Slide 1: A premier high grade copper-gold producer for global investors
For personal use only A premier high grade copper-gold producer for global investors March 2014 Global Investor Presentation Karl Simich, Managing Director & CEO
Slide 2: Investment Highlights
Investment Highlights A premier high-grade, high margin Australian copper-gold producer • Strong track record of discovery, development and consistent operations For personal use only • Discovered, financed, developed and commissioned the $400M DeGrussa Copper-Gold Mine in under three years • Ramp-u
Slide 3: Corporate Snapshot
Corporate Snapshot A premier high-grade, high margin Australian copper-gold producer For personal use only Bell Potter CIMB Morgans Commonwealth Bank Credit Suisse Deutsche Bank Euroz Goldman Sachs JP Morgan Macquarie Morgan Stanley Patersons UBS Issued Capital Stock Market Index Market Capitalisati
Slide 4: DeGrussa Copper Mine
DeGrussa Copper Mine Sandfire Resources - A premier high grade copper producer for global investors
Slide 5: Strong Production, Revenue and Cash Flow
Strong Production, Revenue and Cash Flow Key production and financial metrics For personal use only DeGrussa is a high-margin operation with cash margins of ~50%
Slide 6: Copper: A Commodity with Strong Market Fundamentals
Copper: A Commodity with Strong Market Fundamentals Strong demand, falling mine grades and rising costs mean that low-cost producers are in a very strong position • Improvement in physical market balance in 2013 despite 8% drop in average price For personal use only • Supply/demand fundamentals rema
Slide 7: Key Pillars for Growth
Key Pillars for Growth Strong production and cash flow: outstanding organic growth opportunity in emerging VMS field Strong Operations – Low Cost, High Margin For personal use only • 100%-owned DeGrussa Copper-Gold Mine • 1.5Mtpa underground Mine and Concentrator Outstanding Organic Growth Potential
Slide 8: Overview of Key Assets
Overview of Key Assets Exposure to prospective mineral provinces: focus on Tier One project opportunities Focus on high-grade, high margin For personal use only • resource assets • Strong skill-set and capabilities in open pit and underground operations • Dominant strategic position in WA’s Bryah Ba
Slide 9: Sandfire – Dominant Position in an Emerging VMS Province
Sandfire – Dominant Position in an Emerging VMS Province Consolidating a strong position in Western Australia’s emerging Bryah Basin VMS copper-gold province For personal use only • Only operating base metals processing plant in the region (1.5Mtpa DeGrussa Concentrator) • Outstanding organic growth
Slide 10: Sandfire – DeGrussa Copper Mine
Sandfire – DeGrussa Copper Mine A premier copper-gold mine producing strong and consistent operating cash flows For personal use only DeGrussa Project – Key Facts: Underground mine (long-hole Mining: open stoping) 10.5Mt @ 4.9% Cu and Underground 1.8g/t Au for 512,000t Cu, mine plan: 597,000oz gold
Slide 11: The Engine Room – DeGrussa Underground Mine
The Engine Room – DeGrussa Underground Mine Efficient underground mining operation delivering ~1.5Mtpa of high-grade sulphide ore • Steady-state 1.5Mtpa For personal use only mining rate – long-hole open stoping with paste-fill • +17km of underground development completed to date • New C1 and C4 dec
Slide 12: Processing and Production
Processing and Production DeGrussa Concentrator operating well with optimisation programs continuing For personal use only • Copper recoveries currently averaging 91.5% and head grade in 5.0-5.5% Cu range • Optimisation underway to further boost copper recovery • Advanced control systems being imple
Slide 13: Near-Mine Exploration: the Next Steps
Near-Mine Exploration: the Next Steps Underground diamond drilling continuing throughout 2014 targeting resource additions and repeats For personal use only • Down-plunge extensions of 2175 C4 DDD Conductor 4 drilled out from 2200 C4 diamond 2200 C4 DDD drill drive and being incorporated in 2014 Min
