Sandfire Resources (ASX:SFR) has announced strong full-year production results, with copper equivalent output increasing by 12 per cent to 152,400 tonnes in FY24. This figure is only 1 per cent below the company’s guidance, achieved despite significant operational disruptions. Sandfire Resources is a diversified mining and exploration company focused on the production of copper and other base metals. Its operations span multiple continents, with a focus on sustainable and responsible mining practices.
Chief executive Brendan Harris noted the resilience of the company’s operations at MATSA in Spain and Motheo in Botswana. These sites faced record rainfall, flooding, and a major power outage. Despite these challenges, MATSA recorded a 3 per cent increase in production, while Motheo saw a substantial 29 per cent increase, including a record-breaking final quarter.
Harris highlighted the company’s strategic focus on simplification and rapid deleveraging of its balance sheet. Net debt has decreased by $273 million over the past year, reaching $123 million. The June quarter alone saw a $120 million reduction in net debt, demonstrating strong financial management.
Looking ahead, Sandfire anticipates a further increase in production for the new fiscal year. However, the company cautioned about potentially higher costs at Motheo as the A4 open-pit project ramps up. Additionally, Sandfire flagged potential currency pressure on costs at MATSA due to the strengthening euro.
