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Sandfire Resources share price jumps on full-year result

share price rebound

The Sandfire Resources NL (ASX: SFR) share price closed 3.07% higher on Tuesday after the Aussie miner reported a solid full-year earnings result.

The Sandfire share price rebounded from Monday’s 52-week low to close at $5.70 per share after reporting strong production and sales numbers in yesterday’s release.

What did Sandfire announce on Tuesday?

Despite reporting a 13.5% drop in profit from FY18, Sandfire still posted a net profit after tax (NPAT) of $104 million for the year ended 30 June 2019 (FY19).

The Aussie gold and copper miner reported revenue of $592.2 million net of treatment and refining charges and price adjustment losses, which was a minor increase on the prior corresponding period (pcp).

These earnings figures came largely due to higher production levels as the copper price fell compared to pcp, while capex remains high from Sandfire’s increased exploration and evaluation activities during the year.

Sandfire also reported strong cash flow from operations of $210.4 million, with its DeGrussa Operations segment reporting earnings before net finance and income tax of $225.7 million.

On the balance sheet side, Sandfire’s cash position improved marginally throughout the year to $247.4 million as net assets jumped 13.6% on pcp to $604.2 million.

What about Sandfire’s FY20 outlook?

Sandfire expects to see FY20 contained copper production of 70kt–75kt, which is a minor increase compared to 69.4kt in its latest result.

Additionally, the Aussie miner is targeting 38 kilo ounces (koz) to 42koz of contained gold for next year, down from this year’s 44.5koz level.

Sandfire said the strong DeGrussa Operations cash flow is continuing to fund both company growth and shareholder dividends, as it continues to pursue a strong international and domestic growth pipeline.

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Motley Fool contributor Kenneth Hall 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 Scott Phillips.

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