Global copper-focused producer Sandfire Resources has forecast a ten per cent increase in Group copper equivalent production in FY2024 as production in its MATSA and Motheo copper operations is offset by the loss of production from the DeGrussa Copper Mine in Western Australia.
Sandfire said Group copper equivalent production is expected to be 135kt as Motheo in Botswana ramps up and MATSA in Spain is forecast to record an incremental 2kt increase in both copper and zinc production in FY2024 to 58kt and 88kt, respectively to support a near 3% increase in annual CuEq production.
First copper concentrate was produced at Motheo in May, signalling the ramp-up of the operation toward its initial processing capacity of 3.2Mtpa, which is expected to be achieved on a sustainable basis during the September Quarter.
The Botswana Government has approved Motheo’s A4 Project’s Environmental and Social Impact Assessment which will allow the extension of the Motheo mining license. Contained copper production at Motheo is set to increase to more than 50kt in FY2025 with development of the higher grade A4 Pit, and the rapid and low-cost expansion of the associated processing facilities to 5.2Mtpa.
Sandfire managing director Brendan Harris said expectations for Motheo remain largely unchanged with copper and silver production of 39kt and 1.2Moz contained, respectively, expected in the mine’s first full year of operation, for CuEq production of 42kt.
Sandfire has transitioned its DeGrussa mine in WA to care and maintenance and is considering all alternatives including closure and rehabilitation, and divestment.
Mr Harris commented on the Quarterly results:
“Our strong finish to the year drove unaudited Sales Revenue and Group EBITDA to approximately US$784 million and US$246 million, respectively, in FY2023.
“A relatively benign European winter and significant increase in gas storage took the immediate pressure off the Spanish energy market in late CY2022, and the longer dated, fixed price, carbon emissions free power agreements we have since negotiated ensure we enter FY2024 in a much better position.
“We remain acutely focused on mitigating cost inflation across our growing organisation and will provide comprehensive cost and capital expenditure guidance when we report our FY2023 financial results.”
