Sandfire debt-free as DeGrussa delivers strong results
JOHANNESBURG (miningweekly.com) – Base and precious metals miner Sandfire Resources is in a net cash positive position for the first time in four years, following a strong performance at its DeGrussa copper/gold mine, in Western Australia, which has allowed the company to repay a significant component of its debt early.
Sandfire reported on Friday that it had fully repaid its amortising facility with its financier, ANZ Banking, ahead of schedule, following a A$20-million payment at the end of the June 2016 quarter. The facility was previously scheduled to be repaid over the next 18 months to December 31, 2017.
The repayment reduced the total outstanding debt to A$50-million as at June 30. With A$60-million in group cash holdings, Sandfire was in a net cash positive position of A$10-million at financial year-end, meaning the company was debt-free for the first time since development of the DeGrussa project started in 2011.
“This is a very pleasing result which essentially means that we have greater flexibility and optionality in terms of financing future growth initiatives,” said MD Karl Simich.
The DeGrussa mine produced 68 202 t of contained copper and 37 612 oz of contained gold in the 12 months ended June 30. This was at the upper end of a previously announced copper production guidance range of between 65 000 t and 68 000 t and at the mid-point of its guidance range for gold of between 35 000 oz and 40 000 oz.
Copper/gold concentrate sales results for the financial year were 282 012 t containing 68 653 t of copper (65 832 t payable) and 36 042 oz of gold (33 302 oz payable).
Simich said that Sandfire would continue to assess the optimal financing structure for the organic growth options, such as the Monty copper/gold deposit, for which a feasibility study was under way.
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