Slide 1: March 2022 Quarterly Report Presentation
March 2022 Quarterly Report Presentation 28 April 2022 Access the live webcast of this presentation commencing at 10.00am (AWST) / 12.00pm (AEDT) at the link below: SANDFIRE WEBCAST
Slide 2: Important Information and Disclaimer
Important Information and Disclaimer This presentation has been prepared by Sandfire Resources Ltd (Sandfire or the Company) and contains information about Sandfire Key assumptions current at the date of this presentation. The presentation is in summary form, has not been independently verified and
Slide 3: Where we operate
Where we operate Creating Value through Opportunity Operating Mines Development Phase Study Phase Exploration 3
Slide 4: Our Strategy and Our Values
Our Strategy Execute Sustain and Grow Accelerate Align and Empower Optimise Capital Delivery Our Production Discovery Our People Strategy and Pipeline Engagement Our Values Honesty Respect Collaboration Accountability Performance Creating Value through Opportunity 4
Slide 5: Executing Our Strategy
Executing Our Strategy Execute Sustain and Grow Accelerate Align and Optimise Capital Delivery Our Production Discovery Empower Strategy and Pipeline Our People Engagement MATSA Establishing Drill to extend Mineral Unlocking our highly Focus on global integration Financial leverage to Spain producti
Slide 6: Q3 FY2022 Delivering growth
Q3 FY2022 Delivering growth In US$ (Unaudited) $343.1M Delivering Production Global Motheo $390.5M strong Sales revenue growth in guidance opportunities construction cash holding high-margin strengthened for near-mine on time and $213.4M production operating cost extensions budget Net debt $409.5M O
Slide 7: Q3 FY2022 HSEC Snapshot
Q3 FY2022 HSEC Snapshot The safety, health and wellbeing of our people is integral to our success Total Recordable Injury Continued focus on employee and Sandfire introduces the Youth Frequency Rate (TRIFR) contractor health and wellbeing Development Program in Botswana of 5.1 at Quarter-end during
Slide 8: Q3 FY2022 Operations Highlights
Q3 FY2022 Operations Highlights Copper Dominant Revenue Stream Q3 FY2022 Production: FY2022 Production Guidance: 28,774t Copper 92-95kt Copper 13% 16,027t Zinc ~38kt Zinc 1,901t Lead ~3kt Lead 6,956oz Gold 30-34koz Gold 80% 619,836oz Silver ~1.4Moz Silver Value of Payable Metal Sold Contained metal
Slide 9: FY2022 Rising Production Profile
FY2022 Rising Production Profile 35,000 Delivering into Strong Commodity 30,000 Markets 25,000 Copper and zinc prices have continued to move 20,000 higher, driven by global economic growth and the accelerating transition to a lower-carbon future 15,000 10,000 Rising operating margins as commodity pr
Slide 10: Q3 FY2022 Production Pipeline and Discovery
Q3 FY2022 Production Pipeline and Discovery Motheo Copper Mine construction in Feasibility Studies Global Exploration Botswana progressing on schedule • Definitive Feasibility Study (DFS) for the • Centralised global operating model for • Construction activities continued to ramp 5.2Mtpa Motheo expa
Slide 11: FY2022 Group Guidance
FY2022 Group Guidance In US$ (Unaudited) Production: FY2022 C1 Capital expenditure: Exploration, evaluation MATSA D+A indicative 92-95kt~96% Cu unit costs: ~$62M Mine and studies: ~$200M per annum ~38kt~83% Zn ~$1.19/lb Cu development ~$65M Guidance to follow ~3kt~88% Pb payable completion of purcha
Slide 12: Q3 FY2022 Headline Financial Results
Q3 FY2022 Headline Financial Results In US$ (Unaudited) Sales revenue Group EBITDA Group EBITDA $169.4M Capital Q3 $343.1M Q3 $186.9M Margin Q3 cash flow from expenditure YTD $654.8M YTD $348.5M Q3 54% operating activities Q3 $60M YTD 53% YTD $362.5M YTD $119M prior to exploration, evaluation and ta
