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20 Feb 2020
Dividend/Distribution - SFR
Entity name
SANDFIRE RESOURCES LIMITED
Security on which the Distribution will be paid
SFR - ORDINARY FULLY PAID
Announcement Type
New announcement
Date of this announcement
Thursday February 20, 2020
Distribution Amount
$ 0.05000000
Ex Date
Tuesday February 25, 2020
Record Date
Wednesday February 26, 2020
Payment Date
Wednesday March 11, 2020

https://www.sandfire.com.au/site/PDF/3081_1/DividendDistributionSFR

Copperbelt spells opportunity for firm

“The Kalahari Copperbelt is a most interesting play at the moment,” says The MSA Group principal consultant Mike Robertson, noting the many mining and exploration companies that are obtaining mineral rights in large swaths across the belt. These companies include UK major Rio Tinto, copper mining investment company Cupric Canyon Capital, and Australian exploration companies Sandfire Resources and Kopore Metals.

Superior, modern exploration techniques have resulted in a surge of interest in the Kalahari Copperbelt in recent years, with the uptick in the 2019 year-end copper price spurring exploration activity.

The Kalahari Copperbelt, which is regarded as one of the world’s most promising underexplored copper provinces, stretches for about 1 000 km from central Namibia to the Shinamba Hills in northern Botswana, along the south-eastern margins of the Damaran-Katangan rift basin.
It is along this belt that mining and exploration consulting firm The MSA Group hopes to focus much of its activity this year – particularly in Namibia, where exploration activity has lagged behind when compared with Botswana.

“However, companies are now returning to the Kalahari Copperbelt, as new data and exploration techniques have allowed for better means of seeing through the deep cover.”

Robertson adds that the ability to combine modern exploration techniques – such as airborne magnetics and electromagnetics with the geochemical technique of partial leaching, and even hydro-sampling – has resulted in the generation of new datasets and, consequently, the underlying geology being mapped out much better than before.

This approach, together with recent academic studies on the Kalahari Copperbelt in both Namibia and Botswana, has led to a much better understanding of the mineral deposit model and the controls on mineralisation.

“The acquisition of these new datasets and the integrated interpretation thereof is generating targets that would have been completely missed 20 years ago.”

http://www.miningweekly.com/article/copperbelt-spells-opportunity-for-consulting-firm-2020-02-21

Copper Demand Is “Electric”—But Can Supply Keep Pace?
FEBRUARY 22, 2020
By Charl Malan, Senior Analyst for VanEck Global

Unlike copper demand, we believe global copper production is not healthy.

Despite the setback from the coronavirus, the outlook for copper is increasingly positive, fueled by demand from renewable energy (solar, wind, geothermal and electric vehicles or “EVs”) and a heightened risk to global production.

Copper Supply Stumbles

We believe that 2019 could be the first year since 2001-2002 (-1.1%) in which global production fell.

Why? The world’s largest copper miners are failing to produce at projected levels: the industry continues to value margin over volume, with the result that growth capital is limited. In addition, existing mines get older and grades decline. According to The International Copper Study Group (ICSG), global mine production was 20.1 million tonnes in 2018 (up 3.6% from 2017). However, recently released data from ICSG indicate that production declined by about 0.7% in the first 10 months of 2019.

Furthermore, newly released data from Cochilco (Chile’s state copper agency) show Codelco’s copper production between January and November 2019 fell by 6%. Codelco is the world’s largest copper producer, accounting for approximately 19% of global production.

Although this fall in production reflects various mine and industry-specific issues, a more important announcement for the copper market was that of a pullback by the Chilean government from its intent to fund Codelco’s copper growth projects.

The recent riots and protests in Chile, in response to higher subway fares, the increased cost of living, privatization and income inequality are expected to have a long-term impact on both Chile’s industrial output and copper production. As other funding imperatives put pressure on the country’s treasury, we believe that Codelco’s current production profile is optimistic.

In light of this, the market is in the process of adjusting its numbers. By 2025, we can see production being 330-380kt lower than current projections. This constitutes approximately 5% of global supply.

