SANDFIRE RESOURCES LIMITED — Interim / Quarterly Report 2015

Feb 25, 2015

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– December 2014 Half-Year Results Webcast 26 February 2015 Access this presentation at: http://webcasting.brrmedia.com/broadcast/133635 http://www.sandfire.com.au

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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.

Important Information and Disclaimer

• This presentation is for information purposes only. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction.

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• This presentation does not constitute investment advice and has been prepared without taking into account the recipient's investment objectives, financial circumstances or particular needs and the opinions and recommendations in this presentation are not intended to represent recommendations of particular investments to particular persons. Recipients should seek professional advice when deciding if an investment is appropriate. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments.

• To the fullest extent permitted by law, Sandfire Resources NL, its officers, employees, agents and advisers do not make any representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of any information, statements, opinions, estimates, forecasts or other representations contained in this presentation. No responsibility for any errors or omissions from this presentation arising out of negligence or otherwise is accepted.

• 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.

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Operations Update

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1HFY2015 in Review 1HFY2015 production; FY2015 guidance and business development

• 1HFY2015 production : 31,413t copper and 17,737oz gold; C1 US$1.22/lb

• Processing plant optimisation programs delivering results

• Underground mining impacted by water ingress ; production and development recommenced and returned to previous levels

• Release of maiden C4 Ore Reserve and mine life extension to mid-2021

• Doolgunna exploration programs accelerating under $15M Talisman Mining Joint Venture; Sipa acquisition completed in late January 2015

• FY2015 production guidance : 65-68,000t copper, 36-38,000oz gold: C1 cash cost range of US$1.10-1.20/lb

• Secured cornerstone position in advanced, high-grade USA copper project via 36% stake (C$16M) in US copper developer Tintina Resources (TSX-V: TAU)

• Drilling commenced at Misima Project (WCB Resources: SFR 38%) targeting potential porphyry copper discovery

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1HFY2015 in Review Mid-Quarter Update

• Mine production running at +1.5Mtpa rates

• Mine grade on target for guidance

• ROM stocks restored: exceeding 50,000t at 6% Cu

• First C4 development ore intersected; development program on target for first stope ore from early FY2016

• C5 Mineral Resource and exploration drilling continues

• All elements of the Processing Improvement Projects have been commissioned with optimisation underway

• Immediate benefits of improvement projects being realised: improved grind optimisation, recovery lift and reduced operating costs (power, consumables)

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1HFY2015 in Review Processing Improvements

• Pebble crusher operation has allowed increased scatting out of the SAG mill leading to improved grind optimisation and throughput

• SAG screen has reduced recycle load on the SAG mill and balance operation of the SAG and Ball mill; significant improvement in grind management, SAG mill throughput and increased recovery

• SAG mill ball charge lowered significantly (to below 4%) while allowing increased throughput rates (up to 225tph)

• Achieved +20% reduction in SAG Mill power draw

• Column flotation cell optimisation underway: original recovery improvement target (plus 1%) exceeded

• Lift in concentrate grade (plus 0.5% Cu)

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Financial Results for 1HFY2015

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Headline Financial Results for the HalfYear Ended 31 December 2014

Sandfire maintains dividend payments following strong operational and financial performance

• Sales revenue of $264.2M

• Strong cash flow from operating activities of $100.3M

• ( $112.8M prior to payments for exploration and evaluation expenses)

• DeGrussa Mine earnings before net finance and income tax of $68.1M

• Profit before net finance and income tax of $50.3M

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• Profit before income tax of $44.9M

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• Net profit after tax $30.6M (no tax payable for 1HFY2015)

• Earnings per share of 19.62cps (basic and diluted)

• Interim dividend of 3.0cps (unfranked)

• Cash at 31 December 2014 of $45.8M; finance facility balance reduced to $130.0M

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December 2014 Half Year Presentation – Headline Income

Income Statement Review – Key Results

($’000)	Dec 2014	Dec 2013
Sales revenue	264,236	249,609
Profit before net finance and income tax	50,279	55,943
Net finance expense	(5,407)	(8,190)
Profit before income tax	44,872	47,753
Income tax expense	(14,309)	(14,249)
Net profit for the period	30,563	33,504

• Maintained revenue from copper and gold production – AUD copper prices remain robust, with declines in USD copper offset in part by the lower AUD

