Sandfire Resources Ltd · ASX:SFR
Sandfire Resources — Diggers & Dealers Investor Briefing 2021
26 slides from Sandfire Resources's conference presentation, Aug 2, 2021
Slide 1: Sustainable copper production for a lower carbon future
For personal use only Sustainable copper production for a lower carbon future Diggers & Dealers Investor Briefing, Kalgoorlie August 2021 Page: 1 SANDFIRE RESOURCES - CREATING VALUE THROUGH OPPORTUNITY
Slide 2: Important Information and Disclaimer
For personal use only Important Information Important and and 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 for
Slide 3: A New Era of Growth and Opportunity
For personal use only Important Information A New andand Era of Growth Disclaimer Opportunity • One of the few ASX-listed pure-play copper producers • Transition to a diversified, international and sustainable mining company well underway • Refreshed and expanded senior leadership team, strongly ali
Slide 4: Copper: Cornerstone of the global economy and a metal of the future
• Copper is a critical metal for global economic growth • Third largest global metal market For personal use only behind iron and aluminium: >22Mt worth over US$220 billion consumed annually • Strong underlying demand from the Copper construction and industrial sectors • Demand for copper from the a
Slide 5: Our Growing Global Footprint
For personal use only Important Information Our and Growing Global Disclaimer Footprint Key Assets Building aa diversified Building diversifiedportfolio portfolioofofhigh-quality high-qualitybase basemetal metalassets assetsin Tier-1 jurisdictions Operating Mines Development Pipeline Exploration Por
Slide 6: Strong alignment of Purpose, Vision and Strategy
For personal use only Sandfire Strong alignment of Purpose, Vision and Strategy Creating value To build an Our strategic through opportunity international imperatives We will continue to create value diversified and • Execute delivery through opportunity for: • Build a sustainable production sustain
Slide 7: Refreshing the Board and expanded leadership team
Refreshing the Board, including new appointments in FY2021 Ms Sally Langer Mr John Richards Ms Jenn Morris Independent NED Independent NED Independent NED For personal use only Appointed 1 July 2020 Appointed 1 Jan 2021 Appointed 1 Jan 2021 Northern Star - NED Northern Star – NED Fortescue Metals –
Slide 8: DeGrussa Operations: High-grade, high-margin production in Australia
CUMULATIVE PRODUCTION TO END OF FY2021 over 650,000 For personal use only TONNES OF CONTAINED COPPER DeGrussa 380,000 OUNCES OF CONTAINED GOLD Operations High-grade, high- margin production $2.5 billion $5.4 billion IN CUMULATIVE OPERATING CASH-FLOW TO END OF FY2021* in Australia IN CUMULATIVE SALES
Slide 9: FY2021 Full Year Physicals
MINING PROCESSING SALES ________________ ___________ _____ 1,563,757 For personal use only 1,537,887 C1 23.6 23.4 US$0.82/lb FY2021 1,112,808 Annual production: Full Year Tonnes 70,845t Cu Physicals 39,459oz Au contained Sales: 425,079 Cu (%) Au(g/t) 65,689t Cu Grade 7.2 300,447 37,394oz Au 292,848
Slide 10: FY2022 Production and operating cost guidance
1HY2022 2HY2022 ______________ ______________ For personal use only C1 FY2022 US$1.06/lb FY2022 Guidance: FY2022 C1 Unit Cost (US$/lb) 64kt – 68kt Cu Contained Metal 30koz – 34koz Au Cu (t) Au(oz) Production and Production and contained operating cost Costs guidance Operating cost Guidance: C1 US$1.
