Sandfire Resources has reported record financial results for the March 2026 quarter, generating group sales revenue of $408 million and underlying EBITDA of $220 million. This performance lifted the company’s net cash position to $76 million, up from $13 million at the end of 2025, despite paying $46.5 million to Havilah Resources in February. The strong cash generation underscores the operational and financial resilience of the company’s copper mining portfolio during a period of elevated commodity prices.
Production performance in the quarter reflected mixed outcomes across the two main operating assets. The company delivered group copper equivalent production of 34.5 thousand tonnes in Q3 FY26, bringing year-to-date output to 106.5kt and positioning Sandfire toward the lower half of its full-year guidance range of 149kt to 165kt. MATSA contributed 21.7kt of copper equivalent in the quarter, constrained by unusually high rainfall and unplanned maintenance activities. Motheo delivered 12.8kt, hampered by delayed transition to higher grade ore, though the operation achieved record annualised mining and processing rates of 6.5 million tonnes and 6.1 million tonnes respectively.
Cost management remains a key strength for the business. MATSA’s C1 unit cost declined to $0.29 per pound despite a temporary throughput-related increase in underlying operating unit cost to $95 per tonne of ore processed. The company has maintained alignment with full-year cost guidance of $86 per tonne for MATSA and $44 per tonne for Motheo, whilst acknowledging external risks to input costs from Middle East conflict impacts on fuel prices, freight rates and foreign exchange. This cost discipline is particularly valuable given the inflationary environment affecting mining operations globally.
The company faces a significant safety challenge that warrants investor attention. Sandfire reported its first fatality during the quarter when a contractor died while installing a polyethylene paste distribution line at the Magdalena mine. The total recordable injury frequency rate increased to 1.5 from 1.3 at the end of 2025. Safety outcomes are fundamental to the sustainability of mining operations and shareholder value, and this tragic incident will likely prompt enhanced safety protocols and review of contractor management practices across the group.
Looking ahead, investors should monitor progression of the Kalkaroo Copper-Gold project partnership with Havilah Resources. Sandfire has executed definitive transaction agreements and is establishing foundations for a $70 million pre-feasibility study scheduled for completion in the second half of FY28. The company also resumed regional exploration spending, investing $15 million in Q3 across regional and near-mine programs. Success in developing new ore bodies would be critical to maintaining production and cash generation beyond the current mine life of existing assets.
This announcement is price sensitive and has been flagged as material by the ASX.
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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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