SANDFIRE RESOURCES LIMITED — Interim / Quarterly Report 2014

Jul 22, 2014

A Premier Australian Copper Producer

June 2014 Quarterly Report Presentation Webcast – Karl Simich, Managing Director & CEO 23 July 2014

Access this presentation at: http://www.brrmedia.com/event/124496 / http://www.sandfire.com.au

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 be all inclusive or complete. Recipients should conduct their own investigations and perform their own analysis in order to satisfy themselves as to the accuracy and completeness of the information, statements and opinions contained in this presentation.
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• This presentation may include forward-looking statements. Forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of Sandfire Resources NL. Actual values, results or events may be materially different to those expressed or implied in this presentation. Given these uncertainties, recipients are cautioned not to place reliance on forward looking statements. Any forward looking statements in this presentation speak only at the date of issue of this presentation. Subject to any continuing obligations under applicable law and the ASX Listing Rules, Sandfire Resources NL does not undertake any obligation to update or revise any information or any of the forward looking statements in this presentation or any changes in events, conditions or circumstances on which any such forward looking statement is based.

Competent Person's Statement

• The information in this report that relates to Exploration Results is based on information compiled by Mr. Shannan Bamforth who is a Member of The Australasian Institute of Mining and Metallurgy. Mr. Bamforth is a permanent employee of Sandfire Resources and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Bamforth consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Exploration and Resource Targets

• Any discussion in relation to the potential quantity and grade of Exploration Targets is only conceptual in nature. There has been insufficient exploration to define mineral resources in addition to the current JORC compliant Mineral Resource inventory and it is uncertain if further exploration will result in the determination of additional JORC compliant Mineral Resources.

Agenda June 2014 Quarterly Report Presentation

• Highlights
• Safety
• Mining
• Processing
• Sales
• Operating Costs
• Guidance
• Exploration
• Summary

Production and Operations

• June 2014 Quarter: 17,654t copper and 9,288oz gold produced; C1 cash operating cost of US$1.18/lb
• FY2014: 67,690t copper, 33,893oz gold; C1 cash operating cost of US$1.18/lb
• Underground mining and milling rates exceeded 1.5Mtpa for the Quarter
• New underground mining contract awarded to Byrnecut Australia changeover completed 1 July with successful ramp-up to targeted production and development rates
• Development of C1 and C4/5 declines on schedule: good ground conditions
• FY2015 production and cost guidance: 65-70,000t of copper, 35-40,000oz of gold at C1 cash operating costs in the range of US$1.15-1.25/lb

Exploration

• Drilling underway to upgrade Central and Eastern portions of C4 resource to Indicated status
• Diamond drilling underway at Springfield Project (Talisman JV) to test EM conductor ~5km east of DeGrussa
• Diamond drilling completed at Thaduna Project (Ventnor JV) to advance DeGrussa Oxide Copper Project
• Deep diamond drilling to commence at Misima porphyry copper-gold project in September Quarter

Corporate and Financial

• Facility balance reduced to $160M at 30 June 2014 with cash reserves of $58M
• FY2014 Sales Revenue $531M planned June shipment departed on 1 July for additional $18M revenue

Production and Operations

• June 2014 Quarter: 17,654t copper and 9,288oz gold produced; C1 cash cost of US$1.18/lb
• FY2014 production: 67,690t copper and 33,893oz gold; C1 US$1.18/lb
• Concentrator throughput exceeded 1.5Mtpa
• Underground mining rate exceeded 1.5Mtpa; 22km of underground development completed
• FY2015 production guidance: 65-70,000t copper, 35-40,000oz gold: C1 cash cost in the range of US$1.15 -1.25/lb

Contained metal production	Sep 2013 Qtr	Dec 2013 Qtr	Mar 2014 Qtr	Jun 2014 Qtr	FY 2014
COPPER (t)	16,446	15,492	18,098	17,654	67,690
GOLD (oz)	8,613	5,957	10,035	9,288	33,893

Safety Continued sound safety performance

• Continued decline in Total Recordable Injury Frequency Rate (TRIFR) to 9.1 at Quarter-end (vs. 13.0 at March Quarter-end)
• Several initiatives continuing to improve safety performance including safety skills and leadership, operational standard development and risk and assurance management

Mining Overview 1.5Mtpa underground mining rate exceeded; mine development continuing on schedule

UNDERGROUND

• Underground mining rate of 1.5Mtpa exceeded with 415,930t of underground sulphide ore mined for the Quarter
• Mine remains in balance between production and back-fill: paste plant performance on target
• C4/5 Decline development on schedule with good ground conditions
• Total underground development progressed to 22km
• New underground mining contract awarded to Byrnecut Australia Pty Ltd: +10% reduction in gross mining costs

Processing Copper recoveries to improve further; strong concentrate production

MILL THROUGHPUT

• 396,077t milled at average head feed grade of 5.0% Cu
• Annualised rate of 1.5Mtpa exceeded
• Maintenance included change-out of SAG mill grate
• Continued process of scatting SAG mill pebble crusher to be installed in September Quarter

RECOVERY

• Copper recovery of 89.5%; Gold recovery 50.7%
• Recoveries expected to return to +90% in September Quarter with installation of a column flotation cell

CONCENTRATE & METAL PRODUCTION

• 74,064t of concentrate produced
• 17,654t of contained copper produced: in line with guidance

