Slide 1: A debt-free Australian copper-gold producer with a strong growth outlook
Karl Simich CEO and Managing Director For personal use only Earthworks underway for the box-cut at the new Monty copper-gold mine August 2017 A debt-free Australian copper-gold producer with a strong growth outlook A debt–free AustralIan copper–gold producer wIth a strong growth outlook Page: 1
Slide 2: Important Information and Disclaimer
Important Information and Disclaimer 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 b
Slide 3: Sandfire – A Strong Platform for Disciplined Growth
Sandfire – A Strong Platform for Disciplined Growth 2nd largest ASX-listed copper producer For personal use only ► ► Consistent, low-cost copper production and strong cash-flows ► Debt-free balance sheet supports multiple growth pathways ► Committed to optimising project returns, rather than tonnage
Slide 4: Corporate Summary and Key Assets
Corporate Summary and Key Assets High-grade, high quality project portfolio – in Australia and USA Market Capitalisation For personal use only ~$907M at $5.75 Issued Capital 157.8M Shares Dividends 11c FY16 5c 1HFY17 Consolidated Group Cash & Deposits $127M 30 June 2017 Our vision is to be a signifi
Slide 5: DeGrussa Operations – Consistent, Reliable, Low-Cost
For personal use only DeGrussa Operations – Consistent, Reliable, Low-Cost Six successive years of consistent, safe and profitable production Milling rates maintained at 1.6Mtpa and recoveries targeted at ~92% (LOM) DeGrussa and Monty Mine Plan: 7.0Mt at 5.1% Cu and 1.6g/t Au for 359,000t Cu,
Slide 6: Robust Underground Mine – All Lenses Now On Stream
Robust Underground Mine – All Lenses Now On Stream ► Production now For personal use only sourced from all four lenses (DeGrussa, C1, C4, C5) ► Blending of mine ore feeds allows process optimisation ► 40+km of mine development completed DeGrussa and Monty Underground Tonnes Copper Gold Contained Cop
Slide 7: Development – Monty Copper-Gold Project
Development – Monty Copper-Gold Project ► Satellite high-grade copper-gold deposit located 10km For personal use only east of DeGrussa ► Mining by underground method to 400m below surface ► Mine will be managed by Sandfire ► Ore Reserve: 0.92Mt at 8.7% Cu, 1.4 g/t Au ► Talisman 30% share of ore will
Slide 8: Development – Monty Site Infrastructure
Development – Monty Site Infrastructure Mining contract awarded For personal use only ► to Byrnecut (combined operations between DeGrussa and Monty JV) ► Approval for the Mining Proposal and Mine Closure Plan ► Civil works awarded to the Yagahong Alliance ► Works have commenced - Haul and access roa
Slide 9: Development – Monty Project Forward Timeline
For personal use only Development – Monty Project Forward Timeline June 2017 July 2017 Timeline - Early mobilisation - Project approval - DG tie-in - Start of infrastructure - Civils contractor Q2 FY 2018 Q2 FY 2019 - Start of decline - First ore from - U/G contractor development A debt–free Austral
Slide 10: Development – Black Butte Copper Project, USA
For personal use only Development – Black Butte Copper Project, USA ► 78.1% stake in copper development company Tintina Resources (TSX-V: TAU) – ~$31M invested to date ► Developing the Black Butte Copper Project, central Montana, USA ► Advanced, high quality copper project in stable jurisdiction: ►
Slide 11: Development – Black Butte Copper Project, USA
Development – Black Butte Copper Project, USA ► Upfront capital expenditure of For personal use only ~US$220M ► 2 year construction period with operations over 11-14 years ► Very small surface footprint – will be 100% reclaimed ► Highly engineered, state-of-the- art underground mine ► Mine design, l
Slide 12: Doolgunna VMS Province – Exploration Overview
Doolgunna VMS Province – Exploration Overview ► Exploration advancing at multiple prospects within Greater Doolgunna area: For personal use only ► Greater Doolgunna region: 5,846km2 including 65km strike length of prospective VMS lithologies ► Recent farm-in deals: ► Enterprise Metals (ASX: ENT) to
Slide 13: Doolgunna Exploration – Advancing on Multiple Fronts
Doolgunna Exploration – Advancing on Multiple Fronts ► Systematic, multi- For personal use only pronged exploration campaign leveraging Sandfire’s vast database and IP ► More than 200,000m of drilling in FY17 and accelerating ► $20M annual budget (non-success basis) ► Priority areas of focus include
Slide 14: Australian Regional Exploration Projects
Australian Regional Exploration Projects Targeting world-class discoveries in Australia’s premier exploration provinces For personal use only Northern Territory ► Active drilling by JV partners in Borroloola tenements Queensland Base Metals ► 2,400km² in Mt Isa-Cloncurry province including 100km str
Slide 15: NSW Exploration – Lachlan Fold Belt
NSW Exploration – Lachlan Fold Belt Significant regional exploration portfolio in a world-class mineral province For personal use only ► Focused exploration in the highly prospective Lachlan Fold Belt, NSW ► Attractive regime for development of large-scale gold and copper-gold projects ► Shallow cov
Slide 16: Donnington Prospect, Temora – 100% Sandfire
Donnington Prospect, Temora – 100% Sandfire Schematic Section showing drilling results to date Location of Drilling on RTP Magnetic image ► 8 holes to date – 1.2km mineralised strike For personal use only ► Mineralisation extended along strike, A A’ down- dip to >700m and up-dip ► Significant result
Slide 17: Summary – Positioned for Growth and Success
For personal use only Summary – Positioned for Growth and Success ► Consistent low-cost production ► Strong balance sheet – net cash position ► Growing free cash-flows ► Committed to organic growth via exploration ► Unlocking the potential at Doolgunna ► Developing a growth pipeline for the future S
Slide 18: A debt-free Australian copper-gold producer with a strong growth outlook
Karl Simich CEO and Managing Director For personal use only Earthworks underway for the box-cut at the new Monty copper-gold mine August 2017 A debt-free Australian copper-gold producer with a strong growth outlook A debt–free AustralIan copper–gold producer wIth a strong growth outlook Page: 18
Slide 19: Mine Plan, Ore Reserve and Mineral Resource
Mine Plan, Ore Reserve and Mineral Resource Table 1 – Underground Mine Plan, Ore Reserve and Mineral Resource DeGrussa and Monty Underground Mines Tonnes (Mt) Copper (%) Gold (g/t) Contained Copper (t) Contained Gold (oz) DeGrussa basis Monty basis For personal use only Mine Plan 7.0 5.1 1.6 359,000
Slide 20: Donnington, NSW Intercepts Table
Donnington, NSW Intercepts Table Hole Easting Northing total Depth Interval C Au Prospect azimuth dip Number (m) (m) depth (m) From (m) (m) u (%) (g/t) Table 5 – Donnington For personal use only Donnington TMMRD006 534602 6218740 460 90 -60 287 125 0.32 0.46 Drill holes including 314 44 0.41 0.62 an