Sandfire (ASX:SFR) announces record dividend; 5 key things from earnings

Highlights

  • Sandfire Resources announced a record dividend in the financial result for FY2021 after profit hit an all-time high.
  • The earnings were supported by a rise in copper prices and robust performance at its DeGrussa operations in Western Australia.
  • Sandfire also announced an all-time high sales revenue of AU$813 million, up from AU$656.8 million in previous year.

Sandfire Resources Ltd (ASX:SFR) on Tuesday announced a record dividend in its financial result for FY2021 after profit hit an all-time high, led by rise in copper prices and robust performance at its DeGrussa operations in Western Australia.

Commenting on the earnings, Sandfire’s managing director, Karl Simich said: “Another disciplined and focused performance at our high-margin DeGrussa operations in Western Australia allowed us to reap the full benefits of a rising copper price, which hit decade-long highs during the year.”

Source: © Wrightstudio  | Megapixl.com

Five key things to know from earnings:

  • The mining firm announced a record (132% rise) net profit after tax (NPAT) attributable to equity holders of AU$171.6 million for the 12 months to 30 June 2021.
  • Sandfire also announced an all-time high sales revenue of AU$813 million, up from AU$656.8 million in previous year.
  • Cash flow from operating activities stood at AU$471.1 million, up from AU$273.6 million in FY20.
  • Sandfire recorded its second-best performance in terms of physical production at the DeGrussao operations for FY2021.
  • The ASX-listed company declared a record dividend of 26 cents per share fully franked. It implies a 35% payout of NPAT, and a rise of nearly 80% on the FY2020 dividend when combined with 8 cents per share interim dividend.

Source: © Kiosea39   | Megapixl.com

Outlook

The company plans to continue with production at full pace at DeGrussa through until the September 2022 quarter with production guidance for FY2022 of 64 – 68,000 tonnes of copper and 30 – 34,000 ounces of gold at a cost of US$1 – 1.10 per pound.  “This will ensure we can continue to take full advantage of the strong copper price environment, with no significant tailing off or ramp-down as is typically seen at the end of the life of many mines,” it added.

Bottom Line

Sandfire’s shares are expected to rise on Tuesday following healthy earnings for financial year 2021. On Monday, the stock closed at A$6.27. The share price is up nearly 20% so far this year.

RELATED ARTICLE: Invictus Energy to begin seismic data acquisition at Cabora Bassa, expands CSR program

RELATED ARTICLE: Surefire Resources NL (ASX:SRN) set to kick off 2,000m RC drilling at Yidby, shares up ~7%

Comment


Disclaimer

Ad

GET A FREE STOCK REPORT


Top Penny Picks under 20 Cents to Fit Your Pocket! Get Exclusive Report on Penny Stocks For FREE Now.


   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK