PERTH (miningweekly.com) – Copper miner Sandfire Resources has reported a fall in revenue and profits for the full year ended June.

Sales revenue for the full year declined from $922.7-million in the 2022 financial year to $803.9-million on the back of a 14% decline in copper sales associated with the wind-down of production at the DeGrussa mine, in Western Australia, and a 6% decrease in realised copper prices.

This was partially offset by a 121% increase in zinc sales from the MATSA operation, in Spain, which largely reflected a full 12 months of consolidations as opposed to five months in the 2022 financial year.

Sandfire on Thursday reported a loss after tax of $53.6-million, compared with a profit after tax of $109.4-million in the last financial year, with the loss including a discretionary exploration expenditure of $36.1-million and a $254.6-million depreciation expense at MATSA as the $1.86-billion acquisition continued to be amortised primarily on the basis of known reserves.

Underlying group earnings before interest, taxes, depreciation and amortisation decreased from the $474.3-million in the 2022 financial year, to $258.5-million.

Sandfire CEO and MD Brendan Harris told shareholders on Thursday that the company was making good progress on its strategy to unlock additional value for stakeholders.

“We are making good progress, having established the foundations for more consistent and predictable performance at MATSA, where copper equivalent production of 99 000 t marginally exceeded revised guidance. An innovative processing solution also unlocked additional copper and gold production at DeGrussa from low-grade and oxide stockpiles, before the decision was taken to transition the asset to care and maintenance. All alternatives are now being considered for DeGrussa, including its rehabilitation and divestment.

“In Spain, we will continue to enhance our understanding of the geological setting at MATSA and test the mineralised extent of the recently discovered San Pedro zone at Aguas Teñidas, and Olivo zone at Magdalena. In parallel, in Botswana we will test an open extension of the higher grade A4 deposit, undertake a medium density drilling programme at A1 with the objective of identifying a maiden resource, and test numerous other targets within an economic distance of Motheo,” said Harris.

“That brings me to one of our greatest achievements of FY2023, being the safe and successful completion of the Motheo copper mine, on time and on budget. First copper concentrate was produced in May 2023 and the ramp-up to its initial design capacity of 3.2-million tonne a year is well underway,” he added.

“Across the first 50 days of FY2024, Motheo has operated at an average annualised throughput rate of 2.8-million tonnes a year, achieved a maximum copper recovery of 96%, and produced approximately 14 000 t of concentrate with an average copper content of around 30%. It’s still early days, but the asset is performing very well such that commercial production has been achieved and the financial performance of Motheo will be recorded in our profit and loss statement from the commencement of FY2024.”

For the 2024 financial year, Sandfire is targeting a 10% increase in production, with the ramp-up of Motheo to be offset by the loss of production from DeGrussa.

“The recent approval of the extension to our mining licence at Motheo represents the final major permitting milestone for our expansion project that will take installed capacity to 5.2-million tonnes a year and allow mining of the higher grade A4 resource to commence. Together, this will see copper production at Motheo increase to more than 50 000 t in FY2025,” said Harris.