SANDFIRE RESOURCES LIMITED — Interim / Quarterly Report 2019

Feb 18, 2019

December 2018 Half Year Presentation 19 February 2019

Access this presentation at: http://webcasting.brrmedia.com/broadcast/5c 5783f9a5daa339d94c6db8 or http://www.sandfire.com.au

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Certain statistical and other information included in this presentation is sourced from publicly available third party sources and has not been independently verified.

All figures are expressed in Australian dollars unless otherwise stated.

Forward-Looking Statements

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. 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 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.

Operating Results – 1HFY2019

Karl Simich – Chief Executive Officer

1HFY2019 in Review

• ► 1HFY2019: 34,813t of contained copper and 21,567oz of contained gold produced; C1 US$0.87/lb
• ► FY2019 guidance maintained: upper end of both 63-67kt of contained copper and 37-40koz of contained gold; C1 costs lowered to ~US$0.90-0.95/lb
• ► Safety TRIFR: 7.3 (December 2018) vs 7.1 (June 2018)
• ► Talisman Mining Ltd's 30% Springfield JV interest acquisition completed
• ► First Monty Copper-Gold Mine development ore mined in Q2 FY2019, with first stoping ore mined in February 2019
• ► Final permitting stage (EIS) for the Black Butte Copper Project, draft EIS expected Q3 FY2019; ownership increased to 86%
• ► Multi-pronged exploration programs continued across Sandfire's Greater Doolgunna Project (6,600km2 )
• ► Cash holding: $164.7M (Company); $179.0M (Group)

Financial Results – 1HFY2019

Matthew Fitzgerald – Chief Financial Officer

Financial Results for the Half Year ended 31 December 2018

Sandfire maintains strong financial performance

• ► Revenue of $272.3M post treatment and refining charges and price adjustment losses from value of metal payable sold of $303.5M
• ► Strong cash flow from operating activities of $97.5M ($121.9M prior to payments for exploration and evaluation expenses)
• ► DeGrussa Operations segment earnings before net finance and income tax of $101.7M
• ► Profit before net finance and income tax of $70.1M
• ► Profit before income tax expense of $73.1M
• ► Net profit after income tax of $48.3M
• ► Net profit after income tax attributable to members $49.5M
• ► Earnings per share of 31.1cps (basic and diluted)
• ► Group cash of $179.0M at 31 December 2018

Sandfire continues dividend payments

• ► Maintaining dividend stream from profitable operations
• ► Interim dividend for 1HFY2019 of 7.0cps (fully franked)
• ► Continuing to balance shareholder returns and growth (dividends, business development and exploration) with operational cash flow requirements (Monty development)

Income Statement Review – Key Results

		USD/mtAUD/mtAUD/USD Spot
Dec 2018	Dec 2017	ne ($)
272,286	277,434	c Ton
70,144	84,193	MetriPer
2,997	1,223	cePri
73,141	85,416	Cash
(24,812)	(25,906)	perpoC
48,329	59,510	EML

• ►Headline revenue now presented net of treatment and refining charges, as well as price adjustment gains/losses
• ►Higher exploration and evaluation expenditure largely driven by increased exploration activities at the Greater Doolgunna Project and evaluation costs associated with the Black Butte FS and EIS

Balance Sheet Review - Assets

($000)	Dec 2018	Jun 2018
ASSETS
Cash and cash equivalents	179,022	243,367
Trade and other receivables	13,854	13,773
Inventories	40,473	33,961
Other current assets	1,273	2,680
Total current assets	234,622	293,781
Receivables	475	465
Inventories	11,698	11,698
Exploration and evaluation assets	24,940	24,410
Property, plant and equipment	393,982	330,619
Financial instruments	13,063	9,925
Total non-current assets	444,158	377,117
TOTAL ASSETS	678,780	670,898

►Cash of $179.0M – increase from operations offset by acquisition of Talisman Mining Ltd's 30% Springfield JV interest for $73M; $51M income tax; $30M final FY18 dividend; and Monty development.

Balance Sheet Review - Liabilities

($000)	Dec 2018	Jun 2018
LIABILITIES
Trade and other payables	49,397	39,898
Interest bearing liabilities	445	1,611
Income tax payable	10,745	31,203
Provisions	4,258	4,255
Total current liabilities	64,845	76,967
Trade and other payables	2,642	-
Interest bearing liabilities	291	239
Provisions	28,802	29,467
Deferred tax liabilities	26,186	32,174
Total non-current liabilities	57,921	61,880
TOTAL LIABILITIES	122,766	138,847
NET ASSETS	556,014	532,051

• ► Income tax payable $51M paid during the half year
• ► Deferred tax liability a result of taxable income lagging accounting profit, continuing to reverse

Summary and Outlook

Continued strong outlook for FY2019 and beyond

• ► Consistent, low-cost copper-gold production
  • 1HFY2019: 34,813t of contained copper and 21,567oz of contained gold produced; C1 US$0.87/lb
  • FY2019 guidance maintained: upper end of both 63-67kt of contained copper and 37-40koz of contained gold; C1 costs lowered to ~US$0.90-0.95/lb
• ► First Monty Copper-Gold Project development ore mined ahead of first stoping ore in February 2019
• ► Multi-pronged exploration programs continued across Sandfire's Greater Doolgunna Project (6,600km2 )
• ► Cash flow continues to fund growth and shareholder returns
  • Continued strong dividend stream for shareholders
  • Committed exploration to further extend mine life
  • 86% interest in high-grade USA copper project development (Black Butte) in final stage EIS process
• ► Emerging international and domestic growth pipeline

Contact Details: Sandfire Resources NL

Registered Office and Principal Place of Business Level 2, 10 Kings Park Road, West Perth, Western Australia 6005 T +61 8 6430 3800 / F +61 8 6430 3849 www.sandfire.com.au