Sandfire Resources maintains materials output guidance despite lower copper production

Sandfire Resources has maintained its materials output guidance for the 2023 financial year, despite copper production during the December quarter being lower than anticipated (reports The West Australian).

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The business produced 20,031 tonnes of copper in the December quarter, 19,755t of zinc, 1921t of lead and 4562 ounces of gold.

Sandfire’s cash holdings at the end of the quarter were $US263.7 million ($375m) and net debt of $US378.3m.

“Turning to our operations, an overall solid mining and processing performance at MATSA was impacted by some operational challenges at the Magdalena Mine relating to localised poor ground conditions in the main production areas scheduled for this period,” Sandfire’s acting chief executive Jason Grace said.

Mr Grace said the conditions forced a change to the mine plan, which resulted in the deferral of some high-grade stoping areas to the second half of the year, resulting in copper production below budget for the December quarter.

He said in light of the changes, Sandfire expected MATSA production for the 2023 financial year to be at the lower end of the 60-65,000t guidance range for copper.

Mr Grace said a $200m capital raising completed during the quarter was well supported and put Sandfire in a strong future position.

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