Sandfire Resources Ltd · ASX:SFR
Sandfire Resources — Shareholder Meeting (November 2019)
23 slides from Sandfire Resources's shareholder meeting presentation, Nov 27, 2019
Slide 1: Strong Foundations, New Opportunities
For personal use only Strong Foundations, New Opportunities Beginning our transformation to a global, diversified and sustainable metals company 2019 Annual General Meeting l Wednesday, 27 November 2019
Slide 2: FY2019 – Another exceptional year
FULL YEAR FINANCIAL AND PRODUCTION RESULTS SUMMARY COPPER AND GOLD PRODUCTION 69,394 C1 CASH OPERATING COST For personal use only TONNES OF CONTAINED COPPER US$0.83 44,455 OUNCES OF CONTAINED GOLD PER POUND NET PROFIT AFTER TAX EARNINGS PER SHARE (attributable to equity holders of parent) $106.5M 65
Slide 3: Seven years of consistent delivery
Seven years of consistent delivery… For personal use only CUMULATIVE PRODUCTION TO END OF FY2019 over 470,000 TONNES OF CONTAINED COPPER 275,000 OUNCES OF CONTAINED GOLD $3.6 billion IN CUMULATIVE SALES REVENUE $1.7 billion IN CUMULATIVE OPERATING CASH-FLOW (prior to exploration and evaluation expen
Slide 4: Safety, Sustainability and Diversity Performance
Safety, Sustainability and Diversity Performance ► 12% decrease in total recordable injury frequency rate (TRIFR) “We continued to focus on listening to our For personal use only to 6.2 with a continued focus on reaching our target of 4.5 stakeholders and driving positive outcomes ► Increased female
Slide 5: Our Expanding Global Footprint
Our Expanding Global Footprint For personal use only Operating Mines Development Pipeline Exploration Portfolio ► DeGrussa Operations, WA ► Tshukudu Operations, Botswana ► Greater Doolgunna Project, WA - DeGrussa Copper-Gold Mine - T3 Copper-Silver Project ► East Coast Portfolio (NSW, Qld) - Monty C
Slide 6: APAC
Sandfire APAC For personal use only Doolgunna Operations, WA Exploration - DeGrussa Copper-Gold Mine - Greater Doolgunna Project, WA - Monty Copper-Gold Mine - East Coast Portfolio (NSW, Qld) 6
Slide 7: APAC│Doolgunna Operations
Sandfire APAC│Doolgunna Operations ► 1.6Mtpa Concentrator fed by two underground For personal use only mines – DeGrussa and Monty ► 7-year track record of consistent delivery ► High-grade Monty ore successfully introduced this year ► FY2020 guidance: 1.6Mt milled at average feed grade of 4.7% Cu ► C
Slide 8: APAC│High-Grade, High-Margin Production Profile
Sandfire APAC│High-Grade, High-Margin Production Profile Debt-free with a rising production profile and harvesting cash For personal use only 8
Slide 9: APAC│Monty – Head Grade Increasing
Sandfire APAC│Monty – Head Grade Increasing Mine Office Waste Dump, Crushing & For personal use only Screening Pad ROM Pad Discharge Pond PAF Runoff Pond Laydown Yard Haul Road Boxcut 9
Slide 10: APAC│Doolgunna Exploration
Sandfire APAC│Doolgunna Exploration Sandfire has more than tripled its ground position in the past two years For personal use only ► Strategic 6,940km2 footprint across the Bryah Basin – both 100% and through multiple joint ventures ► 80km strike length of prospective VMS lithologies – strategic foc
Slide 11: APAC│Doolgunna Operations – Outlook for FY2020
Sandfire APAC│Doolgunna Operations – Outlook for FY2020 ► Production guidance 70-72kt Cu, 38-40koz Au at C1 For personal use only US$0.90-0.95/lb ► Ongoing plant and reagent optimisation to accommodate treatment of crown pillar ore (~10% of ore feed) ► Continued evaluation and feasibility work on mi
Slide 12: EMEA
Sandfire EMEA For personal use only Tshukudu Operations, Botswana - T3 Copper-Silver Project - T1, A4 Expansion Projects - 11,700km2 exploration portfolio 12
Slide 13: EMEA │ Tshukudu Operations, Botswana
Sandfire EMEA │ Tshukudu Operations, Botswana ► 100%-owned T3 Copper-Silver Deposit and extensive exploration land- For personal use only holding in under-explored Kalahari Copper Belt, Botswana ► Safe, democratic, politically stable and mining-friendly jurisdiction ► Supportive Government (rated #1
Slide 14: EMEA│T3 – Advanced Development Asset
Sandfire EMEA│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
Slide 15: EMEA│T3 – Advanced Development Asset
Sandfire EMEA│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 Concentr
Slide 16: Growth│Tshukudu – Belt-scale Exploration Opportunity
Growth│ Tshukudu – Belt-scale Exploration Opportunity ► Highly prospective, under-explored region containing Significant Landholding (~11,700km2) For personal use only sedimentary-style copper deposits (similar to Zambia/DRC) ► Outstanding near-mine growth potential: ► T3 Expansion Project (~950km2
Slide 17: EMEA │Tshukudu Operations – Outlook for FY2020
Sandfire EMEA │Tshukudu Operations – Outlook for FY2020 ► Optimisation of T3 Feasibility Study underway, including For personal use only mine scheduling, additional drilling, plant size optimisation ► ESIA approval and grant of Mining Licence expected Q1 2020 ► Updated Feasibility Study and Ore Rese
Slide 18: Americas
Sandfire Americas For personal use only Sandfire Resources America Inc (85%) - Black Butte Copper Project, Montana, USA 18
Slide 19: Americas│Black Butte Copper Project, USA
Sandfire Americas│Black Butte Copper Project, USA ► Advanced, high-quality underground copper project in Tier-1 location For personal use only ► 85% stake in copper development subsidiary Sandfire Resources America Inc. (TSX-V: SFR) ~A$60M invested to date ► One of the top-10 undeveloped copper proj
Slide 20: Americas│Black Butte – Outlook for FY2020
Sandfire Americas│Black Butte – Outlook for FY2020 Feasibility Study advanced on highly For personal use only ► engineered, state-of-the-art underground mine ► Very small surface footprint – will be 100% reclaimed ► Mine design, layout and geology ensures that water quality and quantity will be prot
Slide 21: Summary│Moving to the Next Level as a Global Mining Company
Summary│Moving to the Next Level as a Global Mining Company Strong foundations with +7-year track record of delivery For personal use only Record production in FY19, further growth in FY20 Strong balance sheet Aggregating quality copper development assets MOD acquisition adds a third global hub Comm
Slide 22: Important Information and Disclaimer
Important Information and Disclaimer Currency in AUD unless otherwise stated. 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
Slide 23: Strong Foundations, New Opportunities
For personal use only Strong Foundations, New Opportunities Beginning our transformation to become a global, diversified and sustainable metals company 2019 Annual General Meeting l Wednesday, 27 November 2019
Sandfire Resources — Shareholder Meeting (November 2019) on 6ix