METAL TIGER PLC: Sandfire Resources -- Publishing of Quarterly Report & Presentation
October 28 2021 - 6:24AM
UK Regulatory
TIDMMTR
28 October 2021
Metal Tiger plc
("Metal Tiger" or the "Company")
Sandfire Resources -- Publishing of Quarterly Report &
Presentation
Metal Tiger plc (AIM: MTR, ASX: MTR), the AIM and ASX listed
investor in natural resource opportunities, is pleased to announce
that Sandfire Resources Limited ("Sandfire") has published a
Quarterly Report for the quarter ended 30 September 2021 and an
accompanying presentation.
Highlights
-- FY 2022 guidance: 64-68kt Cu and 30-34koz Au; C1 costs US$1.00-$1.10/lb
-- Sandfire continues to maintain appropriate protocols to minimise the
transmission of COVID-19, with no significant disruption to the Company's
operations to date.
-- Maiden Mineral Resource estimate pending and Scoping Study in progress
for the Old Highway Gold Prospect and expected to be completed in March
2022 Quarter
Kalahari
-- Construction activities continued to ramp up at the Motheo Copper Mine
with the 200-person construction camp operational, construction of the
access road continuing and bulk earthworks underway. Detailed process
plant engineering design is now completed.
-- Maiden Probably Ore Reserve estimation completed for the A4 Deposit,
located 8km west of Motheo, confirming A4 as a high-grade source of
additional ore feed for Motheo:
-- 9.7Mt at 1.2% Cu and 18g/t Ag for 114kt of contained copper metal
and 5.7Moz of contained silver, representing 85% of the contained
copper in the updated A4 Mineral Resource announced last quarter.
-- Pre-Feasibility Study (PFS) completed to inform the A4 Ore Reserve
indicates outstanding project economics from an expanded 5.2Mtpa Motheo
mining operation, compared to the initial 3.2Mtpa base case development
scenario:
-- 116% increase in pre-tax NPV7% to US$672 million (A$937 million)
and IRR of 36%
-- Mine life of 10.5 years, peak production of 60ktpa of
copper-in-concentrate, strip ratio of 6.5 waste to ore.
-- 15% decrease in LOM all-in sustaining costs to US$1.56/lb.
-- Opportunities identified to further enhance the outcomes of the A4 PFS
through integrated mine scheduling and pit optimisations, with these
enhancements to be incorporated in a Definitive Feasibility Study (DFS)
for the 5.2Mtpa Motheo Expansion. The DFS is expected to be completed in
Q3 of FY2022.
-- Total pre-production development capital increased to US$366 million
(A$504 million), incorporating development costs for the A4 open pit to
first Motheo production plus updated cost forecasts.
-- Outstanding potential for further resource growth confirmed, with
step-out drilling confirming high-grade mineralisation 1.2km south-west
of the A4 Mineral Resource envelope:
-- 45m at 2.2% Cu and 42.6g/t Ag from 439m in MO-A4-207D
Black Butte (USA)
-- Sandfire Resources America Inc. took another important step in advancing
the fully-permitted Black Butte Copper Project with the acquisition of
key property covering the proposed surface infrastructure.
-- US$12 million Bridge Loan Agreement finalised with Sandfire Resources
America to complete proposed work programs at Black Butte and provide
working capital.
Corporate and Financial
-- Sandfire announced the transformational US$1.865 billion (A$2.572
billion) acquisition of the MATSA Mining Complex in Spain, delivering a
world-class mining complex comprising three underground mines feeding a
4.7Mtpa central processing facility producing 100-120ktpa Cu Eq.
-- The transaction immediately transforms Sandfire into one of Australia's
largest copper-focused producers, with pro-forma FY2022 production of
170-194kt Cu Eq at a MATSA C1 cost of US$0.40-0.50/lb and DeGrussa C1
cost of US$1.00-1.10/lb
-- The transaction is fully-funded following completion of a A$1.248 billion
(US$905 million) fully underwritten equity raising (institutional
entitlement offer and placement completed on 27 September and retail
entitlement offer completed on 18 October) and committed debt facilities.
-- Record A$170.1 million net annual profit for FY2021, underpinning a
record final dividend of 26cps fully-franked, which was paid on 22
September 2021.
-- Group cash on hand at 30 September 2021 of A$405.5 million (unaudited)
following US$100M initial deposit for the MATSA acquisition.
-- Sale of Sandfire's 16% investment in Adriatic Metals Plc (ASX:ADT)
subsequent to quarter-end for gross proceeds of A$97 million.
As previously announced, following completion of the Company's
investment as part of the Sandfire MATSA acquisition equity
raising, Metal Tiger is interested in 8,462,057 Sandfire Shares,
representing approximately 2% of Sandfire's issued share capital
(post institutional raise). Of this holding, 2,842,667 Sandfire
Shares are subject to an equity derivative financing arrangement
with a global investment bank.
A link to Sandfire's Quarterly Report, is set out below:
https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02442667-6A1058939?access_token=83ff96335c2d45a094df02a206a39ff4
A link to Sandfire's Quarterly Report presentation, is set out
below:
https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02442668-6A1058940?access_token=83ff96335c2d45a094df02a206a39ff4
For further information on the Company, visit:
www.metaltigerplc.com
Enquiries:
Michael McNeilly (Chief Executive Officer) Tel: +44 (0)20 3287 5349
Mark Potter (Chief Investment Officer)
James Dance Strand Hanson Limited Tel +44 (0)20 7409 3494
Robert Collins (Nominated Adviser)
Paul Shackleton Arden Partners plc (Broker) Tel: +44 (0)20 7614 5900
Steve Douglas
Gordon Poole Camarco (Financial PR) Tel: +44 (0)20 3757 4980
James Crothers
Rebecca Waterworth
Notes to Editors:
Metal Tiger PLC is admitted to the AIM market of the London
Stock Exchange AIM Market ("AIM") and the ASX Market of the
Australian Securities Exchange Market ("ASX") with the trading code
MTR and invests in high potential mineral projects with a base,
precious and strategic metals focus.
The Company's target is to deliver a high return for
shareholders by investing in significantly undervalued and/or high
potential opportunities in the mineral exploration and development
sector. Metal Tiger has two investment divisions: Equity
Investments and Project Investments.
Equity Investments invests in undervalued natural resource
companies. The majority of its investments are listed on AIM, the
TSX and the ASX, which includes its interest in Sandfire Resources
Limited (ASX: SFR). The Company also considers selective
opportunities to invest in private natural resource companies,
typically where there is an identifiable path to IPO. Through the
trading of equities and warrants, Metal Tiger seeks to generate
cash for investment for the Project Investments division.
Project Investments is focused on the development of its key
project interests in Botswana, where Metal Tiger has a growing
interest in the large and highly prospective Kalahari copper/silver
belt through its interest in Kalahari Metals Limited.
The Company actively assesses new investment opportunities on an
on-going basis and has access to a diverse pipeline of new
opportunities in the natural resources and mining sectors. For
pipeline opportunities deemed sufficiently attractive, Metal Tiger
may invest in the project or entity by buying publicly listed
shares, by financing privately and/or by entering into a joint
venture.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20211028005601/en/
CONTACT:
Metal Tiger plc
SOURCE: Metal Tiger plc
Copyright Business Wire 2021
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