Sandfire Resources Ltd · ASX:SFR
Sandfire Resources — BMO Global Metals & Mining Conference 2022
30 slides from Sandfire Resources's conference presentation, Mar 1, 2022
Slide 1: Moving into the global base metals league
Moving into For personal use only the global base metals league BMO Global Metals & Mining Conference Karl Simich, Managing Director & CEO March 2022 Creating Value through Opportunity
Slide 2: Important Information and Disclaimer
For personal use only Important Information and Disclaimer This presentation has been prepared by Sandfire Resources Ltd (Sandfire or the Company) and contains information about Sandfire This presentation should be read in conjunction with Sandfire’s other periodic and continuous disclosure announce
Slide 3: A Global Miner poised for a new era of growth
For personal use only 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 provinc
Slide 4: Sustainable production from high-quality assets in Tier-1 locations
Sustainable production For personal use only From high-quality assets in Tier-1 locations MATSA, Spain Black Butte, USA (87%) FY22G annualised: 62kt Cu; 89kt Zn LOM Avg Production: 23ktpa Cu Cu Zn Pb Ag Cu Ag 8+ years 502kt 12 + years 3,902kt Feasibility 1.2Mtpa Producing 2,450km2 4.7Mtpa Lowry Conc
Slide 5: Our Strategy
For personal use only Our Strategy Execute Delivery Sustain and Grow Accelerate Align and Empower Optimise Capital Our Production Discovery Our People Strategy and Pipeline Engagement Our Values Honesty Respect Collaboration Accountability Performance Creating Value through Opportunity 5
Slide 6: ESG Strategy
Collaborate with our stakeholders to generate enduring socio-economic development where we are present For personal use only Our people live in communities Standardise Sandfire’s and they have a right to go Our goal is for management of ESG across all operations home safe, healthy and with a sense o
Slide 7: Copper entering a new era of growth
29 Cu Green demand as a proportion of total metal consumption to increase Copper sharply into mid-decade For personal use only Aluminium green demand 20% Copper green demand Copper entering 15% Nickel green demand a new era of historical growth 10% Cornerstone future-facing metal for the global ener
Slide 8: Emerging copper production pipeline
For personal use only Emerging Global Indicative Copper Equivalent Production (ktpa) Copper production Delivering growth from long-life assets in Tier-1 jurisdictions pipeline 250 • MATSA Mining Operations optimisation, updated Ore Reserve and 5 year plan 200 • Motheo Copper Mine (T3 Deposit) first
Slide 9: MATSA
For personal use only MATSA MATSA Mining Operations Exploration • Aguas Teñidas Mine • Iberian Pyrite Belt tenure • Magdalena Mine • Sotiel Mine • 4.7Mtpa processing plant Creating Value through Opportunity 9
Slide 10: MATSA Acquisition Completed
For personal use only FY2022 MATSA Acquisition Completed Transaction: Financing Facility: Hedging in place: Acquisition completed 1 February 2022 • US$650M drawn and facility syndication • 3-year copper and zinc hedging program utilising: • High quality international banking group completed • US$905
Slide 11: MATSA | Our new cornerstone asset
For personal use only MATSA | Our new cornerstone asset Stage Phase 1 (Day 1 to Year 1) Phase 2 (Years 2 to 5) Phase 3 (Years 5+) Objectives ✓ Operational integration, strategy alignment and reporting ✓ Maximise existing processing hub ✓ Iberian Pyrite Belt opportunities ✓ Optimise & implement 5-yea
Slide 12: MATSA Optimisation
For personal use only FY2022 MATSA Optimisation Operational Integration: Optimise and Implement 5-year Plan: Establish a base for a multi- Sandfire integration team on site: • Safety improvement – driving culture and decade operations: • Operational excellence practices accountability • Group-wide s
Slide 13: MATSA Production Guidance
Grade (%) 2,000,000 8.0 For personal use only 1,800,000 23.6 23.4 7.0 FY2022 1,600,000 6.0 MATSA Production Guidance 1,400,000 5.0 5 months to June 2022 1,200,000 1,000,000 4.0 4.0 3.4 800,000 3.0 3.0 2.7 600,000 2.4 2.4 2.3 Production: Capital expenditure: 1.9 2.0 ~26,000t Cu~95% ~US$33M Mine 400,0
Slide 14: MATSA Unit Cost Guidance
Indicative Margin and Cash Cost Summary 5.0 For personal use only 23.6 4.34 23.4 4.0 FY2022 3.43 MATSA Unit Cost Guidance 3.0 Cash cost buildup (US$/lb, payable Cu) 0.62 0.54 5 months to June 2022 2.0 0.15 0.61 0.15 0.75 1.0 0.88 0.94 1.38 1.22 - Indicative Production: Increased margins with copper
Slide 15: MATSA | Mine Life Extension Potential
