SFR +3.58%: finished FY26 strongly, with a sharp lift in copper and silver production driving record quarterly financial outcomes and leaving the balance sheet in its strongest position for several years.
Key numbers included:
- Copper production of 34,224 tonnes, up 17% quarter-on-quarter.
- Zinc production of 23,048 tonnes, down 7.5%.
- Silver production of 1.8Moz, up 64%.
- Quarterly sales revenue of US$574 million.
- Underlying EBITDA of US$343 million.
- Net cash of US$353 million at year-end, compared with net debt of US$123 million a year earlier.
For FY26, copper production was broadly steady at 105,735 tonnes, while zinc increased 5.7% to 96,489 tonnes. Copper-equivalent production edged higher to 154,200 tonnes and finished within guidance.
FY27 guidance is for:
- Copper production of 99,000–111,000 tonnes.
- Zinc production of 96,000–106,000 tonnes.
- Silver production of 5.6–6.2Moz.
- Copper-equivalent production of around 150,000–166,000 tonnes.
The outlook is broadly consistent with FY26, although capital expenditure is expected to increase materially as Sandfire invests in the next phase of growth.
A strong finish to the year, with better production, solid cost control and a major improvement in the balance sheet. FY27 guidance is not calling for a significant production step-up, but Sandfire enters the year with strong operating momentum and full leverage to copper prices.
We remain positive on the stock, although higher capital expenditure means execution and commodity prices will remain important.
MM remains long & bullish SFR
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