Sandfire hits guidance after solid June quarter
Make us a preferred source
Make us a preferred source on Google
The news: Copper and nickel miner Sandfire Resources nearly achieved its full-year production guidance after lifting group output for the June quarter.
The numbers: Group copper equivalent production for the three months to June came in at 27,313 tonnes, up 9% from the prior quarter, while zinc output rose 17% to 21,674 tonnes.
Sandfire said it expects unaudited full-year sales revenue of USD935 million ($1.4 billion) and underlying earnings of USD360 million.
Sandfire shares were down nearly 1% to $8.38 on the ASX.
The context: Sandfire said the solid June quarter helped the company come within 1.1% of its annual guidance for copper production of 135 kilotonnes for FY24.
It expects to grow copper output by a further 13% in FY25 following the ramp-up of its Motheo open-pit copper mine in Botswana, while production at the Matsa copper mine in Spain is also expected to recover following a blockage earlier in the year.
RBC Capital Markets analysts said while zinc output was a miss and group C1 costs were higher-than-expected, FY24 underlying earnings USD360 million was ahead of consensus.
What they said: "We remain positive on the stock, as FY25 is expected to provide an uplift in free cash flow and a de-gearing of the balance sheet," RBC said in a note.
The source: ASX announcement
