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PERTH (miningweekly.com) – Copper and gold miner Sandfire Resources has reported a profit after tax of A$33.5-million for the interim period ending December, compared with the A$8.9-million reported in the second half of 2013.
The results were achieved on the back of a completed ramp-up of both the underground mine and the concentrator at the DeGrussa project, in Western Australia, with the project achieving nameplate capacity of 1.5-million tonnes a year during the period.
Metal sales during the half-year reached 30 098 t of contained copper-in-concentrate and 14 437 oz of gold. The ore sales generated a sales revenue of A$249.6-million, compared with the A$234.8-million achieved in the second half of 2013.
MD Karl Simich said on Thursday that the company was on track for a strong second half, reflecting higher production levels for the March and June quarters, in line with improving head grades and copper recoveries, and the improving commodity price environment.
“The first half marked the completion of our ramp-up to full production and the optimisation of the DeGrussa concentrator, as we completed the campaign processing of transitional sulphide ore, which had previously restricted production levels.”
Simich noted that the operations team had also been working to optimise the remaining elements of the plant to ensure that Sandfire extracted as much value as possible. This included ongoing work to further lift copper and gold recoveries and a concerted campaign to reduce costs and enhance margins.
“I’m pleased to say that the fruits of this work are beginning to show through, and we have seen strong performance by the operation over the past six weeks. The completion of these programmes will provide a powerful platform for continued improvements throughout the rest of the year.”
In addition, Sandfire’s exploration programme was also gathering momentum, Simich said, adding that further underground diamond drilling would be undertaken to test for extensions of the known mineralisation in the near-mine environment.
“An exciting phase of regional exploration is also under way under the recently concluded joint venture agreements secured with Talisman Mining and Ventor Resources, both of which provide Sandfire with access to strategic exploration ground in close proximity to DeGrussa.”
Sandfire was expected to produce between 65 000 t and 75 000 t of contained copper during the full year, with gold production estimated at between 35 000 and 45 000 oz.