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OPERATIONAL REVIEW
DIGGeRs & DeALeRs PReVIeW MACA.NET.AU

banner, but Sandfire quickly reset its sights
on MATSA.
“We were looking to buy a fully opera-
tional, long-life, well-run Tier-1 asset and
we had spent four years working hard to
understand MATSA and realised it fitted
like a glove with our aspirations,” Simich
said. “We had made contact with both
owners at various times about whether
there was an opportunity to engage on
their individual 50% share. So, we asked
ourselves why not do the whole thing? And
everyone with Sandfire all came to the
same conclusion. So, we said let’s do it.
“We had also recently come off the
Golden Grove process which meant we
were match fit for the M&A process and
could fully commit early on. That was key
– being able to do the deal without share-
holder approval, which was critical in be-
ing competitive in the bidding process and
I think we surprised the market with how
The acquisition of the MATSA copper complex in south-west Spain has been quickly we did it.”
transformational for Sandfire With MATSA now embedded as the
company’s new cornerstone asset, Sand-
additional VMS discoveries at DeGrussa,” The company has taken Motheo to- fire plans to exploit its cashflow and status
Simich said. “If we’d continued to make wards production but the executive team to the benefit of the wider asset portfolio.
those, we wouldn’t have considered it im- felt there was still a gap. “We have an opportunity to leverage off
portant to look at other things globally. “One thing we didn’t have was a long-life our skills, our balance sheet and our capa-
“But the point we came to three years operating asset,” Simich said. “We didn’t bilities. It is very exciting,” Simich said.
ago when we assessed the realities of the want to be an operating company that “Whether Montana, MATSA or the
mine life we were facing at DeGrussa and went back to being a development com- unique opportunity to be at the beginning
the likelihood of further discoveries. We pany after DeGrussa closed and before of a new province in Botswana, it is the
couldn’t bank on those combination of assets which makes the
other discoveries, you business even more ca-
can’t put it into a business pable and stronger.
plan.” “Our strategy is to build
Leveraging explora- a globally significant,
tion acreage is fine when sustainable, base metals
you’re a junior miner, but mining company. We will
with Sandfire’s market revise the strategy be-
cap well beyond the $1.5 cause we have already
billion mark, the execu- achieved the five-year
tive team knew it would plan in less than three
have to find a different years. But we have to
path to maintain its stand- have more of everything,
ing among investors. a variety of projects at
“We asked ourselves: different stages of de-
‘Do we leverage off the velopment and exposure
skills and capabilities, across the entire spec-
and systems and rela- trum.”
tionships we have devel- The DeGrussa mine has produced more than 600,000t copper and 300,000oz gold It is a far cry from a sin-
oped over a decade or over a decade of operation gle drill rig on the Great
not?’, if not we may as Northern Highway, but
well hand it all back to given Sandfire’s track
shareholders and walk away. We chose to Motheo opened. It is much easier if you record of delivery, there will be few in the
live, not expire.” keep operating. So, we spent a lot of time market willing to bet against those new
The first iteration of that process had looking hard at our business and develop- goals being met again.
been the acquisition of the Black Butte ing the strategic plan.” – Dominic Piper
project in Montana, US. That was followed A global asset hunt commenced with
by the 2018 takeover of Mod Resources Sandfire pushing hard for a deal over the For more on Sandfire’s global
which handed Sandfire Motheo and its Golden Grove base metals mine in WA. expansion, get your copy of the
dominant position on the underexplored Vendor EMR Capital eventually chose to August issue of Paydirt
Kalahari copper belt. IPO Golden Grove under the 29Metals Ltd

Page 52 JULY 2022 aUSTRaLIa’S PaYDIRT