PERTH (miningweekly.com) – Copper miner Sandfire Resources has seen its net profit after tax increase from A$48-million to A$77.5-million in the 2017 financial year, on the back of higher copper prices and lower costs.
The company said that the increased copper price, lower costs and consistent operational performance allowed Sandfire to retire its debt, nearly double its year-end cash position to A$126.7-million and declare a record fully funded franked dividend of 13c.
The DeGrussa copper mine, in Western Australia, produced 67 088 t of copper and 38 623 oz of gold, at a C1 cash cost of $0.93/lb.
Some 62 663 t of copper was sold during the full year ended June, along with 34 333 oz of gold, generating sales revenues of A$532.5-million, which compared with a revenue of A$485.8-million in 2016.
“This is Sandfire’s fifth consecutive annual profit result and it comes against a backdrop of a marked change in sentiment in the global copper market, which puts Sandfire in a very strong position moving forward,” said Sandfire MD Karl Simich.
“Its worth noting that the company has maintained an impressive record of profitability and returns to shareholders over the past two years, despite lower commodity prices. The macro environment has now shifted in our favour and we can look to the future with the tailwind of an improving copper market rather than the headwind of soft commodity markets.”
Meanwhile, Simich noted that the company’s fist new mine development in the Doolgunna region, at the Monty mine, was now well under way and was expected to come on line at the end of next year.
“At the same time, we are continuing to invest in a major exploration effort across our vast ground holding, where we are confident of making new breakthroughs in the months ahead.”