Sandfire production record, weakened outlook

Sandfire Resources has announced record fiscal year production, however, its gold output is set to fall this financial year.

The company announced it produced 69,394 tonnes of copper and 44,445 ounces of gold for the 2019 financial year.

The financial year prior it recorded an output of 64,911t of copper of 39,273oz of gold.

But it anticipates between 70,000t and 75,000t of copper and 38,000oz and 42,000oz this fiscal year.

Sandfire said its net direct cash costs were also expected to increase from US83 cents per pound to between US90 and US95 cents per pound.

It said it was on track to deliver a feasibility study for the Black Butte copper project in the US in the second quarter of this financial year.

The company is set to acquire MOD Resources, after last month it made a $167 million bid for the junior, with MOD’s board backing the improved offer.

Shares in Sandfire dipped 5.3 per cent at 2.50pm AEST to trade at $6.58.