Sandfire Resources Ltd · ASX:SFR
Sandfire Resources — Shareholder Meeting (November 2016)
29 slides from Sandfire Resources's shareholder meeting presentation, Nov 28, 2016
Slide 1: Annual General Meeting: Opportunity Redefined
For personal use only 28 November 2016 Annual General Meeting Opportunity Redefined ► Net debt-free ► Growing free cash flow ► Strong organic growth pipeline
Slide 2: Important Information and Disclaimer
Important Information and Disclaimer Forward-Looking Statements and Competent Person’s Statement For personal use only Forward-Looking Statements ► This presentation has been prepared by Sandfire Resources NL. This document contains background information about Sandfire Resources NL current at the d
Slide 3: Our Core Values
Our Core Values For personal use only Page: 3
Slide 4: Operations, Corporate and Financial
For personal use only Operations, Corporate and Financial Exploration Business Development Sustainability Page: 4
Slide 5: Operations, Corporate and Financial
Operations, Corporate and Financial For personal use only ► Fourth successive year of consistent, safe and profitable production ► Record full-year production for FY2016 of 68,202t Cu, 37,612oz Au, C1 US$0.95/lb ► Strong performance from both the underground mine and processing plant ► Annual net pr
Slide 6: DeGrussa Mine (WA) – Consistent, Reliable, Low-Cost
DeGrussa Mine (WA) – Consistent, Reliable, Low-Cost Milling rates maintained at 1.6Mtpa and recoveries targeted at For personal use only ~92% (LOM) 267,063t Cu Decline development completed to LOM design: mine development now focused on level development 151,570oz Au Record full-year productio
Slide 7: Robust Underground Mine – All Lenses Now On Stream
Robust Underground Mine – All Lenses Now On Stream Mining rate set to For personal use only ► continue at 1.6Mtpa ► Production now sourced from all four lenses (DeGrussa, C1, C4, C5) ► Blending of ore feed allows process optimisation ► 40km of mine DeGrussa Underground Mine Tonnes (Mt) Copper (%) Go
Slide 8: Strong Financial Performance, Disciplined Capital Management
Strong Financial Performance, Disciplined Capital Management FINANCIAL FY 2013 FY 2014 FY 2015 FY2016 OVERVIEW: For personal use only ► Consistent financial performance despite Revenue $507.3M $525.7M $548.6M $497.2M subdued commodity price environment Operating Cash-flow* $272.4M $249.5M $250.1M $1
Slide 9: 2016 – Increasing Value in a Challenging Environment
2016 – Increasing Value in a Challenging Environment SANDFIRE RESOURCES NL (ASX:SFR) Market Capitalisation For personal use only ~$970M at $6.15 ASX Stock Issued Market Dividends Capital Index S&P 157.7M 11c 200 Shares FY16 Cash and Debt Share Price Deposits $54.4M $50.0M $6.15 30 Sep 2016 30 Sep 20
Slide 10: The Emerging Opportunity in Copper
The Emerging Opportunity in Copper For personal use only Chinese demand has remained strong and is picking up…. ….as the supply surge abates and is absorbed…. ► Several investment banks now predicting that copper may ► The ~4.5% increase in supply in 2016 has mostly come be the next commodity to sta
Slide 11: Exploration and Growth Pipeline
For personal use only Operations, Corporate and Financial Exploration and Growth Pipeline Business Development Sustainability Page: 11
Slide 12: An Outstanding Track Record of Growth through Exploration
An Outstanding Track Record of Growth through Exploration As at 23 November 2016: For personal use only DeGrussa C4 and C5 Discovery DeGrussa / C1 Discovery First diamond hole DGDD-001 Monty JV Discovery intersects 53.2m at 17.3% Cu, 2.5g/t Au Discovery hole and 25.1m at 3.4% Cu and 1.6g/t Au Five h
Slide 13: Exploration – It's in our DNA
Exploration – It’s in our DNA $8M Exploration Budget For personal use only ► Underpinned by strong ongoing cash-flows, Sandfire has invested up to $30M a year in exploration for the past five years: - $20M at DeGrussa-Doolgunna (Western Australia) – FY2017 - $8M on our exploration initiative on Aust
Slide 14: Doolgunna VMS Province – Exploration Overview
