Sandfire Resources shares dip as Q1 misses estimates
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The news: Shares in Sandfire Resources lowered on the ASX after the copper and nickel miner reported first-quarter results shy of market expectations.
The numbers: Sandfire shares were down 2% to $10.55 by midday AEDT, having gained nearly 75% over the last 12 months.
The miner reported Q1 group copper production of 27,000 tonnes and zinc production of 21,500 tonnes, slightly lower than consensus estimates of 27,100 tonnes and 22,700 tonnes respectively.
Operational underlying EBITDA of USD140 million ($213 million) for Q1 was behind average forecasts of USD149 million.
Meanwhile, net debt of USD345 million was higher than consensus expectations of USD326 million.
The context: Sandfire said it remains on track to achieve annual group production, cost and capital expenditure guidance.
The group also noted that its five-year plan to increase reserves and increase the life of its Matsa copper mine in Spain and Motheo copper mine in Botswana is "gathering momentum".
The ramp-up at Motheo, and improved operational performance at Matsa, are expected to drive copper production and EBITDA higher, the company said.
The sources: ASX announcement, RBC Capital Markets research
