Sandfire Resources Ltd · ASX:SFR
Sandfire Resources — Diggers & Dealers 2019
31 slides from Sandfire Resources's conference presentation, Aug 6, 2019
Slide 1: Moving to the next level
Moving to the next level For personal use only Building a global base metals company at the right time in the copper market Diggers & Dealers | 6 August 2019 Karl Simich, Managing Director and CEO ✓ Consistent low-cost, high-grade production ✓ Strong track record of delivery and execution ✓ Building
Slide 2: Our Investment Snapshot
Sandfire │Our Investment Snapshot Production, cash- Proven explorer, Ideally positioned Strengthening For personal use only flow and project developer for strong copper development dividends and operator market pipeline ► +470kt Cu +275koz Au ► Consistent & safe year- ► FY2020 guidance: 70- ► Buildi
Slide 3: Corporate Overview and Key Assets
Corporate │Overview and Key Assets Key Corporate Data Key Assets For personal use only Sector S&P ASX-200 Building a diversified portfolio of high-quality base metal assets Issued Capital 159.6 million Cash at 30 June 2019 $247.4 million Debt Nil ~$1 billion at Market Capitalisation $6.60 share Geog
Slide 4: The Looming Electric Transformation
Strategic Context │The Looming Electric Transformation For personal use only Source: “Copper Market Outlook: Short-term weakness, long-term strength”, Erik Heimlich, Principal Analyst, Copper to the World Conference, Adelaide Convention Centre, 18 June 2019 Source data: CRU Slide: 4
Slide 5: The Copper Market
Strategic Context │The Copper Market ► The copper supply gap is gradually opening up, in large part driven by EV demand for copper For personal use only ► ~5.5Mt of new production capability will be needed from greenfields projects by the end of next decade if copper demand growth rises at trend thr
Slide 6: Sandfire's Business Development Criteria
Our Strategy│Sandfire’s Business Development Criteria For personal use only Production Bottom Half Capacity to Fund and >30ktpaCuEq Cost Curve Deliver Production within 5 years Mine Life Regional Exploration Value Accretive >5 Years Potential Sandfire is building a global development and exploration
Slide 7: Operations
OPERATIONS For personal use only Doolgunna Operations (100%) - DeGrussa Mine - Monty Mine Slide: 7
Slide 8: DeGrussa Copper-Gold Project
Operations│DeGrussa Copper-Gold Project ► 1.6Mtpa Concentrator fed by two underground mines For personal use only ► 7-year track record of consistent delivery ► High-grade Monty ore successfully introduced this year ► FY2020 guidance: ore production to come from DeGrussa (1.33Mt at ~4.3% Cu) and Mon
Slide 9: High-Grade, High-Margin Production Profile
Operations│High-Grade, High-Margin Production Profile Debt-free with a rising production profile and harvesting cash For personal use only Slide: 9
Slide 10: Monty – Head Grade Heading to 8-9% Cu
Operations│Monty – Head Grade Heading to 8-9% Cu! Waste Dump, Crushing & Mine Office For personal use only Screening Pad ROM Pad Discharge Pond PAF Runoff Pond Laydown Yard Haul Road Boxcut Slide: 10
Slide 11: Development
DEVELOPMENT For personal use only Sandfire Resources America Inc (85%) - Black Butte MOD Resources 1 - T3 Copper Project - T1, A4 Expansion Projects - 11,700km2 exploration portfolio 1 Agreement to acquire MOD Resources via a Scheme of Arrangement, as outlined in ASX announcement of 25 June 2019. Sc
Slide 12: Sandfire to Acquire MOD Resources
Growth│Sandfire to Acquire MOD Resources Key growth step announced on 25 June 2019 – agreement to acquire MOD Resources via Scheme of Arrangement. For personal use only + Value Accretive T3 project NPV of A$309m1 versus acquisition cost of A$167m* Upside Potential Highly prospective land-holding on
Slide 13: MOD Key Metrics – Why We Like It
Growth│MOD Key Metrics – Why We Like It! For personal use only Belt Scale Province Dominant Landholding in Botswana Near-Term Production Long Life Project First 2 Life Of 1 Production 2021 Mine >11yrs 2 ~11,700 km2 LOM 3 Contained 2 Production 28ktpa Reserve 343kt Botswana Compelling Low Cost / Low
Slide 14: MOD – Belt-Scale Exploration Opportunity
Growth│MOD – Belt-Scale Exploration Opportunity Under-explored Belt Scale Opportunity Across the Kalahari Copper Belt For personal use only Significant Landholding (~11,700km2)1 • Sedimentary-style copper deposits2 Prospective • Similarities to Zambia2 Region Cupric Canyon: Zeta NE • Mineralisation
Slide 15: T3 – Advanced Development Asset
Growth│T3 – Advanced Development Asset Open Pit Copper Development Project With >11 Year Life For personal use only T3 March 2019 Feasibility Study • 6 stage single open pit mine plan Mine Plan Ore Tonnes Mined 34.4Mt • Designed to partly defer CAPEX Average Grade (Cu) 1.0% Copper in Concentrate 318
