Sandfire Resources Ltd · ASX:SFR
Sandfire Resources — Q2 FY2021 Earnings Presentation
32 slides from Sandfire Resources's earnings presentation, Jan 29, 2021
Slide 1: December 2020 Quarterly Report Presentation
December 2020 Quarterly Report Presentation Karl Simich, Managing Director & CEO 29 January 2021 Access this presentation at: http://redback.events/ir-2d11e5 or http://www.sandfire.com.au Page: 1 SANDFIRE RESOURCES - CREATING VALUE THROUGH OPPORTUNITY
Slide 2: Important Information and Disclaimer
ImportantImportant Information andand Information Disclaimer Disclaimer This presentation has been prepared by Sandfire Resources Ltd (Sandfire or the Company) and contains information about Sandfire current at the date of this presentation. The presentation is in summary form, has not been independ
Slide 3: Strategy: Creating value through opportunity
Execute delivery Strategy Sustainable production Creating value Accelerate discovery through opportunity Align and empower our people Optimise capital structure Page: 3 SANDFIRE RESOURCES - CREATING VALUE THROUGH OPPORTUNITY
Slide 4: Highlights December 2020 Quarter
● DeGrussa copper production: 16,390t of contained copper (YTD: 35,790t) and 9,660oz of contained gold (YTD: 21,343oz) at C1 US$0.89/lb (YTD US$0.72/lb); pleasing safety performance: ● FY2021 guidance: positioning for upper end of guidance 67-70kt of contained copper and 36-40koz of contained gold,
Slide 5: Safety, health and well-being
Safety, health and well-being • Total Recordable Injury Frequency Rate (TRIFR) of 3.1 at Quarter-end (5.5 at September 2020 Quarter-end) • Continued focus on employee and HSEC contractor health and well-being during the COVID-19 global pandemic The health and • Christmas Family Day at DeGrussa well-
Slide 6: DeGrussa: Strong foundations in Western Australia
DeGrussa Strong foundations in Western Australia DeGrussa Operations, WA Exploration - DeGrussa Copper-Gold Mine - Greater Doolgunna Province, WA - Monty Copper-Gold Mine - East Coast Portfolio (NSW, Qld) Page: 6 S A N D F I R E R E S O U RS C A ENSD -F ICRREE ARTEISNOGU R VCA EL SU E- CT RH ERAOTUI
Slide 7: DeGrussa Operations: December 2020 Quarter Production
DeGrussa Operations │ December 2020 Quarter Production 93.1% Cu recovery Copper production: 16,390t Cu 9,660oz Au contained 46.4% Au recovery Page:7 SANDFIRE RESOURCES - CREATING VALUE FOR STAKEHOLDERS THROUGH EXCELLENCE AND INNOVATION IN BASE AND PRECIOUS METALS
Slide 8: DeGrussa Operations: FY2021 YTD Production
DeGrussa Operations │ FY2021 YTD Production 93.4% Cu recovery Copper production: 35,790t Cu 21,343oz Au contained 48.4% Au recovery Page:8 SANDFIRE RESOURCES - CREATING VALUE FOR STAKEHOLDERS THROUGH EXCELLENCE AND INNOVATION IN BASE AND PRECIOUS METALS
Slide 9: DeGrussa Operations: FY2021 Production Guidance
DeGrussa Operations │ FY2021 Production Guidance 93% Cu recovery Upper end of guidance band: 67-70,000t Cu 36-40,000oz Au contained 49% Au recovery Page:9 SANDFIRE RESOURCES - CREATING VALUE FOR STAKEHOLDERS THROUGH EXCELLENCE AND INNOVATION IN BASE AND PRECIOUS METALS
Slide 10: DeGrussa Operations: Operating costs and capital
DeGrussa Operations │ Operating costs and capital Q2 YTD FY2021 FY2021 Unit operating costs (US$/lb) (US$/lb) Commentary Mining 0.53 0.53 • Upper end of copper and gold production Processing 0.35 0.30 guidance driving expected FY2021 C1 costs to US$0.85-$0.90/lb Business services 0.11 0.12 • Q2 FY20
Slide 11: DeGrussa Gold Transition Strategy
