Sandfire reports record FY sales revenue of $1,176M, EBITDA of $528M up 45%
28 August
Sandfire Resources (ASX: SFR) has provided its full-year financial results for FY25.
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 as our team navigated a generational rain event in Botswana and associated flooding, and power outages at both Motheo and MATSA
Continued to mitigate inflationary pressure with Underlying Operating Costs of $574M finishing the year 1% above initial guidance set in August 2024 as Motheo’s Underlying Operating (unit) Cost declined to $40/t of ore processed as it benefitted from greater economies of scale
Reported a 46% increase in Underlying EBITDA to $528M and Underlying Earnings of $111M for a Statutory Profit of $90M, as Motheo’s modern processing facility ramped-up beyond its expanded nameplate capacity, MATSA demonstrated growing consistency and predictability in all aspects of its performance, and we benefitted from strong demand for our metal concentrates
Reduced net debt by $273M to $123M at 30 June 2025 and established a new unsecured $650M Corporate Revolver Facility (CRF) that enhances flexibility, reduces ongoing financing costs and simplifies our funding structure
Confirmed that Group CuEq production is forecast to grow by a further 2% to 157kt in FY26, while Underlying Operating (unit) costs are expected to increase by 10% at both Motheo and MATSA to $44/t and $86/t, respectively, as the more distant A4 open-pit ramps up and recent strength in the Euro to USD exchange rate (FY26G: 1.19, FY25: 1.09) places upward pressure on MATSA’s predominantly Euro denominated cost base
Invested $208M in our business in FY25 as the A4 open-pit development was completed and we continued to invest heavily in underground development at MATSA to open additional mining fronts, and expect capital expenditure to increase to $230M in FY26 as we commence construction of the new tailings storage facility at MATSA ($25M), absorb the stronger Euro to USD exchange rate and complete the A1 infill and extension drilling program at Motheo
Sandfire CEO and Managing Director, Mr Brendan Harris, said:
“Our business has transformed in recent years to become a globally significant producer of copper, and our strong financial results reflect the quality of our operations and our proven operating and development credentials.
“We closed the year with a Group Total Recordable Injury Frequency of 1.7 as 16 injuries were recorded in FY25 compared with 15 last year, which was clearly disappointing given our belief that it’s possible to have a workplace that is injury free. Of course, our greatest effort must remain focused on eliminating high-potential incidents that can lead to high consequence injuries, which is why we are embedding our new way of working to strengthen our overall system of risk management and control.
“I’m particularly proud of the way our teams responded to the myriad of external challenges they faced across the last 12 months, including a generational rain event in Botswana that led to widespread flooding, and power outages at both MATSA and Motheo. Their tenacity and the growing resilience of our operations again shone through as we delivered a 12% increase in Group copper equivalent production to 152.4kt. Looking ahead, we expect to deliver a further 2% increase in copper equivalent production in FY26.
“At Motheo, the successful ramp-up of operations delivered a number of production and financial records, including copper equivalent production of 58.3kt and an Underlying Operations EBITDA margin of 60%. This strong result, an increasing level of consistency and predictability at MATSA, and generally good cost control at both operations, underpinned a 26% increase in Group sales revenue to a record $1,176M and a 46% increase in Underlying EBITDA to $528M.
“The breadth and strength of our results is best exemplified by the fundamental transformation of our balance sheet as a 15% increase in sales from our continuing operations combined with ongoing tightness in our metal markets to deliver a $273M reduction in net debt to $123M. What’s more, the establishment of our new unsecured $650M Corporate Revolver Facility, and the repayment of all other pre-existing facilities, has created significant financial flexibility for the Group, while reducing ongoing financing costs and simplifying our funding structure.
“At a strategic level, we made important changes to our organisation during the year to create single point accountability for all exploration activities as we sought to enhance execution capability and accelerate our five-year plan that has been designed to identify a minimum 15 years of life for our strategically positioned processing hubs within five years. At Black Butte, completion of Sandfire America’s recent drilling program has also increased the lateral extent of the higher-grade Lower Copper Zone at Johnny Lee and completion of the ongoing pre-feasibility study in the December quarter of this year will enable us to more clearly define the optimal pathway to maximise the value of our effective 87% interest in the project.
“With our talented team, modern operations, preferred commodity exposure and increasingly strong balance sheet, we are well positioned to navigate the current environment with confidence. Thank you to everyone that’s part of and connected to, the Sandfire team for playing a role in our success.”
