PERTH (miningweekly.com) – Copper miner Sandfire Resources has reported a maiden profit after tax of A$88-million for the full 2013, following a sales revenue of some A$507.3-million, as the flagship DeGrussa mine, in Western Australia, ramped up.
Sandfire produced some 62 154 t of contained copper during the year, and 41 725 oz of gold.
MD Karl Simich said on Wednesday that the delivery of the strong maiden profit capped a year that had seen a number of important achievements, including the successful transition from openpit to underground operations, the ramp-up of the DeGrussa concentrator, and a significant investment in underground capital development to secure the long-term future of the mine.
“This is a very pleasing result, with the DeGrussa operation generating earnings before net finance, taxation, depreciation and amortization of over A$317-million. This is a tremendous result in anyone’s language, given this was a ramp-up year where we completed a highly profitable openpit direct shipping ore (DSO) programme, plant construction and ramp-up, with a substantial investment in underground mine development.”
Simich noted that the result was skewed towards the first half of the year, which saw the majority of the benefits of the low cost DSO production.
Higher depreciation and amortization charges relating to the completion of Stage 2 of the openpit operations, adjustment to final DSO sales, a lower and more volatile copper price, and the processing of transitional openpit sulphide material were all reflected in the second half.
“With record production in July and final blending of openpit ore approaching, we are looking forward to a very strong year ahead for Degrussa and Sandfire,” said Simich.
For 2014, Sandfire was expected to produce between 65 000 t and 75 000 t of copper, and between 35 000 oz and 45 000 oz of gold, with production weighted towards the December to June quarters owing to processing of the remaining transitional openpit material in the September quarter.