Sandfire Resources Ltd · ASX:SFR
Sandfire Resources — Investor Presentation (February 2018)
25 slides from Sandfire Resources's investor presentation, Feb 21, 2018
Slide 1: New mines and new opportunities in a rising copper market
For personal use only New mines and new opportunities in a rising copper market ► Debt-free and harvesting cash ► Developing new high- grade mines in Australia and the USA Global Investor Presentation – February 2018 / Karl Simich – Managing Director & CEO 1
Slide 2: Important Information and Disclaimer
Important Information and Disclaimer 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 form
Slide 3: Sandfire – Investment Snapshot
Sandfire – Investment Snapshot ► Consistent, low-cost copper producer 6 years of operations For personal use only ► High-value, high margin operations ~$3B revenue ► Strong balance sheet, no debt $164.4M cash (Dec 17) ► Large global Mineral Resource inventory 1.9Mt Cu, 2.7Moz Au, 15.8Moz Ag ► Growin
Slide 4: Corporate Summary
Corporate Summary KEY CORPORATE DATA 6-MONTH SHAREPRICE For personal use only Issued Capital Market Capitalisation 157.8 ~$1.13 MILLION BILLION Shares at $7.18 Cash Debt $164.4 NIL CURRENT BROKER COVERAGE MILLION At 31 December 2017 Repaid FY 17 FY17 Dividend 1HFY18 Dividend 18c 8c 11c in FY16 5c in
Slide 5: Financial Performance – Benefiting from a Rising Copper Price
Financial Performance – Benefiting from a Rising Copper Price For personal use only FINANCIAL FY 2013 FY 2014 FY 2015 FY2016 FY2017 1HFY2018 OVERVIEW: ► Record 1HFY18 revenue $296.2M Revenue $507.3M $525.7M $548.6M $497.2M $532.5M $296.2M ► $122.5M operating cash-flow * Operating ► 1HFY18 NPAT of $5
Slide 6: Copper – The Best Outlook in Years?
Copper – The Best Outlook in Years? ► Robust outlook for copper underpinned by synchronized global For personal use only economic growth, weakening US$ and supply constraints: - China reducing imports of scrap copper as part of environmental clean-up initiative – full import ban expected - Wood Mack
Slide 7: Summary of Key Assets – Mineral Resources
Summary of Key Assets – Mineral Resources For personal use only DeGrussa Copper-Gold Mine (production) 9.5Mt @ 4.2% Cu, 1.6g/t Au and 21g/t Ag Black Butte copper-gold project (development) 18.0Mt @ 3.3% Cu, 14g/t Ag and 0.10% Co Monty Copper-Gold Mine (development) 70% 0.7Mt @ 9.4% Cu, 1.6g/t Au and
Slide 8: DeGrussa Underground Mine – All Lenses Now On Stream
DeGrussa Underground Mine – All Lenses Now On Stream ► DeGrussa and Monty Mine For personal use only Plan: 7.0Mt at 5.1% Cu and 1.6g/t Au (359,000t Cu, 368,000oz Au) ► Milling rates maintained at 1.6Mtpa ► Recoveries targeted at ~92% (LOM) DeGrussa and Monty Tonnes Copper Gold Contained Copper Conta
Slide 9: Monty – Set to become one of the World's Highest-Grade Copper Mines
Monty – Set to become one of the World’s Highest-Grade Copper Mines ► New satellite mine located 10km east of For personal use only DeGrussa ► Part of Springfield JV with Talisman – Sandfire 70% and manager ► Mining by underground method to 400m below surface ► Mine Plan: 0.8Mt at 9.4% Cu, 1.5 g/t A
Slide 10: Development – Monty Site Infrastructure
Development – Monty Site Infrastructure June 2017 For personal use only Timeline - Early mobilisation - DG tie-in - Civils contractor July 2017 - Project approval - Start of infrastructure Q2 FY 2018 - Start of decline - U/G contractor Q2 FY 2019 - First ore from development 10
Slide 11: Monty – Development Progress
Monty – Development Progress Monty Portal For personal use only Foreground: PAF Runoff Pond Background: Monty Decline Portal 11
Slide 12: Monty – Development Progress
Monty – Development Progress Blind Sink of the Monty Underground Support Work For personal use only Ventilation Shaft 12
Slide 13: DeGrussa and Monty
DeGrussa and Monty Debt-free with rising production profile in a rising copper market For personal use only 13
