Sandfire reaffirms FY guidance as Motheo ramp-up on track
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The news: Sandfire Resources retained its full-year production guidance with the ramp-up of its Motheo mine in Botswana "continuing to exceed" the copper miner's expectations.
The numbers: Reporting its third quarter results, Sandfire reaffirmed its FY24 copper equivalent production guidance of 135 kilotonnes, with total copper production rising 11% quarter on quarter to 25 kilotonnes.
The miner said that a combined USD18 million ($27.5 million) reduction in underlying operating and exploration costs guidance for FY24 is offset by a similar increase in depreciation and amortisation, and a USD18 million reduction in group capital expenditure guidance, reflecting a deferral of expenditure at Motheo into the 2025 financial year.
The context: Sandfire said that the ramp-up of its Motheo open-pit mine is continuing to exceed its expectations, with its Matsa mining complex in Spain expected to have a strong finish to the year following a further resequencing of its mine plan and the deferral of higher grade polymetallic ore for processing in the fourth quarter.
What they said: Sandfire CEO and managing director Brendan Harris said: "Having completed the third quarter, we remain well positioned to deliver over 50% growth in copper equivalent production from continuing operations across the two years to the end of FY25 and have retained group copper equivalent production guidance for FY24 of 135kt."
"The quarter wasn't, however, without its challenges as a blockage in our paste fill delivery pipeline that services the Aguas Teñidas Western Extension restricted access to higher grade stopes and resulted in the deferral of metal production into the June quarter."
The source: ASX announcement
