Sandfire Profits Fall, Metals Production Hits Records

While profits were down compared to 2018’s results, Sandfire Resources is proudly showing off record production from its DeGrussa operation.

While profits were lower than in its 2018 fiscal year (FY18), Sandfire Resources (ASX:SFR,OTCQB:SRAFF) is showing off record copper and gold output from its DeGrussa asset.

In its annual financial results report, Sandfire lays out a group net profit after tax of AU$104 million, down from FY18’s AU$120.8 million. The company noted the fall of copper prices during its 2019 fiscal year (FY19), which impacted profits. However, between DeGrussa’s record production, record low C1 costs and a lower Australian dollar, the blow from copper’s weakened state was offset.

FY19 saw the production of 69,394 tonnes of contained copper and 44,455 ounces of contained gold out of DeGrussa. At a C1 cost of US$0.83 per pound, this was Sandfire’s highest operational performance in terms of volume and cost.

“The quality, grade and consistency of the DeGrussa operation once again shone through with the project delivering its best-ever production performance in terms of key physicals and record low operating costs underpinned by a focus on cost control and optimisation,” Sandfire Managing Director Karl Simich said in a statement.

Simich went on to highlight strengthening and diversifying the company’s pipeline as one of its key objectives for the year.

“Other highlights during the year included the successful development and ramp-up of the new high-grade Monty copper-gold mine, which is now feeding ore into the DeGrussa concentrator, and the significant progress we made in advancing our global growth strategy.”

Sandfire had a busy year, with one notable move being its attempts to coax MOD Resources (ASX:MOD,LSE:MOD) into an acquisition. In January, MOD shot down a deal from Sandfire on the basis that the AU$113 million offer undervalued MOD’s assets, primarily its T3 copper project in Botswana.

After going back to the drawing board, the two companies announced in June that they had executed a binding scheme implementation deed. With a fresh offer of AU$0.45 per share, or AU$167 million, the two came to an agreement.

Simich noted in Tuesday’s (August 28) release that the acquisition should be completed in late October. It will be followed by exploration activities in Botswana and the optimization of T3’s feasibility study.

Sandfire also laid out its production forecast for the 2020 fiscal year, saying output is set to grow to 70,000 to 75,000 tonnes of copper and 38,000 to 42,000 ounces of gold at a C1 cost of US$0.90 to US$0.95 per pound.

As of August 23, copper was trading at US$5,674.50 per tonne on the London Metal Exchange.

In Australia, Sandfire’s share price was up 3.07 percent on Tuesday, ending the day of trading at AU$5.70.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.

Graphite Metallurgical Test Work Update


  • Bulk sample of Springdale graphite concentrate estimated to be completed in Q2 2021.
  • Concentrate material will then be sent to Germany to test its amenability for the production of battery anode material suitable for use in EVs.
  • Final test results expected in Q3 2021.

Comet Resources Ltd (ASX:CRL) is pleased provide an update on ongoing test work on natural flake graphite from its Springdale Graphite Project (Springdale) located in Western Australia. Both excellent grade and recoveries were achieved on initial tests, leading to commencement of work to produce a bulk sample for further testing. Importantly, the graphite concentrates previously produced demonstrated a unique and potentially very valuable characteristic in its small size distribution, with two-thirds of the product passing the 38 µm size fraction screen. Generally, this small size fraction of graphite is a by-product of processing of larger flake fractions, which produces smaller size graphite, but in doing so also damages the smaller flake material in the process, reducing their performance and value. Deposits that contain high quality ultra-fine graphite are uncommon and are potentially suitable for supplying the expanding battery anode market, which continues to grow as the sales of electric vehicles (EVs) increase. Graphite suitable for battery anode production also achieves premium pricing in graphite markets, making it a highly sought-after product.

Keep reading... Show less

Medallion Completes Diagnostic Testing with Australian Nuclear Science and Technology Organization

Medallion Resources Ltd. (TSX-V: MDL; OTCQB: MLLOF; Frankfurt: MRDN) “Medallion” or the “Company”) announces completion of a suite of diagnostic test work at the Australian Nuclear Science and Technology Organization (ANSTO) in Sydney, to extract rare earth elements (REE) from mineral sand monazite. The monazite was sourced from an Australian mineral sand mine. Discussion is ongoing with additional prospective suppliers.

Mineral sand monazite is an abundant REE-rich feedstock, that can be accessed as a by-product from global mineral-sand mines that target zirconium and titanium, without the need for additional mining. Medallion’s business model is centered on the Medallion Monazite Process , a transferable and scalable technology designed to accept multiple mineral-sand monazite feedstocks and extract high-value REEs with high efficiency, high recovery and zero liquid waste.

Keep reading... Show less

Galaxy Resources Limited Announcement

Galaxy Resources Limited (ASX: GXY) ( Company ) advises that the following announcements have been made to the Australian Securities Exchange which appears on the Company’s platform (ASX):

  • Corporate Presentation – Sal de Vida Development Plan
  • Sal de Vida development Plan
  • Sal de Vida Resource & Reserve Update
  • March 2021 Quarterly Results Conference Call
  • Notice of Annual General Meeting/ Proxy Form
  • 2020 Annual Report
  • 2020 Sustainability Report
  • 2020 Corporate Governance Statement
  • Appendix 4G

The announcement can be viewed at:

Keep reading... Show less

Torian Resources Limited Significant Gold Results from Surface at Mt Stirling

Perth, Australia (ABN Newswire) – Torian Resources Ltd (ASX:TNR) is pleased to advise that recent drilling results continue to extend the Mt Stirling Gold System over ~1.1km of Strike, ~300m at depth, and it remains open in multiple directions.


– The interpreted strike of the Mt Stirling gold system exceeds 1.160km with Mt Stirling Main Zone; Hanging Wall and Viserion lodes all remaining open along strike and down-dip.

Keep reading... Show less

eMetals Limited Updates Shareholders On Exploration – April 12, 2021

eMetals Limited (ASX:EMT) (eMetals or Company) is pleased to update shareholders on exploration activities which have commenced across the Company’s projects.


Keep reading... Show less

Top News

Related News