Sandfire delivered a record $123 million net profit after tax on the back of DeGrussa’s strong production, low costs and high copper prices during the 2018 financial year.
The record profit represents a 59 per cent increase compared to the same period last year, and the best ever financial performance in Sandfire’s six years of operation at the DeGrussa copper-gold mine.
Sandfire sold a total of 62,918 tonnes (t) of copper and 38,510 ounces (oz) of gold in the 2018 financial year.
The achievement has allowed Sandfire to almost double its year-end group cash position to $243.3 million, up from $126.7 million in the 2017 financial year.
Sandfire managing director Karl Simich said the outstanding financial result capped a year which, by almost every measure, was the group’s strongest so far.
Simich said, “Copper production for the 2019 financial year is forecast at 63,000–67,000t, and gold production at 37,000–40,000oz at a cash cost of $US1.00–$1.05 per pound, and we have made a strong start with production for the September quarter.
“We remain very positive on the broader outlook for copper given the metal’s supply and demand fundamentals and the underlying strength of demand from the Chinese economy.”
Sandfire retains a positive outlook for the global economy, attributing it to the rapid rise in the electric vehicle and energy storage sectors.
Over the next three to six months, Sandfire expects to bring its first new satellite copper-gold mine Monty on stream at DeGrussa. The company is on track to intersect first ore towards the end of the year, ramping up to production over the next three years.
Sandfire expects to complete its acquisition of Talisman’s 30 per cent JV interest in the Monty project by December this year.
The Monty discovery is the first significant accumulation of high-grade copper-gold mineralisation to be identified outside of DeGrussa.
Sandfire is about to commence its first exploration program on the Alchemy farm-in, following its acquisition of Independence Group’s farm-in rights over their base metal prospective tenements. The tenements lie along the strike from the DeGrussa mine and plant.