Sandfire ups 2023 production expectations
PERTH (miningweekly.com) – Copper miner Sandfire Resources has increased its production guidance for 2023, despite the September quarter production falling slightly from the June results.
Copper production in the three months to September reached 28 056 t, down from the 34 974 t in the June quarter, with zinc production reaching 19 535 t, compared with the 22 880 t in the previous quarter.
Lead production increased from 2 201 in the June quarter to 2 477 t in the September quarter, while gold production reduced from 9 075 oz to 8 215 oz. Silver production declined from 0.8-million ounces to 0.7-million ounces.
Despite the slow start to the financial year, Sandfire has increased the group’s production guidance to between 83 000 t and 91 000 t of copper, between 78 000 t and 83 000 t of zinc, between 6 000 t and 10 000 t of lead, between 12 000 oz and 14 000 oz of gold, and between 2.2-million and 3.2-million ounces of silver at a C1 unit cost of $1.72/lb of copper.
This was compared with the previous guidance of between 81 000 t and 89 000 t of copper, between 78 000 t and 83 000 t of zinc, between 6 000 t and 10 000 t of lead, between 10 000 oz and 12 000 oz of gold, and between 2.2-million and 3.2-million ounces of silver.
The increase in the production expectations reflect the solid operating results in the September quarter, and the additional copper and gold production expected from the DeGrussa processing extension project.
“The September quarter saw Sandfire continue to make strong progress across the business as we focus on consolidating and optimising the MATSA copper operations in Spain while delivering our new Motheo copper mine in Botswana,” said acting CEO Jason Grace.
“Thanks to a solid overall operational performance at MATSA and DeGrussa during the September quarter, we have lifted our group production guidance for 2023. Part of this guidance update was based on approval for the DeGrussa processing extension project at the end of the quarter, which will see processing operations continue in Western Australia until early next calendar year, based on processing heavily transitional stockpiles and mineralised waste stockpiles on site.
“As previously foreshadowed, underground mining operations at DeGrussa were completed shortly after the end of the September quarter, with processing of sulphide ore to continue to the end of October.”
Grace noted that at MATSA, Sandfire posted another quarter of successful operations under its ownership, with a solid mining and processing performance.
“The completion of an updated ore reserve estimate for MATSA provides a solid foundation for our ongoing work to optimise and implement a five-year production plan, and to establish a base for a multi-decade operation.
“On other fronts, we continued to make outstanding progress at the Motheo copper mine in Botswana, with the delivery of a positive definitive feasibility study for the 5.2-million-tonne-a-year expansion case mapping a clear pathway for us to establish a major, new long-term copper mining hub in the Kalahari Copper Belt.
“Construction of the initial 3.2-million-tonne-a-year project at Motheo is advancing on schedule, with first production on track for the June quarter next year and the expansion project to immediately ramp up following the receipt of environmental and mining approvals,” Grace said.
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