Sandfire Resources (SFR.AX) has released its production results for its financial year 2021, which ended on June 30th. The company produced a total of 70,845 tonnes of copper and 39,459 ounces of gold which compares very favorable to the upper end of the production guidance which called for 70,000 tonnes of copper and 40,000 ounces of gold to be produced.
Thanks to the strong production results, the operating costs were quite low; the C1 cash cost was estimated at US$0.81 per pound, which is at the lower end of the guidance of $0.80-0.85 per pound. That’s despite the higher C1 cash cost of $0.92 in the final quarter of the year, which saw a relatively low production of gold (9,016 ounces) but a higher copper production (18,252 tonnes).
Sandfire hasn’t provided a guidance yet for the current financial year but we expect to see some more details and color sooner rather than later. The strong cash position of in excess of half a billion dollar will come in handy to continue to fund the development of its new Motheo copper mine in Botswana, which should be in production in 2023.
Disclosure: The author has no position in Sandfire Resources. Please read our disclaimer.
