Sandfire Resources Ltd · ASX:SFR
Sandfire Resources — Sandfire Resources NL — Q1 FY2018 Earnings Presentation
20 slides from Sandfire Resources's earnings presentation, Oct 19, 2017
Slide 1: September 2017 Quarterly Report Presentation and Webcast
September 2017 Quarterly Report Presentation and Webcast 19 October 2017 Access this presentation at: http://webcasting.boardroom.media/broadcast/59d2d99c43412 343aeab2af4 or http://www.sandfire.com.au First cut into the new underground portal at the Monty Copper-Gold Mine 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: Competent person's statements
Competent person’s statements DeGrussa and Monty Mineral Resource and Ore Reserve The information in this report that relates to the DeGrussa and Monty Mineral Resource is based on information compiled by Mr Ekow Taylor who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Taylo
Slide 4: Competent person's statements
Competent person’s statements Temora Project Mineral Resource The information in this report that relates to the Dam, Cullingerai, Estoril, Mandamah, Yiddah and Gidginbung Mineral Resources is based on information compiled by Mr Ross Corben who is a Fellow of The Australasian Institute of Mining and
Slide 5: Agenda
Agenda ► Highlights ► Safety ► Operations and costs ► Group Mineral Resource ► Development ► Exploration ► Summary 5
Slide 6: September 2017 Quarterly Highlights
September 2017 Quarterly Highlights Production and Operations ► September 2017 Quarter: 15,258t copper and 10,669oz gold produced; C1 US$0.95/lb ► FY2018 guidance maintained: 63-66kt of contained copper, 35-38koz of contained gold; C1 costs US$1.00-1.05/lb ► Group Ore Reserve and Mineral Resource re
Slide 7: Safety
Safety ► Total Recordable Injury Frequency Rate (TRIFR) of 6.4 at Quarter-end (vs. 4.9 at June 2017 Quarter-end) ► Principal hazard management – ongoing ► Focus continues to be applied to improving safety leadership, culture and assurance of critical controls 10 TRIFR 8 6 4 2 0 Sep'15 Dec'15 Mar'16
Slide 8: Operations – Mining
Operations – Mining Underground production ► Total ore production for the Quarter of 437,136 tonnes grading 3.8% Cu ► Mine remains in balance between production and back-fill ► Stopes mined during the quarter from C1 included high talc levels, expected to continue into the December 2017 Quarter and
Slide 9: Operations – Processing
Operations – Processing Mill throughput ► 413,834 tonnes milled at average feed grade of 4.1% Cu Recovery ► Quarterly copper recovery of 91.1%; Gold recovery 46.0% (FY2018 guidance: copper ~92%, gold ~44%) ► Improvements to overall recovery capacity with additional rougher flotation capacity ► Howev
Slide 10: Operations – Capital programs
Operations – Capital programs Underground pumping station ► Commenced commissioning ► Planning for C4 and C5 drilling Rougher column cell ► Commenced commissioning early July 2017 ► Initial positive signs in copper recovery and concentrate grade – expecting ~1.4% improvement (based on comparable Cu:
Slide 11: Development – Monty Copper-Gold Project
Development – Monty Copper-Gold Project ► Sandfire is Manager of the Springfield JV – interests Sandfire 70%/Talisman 30% ► Works progressing on schedule - Haul and access roads - Excavation of box cut for underground access - Decline works commenced - Stockpile and laydown area pads - Infrastructur
Slide 12: Operations – Sales
Operations – Sales ► September 2017 Quarter: Sales of 52,487 tonnes of concentrate (dry) containing 12,664 tonnes of copper (12,134 tonnes payable) and 8,245 ounces of gold (7,650 ounces payable) ► 5 shipments completed for the quarter, additional shipment and revenue received in early October 2017
Slide 13: Operations – Q1FY2018 Unit Operating Costs
Operations – Q1FY2018 Unit Operating Costs Q1FY2018 Unit costs – DeGrussa Mine Commentary (US$/lb) Mining (net of development) 0.49 Processing 0.31 Higher mining unit costs as previously guided due to increased Business services 0.10 depth, increased number of stopes and reducing capital development
Slide 14: Group Mineral Resource
Group Mineral Resource Black Butte 18.0Mt @ 3.3% Cu, 14g/t Ag 597kt Cu and 0.10% Co 7,980koz Ag DeGrussa 18kt Co 9.5Mt @ 4.2% Cu, 1.6g/t Au and 21g/t Ag Thaduna & Green Dragon 400kt Cu 8.2Mt @ 1.8% Cu and 4g/t Ag 500koz Au 150kt Cu 963koz Ag 6,425koz Ag 69kt Cu 39koz Au 400koz Ag 728kt Cu Monty 2,20
Slide 15: Development and Growth – Black Butte Copper Project, USA
Development and Growth – Black Butte Copper Project, USA ► 78% stake in Black Butte Copper Project, central Montana (via stake in Tintina Resources Inc) ► Advanced, high quality copper project in stable jurisdiction: – Mineral Resource: 18Mt at 3.3% Cu, 14g/t Ag, 0.10% Co for 597,000t of copper, 7,9
Slide 16: Doolgunna Exploration Overview
Doolgunna Exploration Overview ► Exploration continuing as a priority along highly prospective VMS corridor that hosts the DeGrussa and Monty deposits: – RC drilling along-strike from the Monty deposit to confirm the current interpretation of the Monty host horizon and infill the DHEM pattern in the
Slide 17: Doolgunna Exploration Overview
Doolgunna Exploration Overview ► Exploration advancing at multiple prospects within Greater Doolgunna area: ► 69,169m of AC/RAB and RC drilling during the quarter ► Total Tenure – 5,846km2 17
Slide 18: Summary & Outlook
Summary & Outlook ► Production and cost performance – Q1FY2018: 15,258t contained copper, 10,669oz contained gold, C1 costs $0.95/lb – FY2018 Guidance maintained: 63-66kt contained copper, 35-38koz contained gold, C1 costs $1.00-1.05/lb – Monty under development; first ore scheduled Q2 FY2019 ► Prog
Slide 19: Appendix: Group Ore Reserve and Mineral Resource
Appendix: Group Ore Reserve and Mineral Resource Group Mineral Resource: DeGrussa, Monty, Black Butte, Thaduna, Green Dragon and Temora Projects are estimated to contain 1.9Mt of copper, 2.7Moz of gold and 15.8Moz of silver. Group Ore Reserve: DeGrussa Copper-Gold Mine (100%-owned) and Monty Cop
Slide 20: Contact Details: Sandfire Resources NL
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 20
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