Sandfire Resources Ltd.

Sandfire Resources Ltd. is a mid-tier copper producer headquartered in West Perth, Australia, operating primarily in Europe. The company's portfolio consists of 4 projects, comprising 2 operating mines, 1 development, and 1 reclamation project, in addition to several early-stage exploration prospects. Key assets include Matsa and Motheo. The business model centers on operating multiple underground and open-pit mines that supply ore to strategically positioned, modern processing hubs. This integrated approach leverages centralized facilities with conventional crushing, grinding, and flotation circuits to produce mineral concentrates. The organization's operational philosophy, termed 'The Sandfire Way', establishes a unified system of risk management, governance, and accountability across its global activities. This framework is designed to be scalable and simple, empowering decision-making at the operational level while maintaining consistent standards. Competitive positioning is built on achieving safe, consistent, and predictable performance from its well-capitalized processing infrastructure. The enterprise employs a robust, integrated risk management framework aligned with international standards to ensure operational resilience and manage the inherent risks of mining. This system focuses on the proactive identification of threats and opportunities to safeguard operational integrity and support long-term sustainability.

Strategic priorities are centered on maximizing total shareholder returns by materially increasing the life of its core processing hubs through disciplined exploration and development. A key objective is to establish a minimum 15-year operational life at its primary production centers within 5 years by focusing on near-mine and regional exploration potential. Capital allocation philosophy emphasizes financial discipline, with a focus on modernizing the group's debt structure to increase financial flexibility, reduce near-term repayment profiles, and progress towards a net cash position. Operational strategy is intentionally simple, focusing on delivering safe, consistent, and predictable performance to establish a stable operating platform and enhance operating credentials. The organization also prioritizes reducing its carbon intensity and empowering its workforce through clearly defined lines of accountability as foundational elements of its long-term value creation plan. This approach is underpinned by a commitment to doing the basics well and generating strong investment returns for shareholders.

Executive leadership is headed by a Chief Executive Officer and Managing Director with extensive experience in managing diversified international mining businesses, including previous senior roles at South32 and BHP. The board of directors consists of 7 members, 6 of whom are independent, including the Independent Non-Executive Chair. Board oversight is structured through 4 standing committees: Audit and Finance; People and Performance; Risk and Sustainability; and Nominations. The board convenes for regular scheduled meetings, holding 13 meetings in FY24, including a dedicated strategy day. The corporate governance framework is being formalized through 'The Sandfire Way', a new operating model that articulates the organization's policies, standards, and procedures to empower employees and define clear accountability. This system is integral to the management philosophy, which emphasizes a culture of integrity, transparency, and performance, guided by a formal Code of Conduct.

The sustainability framework is structured around 6 pillars, with specific goals and targets to drive performance. Climate action commitments include a long-term Net Zero GHG emissions target, an interim goal to reduce Scope 1 and 2 emissions by 35% by FY35 from an FY24 baseline, and a target to source 50% of electricity from renewables by 2030. In FY24, 73% of stationary power was met by renewables. In response to a historical disturbance of cultural heritage, the organization commissioned an external investigation and has committed to an extensive program of work to ensure protection across all operations. The entity's updated Human Rights Policy includes a commitment to seek free, prior, and informed consent of Indigenous Peoples. The organization achieved its 40:40:20 gender diversity target for both its Board and Executive Leadership Team and increased overall female employment to 25.5%. A core safety philosophy of 'Don’t Walk Past' underpins hazard management systems, contributing to a Total Recordable Injury Frequency of 1.6 in FY24.

The corporate structure includes an 87% shareholding in Sandfire Resources America Inc., a company listed on the TSX-V exchange. A joint venture arrangement exists with Avrupa Minerals Limited, a TSX-listed company, to advance the Alvalade Project. In FY24, the organization made a strategic decision to curtail its Australian exploration division, divesting or entering into joint ventures for the majority of its exploration tenure and projects in that country to sharpen its focus. As of July 2024, substantial shareholders with interests above 5% included AustralianSuper Pty Ltd with a relevant interest of 14.74% as of December 2022, Ausbil Investment Management Limited with 7.71% as of June 2024, State Street Corporation with 7.44% as of June 2024, and Australian Retirement Trust Pty Ltd with 5.01% as of June 2024. The group established a $200M Corporate Revolver Facility in FY24 to modernize its capital structure and increase financial flexibility.