Sandfire Resources boss Karl Simich has described the 12 months to the end of June as the “best year the company has ever had”, with its acquisition of the MATSA polymetallic mine in Spain driving a big uplift in production.
The copper miner beat guidance producing 98,376t of copper and nearly 39,907t of zinc, underpinning a record unaudited revenue of $US922.7 million.
Mr Simich described it as a transformational year for Sandfire with the MATSA acquisition positioning the company for long-term growth.
“This should provide investors with a clear insight into the strong cashflow generating capability of ourexpanded global business, with the MATSA operations generating an EBITDA margin of 51 per cent for the year – a very strong result by any measure,” he said.
Mr Simich played down the recent pull-back in metals prices, describing it as a blip and insisting underlying demand for future-facing metals would continue to drive the sector for decades to come.
Sandfire has forecast copper equivalent production of 123,000t for financial year 2023 underpinned by its first full year contribution from MATSA and the final four months of ore from its depleting DeGrussa operation near Meekatharra.
Its new Motheo copper mine in Botswana is expected to come online towards the end of financial year 2023.
The company also unveiled an updated reserve estimate for MATSA of 37.1Mt containing an estimated 975,000t of zinc, 286,000t of lead and 43Moz of silver.
Sandfire shares closed up 18¢, or 4 per cent, at $4.38.