Sandfire Resources (ASX: SFR) has provided its quarterly activities report for the period ended 30 June 2024.
HIGHLIGHTS
- Achieved a Total Recordable Injury Frequency (TRIF) of 1.6 at the end of FY24 (30 June 2023: 1.6, 31 December 2023: 1.5) thanks to our team’s unrelenting focus on safety
- Published the findings of the external investigation into the historical disturbance of artefact scatters at our now-closed Monty mine and remain focused on implementing the recommendations contained within this report, while working with the Yugunga-Nya to rebuild our relationship and ensure the Company delivers on the commitments embedded within our framework agreement
- Delivered a 47% increase in Group Copper Equivalent (CuEq) production from continuing operations to 133.5kt(a) in FY24, which was 1.1% below the full-year guidance set in July 2023, as Motheo ramped-up and delivered outstanding results in its first year of operation
- Sustained a processing throughput rate of 5.4Mtpa at Motheo across Q4 FY24 for CuEq production of 15.1kt and 44.7kt for FY24, which was 6.4% above annual guidance of 42kt
- Maintained record mining and processing rates at MATSA of 5.0Mtpa and 4.6Mtpa, respectively, for CuEq production of 22.1kt in Q4 FY24 and 88.8kt for FY24, which was 4.6% below annual guidance of 93kt
- Established the platform to grow Group CuEq production by a further 13% in FY25 with Motheo expected to run at its expanded capacity for a full 12 months and MATSA set to recover from a blockage in its paste fill delivery infrastructure and achieve another record annual processing rate
- Completed an update of the MATSA Mineral Resource and Ore Reserve (MROR) estimate, which included initial contributions from the recently discovered Masa Olivo and San Pedro zones, resulting in a 9% increase in Mineral Resource and a 6% increase in Ore Reserve tonnes
- Finalised a comprehensive five year drilling plan that has been designed to deliver a significant increase in reserves at both MATSA and Motheo, and will necessitate a step-up in exploration activity from FY25
- Received additional assay results from the drilling program that is targeting Black Butte’s Lower Copper Zone, with significant intercepts including 13.2m at 12.8% Cu, 8.5m at 6.6% Cu, 4.7m at 4.5% Cu and 1.8m at 15.3% Cu at depths ranging from 360m to 480m
- Elevated prices for our products and the completion of five concentrate shipments at Motheo in Q4 FY24 contributed to unaudited Group sales revenue of ~$935M and Underlying Group EBITDA of ~$360M in FY24, while the deferral of capital expenditure at Motheo into FY25 further supported a significant reduction in Group net debt to $396M at 30 June 2024
Sandfire CEO and Managing Director, Mr Brendan Harris, said:
“Thanks to our team’s unrelenting focus on safety, we closed the financial year with a Total Recordable Injury Frequency of 1.6. Nothing is more important than the health and well-being of our people, and the communities we are proud to be a part of.
“In early June, we released the findings of the external investigation we commissioned into the historical disturbance of artefact scatters at our now-closed Monty Mine, Western Australia, which primarily occurred in 2017 and 2018. We remain focused on implementing the recommendations contained within this report and working with the Yugunga-Nya to rebuild our relationship and ensure the Company delivers on the commitments embedded within our framework agreement.
“On the back of a solid June Quarter, I’m particularly pleased that we increased Group Copper Equivalent production by 47% in FY24 to 133.5kt(a), which was within 1.1% of the annual guidance we set in July 2023 knowing it would require the near faultless ramp-up of our newest operation, Motheo. What’s more, we have established the platform to grow Group Copper Equivalent production by a further 13%(a) in FY25 as Motheo is expected to run at its expanded capacity for a full 12 months and MATSA is set to recover from a blockage in its paste fill delivery infrastructure and achieve another record annual processing rate. As in the past, we will provide comprehensive guidance for FY25 operating costs and capital expenditure when we report our audited FY24 Financial Results on 29 August 2024.
“As one of the five strategic pillars we established to maximise total shareholder returns, we previously emphasised the importance of the reserves that underpin our well-capitalised processing hubs at Motheo and MATSA. Our new exploration plan has been designed to not only replace mining depletion but, more importantly, aims to establish a minimum 15-years of life at both operations within five years. Over this period, we expect to complete an extensive drilling program encompassing infill resource extension, near mine and greenfield exploration, and while MATSA is a relatively mature operation where geological knowledge and orebody confidence is high, exploration at Motheo and within the broader Kalahari Copper Belt is still at a relatively early stage. Meaningful reserve growth at Motheo is therefore dependent on belt-scale exploration success that will be supplemented by targeted drilling in and around our known deposits.
“More broadly, elevated prices for our products, that increasingly reflect the important role they will play as the world seeks to decarbonise, and the completion of five concentrate shipments at Motheo in the June Quarter contributed to unaudited Group sales revenue of ~$935M and Underlying Group EBITDA of ~$360M in FY24. The deferral of another ~$14M of capital expenditure in Q4 FY24 at Motheo into FY25 further supported a significant reduction in Group net debt to $396M at 30 June 2024.”
