The Sandfire Resources NL (ASX: SFR) share price has fallen 3.7% after open today after the gold and copper miner released its results for the June 2019 quarter this morning before trading.
What's the news from Sandfire?
Sandfire has reported increased quarter-on-quarter production of both gold and copper. Ounces of gold mined rose from 10,921 during the March quarter to 11,967 ounces for the June quarter – a rise of 9.56%. Copper mined during the same period rose from 16,062 tonnes to 18,519 tonnes – a rise of 15.3%. Capping off FY19, total copper production for the year hit 69,394 tonnes and gold at 44,455 ounces.
Meanwhile, Sandfire also reported a fall in all direct costs (C1) per pound of ore. C1 cost fell from US $0.92/lb for the March quarter to US $0.74/lb for the June quarter.
In guidance for FY20, the company forecast a continued rise in copper production to 70,000–75,000 tonnes, but also forecast a fall in gold production to 38,000-42,000 ounces. C1 costs are also expected to rise during FY20, to an estimated US $0.90–0.95/lb.
Sandfire's plans to acquire MOD Resources Ltd (ASX: MOD) is going ahead, with MOD shareholders to be given the option of new Sandfire shares or cash in exchange for MOD shares.
Meanwhile, Sandfire is continuing its investments in exploration across its 6,712 km2 Greater Doolgunna project, with "extensive programs of RC, diamond and air-core drilling completed during the quarter." Work on a fourth lift at Sandfire's Tailings Storage Facility is progressing and is expected to be completed in late August 2019.
The company reported cash on hand of $247.4 million.
