Sandfire shares jump as copper hits record

Shares in Sandfire Resources were sitting near a two-year high after the copper price hit a record overnight and the company reaffirmed its full-year production guidance (reports MiningNews).
30th April 2021
Resources Rising Stars

Shares in Sandfire Resources were sitting near a two-year high after the copper price hit a record overnight and the company reaffirmed its full-year production guidance (reports MiningNews).

March quarter production from the DeGrussa mine in Western Australia was 16,803 tonnes of copper and 9100 ounces of gold at C1 costs of US87c per pound of copper, broadly in line with the previous quarter.

Sandfire said it remained on track to meet the upper end of its full-year guidance of 67,000-70,000t of copper and 36,000-40,000oz of gold.

C1 cost guidance was maintained at 80-85c/lb.

Cash on hand at the end of the quarter rose from A$335.8 million to $464 million, beating analysts' expectations of about $420 million.

"With the copper price where it is, we expect upward pressure on revenue, margin and profit," Sandfire managing director Karl Simich said today.

Copper briefly hit a record US$10,000 per tonne overnight and closed at over $9800/t.

Goldman Sachs expects the price to reach $15,000/t by 2025.

Simich said Sandfire was still being undervalued and thinks the company's market capitalisation should be closer to A$2.4-2.5 billion.

It's currently just under $1.2 billion.

Simich said a key catalyst for the company was the looming development of the US$259 million T3-Motheo mine, part of the broader Tshukudu project, in Botswana.

Read more at https://www.miningnews.net/copper-news/news/1409107/sandfire-shares-jump-as-copper-hits-record

Subscribe to the RRS Weekly Wrap

© 2021 Resources Rising Stars All Rights Reserved