Slide 11: DeGrussa Operations – Mining Sequence
DeGrussa Operations – Mining Sequence For personal use only Quarterly Stope Turnover FY20 FY20 FY20 FY20 FY21 FY21 FY21 FY21 FY22 FY22 FY22 FY22 DeGrussa Stope Mine Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Production FY22 Actual Actual Actual Actual Actual Actual Actual Actual Budget Budget Budget Budget
Slide 12: Dual-track exploration strategy
Gold Processing Pipeline East Shed Well, Cow Hole Bore and Red Bore SE Robinson Range Data integration and For personal use only DHEM Copper Pipeline Doolgunna First-pass exploration of tenure south of Horseshoe Lights Gold Processing Pipeline In-fill drilling at Cuba Dual-track High Priority Near M
Slide 13: Doolgunna Deeps – A new search space
Doolgunna Deeps – A new search space The Doolgunna region has undergone ~10 For personal use only years of systematic exploration collecting high quality data. The top ~500m has been effectively and comprehensively explored with success coming at the Monty discovery. Significant opportunity occurs a
Slide 14: Old Highway Resource Definition
Old Highway Resource Definition Remaining resource definition drilling For personal use only programs to commence in Q1: Central Deeps (Q1 – Q3): • 25m x 25m diamond drill pattern planned for extension drilling of Old Highway Deeps • Multiple high-grade intercepts showing good continuity of minerali
Slide 15: Eastern States Exploration Projects
● Endeavor South orebody extension diamond drilling (Q1 – Q2). Drill testing of North Batten JV Pb-Zn, Cu, Mn new EM targets. For personal use only ● Endeavor Regional diamond, RC and AC drilling and ground based geophysics (Q1 – Q4). Multiple Geochemical and Altia JV Pb-Zn, Ag Australia geophysical
Slide 16: Kalahari: Motheo Copper Mine opens an exciting new growth horizon
Initial Feasibility ESTIMATES (DECEMBER 2020) For personal use only AVERAGE ANNUAL PRODUCTION OF ~30,000 TONNES OF CONTAINED COPPER Kalahari 1.2M OUNCES OF CONTAINED SILVER Motheo Copper Mine opens an US$2.45 US$664 exciting new billion million IN LIFE-OF-MINE REVENUE IN PRE-TAX FREE CASH-FLOW growt
Slide 17: Motheo Development Timeline
For personal use only Important Information Motheo andTimeline Development Disclaimer Mining License Approval & Land Titles Camp EMP Process Plant Engineering & Pre-Construction Works Accommodation Facility 132KV Powerline & Substations Design & Construction Process Plant Construction Mining Contrac
Slide 18: Kalahari Copper Belt exploration ground
Ngamiland For personal use only MOTHEO EXPANSION PROJECT Kalahari A4 Kalahari A4 & A1 Domes Copper Belt Copper Belt MOTHEO COPPER MINE Extensive A4 Resource Priority exploration 9.8 Mt @ 1.36% Cu exploration ground T23 & 21g/t Ag targets for FY22 in Botswana and T20 PROJECT Namibia $23 million EXPLO
Slide 19: Motheo Production Hub – Expansion targets
For personal use only Important Information Motheo and Production HubDisclaimer – Expansion targets • Vein-hosted mineralisation within the A4 Mineral T1/T2 Zone Diamond drilling, target Resource has delivered some Zone 5 type sheared NPF outstanding intersections contact Cu deposits including a sta
Slide 20: Kalahari Exploration Model – Vein and NPF targets
Kalahari Exploration Model – Vein and NPF targets For personal use only Vein hosted mineralisation MO-A1-002D 0.4m @ 5.7% Cu & 95 g/t Ag from 209.2m NPF A4 Dome – Long Section mineralisation MO-A4-035D 18m @ 3.9% Cu & 124g/t Ag from 77m A4 Dome – 9.8Mt at 1.4% Cu and 21g/t Ag A1 Dome – analogous to
Slide 21: Black Butte: Near-term development potential
Initial Feasibility ESTIMATES (OCTOBER 2020) For personal use only AVERAGE ANNUAL PRODUCTION OF Black Butte 23,000 TONNES OF CONTAINED COPPER METAL Near-term development FORECAST LOM PRODUCTION potential OF 8 YEAR MINE LIFE BASED ON 1.2MTPA 189,500 PRODUCTION RATE TONNES OF CONTAINED COPPER METAL A$
Slide 22: Black Butte Copper Project, USA
For personal use only Important Information AMER and | Black Butte Disclaimer Copper Project, USA ● Advanced, high-quality underground copper project in Tier-1 location ● 87% stake in the Black Butte Copper Project via interest in Sandfire Resources America Inc. ● One of the top-10 undeveloped coppe
Slide 23: Key takeaways
Global vision – our transformation into a diversified, international and sustainable For personal use only mining company is underway Strong growth platform – DeGrussa cash-flows, debt-free balance sheet and $574m in Key takeaways group cash New production hub – construction of Motheo Copper Mine in
Slide 24: Competent Person's Statements
Competent Person’s Statements For personal use only 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
Slide 25: Competent Person's Statements
Competent Person’s Statements For personal use only 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,
Slide 26: Contact Details
For personal use only 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: 26 SANDFIRE RESOURCES - CREATING VALUE THROUGH OPPORTUNITY
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