PERTH (miningweekly.com) – Copper miner Sandfire has reported a strong 2015, driven by strong sales revenues and higher copper and gold production from the DeGrussa mine, in Western Australia.
For the year ended June 30, Sandfire’s revenue increased from the A$525.7-million reported in 2014, to A$548.6-million, on the sale of 67 903 t of copper and 37 194 oz of gold.
This compared with the 64 719 t of contained copper and 31 788 oz of gold sold in 2014.
However, the declining US dollar metal prices affected bottom-line figures, with Sandfire on Thursday reporting a net profit after tax of A$69-million, down from the A$78.2-million reported in 2014.
“Against the backdrop of what is, without a doubt, a very difficult environment for resource companies, Sandfire remains in great shape with a high-grade, low-cost production base, a strong balance sheet and an outstanding growth portfolio at both DeGrussa and further afield in Australia and overseas,” said Sandfire MD Karl Simich.
He pointed out that the DeGrussa mine had delivered a solid year of production and that a successful process plant optimisation programme delivered a 2% uplift in copper recoveries and an 11% increase in mill throughput.
“Underground mine development is on track and the operation is set for another year of consistent production in 2016, with a continued focus on optimisation and improvements.”
Sandfire expected to produce between 65 000 t and 68 000 t of contained copper and between 35 000 oz and 40 000 oz of gold in the 2016 financial year.
Meanwhile, Simich noted that Sandfire had also continued with its exploration work during the 2015 financial year, which would extend the life of the DeGrussa operation. A maiden ore reserve for the Conductor 4 deposit was completed in the last year and an ore reserve for the Condoctor 5 deposit was expected by the March quarter of 2016.