividends Market Index ► Consistent mid-tier mining performer S&P 157.3m 13c ► High-grade, high quality portfolio in Australia and USA 200 Shares Paid out FY15, 2c interim FY16 ► Consistent, low-
Slide 4: Investment Overview
Investment Overview For personal use only ► Outstanding new high-grade Mineral Resource at Monty ► Monty Feasibility Study underway – proposed new satellite mine development ► Exceptional exploration upside in world-class VMS province ► Extensive East Coast base metal exploration initiative Our visi
Slide 5: Strong Financial Performance, Disciplined Capital Management
Strong Financial Performance, Disciplined Capital Management FINANCIAL OVERVIEW: FY 2013 FY 2014 FY 2015 1HFY2016 For personal use only ► Consistent financial performance Revenue $507.3M $525.7M $548.6M $228.3M Operating Cash-flow* $272.4M $249.5M $250.1M $66.2M ► Revenues to date of more than $2 bi
Slide 6: DeGrussa – Consistent, Reliable, Low-Cost
DeGrussa – Consistent, Reliable, Low-Cost For personal use only Four successive years of consistent, safe and profitable production Milling rates increased to 1.6Mtpa and recoveries targeted at ~92% (LOM) Underground development exceeded 37km with production now being sourced from all minerali
Slide 7: Robust Underground Mine – All Lenses Now On Stream
Robust Underground Mine – All Lenses Now On Stream For personal use only ► Mining rate set to continue at 1.6Mtpa ► First Conductor 5 stope mined in June 2016 Quarter ► Production now being sourced from all four lenses (DeGrussa, C1, C4, C5) ► Blending of mine ore feeds allows process optimisation D
Slide 8: Mine Development Requirement Set To Fall Sharply
Mine Development Requirement Set To Fall Sharply Development of C4/C5 decline on schedule and progressing in For personal use only ► good ground conditions – due for completion in August ► Underground pumping station, ventilation and other infrastructure being installed in C4 and C5 for LOM producti
Slide 9: Consistent Plant Production, Focus on Optimisation
Consistent Plant Production, Focus on Optimisation For personal use only ► Milling rates to continue at 1.6Mtpa for FY2016 at planned 4.5% Cu ► LOM recoveries forecast at ~92% copper, ~45% gold Strong, consistent production; C1 cash operating costs continuing to trend down 9
Slide 10: Copper Market – Supply & Demand Rebalancing
Copper Market – Supply & Demand Rebalancing ~50% reduction in copper prices since 2011 For personal use only ► – similar in magnitude to GFC ► Global supply has exceeded demand in recent years ► As a result, capital spending by major producers has been slashed to $41 billion from $104 billion in 201
Slide 11: Copper Market
Copper Market For personal use only ► Medium to long-term demand outlook remains very strong, supported by burgeoning Asian Middle Class and supplementary demand profile supported by services consumption and “green energy storage” applications ► Long-term supply side remains challenged, with declini
Slide 12: An Outstanding Track Record of Growth through Exploration
An Outstanding Track Record of Growth through Exploration For personal use only DeGrussa C4 and C5 Discovery DeGrussa / C1 Discovery Monty JV Discovery First diamond hole DGDD-001 Discovery hole intersects 53.2m at 17.3% Cu, 2.5g/t Au and 25.1m at 3.4% Cu and 1.6g/t Au ► DeGrussa discovery: drove Sa
Slide 13: Exploration – It's in our DNA
Exploration – It’s in our DNA Underpinned by strong ongoing cash-flows, Sandfire has invested For personal use only ► up to $30M a year in exploration for the past five years: - $20M at DeGrussa-Doolgunna (WA) – FY2017 $8M Exploration Budget - $8M on our exploration initiative on Australia’s Eastern
Slide 14: Doolgunna – World-Class Exploration Upside
Doolgunna – World-Class Exploration Upside For personal use only ► Dominant 1,600km2 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 15: Doolgunna – World-Class Exploration Upside
