Sandfire Resources Ltd · ASX:SFR
Sandfire Resources — Sandfire Resources NL — Investor Presentation (June 2011)
30 slides from Sandfire Resources's investor presentation, Jun 14, 2011
Slide 1: DeGrussa: Building a premier Australian copper-gold mine
For personal use only DeGrussa: Building a premier Australian copper-gold mine Global Investor Roadshow – June 2011
Slide 2: Disclaimer and Forward-Looking Statements
Disclaimer and Forward-Looking Statements 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
Slide 3: Our Vision
Our Vision For personal use only To develop and operate our 100%-owned DeGrussa Project as a premier high-grade copper-gold mine To deliver outstanding returns to our shareholders To discover the next generation of VMS copper-gold deposits within the greater Doolgunna Project To unlock the value of
Slide 4: Corporate Summary
Corporate Summary Issued Capital: 148.4M ordinary shares Board For personal use only 11.9M options DEREK LA FERLA – Non-executive Chairman Cash (31 May 2011): A$83.0M KARL SIMICH – Managing Director/CEO Major Shareholders W. JOHN EVANS – Executive Technical Director JONGHUN JONG – Non-executive Dire
Slide 5: Project: Countdown to Production
DeGrussa Project: Countdown to Production For personal use only 5
Slide 6: From Concept to Cash…
From Concept to Cash… For personal use only Discovery to DFS in Discovered April 2009 2 years Maiden Mineral Resource February 2010 Pre-Feasibility Study, Ore Reserve March 2011 Mine development commenced April 2011 Definitive Feasibility Study June 2011 Today Plant construction commencing shortly P
Slide 7: From Concept to Cash… DFS Outcomes
From Concept to Cash… For personal use only DFS Outcomes First Production Q1 2012 (DSO), Q3 2012 (Conc.) 10.72Mt @ 5.1% Cu, 1.7g/t Au Life-of-mine extraction from Ore (541,000t contained copper, Reserves and Mineral Resources 599,000oz contained gold) discovered to date 93% Mineral Resource to Ore R
Slide 8: Project – Overview
DeGrussa Project – Overview For personal use only Located within 400km2 Doolgunna Project, 900km NE of Perth Established WA mining district +A$90M invested to date on resource and project evaluation Indigenous access agreements signed and key approvals secured 8
Slide 9: Years, +200,000m of Drilling, Four Deposits
2 Years, +200,000m of Drilling, Four Deposits For personal use only 9
Slide 10: Project – Open Pit Operations
DeGrussa Project – Open Pit Operations For personal use only Early extraction of DSO Ore Reserves: 0.14Mt @ 25.6% Cu, 2.5g/t Au 37,000t copper, 12,000oz gold (Contained) Early sulphide copper ore for plant commissioning Oxide copper resources to be stockpiled for proposed processing 10
Slide 11: Project – Key Parameters
DeGrussa Project – Key Parameters Life-of-mine extraction of 10.72Mt @ 5% Cu, 1.7g/t Au For personal use only (541,000t copper, 599,000oz gold – contained) Conventional open pit mining operation (~2 years) and long- term underground mine (initial 7+ year mine life) Conventional 1.5Mtpa on-site conce
Slide 12: Financial Evaluation and Price Assumptions
DeGrussa – Financial Evaluation and Price Assumptions Life-of-mine (LOM) For personal use only A$ Billion Project revenue 4.2 Royalties (5% weighted average) (0.2) Operating costs and sustaining capital (1.6) Project operating cash flow (pre-tax) 2.4 Pre-production capital expenditure (0.4) Project
Slide 13: Capital and Operating Costs
DeGrussa – Capital and Operating Costs Capital Cost Breakdown For personal use only A$M Construction (plant, equipment and infrastructure) 267 Open pit mining to access DSO 44 Underground mine development 56 Other pre-production 17 Total pre-production capital 384 Life-of-Mine Operating Cost Estimat
Slide 14: Annual Grade and C1 Cost Profile
DeGrussa – Annual Grade and C1 Cost Profile For personal use only 14
Slide 15: Annual Grade and C1 Cost Profile
