Sandfire Resources NL
Sandfire Resources NL
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MD Karl Simich says strong performance in the Dec-half (H1FY19) positions West Australian miner Sandfire to “harvest cash” while investing in exploration, project development and potential mergers and acquisitions.
Sandfire's flagship DeGrussa copper and gold mine at its 100%-owned Doolgunna project 150km N of Meekatharra delivered H1 revenue of $A272.3M (H1FY18: $277.4M) and attributable NPAT of $49.5M ($60M).
Continued strong performance at its DeGrussa mine has enabled West Australian miner Sandfire Resources to strengthen its production forecast to the upper end of its guidance range of 63,000-67,000t copper and 37,000-40,000oz gold. C1 costs guidance has been lowered to $US0.90-0.95/lb.
Dec qtr (Q2FY19) production was 16,888t Cu (Q1: 17,924t) and 10,427oz Au (11,141oz) at $0.87/lb ($0.89/lb).
Cashed up explorer MOD Resources has rejected copper-gold miner Sandfire Resources' 100% all scrip takeover bid as undervaluing the company and its advanced 590,000t copper- 27Moz silver T3 Copper Project in Botswana at $A113M.
Turning down the $0.38cps unsolicited, non-binding, indicative, conditional proposal, comes with a $A15M raising. MOD says it has also in advanced discussions with a number of parties, giving it confidence in the availability of a range of T3 project funding options.
With another $15M virtually in the bank, MOD Resources has rejected Sandfire Resources’ initial, unsolicited takeover bid valuing MOD at $113M. By Mark Mentiplay
Copper miner Sandfire Resources’ shares have been temporarily suspended from the ASX after the company confirmed it has written to MOD Resources about a $A88M ($US63M) takeover of the copper-gold explorer, which is expecting a final FS on its 590,000t copper- 27Moz silver T3 Copper Project in Botswana by end-Mar 2019.
Copper-gold miner Sandfire Resources has had a good Sept 2019 qtr (Q1 19) with copper production from its De Grussa project in Western Australia up to 17,924t from Q4 18’s 17,867t and gold jumping to 11,141oz from 9,548oz, albeit with C1 cash costs also up to $US0.89lb Cu from $0.80lb.
The latest numbers see the company on track for FY19 copper guidance up to 63,000t-67,000t from FY18’s 64,918, gold steady at 37,000oz-40,000oz from 39,273oz, again with C1 cash costs up to $1.00oz-1.05lb Cu from $0.93lb.
Sandfire Resources has assumed 100% of the Springfield Copper-Gold Project, 10km SE of its producing DeGrussa mine in Western Australia, after completing its $A72.3M cash acquisition of Talisman Mining’s 30% stake.
The Springfield project includes the Monty copper-gold deposit, being developed as a satellite underground mine to feed DeGrussa.
Strong performance by its DeGrussa mine and high copper prices have helped West Australian miner Sandfire achieve its best financial result in 6 years of operations, posting a 59% increase in attributable NPAT to $A123M for the year to end-June, up from $75M in FY17.
FY18 sales revenue was a record $606.7M ($532.5M) from sales of 60,247t (62,663t) copper and 35,692oz (34,333oz) gold. Cash flow from operations rose to $245M ($216.1M).
Year-end group cash and deposits totalled $243.4M ($126.7M).
Talisman Mining has further cemented the $A72.3M cash sale of its 30% stake in the Springfield copper-gold project in Western Australia to majority JV partner Sandfire Resources.
The Springfield JV includes the Monty copper-gold deposit, being developed as a satellite underground mine to feed Sandfire's producing DeGrussa mine and surrounding exploration tenements.
West Australian miner Sandfire posted production of 64,918t copper and 39,273oz gold at its De Grussa project in the year to end-June (FY18), from 67,088t Cu and 38,623oz Au in FY17.
C1 cash costs were steady at $US0.93/lb.
With commissioning of additional concentrate thickener and filter on track for the Sept qtr, Sandfire is predicting FY19 production of 63,000-67,000t Cu and 37,000-40,0000oz Au at $1-1.05/lb.