Tuesday, February 28th, 2023
Metals miner Sandfire Resources has reported record sales revenue for the half-year ended December, on the back of production and sales contributions from the MATSA operation, in Spain.
Sales revenue for the six months to December reached $431.7-million, up from the $311.8-million reported in the previous corresponding period, with copper sales volumes increasing from 32 422 t to 46 005 t and silver sales from 95 000 oz to 870 000 oz.
Additionally, Sandfire also sold 32 813 t of zinc, 4 125 t of lead and 11 785 oz of gold, which was down from the 14 462 oz produced in the previous corresponding period.
The revenue resulted in group earnings before interest, tax, depreciation and amortisation (Ebitda) of $135.9-million, up from the $161.6-million in the previous corresponding period.
“The company made substantial progress with its portfolio transformation during the half-year reporting period with ongoing optimisation at MATSA, the wind-down at DeGrussa and the new Motheo mine in Botswana now poised to start production,” said Sandfire acting CEO Jason Grace.
“With one mine winding down in Australia, a new mine ramping up in Botswana and MATSA now a mainstay of our operations, Sandfire begins 2023 as a very different looking company to the one that investors have come to know over the past decade.
“Operationally, the half-year saw a strong across-the-board operational performance with our now-diversified portfolio driving increased metal production and record revenue of $431.7-million. This allowed the company to generate a robust group Ebitda of $135.9 -million, with roughly equal contributions from MATSA and the tail-end of the DeGrussa operation,” said Grace.
“The combination of rising inflation and input costs, notably the spike in European energy costs during the half-year, together with slightly weaker metal prices and a significant increase in depreciation and amortisation charges due to the capitalisation of the MATSA acquisition, resulted in a net loss after tax for the period.
“However, with production guidance maintained at 83 000 t to 91 000 t of copper and 78 000 t to 83 000 t of zinc for 2023, energy costs easing in Europe and a strengthened copper price since the start of the year, the second half of 2023 has started on a positive note with improved margins seen in the March 2023 quarter.”
Sandfire reported a loss after tax of $27.08-milion.
