The Karl Simich-led company said on Thursday the extra costs had impacted its mining, transport and shipping bills and forced it to revise full-year guidance to between $US1.10 and $US1.20 per pound.
Copper production improved almost 3000t during the quarter, up from 15,946t in the previous three-month period to 18,675t, while gold production rose from 7515 to 8739 ounces.
Sandfire said it had now received the final approvals from Spanish authorities that pave the way for its $US1.87 billion ($2.6b) acquisition of the Matsa polymetallic mine.
It also ramped up construction activities at its new Motheo copper mine in Botswana during the quarter, with 750 workers now on site, and continued to advanced its Black Butte project in the US.
“All of this was underpinned by another outstanding operational, cost and financial performance by our DeGrussa operations in WA, notwithstanding the impact of increasing diesel and power costs and the general environment of cost inflation being experienced in the resource sector,” Mr Simich said.
“The imminent completion of the Matsa acquisition will mark a momentous occasion for Sandfire and all of our stakeholders. The transaction is now unconditional and will proceed toward completion on or around January 31.”
Mr Simich said the Matsa acquisition and a strong performance from its WA operations put the company in a solid position to capitalise on the strong outlook for copper over the next five years.
The bellwether metal — which is considered a future-facing commodity that will help decarboinise the global economy — has largely held on to huge gains made early last year. Fitch Solutions last week lifted its forecast price to $US9200/t, up from $8800/t, but still down from its multi-year peak of more than $US10,7000/t reached in May.
Sandfire said COVID-19 had yet to cause significant disruption to its operations but it continued to maintain safety measures to minimise transmission of the virus ahead of WA’s border reopening.
“Sandfire has continued to update its existing protocols and monitor advice from the health authorities to prepare for the proposed opening of the WA border on February 5,” it said.
