PERTH (miningweekly.com) – Copper/gold miner Sandfire Resources has reported a solid end to the six months ending December, despite weaker US dollar copper prices.
Sandfire on Thursday reported that sales revenue for the interim period reached A$313.1-million, up from A$272.3-million, with copper sales up from 32 715 t to 33 616 t, while gold sales volumes declined from 20 721 oz to 18 252 oz.
The softer copper price environment and the decline in gold sales volumes were offset by a fall in the US and Australian dollar exchange rate, and a stronger gold price, Sandfire said.
Cash flow from operating activities was up to A$109.1-million from the A$97.5-million reported in the previous corresponding period and to A$140.3-million prior to the payment of exploration and evaluation expenses.
Sandfire MD Karl Simich on Thursday said that the first half of 2020 marked the beginning of an exciting growth chapter as the company began its transformation from a single mine company into a diversified and sustainable global metals company, operating across multiple jurisdictions.
“Underpinned by another solid operational and financial performance at DeGrussa, we took some important long-term growth steps during this period with the completion of the MOD Resources acquisition, continued progress with the permitting and feasibility study for the Black Butte copper project, in Montana, and the commencement of a major new exploration campaign in Botswana.
“At the operational level, DeGrussa posted another strong set of numbers despite what continues to be a relatively muted global environment for base metals. Another impressive production performance once again drove strong sales revenue, low unit operating costs, robust operating cash flows and strong bottom-line earnings, helping us to maintain a period end cash position of A$201.7-million.”
Simich said that with a debt free balance sheet, Sandfire remained in excellent condition to fund the next stage of the company’s growth and diversification.
“The key focus in the short term is completing the optimisation of the feasibility study and permitting for the T3 development in Botswana, which we expect will be our first new base metal operation outside of DeGrussa.
“Project funding discussions are under way and we remain on track to make a decision to mine by mid calendar year 2020.”