Slide 14: Near-Mine Exploration: the Next Steps
Near-Mine Exploration: the Next Steps Underground diamond drilling continuing throughout 2014 targeting resource additions and repeats For personal use only • Conductor 5 resource definition drilling program • Conductor 5 exploration drilling program • Drilling to commence in 2H CY2014 when Conducto
Slide 15: DeGrussa is a VMS Project
DeGrussa is a VMS Project Four lenses of mineralization typical of a VMS deposit cluster For personal use only • Classic host sequence of intra-volcanic sediments • Typical seafloor alteration with regionally extensive litho-geochemical signature • Classic VMS sulphide textures, including remnant ch
Slide 16: Global VMS Camps
Global VMS Camps Major resources of global base metal production, generally from multiple deposits • Most significant VMS deposits occur in clusters that define For personal use only major mining camps – major source of global copper, zinc, lead production, eg: • Bathurst (New Brunswick) – 229.8Mt @
Slide 17: Potential of Global VMS Camps
Potential of Global VMS Camps ¹ D. F. Sangster, Quantitative Characteristics of Volcanogenic Massive Sulphide Deposits, Geological Survey of Canada (Ottawa) (1980) For personal use only Volcanic District No. of Deposits Million Tonnes Ore Million Tonnes Metal Area of District (km²) Hokuroku, Japan 1
Slide 18: Doolgunna VMS Field – The Growing Evidence
Doolgunna VMS Field – The Growing Evidence Anomalous aircore drilling results at Cow Hole Bore, Shed Well and Gascoyne West including RC drill locations For personal use only Intercepts as announced in Sandfire’s December 2013 Quarterly Activities Report, dated 21 January 2014. 18
Slide 19: 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 • $1
Slide 20: Summary
Summary A quality Australian mining company focused on shareholder returns For personal use only • A focused copper-gold company with a proven track record • Low-cost, high margin production and cash flow • Rapidly repaying debt: strong surplus operating cash flows • Outstanding organic growth poten
Slide 21: A premier high grade copper-gold producer for global investors
For personal use only A premier high grade copper-gold producer for global investors March 2014 Global Investor Presentation Karl Simich, Managing Director & CEO
Slide 22: Appendix 1: Life-of-Mine Plan
Appendix 1: Life-of-Mine Plan Mine Plan, Mineral Resource and Ore Reserve For personal use only As at 31 March 2013 Mine Plan Mineral Resource Ore Reserve Tonnes (Mt) 10.5 10.2 7.9 - DeGrussa 1.6 1.4 1.6 - Conductor 1 5.5 5.2 5.3 - Conductor 4 1.9 2.1 1.0 - Conductor 5 1.5 1.4 - Cu grade (%) 4.9 5.7
Slide 23: Appendix 2: DeGrussa Ore Reserves and Mineral Resource
Appendix 2: DeGrussa Ore Reserves and Mineral Resource DeGrussa Mine – Underground Ore Reserve Mineral Resource As at March 2013 For personal use only Reserve Tonnes Grade Grade Contained Contained Reserve Tonnes Grade Grade Contained Contained Deposit Category (Mt) (% Cu) (g/t Au) Copper (t) Gold (
Slide 24: Appendix 2: DeGrussa Ore Reserves and Mineral Resource (continued)
Appendix 2: DeGrussa Ore Reserves and Mineral Resource (continued…..) For personal use only DeGrussa Mine – TOTAL Ore Reserve Mineral Resource As at March 2013 Reserve Tonnes Grade Grade Contained Contained Reserve Tonnes Grade Grade Contained Contained Deposit Category (Mt) (% Cu) (g/t Au) Copper (
Slide 25: Appendix: Competent Person's Statements
Appendix: Competent Person’s Statements Competent Person’s Statement – Mineral Resources and Open Pit Ore Reserves • The information in this report that relates to Mineral Resources and Open Pit Ore Reserves is based on information compiled by Mr. Ekow Taylor who is a Member of The Australasian Inst