Potential transition to gold production at DeGrussa • Resource drilling continues at Old Highway Gold Prospect, 22km from DeGrussa • Synergies with the DeGrussa Tailings Gold Retreatment Project studies • Mineralisation hosted in quartz veining associated with shearing in sediments • Scoping studies
Slide 12: Doolgunna: World-Class VMS Exploration Project
Doolgunna │ World-Class VMS Exploration Project • Strategic 7,189km2 footprint across the Bryah Basin • Over 90km strike length of prospective VMS lithologies – strategic focus on southern limb of Bryah Basin • Three centres of sulphide Original Tenements: 400km² mineralisation discovered to date –
Slide 13: DeGrussa Red Bore Exploration
Sandfire now manages exploration on the strategically located Red Bore tenement (85% interest) • Commenced Moving Loop EM over the tenements and a review of historical data • Drilling of massive sulphide mineralization targets adjacent to DeGrussa to commence in the next quarter DeGrussa Red Bore Ex
Slide 14: Tshukudu: Expanding horizons in Botswana
Tshukudu Expanding horizons in Botswana Tshukudu, Botswana - T3 Copper-Silver Project - A4, T1 Expansion Projects - 26,650km2 exploration portfolio (Botswana and Namibia) Page: 14 S A N D F I R E R E S O U RS C A ENSD -F ICRREE ARTEISNOGU R VCA EL SU E- CT RH ERAOTUI G NGH OPPORTUNITY
Slide 15: Dominant position in the Kalahari
T3 EXPANSION PROJECT A4 Tshukudu T1 T3 PROJECT Dominant position A4 Resource 6.5Mt @ 1.5% Cu in the Kalahari & 24g/t Ag Copper Belt – T20 EXPANSION PROJECT 26,650km2 T3 Resource 53.3Mt @ 0.90% Cu & 12.7g/t Ag Page: 15 SANDFIRE RESOURCES - CREATING VALUE THROUGH OPPORTUNITY
Slide 16: Motheo Production Hub 5.2Mtpa
• Definitive Feasibility Study (DFS) for T3 3.2Mtpa Project completed • Clear visibility to rapidly expand production to Motheo 5.2Mtpa through the addition of the A4 deposit Production Hub • T3 Motheo construction includes US$20M upfront 5.2Mtpa investment to facilitate expansion case cost effectiv
Slide 17: T3 Definitive Feasibility Study 3.2Mtpa
• Updated Mineral Resource: 53.3Mt at 0.90% Cu and 12.7g/t Ag (1.0% Cu equivalent) for 480kt of contained copper and 21.8Moz of contained silver • Updated Ore Reserve: 39.9Mt at 0.90% Cu and 12.2g/t Ag for 360kt of contained copper and 15.6Moz of contained silver • 12.5-year mine life at 3.2Mtpa bas
Slide 18: T3 Development Timeline
T3 Development Timeline T3 Definitive Feasibility Study Project implementation Page: 18 Page:18 S A N D F I R E R E S O U RS C A ENSD -F ICRREE ARTEISNOGU R VCA EL SU E- CT RH ERAOTUI G NGH OPPORTUNITY
Slide 19: Motheo Production Hub: T3 Expansion Area
• Expanded exploration underway to: ‐ Target high-grade satellite discoveries with potential to support the emerging Motheo Production Hub ‐ Delineate additional resources with the potential to extend mine life ‐ Target major new regional discoveries to unlock the belt’s broader potential Motheo • I
Slide 20: A4 Maiden Mineral Resource
• Maiden A4 Inferred Mineral Resource based on 79 holes • Approximately 70% higher Cu grade than T3, and 1.75% Cu equivalent grade • Valuable additional feed potential, forming the initial basis of the proposed expansion to 5.2Mtpa processing rate Motheo • An additional 47 in-fill and extensional di
Slide 21: A4 cross-section
Motheo Production Hub A4 cross-section A4 schematic cross-section – showing interpreted geology and mineralisation styles across the A4 Deposit. US$4.50/lb Cu price optimised pit shell used to constrain the MRE shown in black outline. Page: 21 SANDFIRE RESOURCES - CREATING VALUE THROUGH OPPORTUNITY
Slide 22: High-grade A4 intersections post Maiden Mineral Resource
