Sandfire Resources (SFR) Q2 2026 earnings summary

Executive summary

• Group copper equivalent production reached 72,100 tonnes in H1 FY26 (46% of annual guidance), with production expected to be more heavily weighted to H2.

• Safety performance improved, with TRIF reduced to 1.3 at 31 December 2025, despite six high potential incidents in Q2 FY26.

• Strong operational focus and proactive risk management, including early completion of dewatering and fast-tracking equipment relocation at A4.

• All production, cost, and capital expenditure guidance for FY26 retained, with annual guidance reaffirmed.

• Net cash position of $13 million at 31 December, a significant improvement from $288 million net debt a year earlier.

Financial highlights

• Unaudited group sales revenue was $344 million for the December quarter, with underlying EBITDA of $167 million and a margin just under 50%.

• H1 FY26 underlying EBITDA expected at $304 million, with underlying earnings approximately $12 million higher than statutory profit due to adjustments.

• Group capital expenditure was $111 million in H1 FY26, with $65 million at MATSA and $47 million at Motheo.

• Net cash improved by $75 million in Q2 FY26 and $301 million over the prior 12 months.

• Underlying operating costs at MATSA and Motheo were $87 and $43 per tonne of ore processed, respectively.

Outlook and guidance

• Annual copper equivalent production guidance remains unchanged at 157,000 tonnes, with H2 expected to be stronger due to improved Motheo performance.

• MATSA and Motheo operating costs and capital expenditure guidance remain unchanged.

• Incremental uplift in metal production expected at MATSA in H2, with higher value ore being mined.

• Motheo forecast to deliver 61,000 tonnes of copper equivalent production in FY 2026, with higher grade ore to be processed in H2.

• Planned investment in exploration and drilling to ramp up in H2 FY26, especially at Motheo and in the Curnamona Province.