Sandfire Resources Ltd · ASX:SFR
Sandfire Resources — Sandfire Resources NL — BMO Global Metals & Mining Conference 2016
34 slides from Sandfire Resources's conference presentation, Feb 29, 2016
Slide 1: BMO Global Metals & Mining Conference
For personal use only ►Consistent, low-cost copper production ►Strong balance sheet, disciplined focus ►Exploration success delivering growth BMO Global Metals & Mining Conference Karl Simich, Managing Director and CEO
Slide 2: Important Information and Disclaimer
Important Information and Disclaimer Forward-Looking Statements and Competent Person’s Statement For personal use only Forward-Looking Statements ► This presentation has been prepared by Sandfire Resources NL. This document contains background information about Sandfire Resources NL current at the d
Slide 3: Overview
Overview For personal use only ► Leading ASX-listed copper-gold producer ► Value underpinned by consistent, low-cost copper production ► New chapter of discovery success at DeGrussa ► Exciting new Monty VMS discovery on track for maiden resource ► Strong balance sheet to fund growth and shareholder
Slide 4: Our Core Values
For personal use only Our Core Values 4
Slide 5: Company Snapshot
Company Snapshot Sandfire Resources NL (ASX: SFR) For personal use only Market Capitalisation ASX Stock Market Index Issued Capital Dividends S&P 200 157.3m Shares 13c Paid out FY15, 2c interim FY16 ~$865m at $5.50 Cash and Deposits (Group) $51.2m 31 December 2015 Debt $75m at 31 December 2015 Share
Slide 6: A Strong Platform for Value Creation and Growth
A Strong Platform for Value Creation and Growth Strong, low-cost production and disciplined capital management underpinning an organically driven growth strategy For personal use only • DeGrussa Copper-Gold Mine Operations • Consistent, low-cost production • New high-grade VMS discovery at Monty Exp
Slide 7: A Strong Platform for Value Creation and Growth
A Strong Platform for Value Creation and Growth For personal use only • DeGrussa Copper-Gold Mine Operations • Consistent, low-cost production • New high-grade VMS discovery at Monty Exploration • World-class exploration potential at Doolgunna • Base metals exploration initiative in eastern Australi
Slide 8: DeGrussa – Consistent, Reliable, Low-Cost
DeGrussa – Consistent, Reliable, Low-Cost Sandfire’s cornerstone asset – a high grade, high margin copper-gold mine For personal use only ►Location 900km north of Perth in Western Australia ►Production +230,000t Cu, +130,000oz Au to date +1.6Mtpa via long-hole open stoping ►Mining +33km of undergrou
Slide 9: Strong and Consistent Low-Cost Copper and Gold Production
Strong and Consistent Low-Cost Copper and Gold Production Strong track record of achieving guidance with excellent safety performance For personal use only PRODUCTION OVERVIEW – Key Figures FY 2013 FY 2014 FY 2015 FY 2016 (guidance) Copper (Cu) 64,017t 67,690t 67,154t 65-68kt Production Gold (Au) 42
Slide 10: Strong Margins and Cash Flows
Strong Margins and Cash Flows Strong financial performance, disciplined capital management For personal use only FINANCIAL FY 2013 FY 2014 FY 2015 1HFY2016 OVERVIEW: Revenue $507.3M $525.7M $548.6M $228.3M Operating Cash-flow* $272.4M $249.5M $250.1M $66.2M Net Profit After Tax $88.0M $78.2M $69.0M
Slide 11: Robust Underground Mine Performance
Robust Underground Mine Performance For personal use only Ore drive in the Conductor 5 deposit, January 2016 ► Mining rate ~1.6Mtpa with current production from ► Development of C4/5 decline on schedule and progressing in DeGrussa, C1 and C4 deposits good ground conditions ► Flexibility of ore sourc
Slide 12: Process Plant Upgrades Delivering Strong Results
Process Plant Upgrades Delivering Strong Results ► Excellent results from recently completed plant enhancements: For personal use only – Copper recoveries increased as a result of flotation improvements and installation of column cell – Milling throughput increased by 11% following Primary Screen an
Slide 13: A Strong Platform for Value Creation and Growth
A Strong Platform for Value Creation and Growth For personal use only • DeGrussa Copper-Gold Mine Operations • Consistent, low-cost production • New high-grade VMS discovery at Monty Exploration • World-class exploration potential at Doolgunna • Base metals exploration initiative in eastern Australi
Slide 14: Growth through Exploration
Growth through Exploration An outstanding track record of value-creation through exploration For personal use only DeGrussa Discovery First diamond hole DGDD-001 Monty JV Discovery intersects 53.2m at 17.3% Cu, Discovery hole 2.5g/t Au and 25.1m at 3.4% Cu and 1.6g/t Au ► DeGrussa discovery: drove S
Slide 15: Doolgunna – World-Class Exploration Upside
Doolgunna – World-Class Exploration Upside For personal use only ► Dominant 1,600km2 ground position in WA’s premier emerging copper belt ► Only operating processing facility in the District ► Outstanding potential: 65km strike length of prospective VMS horizons ► Significant new high-grade discover
Slide 16: Springfield Project – Talisman Joint Venture
Springfield Project – Talisman Joint Venture • 70% interest held in joint venture with Talisman For personal use only Mining (ASX: TLM) – 30% • Two key areas of exploration focus • Monty – 10km east of DeGrussa • Significant new high-grade discovery – first discovery outside of DeGrussa • Opens up h
Slide 17: Monty – High-grade VMS Copper-Gold Discovery
Monty – High-grade VMS Copper-Gold Discovery ► Resource drilling in progress – maiden Mineral For personal use only Resource on track for end of March 2016 Quarter ► Drilling continues to support interpretations of Monty mineralisation (Upper and Lower Zone) ► Further high-grade results from ongoing
Slide 18: Monty – Vertical Longitudinal Projection
Monty – Vertical Longitudinal Projection For personal use only • Diamond drill core from the Monty VMS discovery, where recent drilling has returned outstanding intercepts including: • 21.6m at 34.4% Cu and 0.4g/t Au (TLDDD0026) • 25.8m at 24.1% Cu and 0.5g/t Au (TLDD0061) 18
Slide 19: Monty – Cross-Section Projection
Monty – Cross-Section Projection For personal use only 19
Slide 20: Homer – the Next Discovery Opportunity?
