Copper prices boost Sandfire profit

Copper-gold miner Sandfire Resources has announced a record dividend payout after a profitable 12 months.

Perth-based Sandfire announced a 62 per cent rise in net profit to $77.5 million for the 2017 financial year, with revenue up 9.6 per cent to $532.5 million.

The company also declared a final dividend of 13 cents per share, fully franked, after producing 67,088 tonnes of copper and 38,623 ounces of gold from its DeGrussa mine.

Managing director Karl Simich said the combination of a significantly improved copper price and strong operating performance at DeGrussa were the key drivers of the strong financial result for the year.

“This is Sandfire’s fifth consecutive annual profit result, and it comes against the backdrop of a marked change in sentiment in the global copper market which puts Sandfire in a very strong position moving forward,” he said.

“It’s worth noting that the company has maintained an impressive record of profitability and returns to shareholders over the past two years despite lower commodity prices.

“The macro-environment has now shifted in our favour and we can look to the future with the tailwind of an improving copper market rather than the headwind of soft commodity markets.

“We are pleased to be able to declare a record final dividend to shareholders in line with the increase in earnings, while at the same time aggressively pursuing value-accretive growth opportunities, both in Australia and abroad.”

Sandfire shares were 3.8 per cent higher to $5.79 each ahead of the close of trade.