Metal Tiger plc UK Regulatory Announcement: Sandfire Resources – Released Quarterly Report and Presentation



28 October 2021

Metal Tiger plc

(“Metal Tiger” or the “Company”)

Sandfire Resources – Released Quarterly Report and Presentation

Metal Tiger plc (AIM: MTR, ASX: MTR), the AIM and ASX listed investor in natural resources opportunities, is pleased to announce that Sandfire Resources Limited (“Sandfire”) has released a quarterly report for the quarter ended September 30, 2021 and an accompanying presentation.

Strong points

  • Guidance for fiscal year 2022: 64-68kt Cu and 30-34koz Au; C1 costs around US $ 1.00 to $ 1.10 / lb

  • Sandfire continues to maintain appropriate protocols to minimize transmission of COVID-19, without significant disruption to the Company’s operations to date.

  • First pending mineral resource estimate and scoping study underway for the Old Highway gold prospect and expected to be completed in March 2022 Quarter


  • Construction activities continued to intensify at the Motheo Copper Mine with the 200-person construction camp operational, construction of the access road continuing and bulk earthworks underway. The detailed engineering design of the processing plant is now complete.

  • First estimate of the probably completed ore reserve for the A4 deposit, located 8 km west of Motheo, confirming A4 as an additional high grade source of ore for Motheo:

    • 9.7 Mt at 1.2% Cu and 18 g / t Ag for 114 kt of contained metal copper and 5.7 Moz of contained silver, representing 85% of the copper contained in A4 mineral resources updates announced in the quarter latest.

  • Pre-feasibility study (PFS) completed to inform A4 ore reserve shows outstanding economic results for the 5.2 Mtpa Motheo extended mining project, compared to the base development scenario of 3.2 Mtpa initial:

    • 116% increase in pre-tax NPV of 7% to US $ 672 million (AU $ 937 million) and IRR of 36%

    • Mine life of 10.5 years, maximum production of 60 ktpa of copper concentrate, stripping ratio of 6.5 waste / ore.

    • LOM all-in sustaining costs down 15% to $ 1.56 / lb.

  • Opportunities identified to further improve A4 PFS results through integrated mine planning and pit optimizations, with these improvements to be incorporated into a Definitive Feasibility Study (DFS) for the 5.2 Mtpa Motheo expansion . The DFS is expected to be completed in the third quarter of fiscal 2022.

  • Total pre-production development capital increased to US $ 366 million (AU $ 504 million), incorporating the development costs of the A4 surface mine through to Motheo’s first production as well as the forecast of updated costs.

  • Confirmation of exceptional potential for additional resource growth, with extension drilling confirming high grade mineralization approximately 1.2 km southwest of the A4 mineral resource envelope:

    • 45m at 2.2% Cu and 42.6g / t Ag at 439m in MO-A4-207D

Black Butte (United States)

  • Sandfire Resources America Inc. has taken another important step in advancing the fully licensed Black Butte copper project with the acquisition of a key property covering the proposed surface infrastructure.

  • A US $ 12 million bridge loan agreement has been finalized with Sandfire Resources America to complete proposed work programs at Black Butte and provide working capital.

Corporate and financial

  • Sandfire announced the transformational acquisition for US $ 1.865 billion (AU $ 2.572 billion) of the MATSA mining complex in Spain, providing a world-class mining complex comprising three underground mines feeding a 4.7 Mtpa central processing facility producing 100 to 120 ktpa of eq.

  • The transaction immediately transforms Sandfire into one of Australia’s largest copper-focused producers, with pro forma production for fiscal 2022 of 170 to 194 kt Cu Eq at a MATSA C1 cost of $ 0.40-0.50 US / lb and a DeGrussa C1 cost of US $ 1.00 to US $ 1.10 / lb

  • The transaction is fully funded following the completion of a fully subscribed fundraising of A $ 1.248 billion (US $ 905 million) (institutional rights offer and placement finalized on September 27 and retail rights offer closed on October 18 ) and committed credit facilities.

  • Record annual net profit of A $ 170.1 million for fiscal 2021, underpinning a record final dividend of 26 cps fully paid, which was paid on September 22, 2021.

  • Group cash position at September 30, 2021 of A $ 405.5 million (unaudited) following the initial deposit of US $ 100 million for the acquisition of MATSA.

  • Sale of Sandfire’s 16% stake in Adriatic Metals Plc (ASX: ADT) after quarter end for gross proceeds of A $ 97 million.

As previously announced, following the finalization of the Company’s investment in the fundraising for the acquisition of Sandfire MATSA, Metal Tiger is interested in 8,462,057 Sandfire shares, representing approximately 2% of the issued share capital of Sandfire (post institutional lift). Of this stake, 2,842,667 Sandfire shares are subject to an equity derivative financing agreement with a global investment bank.

A link to Sandfire’s quarterly report is shown below:

A link to the Sandfire Quarterly Report presentation is shown below:

For more information about the Company, visit:


Michael mcneilly

(Chief Executive Officer)

Phone: +44 (0) 20 3287 5349

Marc Potter

(Director of Investments)

James dancing

Robert collins

Strand Hanson Limited (appointed advisor)

Phone +44 (0) 20 7409 3494

Paul shackleton

Steve douglas

Arden Partners plc (Broker)

Phone: +44 (0) 20 7614 5900

Gordon poole

James crother

Rebecca Waterworth

Camarco (Financial PR)

Phone: +44 (0) 20 3757 4980

Notes to Editors:

Metal Tiger PLC is listed on the AIM market of the London Stock Exchange AIM Market (“AIM”) and on the ASX market of the Australian Securities Exchange Market (“ASX”) with the trading code MTR and invests in mining projects at strong potential with a focus on base, precious and strategic metals.

The Company’s objective is to provide a high return to shareholders by investing in significantly undervalued and / or high potential opportunities in the mining exploration and development industry. 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, TSX and ASX, which includes its stake in Sandfire Resources Limited (ASX: SFR). The Company is also considering selective opportunities to invest in private natural resource companies, generally where there is an identifiable path to the IPO. Through the trading of stocks and warrants, Metal Tiger seeks to generate liquidity for the investment of the Project Investments division.

Project investments is focused on developing its key project interests in Botswana, where Metal Tiger has a growing interest in the vast and highly promising Kalahari Copper / Silver Belt through its stake in Kalahari Metals Limited.

The Company is actively evaluating new investment opportunities on an ongoing 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 purchasing publicly traded shares, privately financing and / or establishing a joint venture.

Category code: MSCU

Sequence number: 749657

Reception time (offset from UTC): 20211028T122117 + 0100


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