Sandfire Resources reported group copper equivalent production of 38.9 thousand tonnes in the September quarter, 25 percent of the midpoint of its fiscal 2027 guidance of 150 to 166 thousand tonnes, and retained its full year production, cost and capital guidance. The MATSA complex in Spain contributed 22.7 thousand tonnes at a 4.7 million tonne a year processing rate, and Motheo in Botswana contributed 16.1 thousand tonnes at its targeted 5.6 million tonne a year rate, after a planned processing shutdown. Unaudited sales revenue was 480 million dollars and underlying earnings before interest, tax, depreciation and amortisation were 272 million dollars, a margin of about 57 percent.
Costs split by asset. MATSA’s underlying operating unit cost rose to 95 dollars a tonne, an implied cash cost of 1.18 dollars a pound, on an intensive maintenance cycle, energy markets and the euro exchange rate, and the company expects improvement over the rest of the year as maintenance completes. Motheo’s unit cost fell to 48 dollars a tonne, an implied cash cost of 0.65 dollars a pound. Net cash was 342 million dollars at September 30, down from 353 million dollars after returning 117 million dollars to shareholders in the company’s first fully franked dividend in four years. Cost guidance assumes diesel prices revert to pre conflict levels in the second half, which Sandfire itself flags as a risk.
Exploration supplied the growth line. At La Juliana, about 700 metres south east of the Castillejitos orebody at MATSA, follow up drilling extended high grade polymetallic massive sulphide mineralisation to 160 metres of confirmed strike, with electromagnetic surveys indicating at least 350 metres of potential. Sandfire will accelerate step out drilling and mobilise a second rig in the second half to test scale, continuity and a possible transition into more copper rich zones. At Kalkaroo in South Australia, a roughly 130 kilometre infill and extension drilling programme is under way toward a pre feasibility study in the second half of fiscal 2028, and the strategic review of Sandfire America, owner of the Black Butte copper project in Montana, including a possible sale, remains unresolved.