Sandfire Resources (SFR) H2 2024 earnings summary

Executive summary

• Achieved a near 50% increase in copper equivalent production to 133.5kt in FY24, driven by Motheo ramp-up and record MATSA performance.

• Statutory net loss reduced by 64% to $19.1M, with underlying loss narrowed to $5M and profitability in H2.

• Maintained strong safety performance with TRIF at 1.6 and increased female leadership to over 40%.

• Sustainability focus: 73% of electricity from renewables, targeting 35% emissions reduction by 2035, and a solar facility agreement for MATSA.

• Operating cash flow increased by $160M to $371M; net debt reduced to $396M.

Financial highlights

• Sales revenue rose 16% year-over-year to $935M, supporting a 40% increase in underlying EBITDA to $362M.

• Underlying operations EBITDA up $92M to $421M; Motheo contributed $179M at a 52% margin.

• MATSA mine operating costs declined 5% to $72/t; Motheo cost steady at $42/t.

• Cash balance at period end was $183M, with $121M in available credit.

• Total capital expenditure decreased to $210M as Motheo construction neared completion.

Outlook and guidance

• FY25 copper equivalent production guidance up 13% to 154kt; Motheo +31% to 59kt, MATSA +4% to 95kt.

• MATSA operating cost guidance at $75/t (+4%), Motheo at $42/t (unchanged).

• Capital expenditure guidance at $218M, with $40M deferred from FY24.

• Exploration spend to increase by two-thirds to $40M, aiming for 15-year mine life at both operations within five years.

• $40M CapEx carried into FY25, with Motheo at $96M and MATSA at $79M.