Sandfire Resources (SFR) Q2 2025 earnings summary

Executive summary

• Group copper-equivalent production increased 5% in H1 FY25 to 75.1kt, reaching 49% of annual guidance, with production expected to be marginally weighted to H2 FY25.

• Motheo processing facility exceeded design capacity with sustainable throughput at 5.6Mtpa, supporting higher production in FY26.

• Received Mining Authority approval for a new tailings facility at MATSA, supporting operations beyond 2040.

• Total Recordable Injury Frequency (TRIF) improved to 1.6 at 31 December 2024 from 1.8 at 30 September 2024.

• MATSA maintained annualized mining and processing rates above 4.6Mtpa, with copper-equivalent production at 22.8kt.

Financial highlights

• Unaudited group sales revenue for the quarter was $290M, with underlying EBITDA of $134M and underlying operations EBITDA of $153M.

• Net debt reduced by $57M in Q2 FY25, totaling a $193M reduction over nine months, bringing net debt to $288M at 31 December 2024.

• H1 FY25 underlying EBITDA expected at $255M, with adjustments for non-recurring items.

• Motheo's annual cost guidance reduced by 7% to $39/t; C1 unit cost guidance also reduced by 7% to $1.41/lb.

• MATSA's operating cost guidance retained at $75/t for FY25, with Q2 FY25 cost at $73/t due to favorable FX.

Outlook and guidance

• Annual copper-equivalent production guidance retained, with volumes expected to be marginally skewed to H2 FY25.

• Motheo expected to deliver incremental copper-equivalent production increase in FY26, with smoother production profile into FY27.

• MATSA and Motheo cost guidance reflects lower treatment and refining charges and updated FX assumptions.

• Step-up in resource extension and regional drilling activity anticipated in H2 FY25.

• Updated ore reserve and life-of-mine plan for Motheo expected in Q4.