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Why the Sandfire Resources NL share price just hit a record high

Credit: Grange Resources presentation

There’s been a delayed reaction by investors to rally behind Sandfire Resources NL (ASX: SFR) since the release of strong half-year results on February 20, but the mining company finally smashed through Bell Potter’s February 2017 price target of $7.10 today – up 3% to $7.39 at the time of writing.

Shares in Sandfire Resources NL, which explores and develops the DeGrussa Copper-Gold project in Western Australia, dropped in price immediately following the release of results, sitting at just $6.95 on February 20 from $7.10 on the eve of its results announcement.

The iron ore, base metal, manganese and gold explorer reported strong operational performance for the half-year ending December 31, with NPAT up 66% on the previous corresponding period to $59.5 million.

Dividend payments were also increased, with Sandfire logging record sales revenue and price adjustment gains of $296.2 million and earnings per share of 37.7c – investors had a delayed response to the results, but today’s price action looks promising.

Sandfire’s Monty Copper-Gold Project – a joint venture with Talisman Mining – is progressing ahead of schedule, with the company expecting strong operational and financial results for FY18 and beyond.

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Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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