The Sandfire Resources Ltd (ASX: SFR) share price has dropped 9% this morning to $4.04 before recovering slightly to $4.08 at the time of writing. This came as the copper producer denied media speculation that China is set to ban Australian copper imports.
What did the company say?
Sandfire Resources said it was aware of reports in the international media that China was seeking to impose a ban on imports of Australian copper. Questioning the reliability of the media reports, Sandfire Resources said it was in contact with key customers and was not aware of any reason for a ban.
The company also stated it was confident that it could increase sales to existing and new customers in non-Chinese markets if required. According to Sandfire, global copper concentrate markets for high quality copper concentrate were highly competitive.
The company advised its Degrussa operations have remained in full production in the December quarter. It will maintain its production guidance for the 2021 financial year of 67,000–70,000 tonnes of copper and 36,000–40,000 ounces of gold.
Sandfire settles lawsuit
Sandfire Resources also announced this morning that it had settled its legal claim against Adriatic Metals PLC (ASX: ADT). The company previously brought a claim against Adriatic Metals in July over dilution of its shareholding in the company. Sandfire Resources argued that Adriatic Metals had failed to adhere to its anti-dilution right set out in the collaboration and strategic partnership deed agreed to by the 2 companies.
According to the announcement, the case was finalised with an agreement that Sandfire Resources would be allowed to purchase 4,830,156 Chess depository interests in Adriatic Metals for $1.79 per share. Shares in Adriatic Metals were last trading for $2.28 at the time of writing.
About the Sandfire Resources share price
Sandfire Resources is a minerals exploration and production company with assets in Australia, the United States and Africa. Sandfire Resources has been listed on the ASX since 2004.
Earlier in October, Sandfire Resources announced that it had acquired an 85% interest in the Red Bore copper project. The project is adjacent to the company's existing DeGrussa Copper-Gold asset in Western Australia.
In the quarter to 30 September 2020, Sandfire Resources had record copper production of 19,400 tonnes and gold production of 11,683 ounces. C1 cash costs in the September quarter were 53 cents per pound.
The Sandfire Resources share price is up 48.36% since its 52-week low of $2.75. However, it is down 30.85% since the beginning of the year. The Sandfire Resources share price is down 31.66% since this time last year.
