S&P/ASX 200 Index (ASX: XJO) mining stock Sandfire Resources Ltd (ASX: SFR) has delivered some outsized returns over the last year.
Sandfire Resources, which is primarily focused on copper, has benefitted in part from an 11% increase in global copper prices over the year. The red metal is currently trading for US$9,396 per tonne.
In afternoon trade today, Sandfire shares are down 0.27%, changing hands for $10.98 apiece.
But the ASX 200 mining stock remains up by 49.18% in 12 months.
For some context, the ASX 200 has gained 10.9% over this same time.
And according to Fairmont Equities' Michael Gable, Sandfire Resources is well-placed to deliver another year of outperformance (courtesy of The Bull).
Tailwinds ahead for this ASX 200 mining stock
Gable, who has a buy recommendation on Sandfire Resources, cited four reasons why the ASX 200 mining stock could keep marching higher in 2025.
First, is his expectation of further gains in global copper prices.
"After a poor end to 2024, copper futures recently started to climb again. We expect copper prices to strengthen from here in response to global growth," he said.
Indeed, the red metal has gained 7.2% since 31 December, when the spot price stood at US$8,768 per tonne.
Gable is also bullish on Sandfire's growing copper output.
"Sandfire increased group copper equivalent production to 75,100 tonnes in the first half of fiscal year 2025, representing 49% of annual guidance," he noted.
And the third reason he rates the ASX 200 mining stock a buy is its improving balance sheet.
"The company has significantly reduced debt since the end of fiscal year 2024," Gable said.
Finally, Gable pointed to Sandfire Resource's upward momentum as likely to lead to further upside.
"The share price charts were recently showing an upside breakout, which should see SFR trending higher from here," he said.
What's the latest from Sandfire Resources?
Sandfire Resources released its December quarterly update on 30 January.
As Gable noted above, the ASX 200 mining stock boosted group copper equivalent production over the half-year by 5%.
Unaudited sales revenue came in at $290 million for the quarter, with underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $134 million.
Net debt for the ASX 200 mining stock stood at $288 million as at 31 December, taking the cumulative reduction in net debt over the prior nine months to $193 million.
Commenting on the results on the day, Sandfire Resources CEO Brendan Harris said:
At an operating level, a robust first half ensures we are well positioned to deliver on our commitments for the full year and we have retained all of our key production guidance metrics for FY25.
We are also continuing to do well at an operating cost level and have reduced cost guidance at Motheo as we are benefitting from economies of scale and a further contraction in treatment and refining charges.
