Slide 1: A Premier Australian Copper Producer
A Premier Australian Copper Producer June 2014 Quarterly Report Presentation Webcast – Karl Simich, Managing Director & CEO 23 July 2014 Access this presentation at: http://www.brrmedia.com/event/124496 / http://www.sandfire.com.au S a n d f I r e R e s o u r c e s - A P r e m I e r A u s t r a l I
Slide 2: Important Information and Disclaimer
Important Information and Disclaimer Forward-Looking Statements and Competent Person’s Statement 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 presentati
Slide 3: Agenda
Agenda June 2014 Quarterly Report Presentation • Highlights • Safety • Mining • Processing • Sales • Operating Costs • Guidance • Exploration • Summary 3
Slide 4: June 2014 Quarterly Highlights
June 2014 Quarterly Highlights Strong production outlook for FY2015; drilling programs underway Production and Operations • June 2014 Quarter: 17,654t copper and 9,288oz gold produced; C1 cash operating cost of US$1.18/lb • FY2014: 67,690t copper, 33,893oz gold; C1 cash operating cost of US$1.18/lb
Slide 5: June 2014 Quarterly Highlights
June 2014 Quarterly Highlights FY2014 production; Concentrator and underground mine exceeding 1.5Mtpa; FY2015 guidance and costs Production and Operations • June 2014 Quarter: 17,654t copper and 9,288oz gold produced; C1 cash cost of US$1.18/lb • FY2014 production: 67,690t copper and 33,893oz gold;
Slide 6: Safety
Safety Continued sound safety performance • Continued decline in Total Recordable Injury Frequency Rate (TRIFR) to 9.1 at Quarter-end (vs. 13.0 at March Quarter-end) • Several initiatives continuing to improve safety performance including safety skills and leadership, operational standard developmen
Slide 7: Mining Overview
Mining Overview 1.5Mtpa underground mining rate exceeded; mine development continuing on schedule UNDERGROUND • Underground mining rate of 1.5Mtpa exceeded with 415,930t of underground sulphide ore mined for the Quarter • Mine remains in balance between production and back-fill: paste plant performa
Slide 8: Processing
Processing Copper recoveries to improve further; strong concentrate production MILL THROUGHPUT • 396,077t milled at average head feed grade of 5.0% Cu • Annualised rate of 1.5Mtpa exceeded • Maintenance included change-out of SAG mill grate • Continued process of scatting SAG mill – pebble crusher t
Slide 9: Sales
Sales Copper and gold sales • Quarterly sales of 13,754 tonnes of payable copper and 6,509 ounces of gold • FY2014 sales of 62,667 tonnes of payable copper and 29,686 ounces of gold • Port Hedland and Geraldton Ports both operating well • ~19,000 tonnes concentrate holding at site and at port at Qua
Slide 10: Quarterly Unit Operating Costs
Quarterly Unit Operating Costs C1 and total production costs Q4 FY2014 FY2014 Unit costs – DeGrussa Mine Commentary (US$/lb) (US$/lb) Mining (net of development) 0.51 0.51 Unit costs reduced through the year with increased grade and copper production Processing 0.37 0.36 Business services 0.13 0.14
Slide 11: Production Guidance: FY2015
Production Guidance: FY2015 Key physicals Key Operational Targets FY2015 – Guidance Commentary Ore mined 1.5Mt Underground mining operations Ore processed 1.6Mt Includes stockpile of underground sulphide and stockpiled scats Mined grade - copper 4.9% Cu Mining Conductor 1 (81%), DeGrussa (12%), and
Slide 12: Production Guidance: FY2015
Production Guidance: FY2015 Key physicals Production Guidance – DeGrussa Mine FY2014 1H FY2015 2H FY2015 FY2015 Contained Copper (t) 67,690 ~30,000 35-40,000 65-70,000 Contained gold (oz) 33,893 ~18,000 17-22,000 35-40,000 Head grade (Cu) 5.2% 4.4% 5.1% 4.8% Head grade (Au) 1.5% 1.6% 1.7% 1.7% 12
Slide 13: Cost Guidance: FY2015
Cost Guidance: FY2015 C1 unit costs, total production costs and capital expenditure FY2015 FY2014 Unit costs – DeGrussa Mine Commentary (US$/lb) (US$/lb) Mining (net of development) 0.44 0.51 Gross and unit mining rates reducing in line with new mining contract rates and optimisation Processing 0.35
Slide 14: Exploration Summary
Exploration Summary Near-mine exploration delivering results; major regional exploration programs commenced under recently-concluded JVs • Resource definition drilling underway to upgrade Central and Eastern portions of the C4 orebody from Inferred to Indicated Resource status • High-powered DHEM an
Slide 15: Sandfire – Dominant Position in an Emerging VMS Province
Sandfire – Dominant Position in an Emerging VMS Province Consolidating a strong position in Western Australia’s emerging Bryah Basin VMS copper-gold province • Only operating base metals processing plant in the region (1.5Mtpa DeGrussa Concentrator) • Outstanding organic growth potential – extensive
Slide 16: Talisman Joint Venture – New EM Conductor at Homer
Talisman Joint Venture – New EM Conductor at Homer Deep diamond drilling underway targeting late-time EM conductor
Slide 17: Summary and Outlook
Summary and Outlook Solid production quarter; strong outlook for FY2015 • Solid quarterly production and cost performance: • 17,654t copper, 9,288oz gold production at C1 cost of US$1.18/lb • Optimisation projects planned for September Quarter • Operating cash flow: • $30M repayment reduces finance
Slide 18: 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/124496 / http://www.sandfire.com.a