Sandfire Resources (ASX: SFR) has provided its quarterly activities report for the period ended 31 March 2025.
HIGHLIGHTS
- Reported a Total Recordable Injury Frequency (TRIF) of 1.4 at 31 March 2025 (1.6 at 31 December 2024) as we continued to embed our new way of working, The Sandfire Way
- Delivered robust operating results in Q3 FY25 as our teams responded well to unprecedented rainfall at both Motheo and MATSA, and we are well placed to deliver the significant increase in performance that is required in Q4 FY25 to achieve Copper Equivalent (CuEq) production guidance of 154kt for FY25, which remains unchanged
- Unexpected Euro:US dollar exchange rate driven cost inflation has necessitated a minor 2% or $8M increase in MATSA’s Underlying Operating Cost guidance to $355M for FY25, which is equivalent to $78/t of ore processed once a 2% reduction in the forecast processing rate is also taken into account, while Group capital expenditure guidance has been reduced by $11M to $207M largely as a result of timing differences at Motheo
- Achieved annualised mining and processing rates of 4.6Mt and 4.5Mt, respectively, at MATSA in Q3 FY25 for CuEq production of 22.5kt as the wettest winter on record at the mine progressively impacted productivity and the extraction of higher grade ore was temporarily delayed
- Delivered CuEq production of 13.4kt at Motheo during Q3 FY25 despite the impact of an extreme weather event that resulted in our open-pits being inundated, and activity being constrained to Stage 2 of the T3 open-pit and our broader recovery efforts, which are expected to provide access to higher grade ore in both our T3 and A4 open-pits in Q4 FY25
- Invested $5M in regional and another $5M in resource extension exploration programs in Q3 FY25, primarily within the Motheo and MATSA mining hubs, and expect a further step-up in drilling activity in Q4 FY25.
- Established our new unsecured $650M Corporate Revolver Facility (CRF), which facilitated the $440M repayment and subsequent closure of the pre-existing MATSA, Motheo and Corporate Revolver facilities as we significantly simplified our funding arrangements and enhanced balance sheet flexibility
- Generated unaudited Group sales revenue of $283M and Underlying Operations EBITDA of $145M in Q3 FY25, for Underlying EBITDA of $126M and a further $45M reduction in net debt to $243M, taking the cumulative reduction in net debt across the 12 month period to $238M
Sandfire CEO and Managing Director, Mr Brendan Harris, said:
“Our Group Total Recordable Injury Frequency decreased in the March quarter from 1.6 to 1.4 as we remained focused on eliminating high-potential incidents at both MATSA and Motheo, and continued to embed our new way of working which will further strengthen our system of risk management and internal control.
“Despite experiencing extreme weather in both Spain and Botswana, our teams delivered robust production results in what was a very challenging period. Their impressive efforts not only mitigated the immediate impacts in the March quarter, but also established the platform for a strong finish to the year which has allowed us to retain annual production guidance.
“The completion of our annual planning cycle has also confirmed an incremental increase in copper equivalent production at Motheo to 60kt in FY26, as well as a smoother production profile in the medium term. Detailed guidance will be provided for FY26 when we report our full year results in August.
“Notwithstanding generally good cost control, recent strength in the Euro:US dollar exchange rate and a slight reduction in the planned processing rate has necessitated a 4% increase in MATSA’s Underlying Operating Cost guidance to $78/t of ore processed for FY25 and a similar 5% increase in the Operation’s implied C1 unit cost to $1.58/lb, with a reduction in treatment and refining charges being largely offset by lower assumed by-product pricing.
“From a strategic perspective, our five-year plan to materially increase reserves and increase the life of our strategically positioned processing hubs continues to gather momentum and another step-change in resource extension, near-mine and regional drilling activity is expected to occur in the June quarter.
“The resilience of our operations and strong pricing for our key commodities delivered unaudited Group sales revenue of $283M and Underlying EBITDA of $126M during the March quarter, for a further $45M reduction in net debt to $243M. The cumulative $238M reduction in net debt that has occurred over the past 12 months illustrates the cash generating capacity of our business and the strong progress we are making toward our targeted net cash position.
“Our talented team, high quality operations and increasingly strong balance sheet leave us well placed to navigate current market volatility with confidence.”
