From Zero to Hero: How copper play Sandfire went from 4c to over $8 in 18 crazy months
14th February 2020
Resources Rising Stars
From the many hundreds of listed small cap explorers, barely a handful will become long-term success stories (reports Reuben Adams of Stockhead). But pick the right one as an investor and gains can be monumental.
In early 2009, struggling explorer Sandfire Resources (ASX: SFR) discovered what would later become the world-class DeGrussa copper-gold mine, rapidly transforming its fortunes from a 4c penny stock into a ~$1bn mining company.
Sandfire was a private little company established in the early 2000s by current chief executive Karl Simich, prospector Graeme Hutton and mining identity Miles Kennedy.
The original objective was to peg open crown land where Hutton believed there was an opportunity to find something big.
Hutton founded numerous other companies, most notably Kimberley Diamonds and Metana Minerals.
“Graeme was a big prospector – a bit of a ‘Mark Creasy’ type,” Simich says.
“He was legendary; the sort of person who would go out walking the Kimberley with a water bag, a dog, and a gun and disappear for three weeks.”
Following a simple little IPO the company listed in March 2004, changing its name to Sandfire Resources.
“We were busy at the time — Miles and I were at Kimberley Diamonds, original owner of the Ellendale diamond mine – so we [embedded a management team] and did the IPO as major shareholders,” Simich says.
Hutton stayed on as technical director.
In mid-2007 two very significant things happened, both on the same day.
To read more of the remarkable Sandfire discovery story on Stockhead, click here.
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