Sandfire Resources (ASX:SFR) reports AU$27.1 mn loss in 1HFY23 despite 38% revenue jump - Kalkine Media

February 28, 2023 06:11 PM AEDT | By Neha Simpy
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Highlights:

  • Sandfire Resources Limited (ASX: SFR) released its 1HFY23 results ended 31 December 2022 on Tuesday.
  • The company’s sales revenue increased 38% to US$431 million versus US$311 million in 1HFY22.
  • Higher input costs, weaker metal prices and increased depreciation and amortisation charges impacted its bottom line.

ASX-listed miner Sandfire Resources Limited (ASX: SFR) released its 1HFY23 results ended 31 December 2022 on Wednesday, 28 February 2023.

The company said, in 1HFY23, its sales revenue increased by 38% to US$431 million versus US$311 million in 1HFY22. However, its bottom line was impacted by higher input costs, weaker metal prices, and increased depreciation and amortisation charges. As a result, the company reported a net loss of AU$27.1 million in the reporting period as against a net profit of AU$55.2 million in the first half of FY22.

Sandfire’s group EBITDA fell by 15.9% to US$135.9 million versus US$161.6 million in 1HFY22.

Depreciation and amortisation increased by AU$61.4 million to AU$137.8 million in 1HFY23 as against AU$76.4 million in the six months ended 31 December 2021. This was primarily due to higher capitalised costs relating to the acquisition of MATSA.

As of 31 December 2022, the company’s cash balance was US$263.7 million, and a net debt stood at US$378.3 million (except capitalised transaction costs).

No dividend was announced for the half-yearly period.

Sandfire 1HFY23 production

In 1HFY23, the company’s production was as follows: Copper-48,088 tonnes, Zinc-39,290 tonnes, Lead-4,398 tonnes, Gold- 12,777 oz, Silver- 1.3 Moz (contained metal).

The company's production guidance for FY2023 is as follows:

Copper-83 to 91 kt, Zinc-78 to 83 kt, Lead-6 to 10 kt, Gold- 12 to 14 oz, Silver- 2.2 to 3.2 Moz (contained metal).

ASX SFR

Its Botswana-based Motheo Copper Mine is on schedule with its initial production to be delivered from the initial days of the June quarter in the fiscal year 2023, and the construction work is close to its conclusion now. Also, the growth of the 5.2 Mtpa extension of Motheo is in progress.

Sandfire’s FY23 outlook

The company’s acting CEO mentioned that the company had made considerable development with the transformation of its portfolio in 1HFY23 with the continuing MATSA division’s optimisation. The wind-down at Degrussa division and the Motheo mine are presently ready to begin production.  

Further, the company said its Botswana, Africa based Motheo Copper Project is on schedule for its first production. Also, Spain based MATSA Copper Operations has also made them well-placed to capitalise on the robust copper cost and the growing demand for the metal.

SFR shares closed 1.38% higher at AU$5.880 apiece on Tuesday, outperforming the broader ASX 200 index, which advanced 0.47% to close at 7,258.40.


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