Slide 1: June 2020 Quarterly Report Presentation
June 2020 Quarterly Report Presentation 30 July 2020 Access this presentation at:https://webcast.boardroom.media/sandfire-resources/20200730/NaNsfr-2020-june or http://www.sandfire.com.au
Slide 2: Important Information and Disclaimer
Important Information and 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 form, has not been independently verified and does not purport
Slide 3: Competent Person’s Statements
Competent Person’s Statements Exploration Results - Doolgunna The information in this report that relates to Exploration Results at Doolgunna is based on information compiled by Mr Shannan Bamforth who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Bamforth is a permanent emp
Slide 4: Strategic Growth Plan – Creating Opportunity
STRATEGIC GROWTH PLAN – CREATING OPPORTUNITY Execute delivery Build a sustainable production profile Accelerate discovery Align and empower our people Optimise capital structure Slide : 4
Slide 5: June 2020 Quarter Highlights
JUNE 2020 QUARTER HIGHLIGHTS DeGrussa Operation Contained Contained C1 costs copper (t) gold (oz) (US$/lb) • Record quarterly and annual DeGrussa performance • Accelerating discovery to extend mine life June 2020 Quarter 19,313 13,541 0.51 Tshukudu Project FY2020 72,238 42,263 0.72 • Optimisation of
Slide 6: HSEC
HSEC Safety, health and wellbeing • Heightened focus on employee and contractor health and wellbeing during the COVID-19 global pandemic • Total Recordable Injury Frequency Rate (TRIFR) of 5.8 at Quarter-end (6.1 at March 2020 Quarter-end) • Principal hazard management – driving continuous improveme
Slide 7: DeGrussa Operation, Western Australia
DEGRUSSA OPERATION, WESTERN AUSTRALIA Slide: 7
Slide 8: DeGrussa Operation – June 2020 Quarter Physicals
DeGrussa Operation – June 2020 Quarter Physicals MINING PROCESSING SALES __________________________________________ ________________________ _________ 93.0% Cu recovery Record quarterly Tonnes production: 19,313t Cu 13,541oz Au contained 53.3% Au Au(g/t) Cu(%) recovery Grade Slide : 8
Slide 9: DeGrussa Operation – FY2020 Physicals
DeGrussa Operation – FY2020 Physicals MINING PROCESSING SALES __________________________________________ ________________________ _________ 92.9% Cu recovery Record annual Tonnes production: 72,238t Cu 42,263oz Au contained 45.9% Au Au(g/t) Cu(%) recovery Grade Slide : 9
Slide 10: Operation – FY2020 Production and Costs
DeGrussa Operation – FY2020 Production and Costs 1HFY2020 2HFY2020 _________________________________________ _________________________________________ C1 US$0.72/lb C1 unit costs (US$/lb) Record annual production: Contained metal Cu(t) Au(oz) 72,238t Cu 42,263oz Au contained Slide : 10
Slide 11: DeGrussa Operation – FY2020 Costs and Capital
DeGrussa Operation – FY2020 Costs and Capital Q4 FY2020 FY2020 Unit operating costs Commentary (unaudited) (US$/lb) (US$/lb) Mining 0.41 0.42 • FY2020 Revenue $657M Processing 0.24 0.25 • Record quarterly and annual production Business services 0.11 0.12 • High quarter by-product credits from record
Slide 12: DeGrussa Operation – FY2021 Physicals Guidance
DeGrussa Operation – FY2021 Physicals Guidance MINING PROCESSING SALES __________________________________________ ________________________ _________ 92% Cu recovery Production Tonnes guidance: 67-70,000t Cu 36-40,000oz Au contained 48% Au Au(g/t) Cu(%) recovery Grade Slide : 12
Slide 13: DeGrussa Operation – FY2021 Cost and Capital Guidance
DeGrussa Operation – FY2021 Cost and Capital Guidance • C1 unit costs guided to return into LOM average range: • Lower copper production – 5% lower on lower copper head grade (4.9% to 4.6% Cu) FY2021 • Higher cash mining costs – increase in number of stopes at C1 unit cost DeGrussa and Monty, reduce
Slide 14: Old Highway Resource Definition Drilling
DeGrussa Old Highway Resource Definition Drilling • Gold originally discovered at Old Highway prior to the DeGrussa and Monty discoveries: • Synergies with the DeGrussa Tailings Gold Retreatment FY2021 gold Project studies resource drilling: $4 Million • Part of the initial phase of resource definit
Slide 15: DeGrussa Exploration Area
DeGrussa Exploration Area June 2020 Quarter: 69,652m AC/RAB drilling 12,375m RC drilling Slide : 15
Slide 16: DeGrussa Exploration
DeGrussa Exploration • Exploration continuing as a priority along the highly prospective VMS corridor that hosts the DeGrussa and Monty deposits: • Continuation of major regional AC drilling programs to aid geological interpretation and provide quality geochemical coverage • RC and DD drilling at Mo
Slide 17: DeGrussa FY2021 Exploration Strategy
DeGrussa FY2021 Exploration Strategy • DeGrussa exploration strategy: • Accelerate discovery to extend mine life FY2021 • Focus on Mineral System Element Processes for deep DeGrussa targeting exploration cost guidance: • 22 favourable structural corridors identified in the $24 Million Sandfire manag
Slide 18: Tshukudu Project, Botswana
TSHUKUDU PROJECT, BOTSWANA Slide: 18
Slide 19: Tshukudu Project Area
Tshukudu Project Area Slide : 19
Slide 20: Tshukudu Motheo Production Hub
Tshukudu Motheo Production Hub • Emerging production hub concept within T3 Expansion Project Area • Progressing in parallel with Optimised Feasibility T3 (OFS) Study (OFS) of T3 and Motheo Mine: • 3.2Mtpa base case for OFS (T3 Pit) A1 • Scoping operating scale scenarios: (Target) • 5.2Mtpa expansion
Slide 21: Tshukudu T3 Copper-Silver Project
Tshukudu T3 Copper-Silver Project • T3 development a cornerstone to Motheo Production Hub concept: • Optimised Feasibility Study for the T3 Copper-Silver Project nearing completion • ESIA approval received from Department of Environmental Affairs • Mining Licence Application expected to be submitted
Slide 22: Tshukudu A4 Dome
Tshukudu A4 Dome • Discovery progressing towards maiden Mineral Resource estimate: • Impact on production hub concept, studies and financing FY2021 resource drilling guidance: being considered $4 Million • 6 diamond rigs at A4 with high-grade vein hosted copper intersected in many holes at shallow d
Slide 23: Tshukudu FY2021 Exploration Strategy
Tshukudu FY2021 Exploration Strategy • Tshukudu Exploration strategy: • Targeting high-grade satellite discoveries with potential to expand the scale of T3 as a production hub FY2021 • Preferred targets are near surface high-grade vein exploration systems (e.g. T3, A4, A1) and extensive NPF contact
Slide 24: Black Butte Project, Montana USA
BLACK BUTTE PROJECT, MONTANA USA Slide: 24
Slide 25: Black Butte Copper Project Development
Black Butte Copper Project Development • Advanced, high grade copper resource: • Environmental Impact Statement (EIS) and Record of Decision (ROD) issued • Legal challenge to state permitting process • Feasibility Study (FS) completing across key areas • NI 43-101 Mineral Resource estimate for the J
Slide 26: Summary & Outlook
SUMMARY & OUTLOOK Contained Contained C1 costs • Record DeGrussa FY2020 production and cost copper (t) gold (oz) (US$/lb) performance June 2020 Quarter 19,313 13,541 0.51 • Growing cash holding and debt free balance sheet positions us for flexibility in project development FY2020 72,238 42,263 0.72
Slide 27: June 2020 Quarterly Report Presentation
June 2020 Quarterly Report Presentation 30 July 2020 Access this presentation at: https://webcast.boardroom.media/sandfire-resources/20200730/NaNsfr-2020-june or http://www.sandfire.com.au
Slide 28: Contact Details
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 Slide: 28