Copper Demand Rolls On

The physical properties of copper—malleable, machinable, corrosion-resistant and an excellent conductor of both heat and electricity—make it an essential component of an environmentally friendlier world. “In 10 years’ time the most strategic metal on this planet is copper, if you believe the EV story, and I do,” said Mark Bristow, CEO of Barrick Gold, at the Mining Indaba in Cape Town on February 6, 2020
The auto industry relies on copper for motors, wiring, radiators, connectors, brakes and bearings. While an internal combustion engine contains approximately 50lb of copper (luxury cars on average contain about one mile of copper), an electric vehicle contains approximately 200lb of copper—used in batteries, windings, rotors, wiring, busbars and charging points more....
https://t.co/eCHog0YNQc?amp=

Gold prices keep Sandfire solid
PERTH (miningweekly.com) – Copper/gold miner Sandfire Resources has reported a solid end to the six months ending December, despite weaker US dollar copper prices.

Sandfire on Thursday reported that sales revenue for the interim period reached A$313.1-million, up from A$272.3-million, with copper sales up from 32 715 t to 33 616 t, while gold sales volumes declined from 20 721 oz to 18 252 oz.

he softer copper price environment and the decline in gold sales volumes were offset by a fall in the US and Australian dollar exchange rate, and a stronger gold price, Sandfire said.

Cash flow from operating activities was up to A$109.1-million from the A$97.5-million reported in the previous corresponding period and to A$140.3-million prior to the payment of exploration and evaluation expenses.

Sandfire MD Karl Simich on Thursday said that the first half of 2020 marked the beginning of an exciting growth chapter as the company began its transformation from a single mine company into a diversified and sustainable global metals company, operating across multiple jurisdictions.

“Underpinned by another solid operational and financial performance at DeGrussa, we took some important long-term growth steps during this period with the completion of the MOD Resources acquisition, continued progress with the permitting and feasibility study for the Black Butte copper project, in Montana, and the commencement of a major new exploration campaign in Botswana.

“At the operational level, DeGrussa posted another strong set of numbers despite what continues to be a relatively muted global environment for base metals. Another impressive production performance once again drove strong sales revenue, low unit operating costs, robust operating cash flows and strong bottom-line earnings, helping us to maintain a period end cash position of A$201.7-million.”

Simich said that with a debt free balance sheet, Sandfire remained in excellent condition to fund the next stage of the company’s growth and diversification.

“The key focus in the short term is completing the optimisation of the feasibility study and permitting for the T3 development in Botswana, which we expect will be our first new base metal operation outside of DeGrussa.

“Project funding discussions are under way and we remain on track to make a decision to mine by mid calendar year 2020.”

https://t.co/JWyHzUPDii?amp=1

Sandfire eyes Botswana for expansion
February 21, 2020....News.... Salomae Haselgrove

Sandfire Resources managing director Karl Simich believes the first half of the 2020 financial year has “marked the beginning of an exciting new growth chapter” for the company.

Perth-based Sandfire started its transformation from a single mine company to a multiple resource entity, with the acquisition of MOD Resources and progress towards completing a feasibility study for the Black Butte copper project in Montana, United States.

As well as growing new projects, its existing operations performed well, with the DeGrussa copper-gold mine in Western Australia delivering 34,988 tonnes of copper and 19,370 ounces of gold.

This output puts the mine on track towards its copper and gold guidance of 70,000-72,000 tonnes and 38,000-40,000 ounces respectively.

“At the operational level, DeGrussa posted another strong set of numbers, despite what continues to be a relatively muted global environment for base metals,” Simich said.

“Another impressive production performance once again drove strong sales revenue, low unit operating costs, robust operating cash flows and strong bottom line earnings, helping us to maintain a period-end cash position of $201.7 million.”

The company is focussed on exploration at the newly-acquired Tshukudu and T3 copper-silver projects in Botswana, following the MOD Resources acquisition.

T3 will be Sandfire’s first new base metal operation outside of DeGrussa, with funding discussions already under way for a decision to be made by the middle of the 2020 calendar year.

“Our expanded exploration campaign in Botswana has already paid early dividends with an exciting new copper discovery at the A4 dome, located just eight kilometres from T3,” Simich said.

“(This is) rapidly taking shape and five diamond rigs (are) currently focussed on delineating this zone.”

Despite short-term challenges for Sandfire such as Tropical Cyclone Damien, and global market shakers such as the coronavirus and its impact on metals demand, Sandfire remains confident for the remainder of the financial year.

“There is no doubt that 2020 has seen a number of new challenges emerge in commodity markets due to the impact of the coronavirus and potential impact on metals demand and global logistics and trade,” Simich concluded.

Notwithstanding the short-term impacts, we remain positive about the medium-term outlook for copper, which remains fundamental as an essential ingredient for a sustainable, low-carbon future.”

https://t.co/1Nycfm3qP7?amp=1

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