SANDFIRE RESOURCES LIMITED — Investor Presentation 2021

Aug 30, 2021

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FY2021 Financial Results Presentation

31 August 2021

Access this presentation by clicking here or on the Sandfire website www.sandfire.com.au

S A N D F I R E R E S O U R C E S - C R E A T I N G V A L U E T H R O U G H O P P O R T U N I T Y

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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 current at the date of this presentation. The presentation is in summary form, has not been independently verified and does not purport to be all inclusive or complete. The Company is not responsible for providing updated information and assumes no responsibility to do so. 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.

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 and may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction. Recipients should inform themselves of the restrictions that apply in their own jurisdiction. A failure to do so may result in a violation of securities laws in such jurisdiction.

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, its related bodies corporate, and each of their officers, employees, agents and advisers expressly disclaim, to the maximum extent permitted by law, all liabilities (however caused, including negligence) in respect of, make no 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.

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.

This presentation should be read in conjunction with Sandfire’s FY2021 Financial Report and accompanying notes, released today, 31 August 2021.

This presentation is authorised for market release by Sandfire’s Managing Director and CEO, Mr Karl Simich.

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. There is continuing uncertainty as to the full impact of COVID-19 on Sandfire’s business, the Australian economy, share markets and the economies in which Sandfire conducts business. Given the high degree of uncertainty surrounding the extent and duration of the COVID-19 pandemic, it is not currently possible to assess the full impact of COVID-19 on Sandfire’s business or the price of Sandfire securities. 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.

The Expansion Case to 5.2Mtpa referred to in this presentation, where it relates to A4 and other prospects, is based on resource drilling, technical and economic assessments. Study work at A4 is currently insufficient to support estimation of Ore Reserves or to provide assurance of an economic Expansion Case for the Motheo Production Hub.

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Execute Delivery

Strategy

Creating value through opportunity

Build a Sustainable Production Pipeline

Accelerate Discovery

Align and Empower Our People

Optimise Capital Strategy and Engagement

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• DeGrussa copper production: 70,845t of contained copper and 39,459oz of contained gold at C1 US$0.82/lb; strong safety performance:

• FY2022 guidance: 64-68kt of contained copper and 30-34koz of contained gold, at C1 US$1.00-$1.10/lb

• Old Highway Gold Prospect resource drilling completed – studies continue on transition to gold production at DeGrussa leveraging existing infrastructure

Highlights

FY2021

• 5.2Mtpa Motheo Production Hub concept supported by A4 Mineral Resource Estimate :

• update (MRE)

• Mining Licence received and construction commenced of initial 3.2Mtpa operation at T3 , with 12.5-year mine life at ~30ktpa Cu and 1.2Mozpa Ag

• Updated A4 MRE 34% increase in contained copper to 134kt Cu , 93% in higher confidence Indicated category with strong conversion to reserve expected. Supports concept of expanded 5.2Mtpa processing plant, to be confirmed by ongoing studies.

• Exceptional exploration upside within dominant ground-holding in Botswana and Namibia, high priority targets in Motheo Expansion Project to be drilled in FY2022.

• Black Butte Copper Project, USA – Feasibility Study; maiden Ore Reserve for the new near-

• Johnny Lee Deposit; updated Inferred Mineral Resource for the Lowry Deposit; mine exploration programs underway

• Strong $573.7M cash holding and no debt at 30 June 2021 (excluding lease liabilities)

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Copper

Cornerstone of the global economy and a “metal of the future”

• Copper is a critical metal for global economic growth

• Third largest global metal market behind iron and aluminium: >22Mt worth over US$220 billion consumed annually

• Strong underlying demand from the construction and industrial sectors

• Demand for copper from the adoption of new green technologies projected to surge in the next decade

• “Green” demand is forecast to increase by 600% from 1Mt in 2020 (just 3% of the total) to 5.4Mt in 2030 (16% of the total)

• Global mine supply remains structurally challenged due to declining discoveries and mine grades

