Sandfire Resources NL (ASX: SFR) is based out of West Perth, Australia and engaged in the development, exploration, and evaluation of mineral across tenements and projects in Australia and also worldwide. Its primary interest lies in exploring gold, silver, copper as well as volcanogenic massive sulphide deposits. The company wholly owns the Greater Doolgunna Project, which encompasses the DeGrussa Copper-Gold Mine situated in the Bryah Basin mineral province in Western Australia.
Recently, the company released the results for the Half Year ended December 31st, 2018, (1H FY2019), highlighting the operational and financial updates along with a futuristic business outlook.
The operating results for 1H FY2019 revealed that during the period, 34,813t of contained copper and 21,567oz of contained gold were produced by the company with a cash operating cost of USD 0.87/lb. In line with the performance so far, the targeted copper production for end FY2019 remains as previously posted, that is, copper production expected to be at the upper end of the guidance range of 63,000-67,000 tonnes of contained copper metal and gold production at the upper end of the guidance range of 37,000-40,000 ounces. However, the guidance for headline cash operating costs has been reduced to approximately USD 0.90- 0.95/lb. Besides, the total recordable injury frequency rate (TRIFR) was recorded at 7.3 as of December 31st, 2018, up on 7.1 as at June 2018.
The company also accomplished the acquisition of the under-development Monty Copper-Gold Mine, situated 10 km east of the DeGrussa Copper-Gold Mine. Commercial production is expected to begin shortly in February 2019. As for the Black Butte Copper Project (with increased ownership of 86%), located in central Montana in the United States, the Final permitting stage (EIS) has been achieved with draft EIS expected in Q3 FY2019. Besides, the company continued with more multi-pronged exploration programs across Sandfire’s Greater Doolgunna Project area during the half year. The cash holding with the company was posted at $ 164.7 million.
The financial results revealed a strong financial position with revenue standing at $ 272.3 million after the treatment, refining charges as well as price adjustment losses from value of metal payable sold of $ 303.5 million. The cash flow from operating activities also remained strong at $ 97.5 million ($ 121.9 million before the payments for exploration and evaluation expenditure). In addition, the earning from the DeGrussa Operations segment before net finance and income tax were recorded at $ 101.7 million. While the profit before net finance and income tax stood at $ 70.1 million, the net profit after income tax attributable to members was at $ 49.5 million for the period. Besides, the earnings per share, basic and diluted stayed at 31.1cps. The cash holding with the whole Group was posted at $ 179.0 million as of December 31st, 2018.
Sandfire Resources NL has a market capitalisation of AUD 1.31 billion, with ~ 159.56 million outstanding shares. With the close of the trading session on February 19th, the stock last traded at a market price of AUD 7.760, down 5.134%, indicating an intra-day loss of AUD 0.420.
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