Slide 13: Q3 FY2022 Segment EBITDA Contribution
250 Q3 FY2022 MATSA DeGrussa Segment EBITDA 200 98.6 (4.7) (4.5) 186.9 Contribution Feasibility studies, drilling (17.3) and permitting 150 In US$M (Unaudited) 114.8 100 50 0 Operations EBITDA Black Butte Motheo Exploration & Other Group EBITDA Creating Value through Opportunity 13
Slide 14: Q3 FY2022 Cash Flow Waterfall
2,000 650.0 Q3 FY2022 1,800 1,600 Cash Flow 1,400 Waterfall 1,200 1,201.7 1,000 In US$M (Unaudited) 800 600 172.2 390.5 400 (77.2) (24.5) (8.8) ( 8.0 ) (1,515.0) 200 - Opening Cash Debt MATSA DeGrussa and Growth Income tax Dividends Other Closing Cash - - 1 January Drawdown Acquisition MATSA cash 31
Slide 15: Q3 FY2022 Financial Position
Q3 FY2022 Financial Position In US$ (Unaudited) Building a strong financial position to Group cash holdings and deposits Finance facilities support our growth strategy • Net debt $409.5M at Quarter-end • US$650M MATSA Facility Drawn • Well placed for Corporate and MATSA debt • AU$200M (~US$150M) Cor
Slide 16: MATSA Copper Operations
MATSA Copper Operations MATSA Mining Operations Exploration • Aguas Teñidas Mine • Iberian Pyrite Belt tenure • Magdalena Mine • Sotiel Mine • 4.7Mtpa processing plant Creating Value through Opportunity
Slide 17: MATSA Acquisition Completed
MATSA Acquisition Completed In US$ (Unaudited) Transaction Financing Facility Hedging in place Acquisition completed 1 February 2022 • $650M drawn and facility syndication • 3-year copper and zinc hedging program utilising: • High quality international banking group completed • $905M equity raising
Slide 18: MATSA Integration and Optimisation
MATSA Integration and Optimisation Operational Integration Optimise and Implement 5-year Plan Establish a base for multi- • Operational excellence practices • Safety improvement – driving culture and decade operations • Alignment of policies and standards accountability • Group-wide in-person strate
Slide 19: Q3 FY2022 MATSA Production
t % 800,000 8.0 23.6 23.4 700,000 7.0 Q3 FY2022 600,000 6.0 MATSA Production 5.8 2 months to March 2022 500,000 5.0 4.3 400,000 4.0 In US$ (Unaudited) 3.1 300,000 3.0 3.0 2.9 Production: Sales: Operations EBITDA: 2.7 2.4 12,536t Cu95% 11,764t Cu $98.6M 2.1 2.3 200,000 2.0 16,027t Zn83% 13,433t Zn Op
Slide 20: Q3 FY2022 MATSA Base Metal Concentrates
Q3 FY2022 26% $189M MATSA Base Metal Concentrates 66% 2 months to March 2022 Value of Payable Metal Sold Copper Zinc Lead Silver In US$ (Unaudited) Concentrate Recovery (%) Tonnes Cu (%) Zn (%) Pb (%) Ag (g/t) 4.0 4.2 3.2 Cu concentrate (Cupriferous) 87 19,826 22 - - 70 Cu concentrate (Polymetallic)
Slide 21: FY2022 MATSA Production Guidance
t % 2,000,000 8.0 1,800,000 23.6 23.4 7.0 FY2022 1,600,000 6.0 MATSA Production Guidance 1,400,000 5 months to June 2022 1,200,000 4.8 5.0 1,000,000 4.0 3.8 In US$ (Unaudited) 800,000 3.0 2.9 2.7 2.7 Production: Capital expenditure: 600,000 2.5 2.5 ~27kt Cu~95% ~$32M Mine 1.8 1.9 2.0 ~38kt Zn~83% de
Slide 22: FY2022 MATSA Base Metal Concentrates Guidance
FY2022 MATSA Base Metal Concentrates Guidance 5 months to June 2022 Unaudited Concentrate Recovery (%) Tonnes Cu (%) Zn (%) Pb (%) Ag (g/t) 4.0 4.2 3.2 Cu concentrate (Cupriferous) ~87 ~38,000 ~23 - - ~71 Cu concentrate (Polymetallic) ~72 ~92,000 ~21 - - ~163 Zn concentrate ~76 ~82,000 - ~48 - ~134
Slide 23: Q3 FY2022 MATSA Unit Costs
Indicative Margin and Cash Cost Summary 5.0 23.6 4.85 23.4 Q3 FY2022 4.0 MATSA Unit Costs 3.43 C1 cash cost buildup (US$/lb payable Cu) 3.0 0.72 2 months to March 2022 2.0 0.62 0.15 0.21 0.61 0.73 0.94 1.0 0.88 In US$ (Unaudited) 1.38 1.19 - Q3 achieved FY2022 C1 Strong margins with copper - C1 Guid
