Slide 1: FY2022 Financial Results and Motheo Expansion DFS Presentation
FY2022 Financial Results and Motheo Expansion DFS Presentation 30 August 2022 Access the live webcast of this presentation commencing at 10.00am (AWST) / 12.00pm (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 Key assumptions current at the date of this presentation. The presentation is in summary form, has not been independently verified and
Slide 3: Our Strategy
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 3
Slide 4: Where we operate
Where we operate Scale One of the largest copper-focused miners on the ASX Future-facing Producing copper, a critical metal for a low-carbon future Growth Pivoting to new long-life mines in Spain, Botswana and USA Exploration Four world-class mineral provinces Operating Mines Development Phase Study
Slide 5: FY2022 Headline Financial Results
FY2022 Headline Financial Results In US$ $922.7M $447.3M $190.6M $111.4M $439.5M $463.1M cash Record sales Group Profit before Net profit after Cash flow from holding revenue EBITDA net finance tax attributable operating and income to equity holders activities Net debt $324.7M tax expense (prior to
Slide 6: FY2022 Operations Highlights
FY2022 Operations Highlights Production and costs: Motheo Copper Mine development Acquisition of MATSA: progressing on schedule: • Completion of the transformational 98,367t of contained copper • Construction activities well advanced with 752- US$1.865B acquisition of the 38,907t of contained zinc a
Slide 7: FY2022 MATSA Acquisition Completed
FY2022 MATSA Acquisition Completed In US$ Transaction Financing Facility: Hedging put in place: Acquisition completed 1 February 2022 utilising: • $650M drawn • 3-year copper and zinc hedging program • $905M equity raising • High quality international banking group completed • $650M project debt fac
Slide 8: FY2022 Group Production
FY2022 Group Production Copper Dominant Revenue Stream Q4 FY2022 FY2022 FY2022 Production: Production: Guidance: 10% 34,974t Copper 98,367t Copper 92-95kt Copper 22,880t Zinc 38,907t Zinc ~38kt Zinc 2,201t Lead 4,102t Lead ~3kt Lead 82% 9,075oz Gold 32,285oz Gold 30-34koz Gold 0.8Moz Silver 1.5Moz S
Slide 9: FY2022 Segment EBITDA Contribution
600 MATSA DeGrussa FY2022 543.1 150.6 Segment EBITDA 500 (14.1) Feasibility (19.4) 447.3 Contribution 400 studies, drilling and permitting (62.3) 392.5 Exploration drive across global jurisdictions & MATSA In US$M 300 acquisition costs 200 100 - Operations EBITDA Black Butte Motheo Exploration & Oth
Slide 10: FY2022 Group EBITDA Comparison
700 313.2 FY2022 600 Group EBITDA Comparison 500 2.5 (7.7) 447.3 (184.1) (13.5) 400 Corporate capacity MATSA 337.0 to support Acquisition In US$M expansion Costs strategy 300 Acquisition of MATSA 200 100 0 Group EBITDA Revenue, Operation costs Exploration & Administrative Acquisition & Group EBITDA
Slide 11: FY2022 Cash Flow Waterfall
1,000 FY2022 218.6 Cash Flow 800 71.0 Waterfall 402.1 (199.4) 600 (55.2) (132.8) (42.4) 431.3 463.1 In US$M (81.0) 400 (149.1) 200 - Opening Cash Net cash used DeGrussa MATSA cash Mine Exploration Sale of Income tax Dividends Other Closing Cash - - 1 July 2021 for the cash flows flows from developme
Slide 12: FY2022 Dividends
FY2022 Dividends Dividends paused Capital management focus • Focus on period of transformative growth and • New project finance facilities and cash contributions to support current 3.2Mtpa balance sheet transition development and further expansion to 5.2Mtpa at the Motheo Copper Project • US$42.4M d
Slide 13: FY2023 Debt facilities and hedging
FY2023 Debt facilities and hedging MATSA Facility Motheo Facility pending Hedge Book • US$650M • Project Finance Facility credit approvals • Copper – FY2023: 32,180t at • FY2023 repayments: received and nearing final documentation US$9,424/t (~15% above current • September 2022 - US$118M • US$140M T
Slide 14: Motheo Copper Project
Motheo Copper Project Motheo Copper Mine Exploration • 5.2Mtpa Processing Facility • Motheo Expansion Project • T3 Open Pit Development • Kalahari Copper Belt tenure • A4 Open Pit Development
Slide 15: Motheo Copper Project: Building a world-class copper mine
Motheo Copper Project Building a world-class copper mine Development of the Motheo Copper 5.2Mtpa Motheo Expansion Case Sandfire intends to fund the Mine (3.2Mtpa): DFS: development of the Motheo Copper • Proceeding on time with first Mine through a combination of cash Positive DFS confirms strong b
Slide 16: 5.2Mtpa Motheo Expansion Case DFS
5.2Mtpa Motheo Expansion Expansion Case DFS Combined Total Ore Reserve for both DFS shows outstanding project Total development capital for the Motheo the A4 Deposit and T3 Deposit: economics from an expanded 5.2Mtpa Copper Project expansion case • 49.6Mt at 1.0% Cu and 14g/t Ag processing operation
Slide 17: 5.2Mtpa Motheo Expansion copper production
5.2Mtpa Motheo 60,000 1.20 Expansion 50,000 1.00 Copper production ramping up to peak ~55ktpa 40,000 0.80 Tonnes 30,000 0.60 20,000 0.40 10,000 0.20 - - 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Financial Year T3 Copper Contribution A4 Copper Contribution Mined Copper Grade 17
Slide 18: 5.2Mtpa Motheo Expansion Case DFS Key Outcomes
5.2Mtpa Motheo Expansion Expansion Case DFS Key Outcomes Key Drivers Unit 5.2Mtpa DFS Key Drivers Unit 5.2Mtpa DFS Physicals Economic Life of Mine (processing) Years 10.0 Cu price (LOM average)1 US$/lb 3.57 Waste : Ore (inc. pre-strip) 6.2 Ag price (LOM average) US$/oz 20.00 Cu grade % 0.94 LOM Reve
Slide 19: Motheo Copper Mine Proposed Mine Layout
Motheo Copper Mine Proposed Mine Layout 19
Slide 20: Motheo Copper Mine Processing Facility
Motheo Copper Mine | Processing Facility Reagent Store Clinic Scalable to 5.2Mtpa with Laboratory only the addition of a 4.5MW Ball Mill Administration Workshop Ball Mill Grinding Expansion Raw Water Primary Crushing Tails Pond Thickener Pebble Crushing Feed Conveyor Coarse Ore Water Stockpile & Rec
Slide 21: Motheo 5.2Mtpa Construction & Development Capital
70 23.6 400 Motheo Copper Mine 60 350 5.2Mtpa Construction 300 & Development Capital 50 250 40 Millions In US$ Millions 200 30 Development capital estimated at $397.4M 150 (displayed in graph) • Motheo (3.2Mtpa and T3) $325.5M 20 100 • Motheo (5.2Mtpa expansion and A4) $71.9M 10 At 31 July 2022, $18
Slide 22: Motheo Exploration: Dominant position in an emerging belt
Motheo Exploration Dominant position in an emerging belt Land holding more than 26,000km2 of the Kalahari Copper Belt • Under-explored and globally significant copper terrane • Only 643 holes drilled in 15 years of regional exploration • Regional geophysical data collection to enable a holistic basi
Slide 23: Motheo Exploration: A1 Dome
Motheo Exploration A1 Dome The next highly prospective exploration target • 19km from the Motheo Processing Facility • Similar structural and lithological setting to the T3 and A4 domes • More than 9km strike length of the prospective lower D'Kar formation identified through drilling and geophysical
Slide 24: Summary
Summary
Slide 25: Key Takeaways
Key Takeaways Strong growth platform Global vision Copper-dominant mining Our transformation into a diversified, operations in Spain and Australia international and sustainable mining generating strong operating cash- company flows New Production Hubs Strong Pipeline Refreshed and focused Constructi
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 copper, a critical metal for a low-carbon future Growth Pivoting to new long-life mines in Spain, Botswana and USA Exploration Four world-class mineral provinces Operating
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