Sandfire Resources Defies Extreme Weather, Holds Steady on FY25 Production and Cuts Debt
Sandfire Resources reported resilient March quarter results despite severe weather disruptions, maintaining its FY25 copper equivalent production guidance and reducing net debt by $45 million. The company also advanced exploration and secured a new $650 million corporate revolving facility, enhancing financial flexibility.
- Total Recordable Injury Frequency improved to 1.4 from 1.6
- FY25 copper equivalent production guidance steady at 154kt
- MATSA operating costs increased 4% to $78/t ore due to Euro:USD exchange rate and processing adjustments
- Capital expenditure guidance reduced by $11 million to $207 million
- Net debt lowered by $45 million to $243 million following refinancing
Safety and Operational Resilience
Sandfire Resources has reported a Total Recordable Injury Frequency (TRIF) of 1.4 for the March 2025 quarter, an improvement from 1.6 at the end of 2024. This reflects the company’s ongoing commitment to embedding its safety culture, known as the Sandfire Way, across its operations in Spain and Botswana.
Despite facing unprecedented heavy rainfall and flooding events that severely impacted both the MATSA operations in Spain and the Motheo mine in Botswana, Sandfire’s teams delivered robust production results. The extreme weather led to temporary delays and operational constraints, including inundated open pits and reduced processing throughput, yet the company maintained strong output levels.
Production and Cost Performance
Sandfire sustained its FY25 copper equivalent (CuEq) production guidance at 154,000 tonnes, with MATSA contributing 95,000 tonnes and Motheo 59,000 tonnes. The March quarter saw MATSA process 4.5 million tonnes of ore and Motheo 5.5 million tonnes, both slightly below prior quarters due to weather-related disruptions.
Operating costs at MATSA increased by 9% quarter-on-quarter to $79 per tonne of ore processed, driven primarily by a stronger Euro against the US dollar and a minor reduction in processing rates. This prompted a 4% upward revision in MATSA’s underlying operating cost guidance to $78/t ore for FY25. Motheo’s operating costs remained below guidance at $38/t, despite similar weather challenges.
Capital Expenditure and Financial Position
Capital expenditure guidance for FY25 was trimmed by $11 million to $207 million, reflecting timing differences primarily at Motheo. Investment continues in sustaining and strategic projects, including underground development and ventilation at MATSA, and construction activities at Motheo’s tailings storage facility.
Financially, Sandfire strengthened its balance sheet by reducing net debt by $45 million during the quarter to $243 million. This was facilitated by the establishment of a new unsecured $650 million Corporate Revolving Facility, which replaced previous facilities and simplified the company’s funding structure, providing enhanced flexibility and lower costs.
Exploration and Future Outlook
Exploration efforts remain a key focus, with $5 million invested in regional programs during the quarter. Drilling activity has stepped up at both MATSA and Motheo, as well as at the Black Butte copper project in Montana, USA, where Sandfire holds an 87% interest. The company anticipates further drilling momentum in the June quarter.
Looking ahead, Sandfire confirmed an incremental increase in Motheo’s FY26 copper equivalent production guidance to approximately 60,000 tonnes, with detailed guidance to be provided in August 2025. The company’s leadership expressed confidence in navigating market volatility and operational challenges, supported by a strong team and financial position.
Bottom Line?
Sandfire’s ability to maintain production guidance and reduce debt amid extreme weather underscores its operational resilience and financial discipline.
Questions in the middle?
- How will Sandfire’s increased exploration drilling translate into resource growth and mine life extension?
- What impact could ongoing Euro:USD exchange rate fluctuations have on MATSA’s operating costs and profitability?
- How will the new Corporate Revolving Facility influence Sandfire’s capital allocation and growth strategy?
