Sandfire Resources Boosts Copper Output 12%, EBITDA Up 46% in FY25
Sandfire Resources delivered a standout FY25 with a 12% rise in copper equivalent production and a 46% jump in underlying EBITDA, while slashing net debt by 69%. The company sets a confident FY26 outlook with modest production growth and continued capital discipline.
- 12% increase in copper equivalent production to 152.4kt in FY25
- Underlying EBITDA surged 46% to $528 million
- Net debt reduced by 69% to $123 million, aided by $650 million revolver facility
- FY26 copper equivalent production guidance raised to 157kt with moderate cost inflation
- Ongoing exploration and project development at MATSA, Motheo, and Black Butte
Strong Operational Performance Drives Record Results
Sandfire Resources Limited has reported a robust set of financial results for FY25, underscoring its position as a leading copper miner with a sustainable growth trajectory. The company achieved a 12% increase in copper equivalent production to 152.4 kilotonnes, closely aligning with its full-year guidance despite operational challenges such as adverse weather and power disruptions at its MATSA and Motheo operations.
Underlying EBITDA rose sharply by 46% to $528 million, reflecting strong metal prices and operational efficiencies. This translated into a statutory profit after tax of $90 million, a significant turnaround from a loss in the prior year. The company’s underlying EBITDA margin stood at a healthy 45%, demonstrating solid cost control amid rising input prices.
Balance Sheet Strengthened with Debt Reduction and Facility Establishment
Sandfire made substantial progress in strengthening its balance sheet, reducing net debt by 69% to $123 million over the year. This was supported by the establishment of a new $650 million unsecured Corporate Revolver Facility, which enhances financial flexibility and reduces financing costs. The facility’s long tenor and single bullet repayment in 2029 significantly derisk the company’s near-term financial position.
Cash reserves remained robust at $111 million, with $416 million undrawn under the revolver, positioning Sandfire well to fund ongoing operations and growth initiatives.
Outlook, Modest Production Growth and Continued Capital Discipline
Looking ahead to FY26, Sandfire projects a 2% increase in copper equivalent production to 157 kilotonnes, with a production range of 149kt to 165kt. The company anticipates a slight skew towards the second half of the year, particularly at MATSA and Motheo, as new ore sources ramp up.
Operating costs are expected to rise moderately due to inflationary pressures and project ramp-ups, with MATSA’s unit costs forecast to increase by 10% to $86 per tonne and Motheo’s by 10% to $44 per tonne. Capital expenditure is budgeted to rise 11% to $230 million, driven by construction of a new tailings storage facility at MATSA and ongoing development at Motheo.
Exploration and Project Development Remain Key Focus Areas
Sandfire continues to invest in exploration to extend mine life and increase reserves. At MATSA, extensive drilling programs target near-mine extensions and regional greenfield sites in Spain and Portugal. The Motheo hub in Botswana is also a focus, with infill and extension drilling progressing alongside a pre-feasibility study for the A1 deposit expected in Q4 FY26.
In the United States, Sandfire America is advancing the Black Butte copper project, with a pre-feasibility study due in Q2 FY26 following successful drilling that confirmed extensions of high-grade mineralisation.
Sustainability and Safety at the Core
Sandfire maintains a strong commitment to sustainability and safety, reporting a total recordable injury frequency of 1.7 and zero high consequence injuries in FY25. The company sources over 70% of its electricity from renewables and is progressing solar projects at its operations to reduce carbon intensity further. Engagement with traditional custodians and community investment programs underscore its social licence priorities.
Bottom Line?
Sandfire’s FY25 results and disciplined capital management set the stage for steady growth, but investors will watch closely how inflation and project execution shape FY26 outcomes.
Questions in the middle?
- How will rising inflation and currency fluctuations impact Sandfire’s operating costs and margins in FY26?
- What are the key risks and timelines associated with the Black Butte pre-feasibility study and potential development?
- Can Sandfire sustain its production growth targets while maintaining safety and environmental commitments?