Homer – the Next Discovery Opportunity? For personal use only ► High priority area located 4km directly east of DeGrussa – immediate extension of DeGrussa Mine Corridor ► Three deep diamond holes completed to date ► Drilling along this horizon has intersected intersected haematitic exhalite with jas
Slide 21: Doolgunna – A World-Class Exploration Opportunity
Doolgunna – A World-Class Exploration Opportunity For personal use only ► Maiden resource imminent at Monty, with exploration gathering momentum across immediate 5km long VMS Monty Trend and at Homer ► VMS exploration underway along the length of the prospective sequence on 100% SFR and joint ventur
Slide 22: A Strong Platform for Value Creation and Growth
A Strong Platform for Value Creation and Growth For personal use only • DeGrussa Copper-Gold Mine Operations • Consistent, low-cost production • New high-grade VMS discovery at Monty Exploration • World-class exploration potential at Doolgunna • Base metals exploration initiative in eastern Australi
Slide 23: Australian Regional Exploration Projects
Australian Regional Exploration Projects Targeting world-class discoveries in Australia’s premier exploration provinces For personal use only EXPLORATION: Queensland Base Metals ► 2,400km² in Mt Isa-Cloncurry province ► 100km strike length with outstanding potential for Broken Hill/Cannington- style
Slide 24: Investment in Tintina Resources / Black Butte Copper Project
Investment in Tintina Resources / Black Butte Copper Project 57% stake in copper development company Tintina Resources For personal use only ► (TSX-V: TAU) ► Developing the Black Butte Copper Project, central Montana, USA ► Advanced, high quality copper project in stable jurisdiction: • NI 43-101 Me
Slide 25: Tintina Resources – A Top-10 Global Copper Opportunity
Tintina Resources – A Top-10 Global Copper Opportunity For personal use only Source: CRU Copper Mine Project Profiles – 2015 Edition 25
Slide 26: A Strong Platform for Value Creation and Growth
A Strong Platform for Value Creation and Growth For personal use only • DeGrussa Copper-Gold Mine Operations • Consistent, low-cost production • New high-grade VMS discovery at Monty Exploration • World-class exploration potential at Doolgunna • Base metals exploration initiative in eastern Australi
Slide 27: Sustainability – DeGrussa Solar Power Project
Sustainability – DeGrussa Solar Power Project First-mover renewable energy project with potential to reduce costs and CO2 emissions For personal use only ► 10.6MW solar power station being constructed at DeGrussa ► To be fully integrated with existing 19MW diesel-fired power station ► $40M project b
Slide 28: Safety – Our Number One Priority
Safety – Our Number One Priority Steady improvement in safety performance over the past two years 20 For personal use only TRIFR 18 ► Safety improvement trend 16 14 continued in 2015, reflecting 12 strong leadership and embedment 10 of systems and processes 8 6 4 ► Increased focus on risk 2 manageme
Slide 29: 2015 Sustainability Report
2015 Sustainability Report For personal use only 29
Slide 30: Summary and Outlook
Summary and Outlook Positioned for growth, success and value creation For personal use only ► Consistent, low-cost copper-gold production • FY2015 performance: 67,154t Cu, 37,386oz gold at C1 US$1.09/lb • FY2016 guidance: 65-68,000t Cu, 35-40,000oz Au at C1 US$0.95-1.05/lb ► New chapter of discovery
Slide 31: Contact Details
For personal use only ►Consistent, low-cost copper production ►Strong balance sheet, disciplined focus ►Exploration success delivering growth CONTACT DETAILS: Sandfire Resources NL Registered Office and Principal Place of Business Level 1, 31 Ventnor Avenue, West Perth, Western Australia 6005 T +61
Slide 32: Mineral Resource, Ore Reserve and Mine Plan
Mineral Resource, Ore Reserve and Mine Plan Maiden C4 Ore Reserve and Mineral Resource additions extend mine life to mid-2021 For personal use only • Previously announced increases to high-grade Underground Mineral Resource incorporated into DeGrussa Mine Plan, extending mine life to mid-2021 • Maid
Slide 33: Drill-hole Information Summary, Springfield Project
Drill-hole Information Summary, Springfield Project Hole ID Depth Dip Azimuth Grid_ID East North RL Lease ID Hole Status TLDD0002A 463 -61° 110° MGA94_50 743544 7171211 602 E52/2282 Complete TLDD0004A 817 -60° 148° MGA94_50 743588 7171281 601 E52/2282 Complete For personal use only TLDD0005 478 -62°
Slide 34: Drill-hole Information Summary, Springfield Project
Drill-hole Information Summary, Springfield Project Downhole Intersection Hole ID Interval From (m) To (m) Estimated True Width (m) Width (m) Cu (%) Au (g/t) Zn (%) TLDD0004A 409.5 426.0 16.5 10.9 18.9 2.1 1.5 For personal use only TLDD0005 417.0 426.2 9.2 6.1 11.8 2.9 2.3 TLDD0008 574.2 579.3 5.1 3
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