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PROCESSING

SALES

MINING

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FY2021
Full Year
Physicals
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_____

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1,563,757
1,537,887
C1
23.6 23.4 US$0.82/lb
1,112,808
Annual
production:
70,845t Cu
39,459oz Au
contained
Sales:
425,079
65,689t Cu
7.2 37,394oz Au
300,447 292,859 payable
4.7 4.8
4.30
3.8 4.00
1.59 1.55 1.58 1.61
DeGrussa Monty Total Mining Mill Throughput Concentrate Sales
Tonnes
Au(g/t)
Grade
Cu (%)
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DeGrussa Operations

FY2021 Headline Financial Results

$813.0M

Record sales revenue

$449.8M

Group EBITDA

$171.6M

Net profit after tax attributable to equity holders ($179.8M D&A)

$573.7M Cash and equivalents

($282.6M increase)

$471.1M Cash flow from operating activities ($197.5M increase)

34cps Fully-franked Dividend for FY2021 (EPS 96.3cps)

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FY2021 | Segment EBITDA Contribution to Group

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Feasibility studies, drilling and permitting
Exploration
drive across
global
jurisdictions
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FY2021 | Group EBITDA

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FY2020
impairment
Expansion to and
support Exploration write-down
strategy drive across
global
jurisdictions
Increase in
copper price
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Financial Position

FY2021

● Building a strong financial position for growth

• Group cash holding increased to $573.7M

• Financial investments $86.7M

• $32.5m pre-payment for July 2021 shipment

• $57.0M FY2021 income tax payable in December 2021 ($6M paid in July 2021)

• Debt free balance sheet (excluding lease liabilities) positions for financing flexibility in project development

$573.7M

Cash and equivalents

($282.6M increase)

$1,157.9M Total assets

($263.9M increase)

$910.6M Net assets

($160.4M increase)

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Dividends

FY2021

● Continued returns to shareholders

• Record 26cps final dividend

• Fully franked

• Record date 7 September 2021

• Payment date 22 September 2021

• Full-year dividend of 34cps, an 80% increase from FY2020

• 35% payout of Net profit after tax

26cps Fully-franked Final Dividend (EPS 96.3cps)

34cps Fully-franked Dividend for FY2021 (8cps Interim)

• 5.2% dividend yield

Optimised capital structure to drive dividend payments in conjunction with:

• Project development

• Funding mix

• Exploration and expansion capital expenditure

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FY2021 | Cash Generation and Investment

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Key takeaways

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Global vision – our transformation into a diversified, international and sustainable mining company is underway

– Strong growth platform DeGrussa cash-flows, debt-free balance sheet and $574m in group cash

– New production hub construction of Motheo Copper Mine in Botswana underway

Strong pipeline – high-quality development opportunities and a global exploration portfolio in Tier-1 jurisdictions

Refreshed and focused – an international exploration, development and mining operations team strongly aligned with our growth objectives

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Competent Person’s Statements

T3 Ore Reserve

The information in this report that relates to Open Pit Ore Reserves, is based on information compiled by Mr Jake Fitzsimons who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Fitzsimons is employed by Orelogy Consulting Pty Ltd 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 Fitzsimons consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

DeGrussa and Monty Ore Reserve

The information in this report that relates to Ore Reserves is based on information compiled by Mr Neil Hastings who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Hastings is a permanent employee of Sandfire 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 Hastings consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

DeGrussa, Monty, T3 and A4 Mineral Resource

The information in this report that relates to Mineral Resources is based on information compiled by Mr Callum Browne who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Browne was a permanent employee of Sandfire 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 Browne consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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FY2021 Financial Results Presentation

31 August 2021

Access this presentation by clicking here or on the Sandfire website www.sandfire.com.au

Contact Details

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Level 2, 10 Kings Park Road, West Perth WA 6005 Australia PO BOX 1495, WEST PERTH WA 6872 AUSTRALIA +61 8 6430 3800 +61 8 6430 3849 www.sandfire.com.au

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