Sandfire Resources has welcomed rising copper prices amid its transition towards becoming an international miner.
The company’s DeGrussa Operations produced 35,790 tonnes of copper in the December 2020 quarter and 21,343 ounces of gold.
This has placed DeGrussa at the upper end of its 2021 financial year guidance of 67,000-70,000 tonnes of copper and 36,000-50,000 ounces of gold.
Sandfire also recorded strong revenue of $355.6 million in the December 2020 quarter, off the back of shipping 32,252 tonnes of copper.
“The strong revenue result was supported by the rising copper price, which reached an eight-year high of US$8000 ($10,041) a tonne in December 2020 and has continued to climb since,” Sandfire stated.
Copper reached its highest price since September 2011 last week in its 11th straight monthly gain, reaching US$9269.50 per metric tonne.
Sandfire managing director Karl Simich said the company is well placed to push its global pipeline of projects forward.
Simich highlighted that Sandfire’s purchase of the T3 Motheo copper mine in Botswana will diversify its copper portfolio, and arrives at a time of positive market conditions.
“The T3 development is expected to form the cornerstone of the new, long-term Motheo copper hub for Sandfire in the Kalahari Copper Bel,” Simich said.
Simich anticipates the T3 development could expand to 5.2 million tonnes per annum.
Sandfire is also advancing its Black Butte copper project in Montana, United States with a exploration campaign underway, while regional exploration in the Doolgunna region of Western Australia is also progressing.
“Sandfire is well on the path to completing its transition from a single-mine company into a diversified and sustainable international miner, against the backdrop of one of the best market environments for the copper sector in well over a decade,” Simich said.
“Copper is one of the key ‘future-facing’ metals required to support the world’s transition to a low-carbon future, including the electrification of the global transportation fleet and other initiatives to cut greenhouse gas emissions.
“Demand is predicted to soar as global investment in renewable energy continues to grow and the global economic recovery gains momentum.”