Sandfire Resources Ltd · ASX:SFR
Sandfire Resources — Q3 FY2018 Earnings Presentation
19 slides from Sandfire Resources's earnings presentation, Apr 27, 2018
Slide 1: March 2018 Quarterly Report Presentation and Webcast
For personal use only March 2018 Quarterly Report Presentation and Webcast – 27 April 2018 Access this presentation at: http://webcasting.brrmedia.com/broadcast/5aaaeaf8271b41638bdc7495 or http://www.sandfire.com.au 1
Slide 2: 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 3: Competent person's statements
Competent person’s statements DeGrussa and Monty Mineral Resource For personal use only The information in this report that relates to the DeGrussa Mineral Resource is based on information compiled by Mr Callum Browne who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Browne
Slide 4: Competent person's statements
Competent person’s statements Thaduna and Green Dragon Mineral Resource For personal use only The information in this report that relates to the Thaduna and Green Dragon Mineral Resource is based on information compiled by Mr Ekow Taylor who is a Member of The Australasian Institute of Mining and Me
Slide 5: Agenda
Agenda For personal use only ► Highlights ► Safety ► Operations and costs ► Development ► Mine Plan, Ore Reserve and Mineral Resource ► Exploration ► Summary 5
Slide 6: March 2018 Quarterly Highlights
March 2018 Quarterly Highlights Production and Operations For personal use only ► March 2018 Quarter: 15,531t copper and 10,926oz gold produced; C1 US$0.97/lb ► FY2018 year-to-date: 47,052t copper and 29,725oz gold produced; C1 US$0.98/lb ► FY2018 guidance: 63-66kt of contained copper (maintained),
Slide 7: Safety
Safety ► Total Recordable Injury Frequency Rate (TRIFR) of 6.4 at Quarter-end For personal use only (vs. 4.6 at December 2017 Quarter-end) ► Principal hazard management – key theme to improve safety culture ► Focus continues to be applied to improving safety leadership, culture and assurance of crit
Slide 8: Operations – Mining
Operations – Mining For personal use only Underground production ► Total ore production for the Quarter of 409,457 tonnes grading 4.2% Cu ► Mine remains in balance between production and back-fill ► Updated DeGrussa and Monty Mine Plan announced 8
Slide 9: Operations – Processing
Operations – Processing Mill throughput For personal use only ► 398,985 tonnes milled at average feed grade of 4.3% Cu Recovery ► Quarterly copper recovery of 91.0%; Gold recovery 44.6% (FY2018 guidance: copper ~92%, gold ~44%) Concentrate & metal production ► 64,051 tonnes of concentrate produced ►
Slide 10: Operations – Capital programs
Operations – Capital programs Additional concentrate thickener & filter For personal use only ► Expected to commence commissioning Q4 FY2018 ($12M) ► Increases peak concentrate capacity to 400,000tpa ahead of Monty ore blending from Q2 FY2019 10
Slide 11: Development – Monty Copper-Gold Project
Development – Monty Copper-Gold Project For personal use only ► Sandfire is Manager of the Springfield JV – interests Sandfire 70%/Talisman 30% ► Decline works ahead of schedule ► Works complete • Haul and access roads • Excavation of box cut for underground access • Stockpile and laydown area pads
Slide 12: Updated Mine Plan, Ore Reserve and Mineral Resource
Updated Mine Plan, Ore Reserve and Mineral Resource ► Updated DeGrussa and Monty Mine For personal use only Plan (Monty at 100%): ►6.6Mt at 5.0% Cu and 1.7g/t Au (332,000t Cu, 354,000oz Au) ► Updated Underground Ore Reserve, incorporating Monty (Monty at 70%): ►6.4Mt at 4.9% Cu and 1.7g/t Au (311,00
Slide 13: Operations – Sales
Operations – Sales ►March 2018 Quarter: Sales of 62,666 tonnes of concentrate (dry) containing 15,180 tonnes of For personal use only copper (14,532 tonnes payable) and 9,922 ounces of gold (9,244 ounces payable) ►6 shipments completed for the quarter 13
Slide 14: Operations – Q3FY2018 Unit Operating Costs
Operations – Q3FY2018 Unit Operating Costs Q3 YTD For personal use only Unit costs – DeGrussa Mine FY2018 FY2018 Commentary (US$/lb) (US$/lb) Mining (net of development) 0.49 0.48 FY2018 C1 unit cost guidance reduced to Processing 0.35 0.32 ~US$0.95-1.00/lb (previously US$1.00-1.05/lb). Business ser
Slide 15: Development and Growth – Black Butte Copper Project, USA
Development and Growth – Black Butte Copper Project, USA For personal use only ► 78% stake in Black Butte Copper Project, central Montana (via stake in Sandfire Resources America Inc) ► Advanced, high quality copper project in stable jurisdiction: – Mineral Resource: 18Mt at 3.3% Cu, 14g/t Ag, 0.10%
Slide 16: Doolgunna Exploration Overview
Doolgunna Exploration Overview Exploration continuing as a priority along highly prospective VMS For personal use only ► corridor that hosts the DeGrussa and Monty deposits: – DDH drilling at Monty NE to test geochemical anomalies and provide DHEM platforms. – RC and DDH drilling within the Vulcan a
Slide 17: Doolgunna Exploration Overview
Doolgunna Exploration Overview ► Exploration advancing at multiple prospects within Greater Doolgunna area: For personal use only ► 41,101m AC/RAB drilling ► 5,800m RC drilling ► 12,021m surface and underground DD drilling ► Total Tenure – 6,276km2 17
Slide 18: Summary & Outlook
Summary & Outlook For personal use only ► Production and cost performance – FY2018 year-to-date: 47,052t copper and 29,725oz gold produced; C1 US$0.98/lb – FY2018 guidance: 63-66kt of contained copper (maintained), 38-40koz of contained gold (increased); C1 costs US$0.95-$1.00/lb (reduced) – Monty u
Slide 19: Contact Details: Sandfire Resources NL
For personal use only Contact Details: Sandfire Resources NL Registered Office and Principal Place of Business Level 1, 31 Ventnor Avenue, West Perth, Western Australia 6005 T +61 8 6430 3800 / F +61 8 6430 3849 www.sandfire.com.au 19