Slide 1: December 2021 Half Year Report Presentation
December 2021 Half Year Report Presentation 28 February 2022 Access the live webcast of this presentation commencing at 11.00am (AWST) / 2.00pm (AEDT) at the link below: SANDFIRE WEBCAST
Slide 2: Important Information and Disclaimer
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 Half-Year Financial Report for the six months ended 31 December 2021 an
Slide 3: Where we operate
Where we operate Creating Value through Opportunity Operating Mines Development Phase Study Phase Exploration 3
Slide 4: Our Strategy and Our Values
Our Strategy Execute Sustain and Grow Accelerate Align and Empower Optimise Capital Delivery Our Production Discovery Our People Strategy and Pipeline Engagement Our Values Honesty Respect Collaboration Accountability Performance Creating Value through Opportunity 4
Slide 5: HY2022 Headline Financial Results
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 February 2022 tax expens
Slide 6: HY2022 Operations Highlights
HY2022 Operations Highlights DeGrussa HY production and costs: Motheo Copper Mine construction Transformational progressing on schedule: acquisition of MATSA: 34,621t of contained copper and • Construction activities continued to ramp up • Completion of the transformational US$1.865 billion acquisit
Slide 7: DeGrussa
DeGrussa DeGrussa Operations Exploration • DeGrussa Copper-Gold Mine • Doolgunna VMS Province • Monty Copper-Gold Mine • Old Highway Gold Project Creating Value through Opportunity 7
Slide 8: HY2022 DeGrussa Physicals
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$1.10/lb 34,621t Cu, 32,422t Cu 300,000 9.0 16,254oz Au 14,462oz 238,956 Grade Cu payabl
Slide 9: HY2022 Segment EBITDA Contribution
HY2022 Segment EBITDA Contribution (7.0) (8.4) In US$M Feasibility (26.9) studies, drilling and permitting Exploration drive across global jurisdictions & MATSA acquisition costs Revenue DeGrussa Black Butte Motheo Exploration Group HY2022 EBITDA & Other EBITDA Creating Value through Opportunity 9
Slide 10: HY2022 Group EBITDA Comparison
HY2022 54.9 Group EBITDA 161.6 Comparison 138.3 (23.5) Increase in (0.9) (2.6) (4.6) freight Corporate capacity to MATSA (shipping) support acquisition Increase costs expansion costs in copper price & strategy In US$M sales volume Group Revenue, Operations Exploration Acquisition & Administrative Gr
Slide 11: HY2022 Financial Position
HY2022 Financial Position Building a strong financial Group cash holdings and deposits US$145.1M Corporate Facility drawn position for growth • Equity raising funds held for MATSA acquisition Previously debt free balance sheet • Financial investments US$71M sold (Adriatic) (excluding lease liabiliti
Slide 12: HY2022 Cash Flow Waterfall
650.0 145.1 887.6 HY2022 1,201.7 Cash Flow (300.0) Deposits paid into Waterfall Escrow 193.1 71.0 In US$M 431.3 (101.4) (66.9) (24.5) 321.42 (33.6) Exploration, 50.02 Mine Dev’t & Capex (1,565.0) (15.3) 271.4 Opening Cash Growth Income Dividends Sale of Other Equity ANZ MATSA Closing Debt MATSA Mont
Slide 13: HY2022 Dividends
HY2022 Dividends Continued returns to AU 3cps Optimised capital structure shareholders • Fully franked • Project development • Record date 16 March 2022 • Funding mix AU 3cps • Payment date 30 March 2022 • Exploration and growth capital Interim dividend expenditure Creating Value through Opportunity
Slide 14: MATSA
MATSA MATSA Mining Operations Exploration • Aguas Teñidas Mine • Iberian Pyrite Belt tenure • Magdalena Mine • Sotiel Mine • 4.7Mtpa processing plant 14 Creating Value through Opportunity
Slide 15: FY2022 MATSA Acquisition Completed
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$905M equity raising • Rep
Slide 16: FY2022 MATSA Optimisation
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 strategy and values rol
Slide 17: FY2022 MATSA Production Guidance
Grade (%) 2,000,000 8.0 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$33M Mine 400,000 1.6 1.8 ~37,000t Zn
Slide 18: FY2022 MATSA Base Metal Concentrates Guidance
1% 3% FY2022 29% MATSA Base Metal Concentrates Guidance 67% 5 months to June 2022 Revenue Split FY22G (5 months) Copper Zinc Lead Silver Concentrate Recovery (%) Tonnes Cu (%) Zn (%) Pb (%) Ag (g/t) Cu concentrate (Cupriferous) 88 30 - 35,000 23 - 4.0 - 4.2 70 3.2 Cu concentrate (Polymetallic) 72 90
Slide 19: FY2022 MATSA Unit Cost Guidance
Indicative Margin and Cash Cost Summary 5.0 23.6 23.4 4.34 FY2022 4.0 3.43 MATSA Unit Cost Guidance Cash cost buildup (US$/lb, payable Cu) 3.0 0.62 0.54 5 months to June 2022 2.0 0.15 0.15 0.61 0.75 1.0 0.88 0.94 1.38 1.22 - Indicative Production: Increased margins with copper - C1 ~26,000t Cu~95% h
Slide 20: FY2022 Group Guidance
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$55M MATSA D+A guidance to payable ~1,00
Slide 21: Motheo
Motheo Motheo Copper Mine Exploration • T3 Deposit Open Pit Development • Motheo Expansion Project • A4 Deposit Expansion Project • Kalahari Copper Belt tenure Creating Value through Opportunity 21
Slide 22: Motheo Copper Mine Summary
Motheo Copper Mine Summary Development of Sandfire’s Motheo Sandfire intends to fund the development 5.2Mtpa Motheo Expansion Case DFS Copper Mine in Botswana is proceeding of the Motheo Copper Mine through a remains on schedule for completion in the on schedule and on budget combination of cash and
Slide 23: Motheo Copper Mine Development Timeline
Motheo Copper Mine | Development Timeline Mining License Approval & Land Titles Accommodation Camp EMP Process Plant Engineering & Pre Construction Works Accommodation Facility 132KV Powerline & Substations Design & Construction Process Plant Construction Mining Contractor Mobilisation & Establishme
Slide 24: Motheo Mine Construction & Development Capital
US$ US$ 80,000,000 320,000,000 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 FY22 Q2 FY22 Q3
Slide 25: Key Takeaways
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 Construction of Motheo Copper
Slide 26: A Global Miner poised for a new era of growth
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 provinces Creating Value thro
Slide 27: Contact Details
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