Sandfire jumps on profit boost

Shares in Karl Simich-led Sandfire Resources have jumped more than 8 per cent today after the company reported a record $123 million profit.

The 59 per cent increase in net profit for the 2018 financial year was driven by a surge in revenue to $606.7 million, with strong performance at the company’s Degrussa copper-gold mine in Western Australia.

Sandfire shares finished up 8.56 per cent at $7.74 each today.

The gold and copper producer also announced a final dividend of 27 cents per share, fully franked.

Managing director Mr Simich said the results capped a strong year for the company.

“The combination of strong production, lower operating costs and a significantly improved copper price translated into impressive results at every level of our business – highlighted by record revenues, record cash flows and exceptional operating margins,” he said.

“This provided the backdrop to a surge in cash and deposits to $243 million at year-end and, pleasingly, the declaration of a record 19c final dividend, taking our total payout for the year to 27 cents.

“Looking ahead, the continued strength and low cost base of the DeGrussa operation – supported by our strong balance sheet and growing cash balance – once again puts us in a very strong position moving forward, notwithstanding the recent retracement in the copper price from its highs earlier this year.”