Reported a Total Recordable Injury Frequency (TRIF) of 1.3 at 31 December 2025 (30 September 2025: 1.4) and six High Potential Incidents in Q2 FY26 as we maintained an unrelenting focus on safety.
Achieved Group Copper Equivalent (CuEq) production of 72.1kt in H1 FY26, representing 46% of the mid-point of our annual guidance range, and we have retained all production, cost and capital expenditure guidance for FY26 with volumes now expected to be more heavily weighted toward H2 FY26.
Delivered CuEq production of 46.4kt at MATSA in H1 FY26, representing 48% of the mid-point of our Spanish mining complex’s annual guidance range, as an increase in higher grade polymetallic ore feed in Q2 FY26 coincided with an improvement in flotation recoveries.
Rescheduled and completed planned maintenance at Motheo in Q2 FY26 and experienced a temporary reduction in mobile fleet availability, which together led to a 12% reduction in CuEq production to 25.7kt in H1 FY26, representing 42% of the mid-point of our Botswana mining complex’s annual guidance range.
Continued to focus on the basics to ensure our Underlying Operating Unit Costs at MATSA ($87/t of ore processed) and Motheo ($43/t of ore processed) remained well aligned with annual guidance in H1 FY26, recognising that Motheo’s costs will rise incrementally across the remainder of FY26 as the proportion of higher grade A4 ore feed rises, given additional haulage and handling costs.
Invested $5M on regional and another $5M on near mine and extension exploration programs in the Iberian Pyrite and Kalahari Copper Belts in Q2 FY26, and expect our level of investment in the Motheo hub to ramp-up following the recommencement of drilling activity in December 2025.
Announced a binding term sheet with Havilah Resources Limited (ASX: HAV, Havilah) that provides a pathway to earn an 80% interest in the Kalkaroo Copper-Gold Project (Kalkaroo) and establish an exploration strategic alliance across the highly prospective Curnamona Province in South Australia.
Commenced a review of the Black Butte project’s fit within the Group’s global portfolio following the December 2025 announcement of the pre-feasibility study (PFS) outcomes for Johnny Lee and updated Mineral Resource estimate for the satellite Lowry deposit, which confirmed the economic case for development.
Generated unaudited Group sales revenue of $344M and Underlying Operations EBITDA of $187M in Q2 FY26, for Underlying EBITDA of $167M and net cash of $13M as at 31 December 2025 (30 September 2025: $62M net debt, 31 December 2024: $288M net debt).
Sandfire CEO and Managing Director, Mr Brendan Harris, said:
“The further reduction in our Group TRIF to 1.3 at the end of the December quarter reflects significant effort and focus from our operational teams. While this is a pleasing outcome, we continue to see high potential incidents in our workplace that we must learn from to ensure we further strengthen our control environment and raise awareness of the risks our people and contractors encounter every day.
“Last week, we advised that CuEq production in the December quarter fell marginally short of our expectations, primarily because of the need to complete planned maintenance in our processing facility at Motheo ahead of schedule following the premature failure of an OEM specification grate in the SAG mill, and a temporary reduction in the availability of mobile fleet servicing our open pit mines. The latter impact was somewhat accentuated by our decision to fast track the relocation of mobile equipment to A4 and ramp-up deferred waste stripping following the early completion of dewatering activities that followed the extreme weather event of FY25, which is expected to further de-risk our plans to access the mine’s higher grade ore in H2 FY26 and FY27. While these factors led to a 5% reduction in the Group’s CuEq production in H1 FY26, we have retained annual production guidance and now expect a H1:H2 weighting of 46:54 as opposed to the 48:52 ratio suggested previously.
“Our strategy and operating model have been intentionally designed to allow our teams to focus on the basics, and this approach has ensured that MATSA and Motheo’s Underlying Operating Unit Costs have remained well aligned with annual guidance in H1 FY26 at $87/t and $43/t of ore processed, respectively. While our annual cost guidance has also been retained, it is important to remember that the increasing proportion of higher grade ore that will be fed from Motheo’s A4 mine across H2 FY26 has additional haulage and handling requirements.
“The recently completed pre-feasibility study for the Johnny Lee deposit at the fully permitted Black Butte Copper Project confirmed the economic case for the development of a high-grade, underground mine which will be underpinned by high quality reserves and resources, and a leading approach to sustainable mining practices. We have since commenced a review of the Black Butte project’s fit within the Group’s global portfolio, which will primarily consider the materiality of the opportunity within the context of Sandfire’s own significant growth since the Group’s initial investment in the project in FY15.
“During the quarter we also signed a binding term sheet with Havilah Resources to advance the Kalkaroo Copper-Gold Project and establish an alliance to explore the highly prospective Curnamona Province. These agreements provide a pathway to unlock one of Australia’s largest undeveloped open pit copper-gold deposits and has the potential to replicate our successful entry into the Kalahari Copper Belt. Since announcing the transaction, we have made good progress working with the Havilah team to advance the definitive transaction agreements ahead of Havilah’s shareholder vote scheduled for 6 February 2026.
“While we have achieved our targeted balance sheet position and finished with $13M of net cash as at 31 December 2025, it should be noted that the proposed transaction with Havilah contemplates a A$31.5M cash payment upon the satisfaction of all conditions precedent, as well as a further A$15M payment to support the initial phase of the exploration strategic alliance in the Curnamona Province. Our talented people, strong balance sheet, modern mining complexes and exposure to a preferred suite of commodities, ensures the Group is exceptionally well positioned to fund these commitments and prosper in the current environment.”
