Sandfire Resources Ltd · ASX:SFR
Sandfire Resources — Diggers & Dealers 2012
30 slides from Sandfire Resources's conference presentation, Aug 6, 2012
Slide 1: A new chapter: Australia's newest copper producer
For personal use only A new chapter Australia’s newest copper producer Diggers & Dealers – August 2012
Slide 2: Important Information and Disclaimer
Important Information and Disclaimer Forward-looking statements and Competent Person’s Statement Competent Person’s Statement • The information in this public presentation that relates to Exploration Results and Mineral Resources is based on information compiled by Mr John Evans who is a Fellow of F
Slide 3: Sandfire – Our Vision
Sandfire – Our Vision A mining company focused on shareholder returns • Deliver superior returns to our owners from the premier high- For personal use only grade DeGrussa VMS copper-gold mine • Discover additional VMS deposits within the emerging Doolgunna mineral field • Explore for, develop and mi
Slide 4: Sandfire – Snapshot
Sandfire – Snapshot A position of strength and opportunity • Discovery to production: less than 3 years (2009 to 2012) For personal use only • Delivery of project milestones on time and on budget • Open pit operations and DSO shipments underway • Construction and development approaching completion:
Slide 5: Corporate Snapshot
Corporate Snapshot Australia’s newest copper producer For personal use only Issued Capital 151.6M Shares, 9.3M options Board Derek La Ferla Non-executive Chairman Karl Simich Managing Director / CEO Market Capitalisation ~$1 billion W. John Evans Executive Technical Director Key Projects DeGrussa (D
Slide 6: Sandfire – the Strategy
Sandfire – the Strategy A multi-pronged approach to building a leading diversified mining company For personal use only • DeGrussa Project • Targeting additional • Zinc-lead: NT • Copper-gold • Targeting quality • 77ktpa Cu, VMS deposits/ • IOCG Cu-Au: QLD, exploration in Chile, assets which can 36o
Slide 7: Sandfire – the Strategy
Sandfire – the Strategy A multi-pronged approach to building a leading diversified mining company For personal use only • DeGrussa Project • Targeting additional • Zinc-lead: NT • Copper-gold • Targeting quality • 77ktpa Cu, VMS deposits/ • IOCG Cu-Au: QLD, exploration in Chile, assets which can 36o
Slide 8: Project – Key Facts
DeGrussa Project – Key Facts Mining operation taking shape For personal use only Mining: Open pit + underground Mine Life: +7 years Processing: +1.5Mtpa on-site concentrator 10.72Mt @ 5% Cu, 1.7g/t Au Production: 541kt Cu, 599koz Au Open pit DSO 38kt Cu (25.6%), 12koz Au (2.5g/t) contained Ore Reser
Slide 9: Hitting the milestones – April 2011
DeGrussa – hitting the milestones Discovery to production in three years… • April 2011 For personal use only Underground and open pit mine development commenced Page: 9
Slide 10: Hitting the milestones – June 2011
DeGrussa – hitting the milestones Discovery to production in three years… • June 2011 For personal use only Definitive Feasibility Study delivered Page: 10
Slide 11: Hitting the milestones – September 2011
DeGrussa – hitting the milestones Discovery to production in three years… • September 2011 For personal use only $390M Project Loan Facility Page: 11
Slide 12: Hitting the milestones – November 2011
DeGrussa – hitting the milestones Discovery to production in three years… • November 2011 For personal use only First DSO sales contract signed Page: 12
Slide 13: Hitting the milestones – February 2012
DeGrussa – hitting the milestones Discovery to production in three years… • February 2012 For personal use only First DSO and underground ore mined Page: 13
Slide 14: Hitting the milestones – May 2012
DeGrussa – hitting the milestones Discovery to production in three years… • May 2012 For personal use only First shipment of DSO Page: 14
Slide 15: Hitting the milestones – July 2012
DeGrussa – hitting the milestones Discovery to production in three years… • July 2012 For personal use only First copper concentrate sales contract signed Page: 15
Slide 16: Hitting the milestones – September 2012
DeGrussa – hitting the milestones Discovery to production in three years… • September 2012 For personal use only Concentrator commissioning Page: 16
Slide 17: Growth Potential