For personal use only MATSA | Mine Life Extension Potential Local Targets Regional Targets Focus Reserve replenishment and upgrade resource classification Several high-priority targets identified, with a longer list of early and expansions stage conceptual targets Existing mines (Aguas Teñidas, Magd
Slide 16: DeGrussa
DeGrussa For personal use only DeGrussa Operations Exploration • DeGrussa Copper-Gold Mine • Doolgunna VMS Province • Monty Copper-Gold Mine • Old Highway Gold Project Creating Value through Opportunity 16
Slide 17: DeGrussa Physicals
For personal use only HY2022 DeGrussa Physicals 1,000,000 30.0 900,000 867,979 27.0 845,007 800,000 23.6 23.3 24.0 Tonnes 700,000 21.0 629,024 600,000 18.0 500,000 15.0 HY C1: HY Production: HY Sales: 400,000 12.0 Cu (%) / Au (g/t) US$1.10/lb 34,621t Cu, 32,422t Cu 300,000 9.0 16,254oz Au 14,462oz 2
Slide 18: Headline Financial Results
For personal use only HY2022 Headline Financial Results US$311.8M US$161.6M US$88.4M US$55.2M US$193.1M US$321.4M Record sales Group Profit before Net profit after Cash flow from strong cash revenue EBITDA net finance tax attributable operating holding at 1 and income to equity holders activities Fe
Slide 19: Motheo
For personal use only Motheo Motheo Copper Mine Exploration • T3 Deposit Open Pit Development • Motheo Expansion Project • A4 Deposit Expansion Project • Kalahari Copper Belt tenure Creating Value through Opportunity 19
Slide 20: Kalahari Copper Belt
For personal use only Kalahari Copper Belt Dominant tenure in a world-class copper belt Creating Value through Opportunity 20
Slide 21: Motheo Production Hub
For personal use only Motheo Production Hub New long-life operation • Initial production from T3 Open Pit, subsequently expanding with ore feed from A4 Deposit • Base Case 3.2Mtpa Motheo Processing Plant with rapid expansion to 5.2Mtpa capacity • Infrastructure – built to support 5.2Mtpa processing
Slide 22: Motheo Copper Mine Key Progress
For personal use only Motheo Copper Mine Key Progress • Development proceeding on schedule and on budget • Construction activities are continuing to ramp up with over 1,000 personnel mobilised to site and over 1,500m3 of concrete poured to date • Country Head and GM Operations in-country • Developme
Slide 23: Motheo Copper Mine Key Progress
For personal use only Motheo Copper Mine Key Progress Primary Crusher Vault Cat 785 dump truck assembly Process Plant overview Phase 1 accommodation facility Motheo Accommodation Village entrance Mine Services Area infrastructure overview road and overview Creating Value through Opportunity 23
Slide 24: Motheo Copper Mine | Development Timeline
For personal use only Motheo Copper Mine | Development Timeline Mining License Approval & Land Titles Accommodation Camp EMP Process Plant Engineering & Pre Construction Works Accommodation Facility 132KV Powerline & Substations Design & Construction Process Plant Construction Mining Contractor Mobi
Slide 25: Motheo Mine Construction & Development Capital
80,000,000 320,000,000 For personal use only 23.6 70,000,000 280,000,000 Motheo Copper Mine 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$M 20,000,000 80,000,000 10,000,000 40,000,000 0 - Q3 FY21 Q4 FY21 Q1 F
Slide 26: Group Guidance
For personal use only FY2022 Group Guidance DeGrussa 12 months + MATSA 5 months to June 2022 1H C1 unit Production: Capital expenditure: Exploration, evaluation MATSA acquisition costs: costs: 90-95,000t Cu ~US$80M Mine and studies: ~US$17M US$1.10/lb Cu ~37,000t Zn development ~US$55M MATSA D+A gui
Slide 27: Black Butte
For personal use only Black Butte Montana, USA Great Falls • Black Butte Expansion Project Helena Black Butte Black Butte Copper Project (87%-owned) Exploration • Johnny Lee Deposit • Regional exploration Bozeman • Lowry Deposit Creating Value through Opportunity 27
Slide 28: Black Butte Montana, USA
For personal use only Black Butte Montana, USA • Acquisition of key mine property • Enhancement of Feasibility Study for the Johnny Lee Deposit • Continuing response to legal challenges to permitting • Exploration program within the Mining Lease targeting potential extensions and other near-mine opp
Slide 29: Key Takeaways
For personal use only Key Takeaways Strong growth platform Global vision Cash flow generating base metal Our transformation into a diversified, operations in Australia and Spain international and sustainable mining company is underway New Production Hubs Strong Pipeline Refreshed and focused Constru
Slide 30: Contact Details
For personal use only 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
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