Sandfire Resources (SFR) H1 2026 earnings summary

Executive summary

• Achieved 72,100 tonnes of copper equivalent production for H1 FY2026, with TRIF reduced to 1.3 and total recordable injuries down to 5 from 8 year-over-year, reflecting improved safety.

• Record sales revenue of AUD 672 million (up 17% year-over-year), driven by strong commodity markets and high-margin operations in Spain (MATSA) and Botswana (Motheo).

• Underlying EBITDA reached $304.5 million (up 19%), with underlying profit $107.1 million and statutory profit $96.3 million (up 94%).

• Net cash position of $13.2 million at period end, a turnaround from significant net debt a year earlier.

• Formed a strategic partnership with Havilah Resources to advance the Kalkaroo copper-gold project and regional exploration in South Australia.

Financial highlights

• Record revenue of AUD 672 million for the half, up 17% year-over-year, with underlying EBITDA of $304.5 million (45% margin).

• Statutory profit after tax rose 94% to $96.3 million; underlying profit $107.1 million.

• Motheo delivered $161 million underlying EBITDA (57% margin); MATSA $184 million (47% margin), up 37% year-over-year.

• Net finance expense dropped 58% to $11.4 million, reflecting lower interest costs and improved balance sheet.

• Operating cash flow rose 15% to $301 million; net cash position achieved after significant debt reduction.

Outlook and guidance

• Annual guidance for production, unit costs, and capex at MATSA and Motheo maintained, with production weighted toward H2 FY26.

• Group capex guidance increased by AUD 10 million to AUD 240 million for Kalkaroo ramp-up; exploration and evaluation guidance up AUD 5 million to AUD 51 million.

• Second half production expected to be weighted toward Q4, with a 47-53% split, as higher-grade ore becomes accessible.

• D&A expense expected to rise in H2 with increased throughput.

• Minor adjustments to exploration and evaluation expenditure to support new projects.