DeGrussa – Annual Grade and C1 Cost Profile For personal use only Definitive Feasibility Study optimises project cash flows Higher grades + lower C1 costs in first three years = increased cash flow 15
Slide 16: Project – Development Underway
DeGrussa Project – Development Underway Box-cut excavation completed – For personal use only development of Evans Decline to commence shortly Pre-strip of open pit commenced April 2011 – two years from discovery Bulk earthworks underway for plant construction +200 people on site All major long-lead
Slide 17: Project – Development
DeGrussa Project – Development For personal use only Pre-Feasibility Definitive Feasibility Study Project Financing Infrastructure Construction Major Equipment Concentrator Construction Open Pit Direct Shipping Ore Underground Massive Sulphide Concentrator Ramp-up Shipment 17
Slide 18: Copper Market Outlook
Copper Market Outlook For personal use only Strong copper prices driven by continued global demand and tight supply Market deficit forecast as supply falls short of demand Declining mine head grades, limited new discoveries and long lead-times on new projects constraining supply General consensus th
Slide 19: Copper Market Outlook
Copper Market Outlook For personal use only 19
Slide 20: Copper Market Outlook
Copper Market Outlook For personal use only 20
Slide 21: Major Exploration Push
Major Exploration Push For personal use only Developing regional geology model from: Deep drilling Sterilisation & pre-development drilling Mapping & geophysical interpretation Priority VMS corridor extended from 6km to 10km with transported copper mineralisation Lithogeochemistry program underway t
Slide 22: Mineral Field – Regional Exploration
DeGrussa Mineral Field – Regional Exploration For personal use only 22
Slide 23: Northern Territory Mineral Projects
Northern Territory Mineral Projects For personal use only 23
Slide 24: McArthur Basin – A World-Class Mineral Province
McArthur Basin – A World-Class Mineral Province For personal use only 24
Slide 25: Borroloola Project
Borroloola Project For personal use only +10,000sq km tenement position in world-class NT mineral province Prospective for zinc-lead-silver deposits (McArthur River-style), manganese (Groote Eylandt-style), iron ore and uranium Visible oxide copper mineralisation intersected at Tawallah 1 prospect –
Slide 26: Summary and Outlook
Summary and Outlook Development of DeGrussa Project underway For personal use only On track to produce first copper next year: First DSO ore from open pit due Q1 2012 First underground ore expected Q3 2012 High-margin production profile – positioned to take advantage of strong copper market Regional
Slide 27: DeGrussa: Building a premier Australian copper-gold mine
For personal use only DeGrussa: Building a premier Australian copper-gold mine Global Investor Roadshow – June 2011
Slide 28: Appendix – DeGrussa: Mineral Resources
Appendix – DeGrussa: Mineral Resources Table 2: DeGrussa Copper-Gold Project – March 2011 JORC Resource Statement For personal use only Resource Contained Contained Competent Zone Location Tonnes (Mt) Copper (%) Gold (g/t) Category Copper (t) Gold (oz) Person Gold Measured Open Pit 0.14 - 1.5 - 7,00
Slide 29: Appendix – DeGrussa: Ore Reserves
Appendix – DeGrussa: Ore Reserves Table 1: DeGrussa Copper-Gold Project – March 2011 Ore Reserve Statement Reserve Mining Contained Copper Contained Gold For personal use only Deposit Tonnes (Mt) Copper (%) Gold (g/t) Category Method (t) (oz) Open Pit - DeGrussa Probable 0.14 25.6 2.5 37,000 12,000
Slide 30: Appendix: Competent Person's Statements
Appendix: Competent Person’s Statements Competent Person’s Statement – Mineral Resources For personal use only 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 Fello
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