MO-A4-122D Upper Zone (within optimised pit shell): • 22.0m @ 6.0% Cu and 98.2g/t Ag from 120m down-hole (incl. 9.5m @ 11.7% Cu & 188g/t Ag from 130.5m) Lower Zone (within optimised pit shell): • 13.15m @ 10.2% Cu & 143g/t Ag from 169m down-hole (incl. 7.15m @ 16.0% Cu & 222g/t Ag from 175m) MO-A4-1
Slide 23: Next steps
• Submit the T3 Definitive Feasibility Study to the Government of Botswana – right to acquire up to a 15% fully contributing interest in T3, with that decision to be made on or before the date a Mining Licence is granted Motheo • Complete final permitting and secure Production Hub grant of the Minin
Slide 24: Major regional Airborne-EM Survey Commenced
• A major regional AEM survey covering approximately 13,450km2 and extending from the Namibian border to the eastern limit of Sandfire’s licence holdings has commenced and is expected to continue into early 2021. First data from the survey have been received and initial processing is expected to com
Slide 25: Black Butte, Montana, USA
Black Butte Montana, USA Black Butte Copper Project, Montana, USA (85%) Page: 25 S A N D F I R E R E S O U RS C A ENSD -F ICRREE ARTEISNOGU R VCA EL SU E- CT RH ERAOTUI G NGH OPPORTUNITY
Slide 26: Black Butte Copper Project: Current activities and outlook
● Early project works ● Enhancement of Feasibility Study being progressed Black Butte ● Exploration underway within the Mining Copper Project Lease targeting potential extensions and other near-mine opportunities Current activities ● Continuing to respond to and deal with and outlook legal challenge
Slide 27: Johnny Lee Feasibility Study key results
• Maiden Ore Reserve of 8.8Mt at 2.6% Cu for 226,100t of contained copper • Underpins an 8-year mine life at 1.2 million tonnes per annum • Forecast LOM production totaling 805,000 dry Black Butte metric tonnes of copper concentrate containing Copper Project 189,500t of copper metal • Average annual
Slide 28: Lowry Mineral Resource
Black Butte Copper Project Lowry Mineral Resource At Lowry, copper is found in the Middle Sulphide Zone. Lower Zone copper mineralisation is present at both Johnny Lee and Lowry. Sub-economic Upper Zone Sulphide is also present at Lowry. The Middle Sulphide Zone potentially extends to the south and
Slide 29: Key highlights December 2020 Quarter
Strong foundations – high-margin production and cash-flow, strong debt-free balance sheet New long-life production hub being developed in Botswana with development Key highlights of T3 commenced in Q3 FY2021 Highly prospective global exploration December 2020 portfolio to drive organic growth Quarte
Slide 30: Competent Person's Statements
Competent Person’s Statements T3 Ore Reserve The information in this report that relates to Open Pit Ore Reserves, is based on information compiled by Mr Jake Fitzsimons who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Fitzsimons is employed by Orelogy Consulting Pty Ltd an
Slide 31: Competent Person's Statements
Competent Person’s Statements Johnny Lee and Lowry Mineral Resource The information in this announcement that relates to the Johnny Lee and Lowry Mineral Resources is based on information compiled by Mr Erik Ronald (M. Eng., P.Geo, RM- SME, Principal Resource Geology Consultant, SRK). Mr Ronald has
Slide 32: December 2020 Quarterly Report Presentation
December 2020 Quarterly Report Presentation Karl Simich, Managing Director & CEO 29 January 2021 Contact Details Level 2, 10 Kings Park Road, West Perth WA 6005 Australia PO BOX 1495, WEST PERTH WA 6872 AUSTRALIA +61 8 6430 3800 +61 8 6430 3849 www.sandfire.com.au Page: 32 SANDFIRE RESOURCES - CREAT