Sandfire banks on growth as copper recovers

DeGrussa copper-gold mine. Image: Sandfire Resources

Sandfire Resources is well positioned to take advantage of a recovery in copper prices, which have improved by 35 per cent since the lows experienced during the COVID-19 pandemic this year.

The company enters the new financial year having completed a full year of production from the Monty copper-gold mine, part of the DeGrussa operations in Western Australia.

Monty contributed to an exceptional overall performance at DeGrussa, which produced 72,238 tonnes of copper and 42,263 ounces of gold.

Internationally, Sandfire is preparing to release feasibility study results for the T3 copper-silver project in Botswana and its fully permitted Black Butte copper project in the United States.

Sandfire is also planning to post a maiden resource for the A4 discovery in Botswana, located just eight kilometres from the T3 project.

Managing director Karl Simich said this strong performance and the company’s exciting development pipeline positioned it for a “very bright and exciting future”.

“Much has changed within the business over the past 18 months and there is considerable energy and excitement as we embrace the challenges and opportunities involved in building an international growth pipeline,” Simich said.

“The onset of COVID-19 has forced a number of changes and adjustments to our operating procedures and I am proud of the professional and focussed response from our people across the organisation in adapting to this new environment.

“We finished the year with an impressive cash balance of almost $300 million and no debt, after making substantial investments in our future growth pipeline.

Simich said the next few months would be pivotal for Sandfire as the company put detail and timelines around its key international development projects.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.