DeGrussa – Growth Potential Targeting first production from Oxide Copper Ore Reserves by mid-CY 2013 For personal use only • Maiden Oxide Copper Ore Reserve (Proved + Probable) for DeGrussa open pit • 1.04Mt @ 2.3% Cu (23kt contained copper) • Suitable processing route developed • Design studies and
Slide 18: Sandfire – the Strategy
Sandfire – the Strategy A multi-pronged approach to building a leading diversified mining company For personal use only • DeGrussa Project • Targeting additional repeat • Zinc-lead: NT • Copper-gold • Targeting quality • 77ktpa Cu, VMS deposits/ lenses • IOCG Cu-Au: QLD, exploration in Chile, assets
Slide 19: Corridor of Riches
DeGrussa – “Corridor of Riches” Minimal exploration conducted along +30km prospective corridor For personal use only • VMS mineralising environment confirmed over +30km long, 1.2km wide corridor • Minimal exploration below 100m: host sequence at depth still to be explored • DeGrussa deposit extends
Slide 20: Exploration
DeGrussa Exploration Focus on discovering additional high-value VMS copper-gold deposits at Doolgunna • +$20M exploration budget over next 12 months For personal use only • Systematic and scientific approach • Extensive regional drilling to define prospective VMS sequences • Re-logging and spectral
Slide 21: Sandfire – the Strategy
Sandfire – the Strategy A multi-pronged approach to building a leading diversified mining company For personal use only • DeGrussa Project • Targeting additional • Zinc-lead: NT • Copper-gold • Targeting quality • 77ktpa Cu, VMS deposits/ • IOCG Cu-Au: QLD, exploration in Chile, assets which can 36o
Slide 22: Australian Regional Exploration
Australian Regional Exploration Extensive portfolio with a focus on discovering Tier One deposits • Reviewing high-quality, asset-driven exploration For personal use only opportunities in Australia • Focus outside Doolgunna is on IOCG copper-gold, porphyry-style copper-gold and lead-zinc-silver • $5
Slide 23: Sandfire – the Strategy
Sandfire – the Strategy A multi-pronged approach to building a leading diversified mining company For personal use only • DeGrussa Project • Targeting additional • Zinc-lead: NT • Copper-gold • Targeting quality • 77ktpa Cu, VMS deposits/ • IOCG Cu-Au: QLD, exploration in Chile, assets which can 36o
Slide 24: International Exploration and Business Development
International Exploration and Business Development Focused team seeking opportunities globally • Targeting high quality, asset-driven opportunities For personal use only • Projects with genuine potential to add value • Strong focus in South America • Copper-gold, gold, base metals • In-house Busines
Slide 25: Sandfire Summary
Sandfire Summary Australia’s newest copper producer entering its next chapter of growth For personal use only • DeGrussa development nearing completion: Q3 2012 • Concentrator commissioning: Q3 2012 • High-margin production profile • Exceptional cash flow • Exploration to establish a VMS copper-gold
Slide 26: A new chapter: Australia's newest copper producer
For personal use only A new chapter Australia’s newest copper producer Diggers & Dealers – August 2012
Slide 27: Appendix: Competent Person's Statements
Appendix: Competent Person’s Statements Competent Person’s Statement – Mineral Resources • The information in this report that relates to Mineral Resources (except the Indicated Resource of Supergene Chalcocite) is based on information compiled by Diederik Speijers who is a Fellow of the Australasia
Slide 28: Appendix – DeGrussa: Mineral Resources
Appendix – DeGrussa: Mineral Resources Table 1: DeGrussa Copper-Gold Project – Mineral Resource Statement as at 31 March 2012 For personal use only Resource Tonnes Copper Contained Contained Competent Gold (g/t) Zone - in situ Category (mt) (%) Copper (t) Gold (oz) Person Au Laterite Measured 0.04 0
Slide 29: Appendix – DeGrussa: Ore Reserves
Appendix – DeGrussa: Ore Reserves Table 2: DeGrussa Copper-Gold Project – 31 March 2011 Ore Reserve Statement For personal use only Reserve Treatment Deposit Tonnes Copper Gold Contained Contained Classification Destination Material (Mt) (%) (g/t) Copper (t) Gold (oz) Proved Ore Sale Laterite Gold 0
Slide 30: Appendix – DeGrussa: Ore Reserves
Appendix – DeGrussa: Ore Reserves Table 3: DeGrussa Copper-Gold Project – Ore Reserve Statement as at 31 March 2012 For personal use only Tonnes Copper Gold Contained Contained Deposit Reserve Category Mining Method (Mt) (%) (g/t) Copper (t) Gold (oz) Laterite Gold Proved Open Pit 0.10 - 3.0 - 9,000