PERTH (miningweekly.com) – Copper/gold miner Sandfire Resources has delivered a record net profit in the 12 months ending June, on the back of record sales revenues.

Net profit after tax for the full year ended June reached A$123-million, compared with the A$77.5-million reported in the previous financial year, while sales revenues for the full year were up 14% to A$606.7-million.

Sandfire MD Karl Simich said on Thursday that the financial results capped a year which, by nearly every measure, was the group’s strongest so far.

“The combination of strong production, lower operating costs and a significantly improved copper price translated to impressive results at every level of our business, highlighted by record revenues, record cash-flows and exceptional operating margins.”

During the 2018 financial year, 64 918 t of contained copper and 39 273 oz of contained gold were produced, which was in line with the company’s production guidance. A total of 260 765 t of concentrate was sold for the full year, containing 62 918 t of copper and 39 510 oz of gold.

Simich said that the results announced for the 2018 financial year continued Sandfire’s track record of maintaining a strong commitment to maximizing returns to shareholders via dividends without compromising on its continued investment in growing the business through exploration, new mine development and building its portfolio of strategic investments in high quality resource assets.

Sandfire declared a record 19c final dividend, taking its total pay-out for the year to 27c.

“Looking ahead, the continued strength and low cost base of the DeGrussa operation, supported by our strong balance sheet and growing cash balance, once again puts us in a very strong position moving forward, notwithstanding the recent retracement in the copper price from its highs earlier this year,” Simich said.

“Copper production for 2019 is forecast at 63 000 t to 67 000 t, and gold production at 37 000 oz to 40 000 oz, at a C1 cash cost of $1/lb to $1.05/lb, and we have made a strong start with production for the September quarter.”

Simich noted that Sandfire would be embarking on a period of transformation over the next three to six months, as the company brought its first new satellite mine on stream at DeGrussa, and moved towards the start of development of its Black Butte copper project, in the US.

“We are on track to intersect first ore at the new Monty satellite mine towards the end of the calendar year, with the ramp-up of production at Monty set to make an important contribution to our rising high-grade production profile over the next three years.

“We also expect to complete the acquisition of 100% of the Springfield project following approvals, including the Monty mine, during the December quarter.”

In the US, the environmental impact statement on the Black Butte project is now in its final stages, and work on the project’s definitive feasibility study is also under way.