• Quarterly sales of 13,754 tonnes of payable copper and 6,509 ounces of gold
• FY2014 sales of 62,667 tonnes of payable copper and 29,686 ounces of gold
• Port Hedland and Geraldton Ports both operating well
• ~19,000 tonnes concentrate holding at site and at port at Quarter -end, additional sale completed 1 July 2014

Unit costs –DeGrussaMine	Q4 FY2014(US$/lb)	FY2014(US$/lb)	Commentary
Mining (net of development)	0.51	0.51	Unit costs reduced through the year with
Processing	0.37	0.36	increased grade and copper production
Business services	0.13	0.14	1H FY 2014 was impacted by restricted
Transport, treatment and refining	0.51	0.50	open pit recovery and lower ore grades;
C1 cost (pre-by product credit)	1.53	1.50	C1 of US$1.30/lb
By-product credit (gold and silver)	(0.35)	(0.32)	2H FY 2014 solely underground ore from
C1 cost	1.18	1.18	higher grade stopes and higher recovery;
Royalties	0.16	0.17	driving production higher and costs lower,below US$1.15/lb
Production cost	1.34	1.35
Depreciation and amortisation	0.64	0.63	Stronger AUD (90c to 94c) has lifted stated
Total production cost	1.98	1.98	USD C1 by around 4%

Key Operational Targets	FY2015 –Guidance	Commentary
Ore mined	1.5Mt	Underground mining operations
Ore processed	1.6Mt	Includes stockpile of underground sulphide and stockpiled scats
Mined grade -copper	4.9% Cu
Mined grade –gold	1.7g/t Au	Mining Conductor 1 (81%), DeGrussa (12%), and C4 (7%) orebodies
Copper Recovery	91%	Copper recovery ~90% for 1H FY2015, increasing to 91-92% into 2H FY2015
Gold Recovery	45%
Concentrate Produced	280kt	Based on mid-point of production guidance
Concentrate grade -copper	24-25% Cu
Concentrate grade –gold	4.0-4.5g/t Au	Targeted on spec concentrate grade and quality

Production Guidance –DeGrussaMine	FY2014	1H FY2015	2H FY2015	FY2015
Contained Copper (t)	67,690	~30,000	35-40,000	65-70,000
Contained gold (oz)	33,893	~18,000	17-22,000	35-40,000
Head grade (Cu)	5.2%	4.4%	5.1%	4.8%
Head grade (Au)	1.5%	1.6%	1.7%	1.7%

Unit costs –DeGrussaMine	FY2015(US$/lb)	FY2014(US$/lb)	Commentary
Mining (net of development)	0.44	0.51	Gross and unitmining rates reducing in line
Processing	0.35	0.36	with new mining contract rates and optimisationand efficiency programs
Business services	0.14	0.14
Transport, treatment and refining	0.56	0.50	Globalincreases in smelter treatment andrefining charges; offset in part by continued low
C1 cost (pre-by product credit)	1.51	1.50	shipping costs
By-product credit (gold)	(0.32)	(0.32)	FY2015guidance based on USD at 0.94c
C1 cost	1.19	1.18
Royalties	0.17	0.17	Mine development $70M, Strategic andsustaining capital$25M
Production cost	1.36	1.35
Depreciation and amortisation	0.65	0.63	Unit cost guidance stated at mid-point ofproduction guidance band
Total production cost	2.01	1.98

Exploration Summary Near-mine exploration delivering results; major regional exploration programs commenced under recently-concluded JVs

• Resource definition drilling underway to upgrade Central and Eastern portions of the C4 orebody from Inferred to Indicated Resource status
• High-powered DHEM and FLEM surveys commenced over key areas of the Springfield Project (Talisman JV)
  • Late time EM conductor identified ~5km east of DeGrussa
  • Deep diamond drill hole underway aimed at intersecting the modelled conductor at a target depth of 400m below surface
• Completion of drilling at the Thaduna Copper Project (Ventnor JV)
• Drilling scheduled to commence at Misima Project (WCB Resources) in September Quarter

Sandfire – Dominant Position in an Emerging VMS Province Consolidating a strong position in Western Australia's emerging Bryah Basin VMS copper-gold province

• Only operating base metals processing plant in the region (1.5Mtpa DeGrussa Concentrator)
• Outstanding organic growth potential extensive 65km strike length of prospective VMS horizon
• Recently expanded strategic footprint via Talisman and Ventnor Joint Ventures

Talisman Joint Venture – New EM Conductor at Homer

Deep diamond drilling underway targeting late-time EM conductor

• Solid quarterly production and cost performance:
  • 17,654t copper, 9,288oz gold production at C1 cost of US$1.18/lb
  • Optimisation projects planned for September Quarter
• Operating cash flow:
  • $30M repayment reduces finance facility to $160M at year end
  • Ongoing exploration commitment
• Consistent outlook for FY 2015:
  • FY2015 guidance: 65-70kt Cu, 35-40koz gold at C1 US$1.15-1.25/lb
• Progress under new exploration JV's
• Tier-1 porphyry copper-gold opportunity secured

A premier Australian copper producer

Contact Details:

Sandfire Resources NL

Registered Office and Principal Place of Business Level 1, 31 Ventnor Avenue West Perth, Western Australia 6005 T +61 8 6430 3800 F +61 8 6430 3849 www.sandfire.com.au

Access this presentation at: http://www.brrmedia.com/event/124496 / http://www.sandfire.com.au