PERTH (miningweekly.com) – ASX-listed Sandfire Resources has reported a solid half-year, with higher profits and revenues.
Profits after tax increased from A$15.7-million in the first half of the 2016 financial year to A$35.9-million in the first half of the current financial year, while revenues had increased from A$228.3-million to A$248-million during the same period.
The higher revenue was the result of increased sales volumes, with copper sales having increased from 30 454 t to 32 893 t, and gold sales from 14 467 oz to 19 790 oz.
Sandfire MD Karl Simich told shareholders on Tuesday that the company’s operational consistency and low-cost, high-grade production platform from its DeGrussa mine, had enabled Sandfire to take full advantage of improved market conditions and commodity prices during the first half of the 2017 financial year.
“We are delighted to report a significant improvement in our bottom-line earnings, driven by stronger revenues and operating cash flows, which were a direct flow-through result of the uplift in copper prices,” he added.
“One of the key attributes of Sandfire and the DeGrussa operation has been its ability to withstand lower commodity prices. However, there were clear signs of an improvement in commodity markets during the first half [of the current financial year], and the copper price has now begun to respond to a combination of recent supply disruptions and strong underlying demand from China.”
Simich said the company’s "relentless focus" on operational efficiency and controlling costs wherever possible had also paid off during the first half, with a significant reduction in operating costs achieved across the operation.
He noted that, with an ungeared balance sheet and a strong and consistent production outlook for the rest of the financial year and beyond, Sandfire was well placed to invest in future growth, to deliver solid returns to shareholders and execute its growth strategy.
“With underground development now essentially complete at DeGrussa, our most immediate priority is to deliver the feasibility study on the high-grade Monty satellite deposit and to bring this high-quality asset into production as quickly as possible.
“In addition, we will continue to invest strongly in aggressive exploration activities across our extensive and high quality landholding at Doolgunna, where we are continuing to identify exciting new exploration opportunities and work hard to unlock the next discovery opportunity.”