Sandfire Resources has withdrawn its full year production guidance, citing uncertainty over the impacts of COVID-19, but says operations at its DeGrussa copper-gold mine in Western Australia remain largely unaffected.
Sandfire Resources has withdrawn its full year production guidance, citing uncertainty over the impacts of COVID-19, but says operations at its DeGrussa copper-gold mine in Western Australia remain largely unaffected.
The West Perth-based company has withdrawn its guidance of 70,000-72,000 tonnes of contained copper and 38,000-40,000 ounces of contained gold, following declines in production over the March quarter.
Sandfire produced 17,936t of copper, compared with 18,258t on the previous December quarter, and 9,352oz of gold, compared with 10,723oz.
Total copper produced to date remains at 52,924t while gold at 28,722oz.
Sandfire says its DeGrussa gold mine, however, continued to operate at full capacity with mining, processing and concentrate sales for the March quarter in line with previously announced guidance.
Sandfire also said exploration programs in the Doolgunna region of WA were continuing, while exploration at the Tshukudu copper mine in Botswana have been delayed due to 28-day nationwide lockdown.
The company has temporarily closed its White Sulphur Springs office in Montana, where its Black Butte copper project is located, with staff now working remotely in line with instructions from the US state.
Also during the quarter, Sandfire withdrew from its farm-in deal with Victoria-based White Rock Minerals over a project in Canada after spending $8.5 million on exploration in 2019.
Sandfire remains an 11.07 per cent shareholder of White Rock Minerals.
In addition, Sandfire has introduced coronavirus-related measures to boost social distancing and health screening, extend sick and compassionate leave to employees, and maintain payments to staff and contractors.
“The health and well-being of our people, contractors and stakeholders is of paramount importance, and Sandfire has implemented, and will continue to proactively implement, appropriate protocols to minimise the potential transmission of COVID-19,” the company told the market today.
Sandfire says given the uncertainty surrounding the pandemic, it is not yet possible to assess the full impact of COVID-19 on the business.
The company disclosed cash on hand at March 31 of $242 million, while profit for the six months to December 31 was $34.2 million and total sales revenue $313.1 million.
An interim fully-franked 5 cents per share dividend was paid on March 11.
Shares in the company were up 1.5 per cent at 3:15pm AEST to trade at $4.25.