• Profit before income tax includes $3.7M share of net losses of Tintina and WCB and valuation movement of share warrants, $7.7M water ingress expense

• Income tax expense booked on profit result, however no tax payable for the 1HFY2015; tax payments expected to commence in March/June 2015 Quarters

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Commodity Prices and Exchange Rate Market rates – copper and gold

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December 2014 Half Year Presentation

Income Statement Review – Operating Segments

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($’000) DeGrussa Mine 1HFY2015	Other Operations Group
	Exploration Other 1HFY2015
Sales revenue 264,236 Metal and price adjustment gains (losses) (13,621) Other income 4,311 Changes in inventories of finished goods and work in progress (10,602) Mine operations costs (56,570) Employee benefit expenses (17,033) Freight, treatment and refining expenses (40,860) Royalties expense (12,220) Exploration and evaluation expenses - Depreciation and amortisation expenses (41,836) Water ingress expense (7,683) Share of net loss equity accounted investments - Administrative expenses - PROFIT BEFORE NET FINANCE AND INCOME TAX 68,122	264,236 (13,621) 4,311 (10,602) (56,570) (21,614) (40,860) (12,220) (9,025) (42,052) (7,683) (1,706) (2,315) 50,279 - - - - - - - - - - (3,484) (1,097) - - - - (9,025) - (97) (119) - - (1,706) - - (2,315) (14,312) (3,531)

December 2014 Half Year Presentation

Balance Sheet Review

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($‘000)	Dec 2014	Jun 2014
ASSETS Cash and cash equivalents Trade and other receivables	45,760 12,487	57,590 14,531	• Cash –includes $17M relating to finance facility
Inventories	27,865	36,501	• Inventories –Port and site
Other current assets	1,152	2,005	concentrates, ore stockpiles
Total current assets	87,264	110,627	and stores
Receivables	139	174	• Mine properties –Underground
Inventories	11,698	11,698	development continues
Mine properties	195,272	194,894	• Property, plant and equipment
Property, plant and equipment	227,059	227,022	–Plant improvement projects
Investments - equity method	14,814	3,829
Other financial assets	4,957	2,310	• Investments and other financial assets –Tintina and WCB
Exploration and evaluation assets	3,148	3,148	shares and warrants
Total non-current assets	457,087	443,075
TOTAL ASSETS	544,351	553,702

December 2014 Half Year Presentation

Balance Sheet Review

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($’000)	Dec 2014	Jun 2014
LIABILITIES
Trade and other payables	33,028	45,359	• Finance facility –$30M repaid
Interest bearing liabilities	128,932	75,979	during 1HFY2015, $130M remaining (current)
Provisions	2,891	2,672
Total current liabilities	164,851	124,010	• 2HFY2015 –$45M total
Trade and other payables	195	763	scheduled quarterly
Interest bearing liabilities	1,105	84,616	repayments
Provisions	23,414	21,654	• 1HFY2016 –$85M total
Deferred tax liabilities	45,158	30,851	scheduled quarterly
Total non-current liabilities	69,872	137,884	repayments
TOTAL LIABILITIES	234,723	261,894
NET ASSETS	309,628	291,808

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December 2014 Half Year Presentation Cash Flow Review

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2HFY2015 key drivers Expecting a strong second half to FY2015

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• Mine grade, plant and recovery improvements to drive ~4kt higher Cu production than 1HFY2015

• Once-off water ingress costs of $7.7 million in 1HFY2015

• ~13,000t Cu sales remains subject to QP pricing at 31 December 2014 (at ~US$6,300/t)

• A$ copper and gold prices remain robust; reducing diesel consumption and pricing

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Summary and Outlook Continued strong outlook for the remainder of FY2015 and beyond

• 1HFY2015 production: 31,413t copper; 17,737oz gold; C1 US$1.22/lb

• Plant optimisation projects delivering immediate results

• Strong and consistent outlook for remainder of FY 2015:

• FY2015 guidance: 65-68kt Cu, 36-38koz gold at C1 US$1.10-1.20/lb

• Strong operating cash flow:

• $112.8M prior to exploration and evaluation expenses

• 3c per share interim dividend (unfranked)

• $30M repayments reduce finance facility to $130M

• Cornerstone position acquired in high-grade USA copper project

• Drilling at Misima Tier-1 porphyry copper-gold opportunity

A premier Australian copper-gold company

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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

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