Doolgunna – World-Class Exploration Upside ► Exploration advancing at multiple prospects within the Greater Doolgunna region For personal use only C5 EAST HOMER MONTY HOMESTEAD ► Homestead Prospect ~12km south-west of DeGrussa (Sandfire 100%) ► Conductor 5 East mineralised trend (Sandfire 100%) ► Mo
Slide 16: Springfield Project – Talisman Joint Venture
Springfield Project – Talisman Joint Venture ► 70% interest held in joint venture with For personal use only Talisman Mining (ASX: TLM) – 30% ► Two key areas of exploration focus ► Monty – 10km east of DeGrussa - Significant new high-grade discovery – first discovery outside of DeGrussa - Opens up h
Slide 17: Monty – A Potential New High Grade Satellite Mine
Monty – A Potential New High Grade Satellite Mine For personal use only Resource ► Maiden JORC 2012 Indicated and Inferred Mineral Resource estimate – 1.05Mt at 9.4% Cu, 1.6g/t Au: ► 99,000t of copper, 55,000oz gold ► 99% Indicated category, available for conversion to Ore Reserves ► One of the high
Slide 18: Monty – A Potential New High Grade Satellite Mine
Monty – A Potential New High Grade Satellite Mine Development For personal use only ► 16.42km2 Mining Lease Application lodged ► High-level studies completed ► Preferred box-cut location selected ► Feasibility Study underway with $3.9M budget (100%) – expected completion Q1 CY2017: ► Metallurgical t
Slide 19: Springfield Joint Venture – Unlocking the Next Discovery Opportunity
Springfield Joint Venture – Unlocking the Next Discovery Opportunity Exploration continuing as a priority along highly prospective 5km long Monty VMS corridor For personal use only ► Systematic aircore drilling to accurately delineate the interpreted VMS horizon along strike from Monty ► RC drilling
Slide 20: Australian Regional Exploration Projects
Australian Regional Exploration Projects Targeting world-class discoveries in Australia’s premier exploration provinces For personal use only EXPLORATION: Queensland Base Metals ► 2,400km² in Mt Isa-Cloncurry province ► 100km strike length with outstanding potential for Broken Hill/Cannington-style
Slide 21: Investment in Tintina Resources / Black Butte Copper Project
Investment in Tintina Resources / Black Butte Copper Project 57% stake in copper development company Tintina Resources (TSX-V: TAU) For personal use only ► ► Developing the Black Butte Copper Project, central Montana, USA ► Advanced, high quality copper project in stable jurisdiction: - NI 43-101 Me
Slide 22: The DeGrussa Solar Power Project
The DeGrussa Solar Power Project Construction of 10.6MW solar power station at DeGrussa recently completed For personal use only ► ► Fully integrated with existing 19MW diesel-fired power station ► $40M project financed, developed and operated by international consortium ► Establishes DeGrussa as po
Slide 23: Summary – Positioned for Growth and Success
Summary – Positioned for Growth and Success Consistent low-cost production For personal use only ► ► Strong balance sheet – net cash position ► Growing free cash-flows ► Commited to organic growth via exploration ► Unlocking the potential at Doolgunna ► Developing a growth pipeline for the future Sa
Slide 24: Visit us at Booth #106
For personal use only VISIT US AT BOOTH #106 Net debt-free Building free cash-flow Strong growth pipeline Diggers & Dealers – 1 August 2016 - Karl Simich, Managing Director and CEO 24
Slide 25: Mineral Resource, Ore Reserve and Mine Plan
Mineral Resource, Ore Reserve and Mine Plan Table 1 – December 2015 Comparison of the Underground Mine Plan, Mineral Resource and Ore Reserve For personal use only DeGrussa Underground Mine Tonnes (Mt) Copper (%) Gold (g/t) Contained Copper (t) Contained Gold (oz) Mine Plan 8.1 4.4 1.7 357,000 443,0