Slide 14: Development Pipeline – Doolgunna Growth Projects
Development Pipeline – Doolgunna Growth Projects Growth projects currently under evaluation against the backdrop of an improved For personal use only copper price environment Near-Mine Opportunities Oxide Copper Project Thaduna Copper Projects 3 structurally controlled ► ► UG Mineral Resource not ~2
Slide 15: Development Pipeline – Black Butte Copper Project, USA
Development Pipeline – Black Butte Copper Project, USA ► 78% stake in copper development subsidiary Sandfire Resources America For personal use only Inc. (TSX-V: SFR) – ~A$40M invested to date Acquisition cost equivalent to approx US$3c/lb of contained copper in resource ► Developing the Black Butte
Slide 16: Development Pipeline – Black Butte Copper Project, USA
Development Pipeline – Black Butte Copper Project, USA ► Upfront capital expenditure of For personal use only ~US$220M * ► 2 year construction period with operations over 11-14 years * ► Very small surface footprint – will be 100% reclaimed ► Highly engineered, state-of-the- art underground mine ► M
Slide 17: Doolgunna – Dominant Position in a World-Class VMS Province
Doolgunna – Dominant Position in a World-Class VMS Province ► Sandfire has more than tripled its ground position over key geological horizons in the past two years For personal use only ► Greater Doolgunna region: 5,846km2 including 65km strike length of prospective VMS lithologies ► Recent farm-in
Slide 18: Exploration – New Ground, New Technology
Exploration – New Ground, New Technology Aggressive push into new areas – Enterprise JV, Great Western JV and For personal use only ► Yerrida ► Revisiting “old” areas using cutting-edge new technologies, e.g. ultra- high powered MLEM (~15% more powerful than previous systems) ► Host Sequence at Home
Slide 19: Doolgunna Exploration – Aggressive Drilling Commitment
Doolgunna Exploration – Aggressive Drilling Commitment For personal use only ► Exploration continuing as priority along prospective VMS corridor hosting DeGrussa and Monty ► DDH drilling at Monty NE testing geochemical anomalies ► RC and DDH drilling within Homestead and Vulcan West prospects (deep
Slide 20: Australian Regional Exploration Projects
Australian Regional Exploration Projects Targeting world-class discoveries in Australia’s premier exploration provinces For personal use only Northern Territory ► Active drilling by JV partners in Borroloola tenements Queensland Base Metals ► 2,400km² in Mt Isa-Cloncurry province including 100km str
Slide 21: Summary – Positioned for Growth and Success
Summary – Positioned for Growth and Success ► Consistent low-cost production For personal use only ► Strong balance sheet – net cash position ► Growing free cash-flows ► Committed to organic growth via exploration ► Unlocking the potential at Doolgunna ► Developing a growth pipeline for the future ►
Slide 22: New mines and new opportunities in a rising copper market
For personal use only New mines and new opportunities in a rising copper market ► Debt-free and harvesting cash ► Developing new high- grade mines in Australia and the USA Global Investor Presentation – February 2018 / Karl Simich – Managing Director & CEO 22
Slide 23: Competent Person's Statements
Competent Person’s Statements For personal use only 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 an
Slide 24: Competent Person's Statements
Competent Person’s Statements For personal use only 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 I
Slide 25: Mine Plan, Ore Reserve and Mineral Resource
Mine Plan, 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 For personal use only ► of gold and 15.8Moz of silver. ► Group Ore Reserve: DeGrussa Copper-Gold Mine (100%-own
Sandfire Resources — Investor Presentation (February 2018) on 6ix