Sandfire Resources (ASX: SFR) has reported its financial results for the six-month period to 31 December 2025.
The headline numbers include revenue of $US672.1 million (up 17%), underlying EBITDA of $US304.4 million (up 19%) and a profit after tax of $US96.3 million (up 94%).
First-half highlights
- Reported a Total Recordable Injury Frequency (TRIF) of 1.3 at the end of H1 FY26 (30 June 2025: 1.7) and no significant environmental incidents in the period.
- Delivered Group Copper Equivalent (CuEq) production of 72.1kt in H1 FY26 and have retained annual production, cost and capital expenditure guidance for MATSA and Motheo, with volumes weighted toward H2 FY26.
- Continued to focus on the basics to ensure Underlying Operating Unit Costs at MATSA ($87/t of ore processed) and Motheo ($US43/t of ore processed) remained well aligned with annual guidance in H1 FY26, with Motheo’s costs to increase incrementally across the remainder of FY26 as the proportion of higher grade A4 ore feed rises, given additional haulage and handling costs.
- Reported a 19% increase in Underlying EBITDA to $US304M and more than doubled Underlying Earnings to $US107M in H1 FY26, for a statutory profit of $US96M and Underlying EBITDA margin of 45%.
- Committed $US112M to capital expenditure in H1 FY26, with the 14% increase in investment directed toward infill and extension drilling program that has been designed to extend known resources and reserves, early works for a new tailings facility at MATSA, and additional drilling and study costs at Motheo to support declaration of a maiden reserve at A1 in Q4 FY26.
- Established a $US13M net cash balance as Sandfire’s high-margin operations and strict capital discipline allowed it to inject $US301M into the balance sheet over the past 12 months.
Subsequent to the end of H1 FY26, Sandfire also executed definitive transaction agreements with Havilah Resources Limited (ASX: HAV) to advance the Kalkaroo copper‑gold project and establish an exploration strategic alliance across the highly prospective Curnamona Province in South Australia. These agreements grant Sandfire an exclusive right to earn an 80% interest in Kalkaroo for an effective upfront consideration of approximately A$117.6M, comprising A$31.5M in cash and 4,640,833 Sandfire shares.
With activity to ramp up at Kalkaroo across the remainder of FY26, Sandfire has increased group capital expenditure guidance by $US10M to $US240M while annual guidance for group exploration and evaluation expenditure has also been marginally adjusted to include $US2M to fund the planned regional program in the Curnamona Province and an additional $US3M to further progress the Black Butte project while the company undertakes a review of its fit within the group portfolio.
Commenting on the first-half results, Sandfire managing director Brendan Harris said:
“We closed H1 FY26 with a TRIF of 1.3, down from 1.7 at the end of FY25. While it’s pleasing to achieve an outcome that moves us closer toward our goal of having a workplace that is injury free, the number of high-potential incidents remains a concern and underlines the importance of the work we’re doing to establish repeatable systems and processes that will further strengthen our internal system of risk management and control.
“Our business is increasingly well positioned with two high-margin operations in Spain and Botswana, producing the commodities the world needs, and the recent addition of another copper and gold development opportunity in South Australia that has the potential to underpin a large-scale, long-life and low-cost operation in a preferred jurisdiction.
“Our intentionally simple strategy and unwavering commitment to deliver safe, consistent and predictable performance is also being rewarded, as buoyant commodity markets and good cost control delivered a 19% increase in Underlying EBITDA to $US304.5M and a more than 100% increase in Underlying Earnings to $US107.1M. This approach to focus on the basics and maintain strict capital discipline through the cycle has fundamentally transformed our balance sheet and ensures we are increasingly well placed to invest in our continuing operations, direct capital toward new opportunities that have the potential to create meaningful value and return excess capital to shareholders in the future.
“As a growing, international copper producer that is exposed to operational and macro-economic volatility, we continue to believe our shareholders will be best placed if we maintain a strong balance sheet and a net cash position through the cycle as a priority. Having injected $US494M into our balance sheet in the 21 months since our net debt peaked at $US481M in March 2024, it is therefore important to consider our closing net cash balance of $US13M within the context of the A$46.5M of cash payments that have subsequently been made to Havilah Resources to secure the exclusive right to earn an 80% interest in the Kalkaroo Copper-Gold Project in South Australia and fund regional exploration in the broader Curnamona Province.
“Despite experiencing a slightly softer start to the year, annual production, costs and capital expenditure guidance for our operations remains unchanged. At Motheo, having brought forward and completed planned maintenance in Q2 FY26, we have higher ore grades ahead of us, and expect to achieve the mid-point of annual CuEq production guidance of 61kt, around a range of 58-64kt. Similarly, with a projected increase in the availability of higher value polymetallic ore feed within the Aguas Teñidas western extension in H2 FY26, we expect MATSA to achieve the mid-point of its annual CuEq production guidance of 96kt, around a range of 91-101kt. Whilst we are therefore well positioned to deliver on our operational commitments, we have amended both Total Capital Expenditure and Total Underlying Exploration and Evaluation Expenditure at a Group level to reflect the planned ramp-up in activity at Kalkaroo in H2 FY26.
“At a strategic level, beyond executing the definitive agreements with Havilah Resources in February 2026 that signal our re-entry into exploration and development in Australia, we have also commenced a review of our 87% shareholding in Sandfire America, which owns 100% of the Black Butte project. This decision followed public disclosure of the pre-feasibility study outcomes for Johnny Lee and updated Mineral Resource estimate for the satellite Lowry deposit, which confirmed the economic case for the project’s development. With all key permits in place, Black Butte is one of the few near-shovel ready copper projects in the United States.”