Doolgunna VMS Province – Exploration Overview Greater Doolgunna region: 4,180km2 For personal use only ► including 65km strike length of prospective VMS lithologies ► Recent farm-in deal with Enterprise Metals (ASX: ENT) to earn up to 75% interest in tenements to the south ► New ground acquisitions
Slide 15: Development Pipeline – Monty Deposit
Development Pipeline – Monty Deposit Sandfire is Manager of the Springfield JV – For personal use only ► interests Sandfire 70% / Talisman 30% ► Ultra-high grade VMS deposit discovered mid-2015 10km ► Maiden JORC 2012 Indicated and Inferred Mineral Resource estimate – 1.05Mt at 9.4% Cu, 1.6g/t Au: *
Slide 16: Development Pipeline – Monty Deposit
Development Pipeline – Monty Deposit For personal use only ► 16.42km2 Mining Lease Application lodged ► High-level studies completed ► Preferred box-cut location selected ► Feasibility Study well advanced – $3.9M (100%) budget: ► Metallurgical testwork for comminution and flotation ► Geotechnical an
Slide 17: Springfield Joint Venture – Unlocking the Next Discovery Opportunity
Springfield Joint Venture – Unlocking the Next Discovery Opportunity Monty box-cut and decline For personal use only ► geotechnical drilling ► Diamond drilling to test the areas down-dip and down-plunge of Monty, including Monty Deeps ► Systematic aircore and RC drilling, including at Monty NE, Sout
Slide 18: Doolgunna Exploration – 100%-owned Ground
Doolgunna Exploration – 100%-owned Ground For personal use only ► Ongoing diamond drilling in near-mine environment focused on C5 East prospect – lithologies and alteration consistent with proximity to VHMS mineralisation ► Diamond and RC drilling to test geochemical anomalies in Airstrip South, Cam
Slide 19: Australian Regional Exploration Projects
Australian Regional Exploration Projects Targeting world-class discoveries in Australia’s premier exploration provinces For personal use only EXPLORATION: Northern Territory ► Active drilling by JV partners in Borroloola tenements EXPLORATION: Queensland Base Metals ► 2,400km² in Mt Isa-Cloncurry pr
Slide 20: Business Development
For personal use only Operations, Corporate and Financial Exploration and Growth Pipeline Business Development Sustainability Page: 20
Slide 21: Investment in Tintina Resources – Black Butte Copper Project
Investment in Tintina Resources – Black Butte Copper Project 61% stake in copper development company Tintina Resources For personal use only ► (TSX-V: TAU) – ~$24M invested to date ► Developing the Black Butte Copper Project, central Montana, USA ► Advanced, high quality copper project in stable jur
Slide 22: Sustainability
For personal use only Operations, Corporate and Financial Exploration and Growth Pipeline Business Development Sustainability Page: 22
Slide 23: 2016 Safety – Our Priority
2016 Safety – Our Priority Improved safety performance For personal use only ► Increased focus on risk management and assurance processes implemented ► Board oversight and governance enhanced ► Ongoing initiatives have included further development of safety systems, improved safety leadership and en
Slide 24: 2016 Sustainability Report
2016 Sustainability Report For personal use only Page: 24
Slide 25: The DeGrussa Solar Power Project – Fully Operational
The DeGrussa Solar Power Project – Fully Operational 10.6MW solar power farm at DeGrussa now fully operational For personal use only ► ► Fully integrated with existing 19MW diesel-fired power station ► $40M project financed, developed and operated by international consortium ► Establishes DeGrussa a
Slide 26: Awards
For personal use only Awards Page: 26
Slide 27: Summary – Positioned for Growth and Success
Summary – Positioned for Growth and Success For personal use only ► 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 28: Annual General Meeting: Opportunity Redefined
For personal use only 28 November 2016 Annual General Meeting Opportunity Redefined
Slide 29: Mineral Resource, Ore Reserve and Mine Plan
Mineral Resource, Ore Reserve and Mine Plan Table 1 – December 2015 Comparison of the Underground Mine Plan, Mineral Resource and Ore Reserve Contained Copper Contained Gold For personal use only DeGrussa Underground Mine Tonnes (Mt) Copper (%) Gold (g/t) (t) (oz) Mine Plan 8.1 4.4 1.7 357,000 443,0
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