Sandfire Resources (SFR) Q4 2024 earnings summary

Executive summary

• Group CuEq production rose 47% year-over-year to 133.5kt in FY24, 1.1% below annual guidance.

• Motheo exceeded annual CuEq guidance by 6.4%, while MATSA finished 4.6% below guidance due to delayed access to higher-grade ore.

• Unaudited FY24 sales revenue was $935M and underlying Group EBITDA was $360M; net debt fell to $396M at June 2024.

• TRIF was 1.6, unchanged year-over-year.

Financial highlights

• Group copper production rose 73% to 97,760t; zinc fell 4% to 82,803t, lead fell 30% to 7,526t, and silver rose 40% to 3.7Moz.

• Group capex was $216M, down 28% year-over-year, mainly due to Motheo deferrals; Group underlying operating costs were $501M.

• MATSA underlying operating costs were $327M ($72/t); Motheo's were $174M ($42/t), broadly aligned with guidance.

• MATSA C1 unit cost was $1.92/lb, down 4% year-over-year; Motheo C1 unit cost was $1.70/lb.

Outlook and guidance

• FY25 Group CuEq production guidance is 154kt, up 13% from FY24, with expanded Motheo capacity and record MATSA processing rates assumed.

• FY25 guidance: MATSA 95kt CuEq; Motheo 59kt CuEq.

• ~$40M of Motheo capex deferred into FY25; local inflationary pressures expected to affect operating costs in Spain and Botswana.

• Exploration expenditure is set to rise by over 50%, with near threefold growth in drilling metres, especially at Motheo.