Sandfire starting 'transformation'
Sandfire Resources has posted a solid half-year profit result as it turns its attention to growth...
21st February 2020
Resources Rising Stars
Sandfire Resources has posted a solid half-year profit result as it turns its attention to growth (reports MiningNews).
The company posted a half-year net profit after tax of A$34.2 million, down from $49.6 million for the same period of 2018.
The result included an additional amortisation expense of $34.2 million following the acquisition and development of the Monty mine.
Cashflow from operating activities was $109.1 million, up from $97.5 million, or $140.3 million before exploration and evaluation expenses.
Sandfire declared an interim fully franked dividend of 5c per share, down from 7c a year earlier.
The company finished December with cash of $201.7 million, after paying $44.6 million to acquire MOD Resources, $23.1 million towards the company Sandfire Ventures program, such as the investment in Adriatic Resources, $40 million in tax, and $28.5 million in dividends.
Sandfire managing director Karl Simich said the company was entering a growth phase.
"We see a business very much moving into a transformation stage where we'll have three centres to leverage off," he said.
Aside from the flagship DeGrussa mine in Western Australia, Sandfire is planning to ramp up development on the newly acquired Motheo project in Botswana and the Black Butte project in Montana.
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