Sandfire Resources (ASX: SFR) – Sandfire Resources September 2026 Quarterly Report

Sandfire Resources delivered a solid start to FY27, reporting Q1 Group copper equivalent production of 38.9 kilotonnes, tracking to the midpoint of annual guidance. The company paid its first fully-franked dividend in four years, distributing $117 million to shareholders, and ended the period with net cash of $342 million. This combination of production consistency, shareholder returns, and a strong balance sheet shows the company’s ability to navigate a volatile commodity and macroeconomic environment.

Both operating mines delivered against expectations. MATSA in Spain produced 22.7 kilotonnes of copper equivalent, equivalent to 24% of annual guidance, though copper and zinc production declined quarter-on-quarter as planned ore grade cycling temporarily reduced recoveries. The mine’s underlying operating unit cost of $95 per tonne of ore processed translated to an implied C1 cost of $1.18 per pound. Motheo in Botswana produced 16.1 kilotonnes of copper equivalent at a healthier $48 per tonne unit cost of $0.65 per pound C1, benefiting from negative treatment and refining charges and capitalised deferred waste stripping. Management attributed both operations’ ability to track guidance despite elevated energy costs to low-cost assets and disciplined cost execution.

The quarter brought notable exploration progress. Drilling at La Juliana, located 700 metres from MATSA’s existing Aguas Teñidas mine, confirmed significant high-grade massive sulphide mineralisation extending approximately 160 metres along strike from the initial discovery hole. The company has committed additional resources and capital to accelerate drilling at this target and complete concept studies. At Kalkaroo in South Australia, the 130-kilometre infill and extension drilling program remained on track despite weather disruptions, with the pre-feasibility study expected to complete in the second half of 2028.

The $480 million in quarterly sales revenue and $272 million in underlying EBITDA reflected strong market conditions, particularly negative treatment and refining charges that benefited margins. Capital expenditure of $149 million was allocated between mine development and sustaining projects at MATSA and Motheo, with additional funding directed to exploration drilling. The company maintained all production and cost guidance for FY27 and noted that the recent weakening of the Euro to US dollar exchange rate should provide relief to MATSA’s cost base, which is approximately 90% Euro-denominated.

Investors should monitor the commissioning and ramp-up of the 33-megawatt solar facility at MATSA and the 21-megawatt facility at Motheo, both scheduled for the second half of FY27. These projects carry strategic importance for energy security and decarbonisation, particularly given Motheo’s exposure to diesel price volatility. The company will be balancing near-term exploration upside from La Juliana and A4 Underground against execution risks in construction projects and continued macroeconomic uncertainty. Management’s commentary on energy markets confirms ongoing vigilance around global supply chain impacts. This announcement is price-sensitive and has been flagged as material by the ASX.

View the full ASX announcement (PDF)

About Sandfire Resources Limited (ASX: SFR)

Sandfire Resources Limited is a global mining and exploration company specializing in copper production and exploration, with operations spanning Australia, Africa, Europe, and North America. The company operates major assets including the DeGrussa copper-gold mines in Western Australia and the MATSA polymetallic mining complex in Spain, along with development projects in Botswana and Montana. The company primarily explores for copper, gold, silver, lead, and zinc deposits.

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