Slide 24: Q3 FY2022 MATSA Operating Costs
€M 120 Q3 FY2022 100 MATSA Operating Costs 80 In €M (Unaudited) Commodity pricing outpacing cost inflation 60 Stronger cash flow margins despite: • Spike in European energy prices – 27% higher than budget levels with relief in sight from EU 40 measures • Global inflation • Labour, cement, spares, se
Slide 25: Q3 FY2022 MATSA Energy Costs
Q3 FY2022 € /MWh Spanish Power Price MATSA Energy Costs 600 500 Historic spike in Response European energy • European Union measures costs announced for Spain and 400 • Spanish energy grid fed by Portugal increasing level of • Current estimate at lower 300 renewables Euro150/MWh for May • However, m
Slide 26: MATSA Exploration: Reserve Growth and Exploration Potential
MATSA Exploration Reserve Growth and Exploration Potential Concepcion Focus on Reserve growth and near-mine extensions Magdalena Concepcion • Five rigs active on infill drilling for Aguas Tenidas Reserve conversion and Poderosa exploring near-mine extensions • Resource update expected in June 2022 Q
Slide 27: DeGrussa Copper Operations
DeGrussa Copper Operations DeGrussa Operations Exploration • DeGrussa Copper-Gold Mine • Doolgunna VMS Province • Monty Copper-Gold Mine • Old Highway Gold Project Creating Value through Opportunity
Slide 28: DeGrussa: Continuing to deliver safely
DeGrussa Continuing to deliver safely Production Costs COVID-19 impacts and response Strong quarterly production despite • Continuing cost pressures reflect • Limited impact on copper production to date with industry labour shortages and rising inflation in the mining industry and low case numbers a
Slide 29: Q3 FY2022 DeGrussa Physicals
t % Q3 FY2022 450,000 7.0 DeGrussa Physicals 400,000 6.1 6.0 350,000 5.0 300,000 4.4 4.0 4.0 250,000 In US$ (Unaudited) 200,000 3.1 3.0 150,000 Production: Sales: Operations EBITDA: 2.0 16,238t Cu96% 19,019t Cu $114.8M 100,000 6,956oz Au87% 7,422oz Au Operations EBITDA 3.8 1.3 1.2 1.3 1.3 68,825oz A
Slide 30: Q3 FY2022 DeGrussa Copper Concentrate
7% Q3 FY2022 $195M DeGrussa Copper Concentrate 92% 3 months to March 2022 Value of Payable Metal Sold Copper Gold Silver In US$ (Unaudited) Concentrate Recovery (%) Tonnes Cu (%) Au (g/t) Ag (g/t) 4.0 4.2 3.2 Cu concentrate 94.4 69,021 23.5 41.6 3.1 58.6 31.0 Creating Value through Opportunity 30
Slide 31: FY2022 DeGrussa Physicals Guidance
t % FY2022 1,800,000 7.0 DeGrussa Physicals Guidance 1,600,000 6.0 6.0 1,400,000 5.0 1,200,000 4.2 4.3 1,000,000 4.0 3.6 In US$ (Unaudited) 800,000 3.0 600,000 2.0 YTD Production: FY Production: Capital expenditure: 400,000 1.4 1.4 1.4 1.4 50,859t Cu96% 65-68kt Cu~96% ~$30M Mine 23,210oz Au89% 30-34
Slide 32: FY2022 DeGrussa Copper Concentrate Guidance
FY2022 DeGrussa Copper Concentrate Guidance 12 months to June 2022 Unaudited Concentrate Recovery (%) Tonnes Cu (%) Au (g/t)4.2 Ag (g/t) 4.0 3.2 Cu concentrate ~93 ~280,000 ~23 ~45 ~4 ~57 ~31 Creating Value through Opportunity 32
Slide 33: Q3 FY2022 DeGrussa Unit Costs
Indicative Margin and Cash Cost Summary 5.0 23.6 23.4 Q3 FY2022 4.0 4.14 4.29 DeGrussa Unit Costs C1 cash cost buildup (US$/lb, payable Cu) 3 months to March 2022 3.0 2.0 In US$ (Unaudited) 0.56 0.57 1.24 1.10 Achieved YTD C1: Strong margins with 1.0 0.12 0.13 0.34 copper - C1 $1.16/lb Cu higher bas
Slide 34: DeGrussa Exploration: Testing deep targets at Doolgunna
