Sandfire Resources Limited
Sandfire Resources Limited
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Sandfire Resources is focused on delivering the low-cost expansion to 5.2Mtpa capacity by early 2024 at its Motheo mine in Botswana after producing the first copper concentrate from the initial 3.2Mtpa plant.
Motheo’s first concentrate shipment is due in mid-2023. MD-CEO Brendan Harris says the expansion will lift copper production rates to around 50,000tpa during 2025.
The transition from mining operations to processing stockpiles at its DeGrussa copper-gold project in Western Australia has lowered Sandfire Resources’ group copper equivalent production to 30,000t for the March qtr (Q3FY23), 2% below the previous period.
Changes in the mine plan at its MATSA operations in Spain forced by poor ground conditions in the main production areas at the Magdalena mine has lowered Sandfire Resources’ Dec qtr (Q2FY23) copper production, with impacts for its FY23 guidance.
Q2 group production of 20,031t copper (Q1: 28,056t), 19,755t zinc (19,535t)., 1,921t lead (2,477t), 4,562oz gold (8,215oz) and 0.6Moz silver (0.7Moz). C1 costs for the period were $US1.77/lb Cu ($1.783/lb).
A strategic review following the completion of underground mining has resulted in Australian miner Sandfire Resources initiating a formal sale process for its DeGrussa copper operations in WA.
Financial advisor Azure Capital will assist it assess commercial opportunities for the project 900km NE of Perth that has been its cornerstone asset over the past decade.
Acting CEO Jason Grace says Sandfire Resources has achieved a significant reduction in overall debt after posting Sept qtr (Q1FY23) production of 28,056t copper (Q4FY22: 34,974t), 19,535t zinc (22,880t), 2,477t lead (2,201t), 8,215oz gold (9,075oz) and 0.7Moz silver (0.8Moz).
Grace, the Australian international miner’s chief operating officer, stepped into the top job after founder Karl Simich stepped down.
Australian engineer Lycopodium has had another major contract win on Sandfire Resources’ Motheo (T3) copper project in Botswana, this time to provide construction management services as the Kalahari Copper Belt development moves into the construction stage.
A strong start to Sept qtr (Q1) production at its DeGrussa mine in Western Australia and MATSA in Spain has encouraged Sandfire Resources to lift its FY23 group production guidance to 83,000-91,000t copper, 78,000-83,000t zinc, 6,000-10,000t lead, 12,000- 14,000oz gold and 2.2-3.2Moz silver.
The initial 5-month contribution following its acquisition of the MATSA copper project in Spain and strong performance of its DeGrussa copper operations in Western Australia have delivered a 52% increase in sales revenue for the year to end-June by international miner Sandfire Resources.
Sandfire Resources aims to begin site construction activities in the March 2023 qtr to expand the processing capacity of its Motheo development in Botswana from 3.2Mtpa to 5.2Mtpa after its DFS demonstrated outstanding project economics.
The expansion strategy includes the development of the A4 deposit, the Motheo mine’s first satellite deposit, within a revised $US397M development cost to support production of 440,000t copper and 18.4Moz silver at AISC of $1.79/lb over a 10-year life.
A strong final quarter and the 5-month contribution from its MATSA operations in Spain have helped Australian miner Sandfire Resources beat expectations with FY22 production of 98,367t copper, 38,907t zinc, 4,102t lead, 32,285oz gold and 1.5Moz silver. C1 costs were $US1.27/lb Cu.
Sandfire’s FY21 result was 70,854t Cu and 39,459oz Au at $0.82/lb.