Sandfire Resources Ltd · ASX:SFR
Sandfire Resources — Sandfire Resources NL — Macquarie Conference May 2016
34 slides from Sandfire Resources's conference presentation, May 5, 2016
Slide 1: Company Update - 4 May 2016
For personal use only ►Consistent, low-cost copper production ►Strong balance sheet, disciplined focus ►Exploration success delivering growth Company Update - 4 May 2016 Karl Simich, Managing Director and CEO
Slide 2: Important Information and Disclaimer
Important Information and Disclaimer Forward-Looking Statements 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 and does not purport F
Slide 3: Overview
For personal use only Overview ► Leading ASX-listed copper-gold producer ► Value underpinned by consistent, low-cost copper production ► New chapter of discovery success at DeGrussa ► Maiden high-grade Mineral Resource for new Monty VMS discovery ► 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 ~$950M at $6.00 Cash and Deposits (Group) $45m 31 March 2016 Debt $70m at 31 March 2016 Share Price $
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 resource at Monty Expl
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 +35km of underg
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 DeGrussa For personal use only Tonnes Copper Gold Contained Contained Underground Mine (Mt) (%) (g/t) Copper (t) Gold (oz) Mine Plan 8.1 4.4 1.7 357,000 443,000 Ore Reserve 8.0 4.4 1.7 353,000 441,000 Mineral Resource 7.8 5.7 2.1 443,000 536,000 As at 31 December
Slide 12: Process Plant Continuing to Perform Strongly
Process Plant Continuing to Perform Strongly ► Excellent results from plant enhancements completed in FY2015 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 and Pe
Slide 13: Million Tonnes and Counting….
1 Million Tonnes and Counting…. ► 1 millionth tonne of concentrate hauled (30 March 2016) For personal use only ► Nearly 4 years of consistent and reliable production (including DSO) ► Over 8000 truck-loads ► Over 12 million kilometres of transit from DeGrussa to Port Hedland and Geraldton th ► 100
Slide 14: 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 resource discoveryat atMonty Monty Exploration • World-class exploration potential at Doolgunna • Base metals exploration initiative in
Slide 15: Growth through Exploration
Growth through Exploration An outstanding track record of value-creation through exploration For personal use only DeGrussa Discovery Monty JV Discovery First diamond hole DGDD-001 Discovery hole intersects 53.2m at 17.3% Cu, 2.5g/t Au and 25.1m at 3.4% Cu and 1.6g/t Au ► DeGrussa discovery: drove S
Slide 16: 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 17: Springfield Project – Talisman Joint Venture
Springfield Project – Talisman Joint Venture ► 70% interest held in joint venture with For personal use only Talisman 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 18: Monty – High-grade VMS Copper-Gold Discovery
Monty – High-grade VMS Copper-Gold Discovery For personal use only ► Monty resource drill-out finalised with 82 diamond drill-holes completed since discovery in June 2015 ► Maiden JORC 2012 Mineral Resource estimate: - Total Indicated and Inferred Mineral Resource of 1.05Mt grading 9.4% Cu and 1.6g/
Slide 19: Monty – Maiden High-Grade Mineral Resource
Monty – Maiden High-Grade Mineral Resource Maiden Monty Mineral Resource For personal use only ► Two major massive sulphide lenses host 87% of the overall contained metal ► Lowermost massive sulphide lens contains localised, high grade bornite – further drilling to be considered to determine potenti
Slide 20: Monty – Development Studies
Monty – Development Studies Project development studies For personal use only ► High-level studies underway to identify primary value-drivers and determine optimal development pathways, including: - Metallurgical testwork - Geotechnical/geo-hydrological drilling - Mining studies - Regulatory approva
Slide 21: Springfield Joint Venture – Unlocking the Next Discovery Opportunity
Springfield Joint Venture – Unlocking the Next Discovery Opportunity Exploration continuing as a priority along highly prospective 5km long Monty VMS corridor For personal use only ► Systematic aircore drilling to accurately delineate the interpreted VMS horizon along strike from Monty ► RC drilling
Slide 22: Homer – the Next Discovery Opportunity?
Homer – the Next Discovery Opportunity? High priority area located 4km For personal use only ► directly east of DeGrussa – immediate extension of DeGrussa Mine Corridor ► Three deep diamond holes completed to date ► Drilling along this horizon has intersected haematitic exhalite with jasper clasts –
Slide 23: Doolgunna – A World-Class Exploration Opportunity
Doolgunna – A World-Class Exploration Opportunity For personal use only Aggregate continuous area of 1,600 square kilometres ► VMS exploration advancing on several fronts within Greater Doolgunna Area: DeGrussa Mine Corridor (SFR: 100%) Homestead Prospect (SFR: 100%) Southern Volcanics (Springfield
Slide 24: 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 resource at Monty Exploration • World-class exploration potential at Doolgunna • Base metals exploration initiative in eastern Australia
Slide 25: 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 26: 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 27: 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 27
Slide 28: 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 29: 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 30: Safety – Our Number One Priority
Safety – Our Number One Priority Steady improvement in safety performance over the past two years For personal use only 20 TRIFR 18 ► Safety improvement trend 16 continued in 2015, reflecting 14 12 strong leadership and embedment 10 of systems and processes 8 6 ► Increased focus on risk 4 management
Slide 31: 2015 Sustainability Report
2015 Sustainability Report For personal use only 31
Slide 32: Summary and Outlook
Summary and Outlook Positioned for growth, success and value creation For personal use only ► Consistent, low-cost copper-gold production • FY 2016 YTD: 50,375t Cu, 26,385oz gold at C1 US$1.00/lb • FY2016 guidance: 65-68,000t Cu, 35-40,000oz Au at C1 US$0.95-1.05/lb ► New chapter of discovery succes
Slide 33: 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 34: Mineral Resource, Ore Reserve and Mine Plan
Mineral Resource, Ore Reserve and Mine Plan Table 1 – December 2015 Comparison of the Underground Mine Plan, Mineral Resource and Ore Reserve For personal use only DeGrussa Underground Mine Tonnes (Mt) Copper (%) Gold (g/t) Contained Copper (t) Contained Gold (oz) Mine Plan 8.1 4.4 1.7 357,000 443,0
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