DeGrussa Exploration Testing deep targets at Doolgunna Drilling commenced on the Doolgunna Deeps program • Homestead target drilled to 866m intersecting mine sequence • Downhole geophysics to be completed in 4QFY2022 • Native copper intersected in several drill holes on the Auris JV • Limited Easter
Slide 35: Motheo Copper Project
Motheo Copper Project Motheo Copper Mine Exploration • T3 Deposit Open Pit Development • Motheo Expansion Project • A4 Deposit Expansion Project • Kalahari Copper Belt tenure Creating Value through Opportunity
Slide 36: Motheo: Building a world-class copper mine
10% Motheo 90% Building a world-class copper mine Indicative FS Project Revenue Split Copper Silver Development of Sandfire’s Sandfire intends to fund the 5.2Mtpa Motheo Expansion Case DFS development of the Motheo Copper remains on schedule for completion in Motheo Copper Mine in the June 2022 Quar
Slide 37: Motheo Copper Mine Development Timeline
Motheo Copper Mine | Development Timeline Mining License Approval & Land Titles Accommodation Village EMP Process Plant Engineering & Pre-Construction Works Accommodation Facility 132KV Powerline & Substations Design & Construction Process Plant Construction Mining Contractor Mobilisation & Establis
Slide 38: Motheo Copper Mine Key Progress
Motheo Copper Mine Key Progress Hitachi EX 2600 Mining Commences Mining Commences • Development is proceeding on schedule and on budget • T3 Open Pit mining commences Construction camp Process Plant Lined Ponds Grinding Area Creating Value through Opportunity 38
Slide 39: Motheo Mine Construction & Development Capital
$ $ 80,000,000 320,000,000 23.6 Motheo Copper Mine 70,000,000 280,000,000 60,000,000 240,000,000 Mine Construction 50,000,000 200,000,000 & Development Capital 40,000,000 160,000,000 30,000,000 120,000,000 In US$ (Unaudited) 20,000,000 80,000,000 10,000,000 40,000,000 0 - Q3 FY21 Q4 FY21 Q1 FY22 Q2
Slide 40: Motheo Exploration: Dominant position in an emerging belt
Motheo Exploration Dominant position in an emerging belt Near-mine and regional drilling underway Two drill rigs active around Motheo targeting high-grade mineralisation at T3 and the A1 Dome • Five drill rigs testing high-priority regional targets • Nickel sulphide exploration commenced in the Okwa
Slide 41: Black Butte Copper Project
Black Butte Copper Project Great Falls • Black Butte Expansion Project Helena Black Butte Copper Project (87%-owned) Exploration Black Butte • Johnny Lee Deposit • Regional exploration Bozeman • Lowry Deposit Creating Value through Opportunity
Slide 42: Black Butte: Doing it right from the beginning
Black Butte Doing it right from the beginning Feasibility Study Mineral Resource drilling Legal Challenge • Johnny Lee Feasibility Study • Successful Lowry Deposit drilling • Initial legal challenge decision not optimisation continuing targeting campaign concluded favourable to the permitted project
Slide 43: Summary
Summary Creating Value through Opportunity
Slide 44: Key Takeaways
Key Takeaways Strong growth platform Global vision Copper-dominant mining Our transformation into a diversified, operations in Spain and Australia international and sustainable mining generating strong operating cash- company is underway flows New Production Hubs Strong Pipeline Refreshed and focuse
Slide 45: A Global Miner poised for a new era of growth
A Global Miner poised for a new era of growth Scale One of the largest copper-focused miners on the ASX Future-facing Producing critical metals for a low-carbon future Growth Pivoting to new long-life mines in Spain, Botswana and USA Exploration Four world-class mineral provinces Creating Value thro
Slide 46: Appendices
