Sandfire Resources (ASX: SFR) has provided its quarterly activities report for the period ended 30 June 2025.
HIGHLIGHTS
Reported a Total Recordable Injury Frequency (TRIF) of 1.7 at the end of FY25 (30 June 2024: 1.6) as we continued to focus on reducing high-potential incidents and embed our new way of working, The Sandfire Way
Delivered a 12% increase in Group Copper Equivalent (CuEq) production to 152.4kt in FY25, to finish the year 1% below annual guidance set in July 2024
Achieved mining and processing rates of approximately 4.6Mt and 4.5Mt, respectively, at MATSA in FY25 for CuEq production of 94.1kt, with the 1% shortfall relative to annual guidance reflecting the impact of record rainfall and a major power outage during the period
Delivered a processing rate of 5.5Mt at Motheo in FY25 for CuEq production of 58.3kt, which was 1% below annual guidance, as we achieved record CuEq production of 16.4kt in Q4 FY25 as our T3 open-pit recovered from a generational rain event and associated flooding
Remained disciplined at both operations as MATSA’s Underlying Operating (Unit) Cost remained in line with revised guidance at $78/t of ore processed and Motheo’s Underlying Operating (Unit) Cost increased only marginally from revised guidance to $40/t of ore processed, to finish the year 4% below initial guidance as the operation benefited from economies of scale
Increased investment in regional and resource extension drilling programs to $5M and $6M, respectively, in Q4 FY25, primarily within the Motheo and MATSA mining hubs
Completed the latest drilling campaign at the fully permitted Black Butte Copper Project, which has further extended high-grade mineralisation in the Lower Copper Zone at Johnny Lee, with the focus now turning to a new pre-feasibility study which is expected to be completed in Q2 FY26
Generated unaudited Group sales revenue of $1,176M and Underlying Operations EBITDA of $610M in FY25, for Underlying EBITDA of $528M and net debt of $123M, taking the cumulative reduction in net debt to $273M in the period
Confirmed Group CuEq production is forecast to be within a range of 149kt to 165kt(a) in FY26, with the mid-point of the range equating to growth of a further 2% as the contribution of the A4 open-pit ramps up at Motheo, particularly in the second half
Sandfire CEO and Managing Director, Mr Brendan Harris, said:
“Our Group Total Recordable Injury Frequency was 1.7 at the end of the June quarter, a modest but disappointing increase from last year. We rightly judge ourselves harshly in this area as nothing is more important than the health and wellbeing of our people and the communities we are part of.
“I’m particularly proud of our team for the strong operational results they delivered this year having successfully navigated a number of significant challenges beyond their control. Despite record rainfall and a major power outage, MATSA once again processed 4.5Mt of ore in FY25 to deliver a 3% increase in CuEq production to 94.1kt, finishing the year an immaterial 1% below guidance that was set in July 2024. Similarly, a generational rainfall event and major flooding at Motheo had the potential to derail its year and yet the operation delivered a 29% increase in CuEq production to 58.3kt as record CuEq production of 16.4kt in Q4 FY25 illustrated the growing resilience of the operation and the robustness of our team’s flood recovery plan.
“At a Group level, this meant we delivered a further 12% increase in CuEq production to 152.4kt in FY25, which was 1% below annual guidance, further establishing our credentials as a safe, consistent and predictable operator. What’s more, we expect to grow CuEq volumes by a further 2% in FY26.
“We’ve always believed it’s important to focus on both volume and value, and have sought to remain disciplined on the costs side of the equation, having benefitted from lower rates of inflation over the last two years when compared with much of the industry. Consider, our Underlying Operating Unit Costs at MATSA and Motheo of $78/t and $40/t, respectively, across FY25 still compare well with guidance provided as far back as August 2023 of $78/t and $41/t.
“While MATSA’s unit costs in Euros are expected to again remain well controlled in FY26, the local currency’s recent strength against the US dollar is expected to create upward pressure. Similarly, the ramp-up of the A4 open-pit at Motheo with its longer haulage distance and additional handling costs is expected to increase unit costs, while the achievement of commercial production will also see an increasing proportion of previously capitalised A4 waste removal costs expensed. Collectively, off a relatively low base we expect a circa 10% increase in Motheo’s unit costs in FY26.
“Our intentionally simple strategy remains fit for purpose and is delivering good results. There is no better example of this than the simplification and rapid deleveraging of our balance sheet, where net debt has declined by $273M over the last 12 months to $123M, including a $120M reduction in net debt in the June quarter alone.
“With our foundations now well established we will remain focused on the basics as we seek to increase our reserves and extend mine life. To ensure we bring even greater urgency and build momentum in our critically important exploration programs, we have transitioned accountability for exploration to our Chief Operating Officer so we can better leverage our strategically valuable operating presence in both the Iberian Pyrite and Kalahari Copper Belts.”