Slide 16: T3 – Reserves & Resources
Growth│T3 – Advanced Development Asset T3 Reserves & Resources T3 Site Layout4 For personal use only Tonnes Copper Silver Ore Reserves1 (Mt) (%) Kt (g/t) Moz Proven - - - - - Probable 34.4 1.0 342.7 13.2 14.6 Total 34.4 1.0 342.7 13.2 14.6 Process Plant Tonnes Copper Silver Mineral Resource2 (Mt) (%
Slide 17: Black Butte Copper Project, USA
Growth│Black Butte Copper Project, USA ► 85% stake in copper development subsidiary Sandfire Resources America Inc. (TSX-V: For personal use only SFR) – ~A$60M invested to date Acquisition cost equivalent to ~US$4c/lb of contained copper in resource ► Black Butte: an advanced, high quality copper pr
Slide 18: Black Butte Copper Project, USA
Growth│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 ► Mine design, layou
Slide 19: Exploration
EXPLORATION For personal use only Red Mountain Project - Alaska - (JV with White Rock Minerals) Botswana - 11,700km2 NSW / Queensland - East Coast Base Metal Portfolio WA - Greater Doolgunna Project Slide: 19
Slide 20: Dominant Position in an Emerging VMS Belt
Growth│Dominant Position in an Emerging VMS Belt Sandfire has more than tripled its ground position in the past two years For personal use only ►Greater Doolgunna region: 6,712km2 including 90km strike length of prospective VMS lithologies ►Farm-in deals include: ► Alchemy Resources (ASX: ALY) to ea
Slide 21: Systematic Approach to Exploration
Growth│Systematic Approach to Exploration For personal use only ► 80km of prospective stratigraphy in the southern limb of the Bryah Basin ► Three centres of sulphide mineralisation identified to date – DeGrussa, Monty, Morck Well 80km Slide: 21
Slide 22: Systematic Approach to Exploration
Growth│Systematic Approach to Exploration Doolgunna Exploration – Multi-Pronged and Systematic Approach ► Exploration continuing as For personal use only priority along prospective VMS corridor hosting DeGrussa and Monty ► Morck Well Project – geophysics, RC and diamond drilling ► Peak Hill Project
Slide 23: Australian Regional Exploration
Growth│Australian Regional Exploration Targeting world-class discoveries in Australia’s premier exploration provinces For personal use only Northern Territory ► 1,328km² in prospective Batten Trough 548km² JV with Pacifico Queensland Base Metals ► 2,400km² in Mt Isa-Cloncurry province including 100k
Slide 24: Summary
For personal use only SUMMARY Slide: 24
Slide 25: An Emerging Global Mining House
Sandfire│An Emerging Global Mining House The MOD Acquisition Adds the EMEA1 Region to Sandfire’s Global Portfolio For personal use only Developing / Producing Assets T3 (100%) DeGrussa & Monty (100%) Black Butte (85%) 11,700 km2 6,674 km2 86 km2 LOM Avg Cu LOM Avg Cu FY20 Guidance 2 Production: 3 59
Slide 26: Pro-Forma Reserves and Resources Post-MOD
Sandfire│Pro-Forma Reserves and Resources Post-MOD For personal use only (Pro-Forma) Monty Monty 12% Copper 27% Ore Reserves by Asset1,2,3,4 299kt 343kt 642kt 53% 34% (kt Cu) 73% T3 100% DeGrussa DeGrussa T3 Monty Green Dragon/ T1 Other Monty Thaduna 6% Temora 8% 9% Copper 9% 4% Temora DeGrussa 31%
Slide 27: Moving to the Next Level as a Global Mining Company
Sandfire│Moving to the Next Level as a Global Mining Company For personal use only Strong foundations with +7-year track record of delivery Record production in FY19, further growth in FY20 Strong balance sheet Aggregating quality copper development assets MOD acquisition adds a third global hub Com
Slide 28: 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 29: Competent person's statements
Competent person’s statements For personal use only DeGrussa and Monty Mineral Resource The information in this report that relates to the DeGrussa and Monty Mineral Resource is based on information compiled by Mr Callum Browne who is a Member of The Australasian Institute of Mining and Metallurgy.
Slide 30: Competent person's statements
Competent person’s statements Thaduna and Green Dragon Mineral Resource For personal use only The information in this report that relates to the Thaduna and Green Dragon Mineral Resource is based on information compiled by Mr Ekow Taylor who is a Member of The Australasian Institute of Mining and Me
Slide 31: Moving to the next level
Moving to the next level For personal use only Building a global base metals company at the right time in the copper market Diggers & Dealers | 6 August 2019 Karl Simich, Managing Director and CEO ✓ Consistent low-cost, high-grade production ✓ Strong track record of delivery and execution ✓ Building