Sandfire Resources NL
Sandfire Resources NL
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A strong final quarter has enabled West Australian miner Sandfire Resources to increase June year (FY19) production to 69,394t (FY18: 64,918t) copper and 44,455oz (39,273oz) gold with C1 costs also improving to $US0.83/lb ($0.93/lb).
Q4 production was 18,519t (16,062t) copper and 11,967oz (10,921oz) gold, with 15,106t Cu and 21,790oz Au coming from the DeGrussa mine and 6,025t Cu and 3,623oz Au from the Monty satellite mine.
Mid-tier West Australian copper-gold producer Sandfire will add the near-term T3 project in Botswana and a significant Kalahari copper belt landholding to its global development pipeline with agreement to acquire explorer MOD Resources.
Under a scheme of arrangement valuing the target company at $A167M, Sandfire is offering a choice of 0.0664 shares or 45c for each MOD share. The cash component is capped at $41.6M.
Copper down, gold up for a Mar 2019 qtr (Q3 19) that underpins expectations for increased FY2019 production from Sandfire Resources' flagship DeGrussa copper-gold mine at its 100%-owned Doolgunna project, 150km N of Meekatharra, Western Australia.
Explorer/developer White Rock Minerals has signed a $A30M J/V deal for copper-gold miner Sandfire Resources to earn up to 70% of White Rock’s 1.1Mt zinc equivalent, high-grade zinc-precious metals volcanogenic massive sulphides (VMS) Red Mountain project in central Alaska, US.
Australian-based Sandfire Resources is closer to development of its 86%-owned Black Butte copper project 20ml N of White Sulphur Springs in Montana, USA with the release by state environmental authorities of its draft EIS.
It’s taken over 3 years of work by Sandfire Resources America to reach this stage, but MD-CEO Karl Simich hopes it can gain a mine operating permit as early as the Sept qtr to coincide with completion of its FS.
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.