Sandfire Resources Ltd · ASX:SFR
Sandfire Resources — Shareholder Meeting (November 2018)
29 slides from Sandfire Resources's shareholder meeting presentation, Nov 29, 2018
Slide 1: A standout year: 2018 Annual General Meeting
For personal use only Record revenue Record profit Record cash Record dividend A standout year Consistent low-cost production, record financial performance, strong outlook -------------------- 2018 Annual General Meeting
Slide 2: Our Vision
Our Vision To build a sustainable, mid-tier mining company For personal use only operating in the upper quartile of global performance benchmarks. 2
Slide 3: Our Mission
Our Mission We are in the business of producing base and For personal use only precious metals safely and profitably from our operations for the benefit of our shareholders and stakeholders. Our focus is on three business elements: 3
Slide 4: Our Values
For personal use only Our Values 4
Slide 5: 2018: A Record Year in Snapshot
2018: A Record Year in Snapshot For personal use only Record revenue Record cash Record profit Record dividend 5
Slide 6: Six Years of Exceptional Performance
Six Years of Exceptional Performance For personal use only FY2013 – 2018: ► 403,000 tonnes of copper and 232,000 ounces of gold produced ► $3.2 billion in cumulative sales revenue ► $1.5 billion in cumulative operating cash flow (prior to exploration and evaluation expenditure) ► $484 million in cum
Slide 7: Operations, Financials, Outlook
OPERATIONS 9) FINANCIALS OUTLOOK
Slide 8: Sustainability
SANDFIRE RESOURCES NL @ SUSTAINABILITY SUSTAINABILITY A QUALITY COPPER-GOLD COMPANY
Slide 9: Sustainability
Sustainability For personal use only Our overarching goal for our sustainability activities is to achieve high standards in safety, environmental management, productivity, governance and transparency while also delivering positive outcomes for society. We aim to be a responsible miner and resource d
Slide 10: Operations
A QUALITY COPPER-GOLD COMPANY OPERATIONS. SANDFIRE RESOURCES NL 10
Slide 11: DeGrussa Operations: Production Overview
DeGrussa Operations PRODUCTION OVERVIEW For personal use only Debt-free with rising production profile in a rising copper market 11
Slide 12: DeGrussa Operations – Monty Mine
DeGrussa Operations – Monty Mine For personal use only Monty – Set to Become One of the World’s Highest-Grade Copper Mines ► New satellite mine located 10km east of DeGrussa ► Now 100%-owned following acquisition of Talisman’s 30% interest ► Mining by underground method to 400m below surface ► Mine
Slide 13: DeGrussa Operations – Monty Mine
DeGrussa Operations – Monty Mine Mine Office For personal use only Waste Dump, Crushing & Screening Pad ROM Pad Discharge Pond PAF Runoff Pond Laydown Yard Haul Road Boxcut 13
Slide 14: Financials
For personal Us A QUALITY COPPER-GOLD COMPANY SANDFIRE RESOURCES NL FINANCIALS 14
Slide 15: Financial Performance
Financial Performance For personal use only Cumulative Financial Performance Sales Revenue Record Revenue, Cash-Flow and Dividends in FY2018 $3.2 FINANCIAL FY 2013 FY 2014 FY 2015 FY2016 FY2017 FY2018 BILLION OVERVIEW: Operating Cash Flow Revenue $492.8M $529.6M $532.0M $485.8M $532.5M $606.7M $1.5
Slide 16: Exploration
A QUALITY COPPER-GOLD COMPANY SANDFIRE RESOURCES NL EXPLORATION 16
Slide 17: Exploration
Exploration For personal use only Strong commitment to organic growth through exploration: ~$30 million annual exploration commitment 17
Slide 18: Exploration - Doolgunna
Exploration - Doolgunna For personal use only Sandfire has more than tripled its ground position in the past two years ►Greater Doolgunna region: 6,588km2 including 90km strike length of prospective VMS lithologies ►Farm-in deals include: ► Alchemy Resources (ASX: ALY) to earn up to 80% interest in
Slide 19: Exploration - Doolgunna
Exploration - Doolgunna Doolgunna Exploration – Multi-Pronged and Systematic Approach For personal use only ► Exploration continuing as priority along prospective VMS corridor 22km hosting DeGrussa and Monty ► Systematic aircore drilling commenced in May at the Morck Well Project (Auris Farm-in) ►Re
Slide 20: Exploration – East Coast
Exploration – East Coast Targeting world-class discoveries in Australia’s premier For personal use only exploration provinces Northern Territory ► Active drilling by JV partners in Borroloola tenements Queensland Base Metals ► 2,400km² in Mt Isa-Cloncurry province including 100km strike length with
Slide 21: For personal use only
For personal use only 21
Slide 22: Development – Black Butte Copper Project, USA
Development – Black Butte Copper Project, USA For personal use only ► 86% stake in copper development subsidiary Sandfire Resources America Inc. (TSX-V: SFR) – ~A$60M invested to date: ► Acquisition cost equivalent to ~US$4c/lb of contained copper in resource ► Black Butte: an advanced, high quality
Slide 23: Outlook
For personal use only SANDFIRE ga RESOURCES NL 23
Slide 24: Commodities poll – October 2018
LMESummitpoll: Lots rcon @ comMobITIES - 8 October 2018 Global COMMENT ra aS LME cash price US$/tonne % change day on day Aluminum 2,063 -3.0 | Copper 6,174 0.1 m= ) Lead 1,948 =1.5 —E Nicket 12,496 — © = (Preferences - long on 12-month view 2018 @ 2017 Preferences - short on 12-month view 2018 @ 20
Slide 25: Copper supply and demand outlook
► Continued decline in global copper mine reserve grade and steady decline in number of new discoveries For personal use only ► Supply not able to meet demand over the long run at current prices ► Mine supply growth forecast to slow down after 2020 ► Citi estimates only a small fraction of ~35% of p
Slide 26: Copper projects incentive price
For personal use only ► 84 copper projects analysed which are set to form >75% of the new copper supply in the near future ► Incentive price to bring new projects online has increased dramatically by ~35% ► More than 80% of the unapproved projects we analyse are uneconomic at current prices 26
Slide 27: Long term trends in global exploration
For personal use only Long term trends in global exploration – are we finding enough metal? – Prof. Richard Schodde 11th Fennoscandian Exploration and Mining Conference – 31st October 2017, Levi, Finland 27
Slide 28: Important Information and Disclaimer
Important Information and Disclaimer Forward-Looking Statements For personal use only 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
Slide 29: Thank you.
For personal use only Record revenue Record profit Record cash Record dividend A standout year Consistent low-cost production, record financial performance, strong outlook -------------------- Thank you. 29
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