Sandfire profit shrinks but revenue higher

Local miner Sandfire Resources has delivered its first-ever fully franked dividend to shareholders, despite an 11.7 per cent slide in net profit to $69 million for the financial year.

The copper and gold-focused company reported a 4.3 per cent rise in revenue to $548.6 million, which it says is a reflection of its focus on optimising its operations, reducing costs where possible and further reducing its debt while still growing its longer-term growth pipeline.

Sandfire declared a final dividend of 10 cents per share, fully franked, to bring its annual payout to 13 cents – up 3 cents on last year.

 “The DeGrussa operation delivered another solid year of strong, low-cost, high-margin production, with key highlights including the success of our process plant optimisation programs which have delivered a 2 per cent uplift in copper recoveries and 11 per cent increase in mill throughput,” managing director Karl Simich said.

“Our financial performance was again pleasing, with the strong cash generation from the DeGrussa operation allowing us to maintain a balanced spread of investment across all aspects of the business including mine capital development, the process plant enhancement projects, exploration, business development and debt reduction – while maintaining a strong dividend stream to shareholders.”

Looking forward, the company has maintained its production guidance of between 65,000 and 68,000 tonnes of copper, and between 35,000 and 40,000 ounces of gold, at $US0.95 to $US1.05 per pound.

“Underground mine development is on track and the operation is set for another year of consistent production in FY16, with a continued focus on optimisation and improvements,” Mr Simich said.

Sandfire shares were 5 per cent lower to $5.28 each at 1:45pm.