Slide 1: Investing in our future: Sandfire's multi-pronged approach to building a sustainable international mining company
For personal use only Investing in our future: Sandfire’s multi-pronged approach to building a sustainable international mining company AMEC Mining Congress – 23-24 June 2015 Michael Spreadborough, Chief Operating Officer
Slide 2: Forward-Looking Statements
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: Just five years ago…
Just five years ago… For personal use only The DeGrussa Copper- Gold Discovery AMEC Congress, 1 June 2010 The Doolgunna Project “has considerable potential for the discovery of gold and base metal deposits.” Sandfire Prospectus 2004 3
Slide 4: Last week… Doolgunna Project – Exploration Update
Last week… For personal use only Doolgunna Project – Exploration Update “Sandfire Resources is pleased to advise that diamond drilling at the Springfield Project, part of its joint venture with Talisman Mining, has intersected a zone of massive sulphides approximately 10km east of its 100%-owned DeG
Slide 5: Until relatively recently, the discovery rate moved in-line with exploration expenditures
Until relatively recently, the discovery rate moved in-line with exploration expenditures Global non-bulk exploration spend and discoveries: 1975-2013 DeGrussa – For personal use only against the trend A stand-out greenfields discovery at a time of diminishing exploration success… Discovery performa
Slide 6: To make matters even worse… exploration spend is now declining sharply
To make matters even worse… For personal use only Exploration spend is now declining sharply Over the past three years, exploration expenditure has declined sharply as the available pool of capital has diminished…. 6
Slide 7: Distribution of the Pre-Production Lead Time for Australian Greenfield and Brownfield Mineral Discoveries
Distribution of the Pre-Production Lead Time for Australian Greenfield and Brownfield Mineral Discoveries For personal use only DeGrussa – against the trend Discovery to production in less than three years vs. an average of 8 years for greenfields discoveries 7
Slide 8: DeGrussa – against the trend
For personal use only DeGrussa – against the trend A significant new copper producer in a production space dominated by ageing operations… 8
Slide 9: DeGrussa Copper Mine: A powerful financial foundation
DeGrussa Copper Mine A powerful financial foundation For personal use only DeGrussa Key Statistics (past three years) Total investment: • Discovery and drill out $70 million • Development $380 million • Wages/salaries – employees and contractors $120 million Construction workforce 650 people Long te
Slide 10: Investing in the Future
For personal use only Investing in the Future Sandfire’s multi-pronged growth platform 10
Slide 11: Investing in the Future: Sandfire's multi-pronged growth platform
Investing in the Future Sandfire’s multi-pronged growth platform For personal use only By investing in the most advanced exploration methodologies to give us By investing in the best the best chance of finding deep VMS companies and partners – deposits or deposit clusters – Tintina Resources, WCB ge
Slide 12: Sandfire Resources NL: Strong production base, outstanding growth potential
Sandfire Resources NL Strong production base, outstanding growth potential For personal use only PRODUCTION: DeGrussa Copper-Gold Mine, WA • 1.5Mtpa low-cost operation • FY 2015 65-68kt Cu, 35-38koz Au; C1 ~US$1.10/lb • Mine life to 2021 NEAR MINE EXPLORATION: Greater Doolgunna • 1,700km² land-holdi
Slide 13: An Emerging Discovery: Talisman JV
An Emerging Discovery: Talisman JV Massive sulphides intersected 10km east of DeGrussa with drilling continuing • Diamond drilling continuing within For personal use only the Springfield Project (SFR earning 70%) • Zone of massive sulphides intersected recently in hole TLDD0004A, following up a subt
Slide 14: State-of-the-art exploration: DeGrussa Seismic
Doolgunna Completed Drillholes FY2015 State-of-the-art exploration: DeGrussa Seismic New phase of exploration gathering momentum over the next few months For personal use only • 34km HiSeis seismic data acquisition program commenced April 2015 over DeGrussa Mine Corridor with results due July: • 2 V
Slide 15: State-of-the-art exploration: DeGrussa Seismic
State-of-the-art exploration: DeGrussa Seismic New phase of exploration gathering momentum over the next few months For personal use only • Key objective is to investigate if seismic surveying is suitable for direct detection of massive sulphides • A unique approach of testing target specific receiv
Slide 16: Australian Regional Exploration Projects
Australian Regional Exploration Projects Targeting world-class discoveries in Australia’s premier exploration provinces EXPLORATION: For personal use only Queensland Base Metals • 2,300km² in Mt Isa-Cloncurry province • 100km strike length with outstanding potential for Broken Hill/Cannington-style
Slide 17: Considered and targeted offshore growth opportunities
Sandfire Resources NL Considered and targeted offshore growth opportunities For personal use only DEVELOPMENT Black Butte Copper Project, Montana, USA • 36%++ stake in Tintina Resources (TSX-V:TAU) • PFS and permitting underway • M&I Resources of 533,600t of contained Cu EXPLORATION Misima Porphyry
Slide 18: Technology & Sustainability: DeGrussa Solar Power Project
Technology & Sustainability: DeGrussa Solar Power Project Renewable energy project with potential to reduce costs and CO2 emissions For personal use only • Proposed DeGrussa 10.6MW solar power station to be fully integrated with existing 16MW diesel-fired power station • $40M project being led by ju
Slide 19: A premier copper-gold company
For personal use only Quality and consistency High grades, high margins, low costs Strong cash flows Organic growth Business development Shareholder returns A premier copper-gold company 24
Slide 20: Contact Details: Sandfire Resources NL
For personal use only 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 25