Appendices 23.6 23.4 Appendices (Unaudited) Appendix 1a and 1b Operating Physicals – MATSA Appendix 2a and 2b Operating physicals – DEGRUSSA Appendix 3 Operating physicals – GROUP Appendix 4a and 4b Operating costs – GROUP Appendix 5 Capital expenditure – GROUP Appendix 6 Revenue and Operations EBIT
Slide 47: Appendix 1a: Operating physicals - MATSA
Appendix 1a 23.6 Operating physicals - MATSA 23.4 March 2022 Quarter (Actual) June 2022 Quarter (Guidance) FY2022 (Guidance) AT MG ST AT MG ST AT MG ST MINED PROC MINED PROC MINED PROC (2 mths) (2 mths) (2 mths) (3 mths) (3 mths) (3 mths) (5 mths) (5 mths) (5 mths) Ore (t) - Total 324,544 356,263 71
Slide 48: Appendix 1b: Operating physicals - MATSA
Appendix 1b 23.6 Operating physicals - MATSA 23.4 March 2022 Quarter (Actual) June 2022 Quarter (Guidance) FY2022 (Guidance) Cu-CU Cu-Poly Zn Pb Cu-CU Cu-Poly Zn Pb Cu-CU Cu-Poly Zn Pb (2 mths) (2 mths) (2 mths) (2 mths) (3 mths) (3 mths) (3 mths) (3 mths) (5 mths) (5 mths) (5 mths) (5 mths) Recover
Slide 49: Appendix 2a: Operating physicals - DeGrussa
Appendix 2a 23.6 Operating physicals - DEGRUSSA 23.4 March 2022 Quarter (Actual) June 2022 Quarter (Guidance) FY2022 (Guidance) DG MT DG MT DG MT MINED PROC MINED PROC MINED PROC (3 mths) (3 mths) (3 mths) (3 mths) (12 mths) (12 mths) Ore (t) 274,948 107,860 382,809 393,806 360,570 101,081 461,651 4
Slide 50: Appendix 2b: Operating physicals - DeGrussa
Appendix 2b 23.6 Operating physicals - DEGRUSSA 23.4 March 2022 Quarter (Actual) June 2022 Quarter (Guidance) FY2022 (Guidance) Cu Au Ag Cu Au Ag Cu Au Ag (3 mths) (3 mths) (3 mths) (3 mths) (3 mths) (3 mths) (12 mths) (12 mths) (12 mths) Recovery (%) 94% 42% 59% 92% 47% 53% 93% 45% 57% Concentrate
Slide 51: Appendix 3: Operating physicals - Group
Appendix 3 23.6 Operating physicals - GROUP 23.4 March 2022 Quarter (Actual) June 2022 Quarter (Guidance) FY2022 (Guidance) MATSA DEGRUSSA MATSA DEGRUSSA MATSA DEGRUSSA (2 mths) (3 mths) TOTAL (3 mths) (3 mths) TOTAL (5 mths) (12 mths) TOTAL Ore mined (t) 752,212 382,809 1,135,021 1,197,457 461,651
Slide 52: Appendix 4a: Operating costs (US$) - Group
Appendix 4a Operating costs (US$) – GROUP 23.6 23.4 Operating Costs March 2022 Quarter (Actual) June 2022 Quarter (Guidance) FY2022 (Guidance) MATSA DEGRUSSA MATSA DEGRUSSA MATSA DEGRUSSA In US$M (Unaudited) TOTAL TOTAL TOTAL (2 mths) (3 mths) (3 mths) (3 mths) (5 mths) (12 mths) Mining 31 19 50 44
Slide 53: Appendix 4b: Operating costs (C1 US$/lb) - Group
Appendix 4b Operating costs (C1 US$/lb) – GROUP 23.6 23.4 C1 Unit Costs/lb Cu payable March 2022 Quarter (Actual) June 2022 Quarter (Guidance) FY2022 (Guidance) MATSA DEGRUSSA MATSA DEGRUSSA MATSA DEGRUSSA In US$M/lb (Unaudited) TOTAL TOTAL TOTAL (2 mths) (3 mths) (3 mths) (3 mths) (5 mths) (12 mths
Slide 54: Appendix 5: Capital expenditure - Group
Appendix 5 Capital expenditure – GROUP 23.6 23.4 In US$M (Unaudited) March 2022 Quarter (Actual) June 2022 Quarter (Guidance) FY2022 (Guidance) MATSA DEGRUSSA MOTHEO MATSA DEGRUSSA MOTHEO MATSA DEGRUSSA MOTHEO (2 mths) (3 mths) (3 mths) TOTAL (3 mths) (3 mths) (3 mths) TOTAL (5 mths) (12 mths) (12 m
Slide 55: Appendix 6: Revenue and Operations EBITDA Margin - Group
Appendix 6 Revenue (US$) and Operations EBITDA Margin (%) – GROUP 23.6 23.4 March 2022 Quarter (Actual) March 2022 YTD (Actual) Commentary MATSA DEGRUSSA MATSA DEGRUSSA In US$M (Unaudited) TOTAL TOTAL (2 mths) (3 mths) (2 mths) (9 mths) Revenue: Value of payable metal sold 189 195 384 189 519 708 In
Slide 56: Contact Details
Contact Details +61 8 6430 3800 +61 8 6430 3849 www.sandfire.com.au Corporate Head Office Level 2, 10 Kings Park Road West Perth WA 6005 Australia PO Box 1495 West Perth WA 6872 Australia