Sandfire Resources (SFR) Q4 2024 earnings summary

Executive summary

• Group copper-equivalent production rose 47% year-over-year to 133,500 tonnes in FY24, nearly meeting annual guidance.

• Motheo mine delivered a strong ramp-up, supporting a 12% sequential increase in group copper-equivalent production to 37,200 tonnes in the June quarter.

• Unaudited FY24 sales revenue reached approximately $935 million, with underlying group EBITDA of about $360 million.

• Net debt improved to $396 million, down from $481 million at March-end, aided by deferred capital expenditure.

Financial highlights

• MATSA's underlying EBITDA margin increased to 44% and Motheo's to 57% in the June half-year.

• MATSA achieved record annualized mining and processing rates, with a 17% increase in payable zinc but a 4% reduction in payable copper.

• Motheo produced 13,600 tonnes of contained copper and 500,000 ounces of silver in the quarter, a 29% increase in copper-equivalent production.

• Motheo's annual copper-equivalent production was 44,700 tonnes, exceeding guidance by 6.4%.

• Underlying operating costs at Motheo were $42/tonne for FY24, temporarily rising to $45/tonne in the quarter.

Outlook and guidance

• Group copper-equivalent production is expected to grow by 13% in FY25 as Motheo operates at expanded capacity for a full year.

• Deferred capital expenditure of $40 million from FY24 will be spent in FY25, mainly due to rephasing of mine development.

• Local inflationary pressures are anticipated to modestly increase operating costs in FY25.

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