Sandfire Resources trims full-year loss despite missing production guidance
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The news: Copper and nickel miner Sandfire Resources narrowed its full-year loss despite copper output falling short of guidance.
The numbers: Sandfire reported a loss after tax of $19.1 million compared to a loss of $53.7 million in FY23. Sales revenue lifted 16% year on year to $935.2 million while underlying EBITDA grew 40% to $362.2 million.
Sandfire said its "near faultless" ramp up of its Motheo open-pit copper mine in Botswana delivered a 47% increase in the group's copper equivalent production. Its total output of 135.5 kilotonnes, however, fell 1.1% short of its full-year guidance.
Motheo is expected to increase its copper equivalent production by 31% in FY25. The company's Matsa copper mine in Spain, which saw production decline 1% in FY24 due to a blockage at the site in the second half of the year, is expected to see a 4% increase in production in FY25.
The context: Sandfire said the year saw a return to profitability in the second half and a reduction in net debt. It is progressing a new exploration plan designed to establish a minimum 15 years of life at both Motheo and Matsa within five years. Meanwhile, a targeted drilling program at its Black Butte mine in the US has identified additional high-grade intersections expected to enhance the project's outlook ahead of a final investment decision, anticipated in the next 18 to 24 months.
What they said: "As the most efficient conductor of electricity, we believe demand for copper will only grow as the world responds to the impacts of climate change," said Sandfire CEO and managing director Brendan Harris.
"Supply, however, is becoming constrained as existing mines get older and deeper, costs continue to rise, and regulatory requirements expand," he said. "We are very well placed to deliver high quality metal concentrates into this increasingly tight market."
The source: ASX announcement
