Sandfire Resources Ltd (ASX: SFR) shares have provided fantastic returns of almost 75% so far in 2025.
For context, the S&P/ASX 200 Materials Index (ASX: XMJ) is up roughly 21% in the same span.
The stock is a global mineral exploration and development company, largely focused on copper.
The company's principal asset is the DeGrussa copper-gold project located 900 kilometres northeast of Perth in the Bryah Basin.
It also has projects in Spain and Botswana.
Today, the share price has fallen approximately 2.4%.
After rising significantly already this year, the team at Ord Minnett has marginally increased its price target on Sandfire Resources shares.
Here's the latest guidance out of the wealth management firm.
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Tracking well to FY26 guidance
The team at Ord Minnett said Sandfire Resources delivered a decent September quarter result.
It noted that the slight variances against its estimates were driven by polymetallic variability, which affected grades at its Minas de Aguas Teñidas (MATSA) copper project in Spain.
According to Ord Minnett, the miner is tracking well to FY26 guidance, with production trading towards the mid-point of its target band at 157,000 tonnes of copper equivalent (CuEq) and costs to increase marginally at the Motheo operation in Botswana as the A4 open pit operation ramps up across the year.
Motheo is tracking slightly under cost guidance at US$42 a tonne currently but this should increase to circa US$44 per tonne as the ramp-up of A4 increases haulage and handling costs.
The team at Ord Minnett also stated that the company is nearing net cash, a position it anticipates being reached in the current quarter.
This should free up future cash flows for capital returns.
Marginal target price increase for Sandfire Resources shares
Based on this guidance, Ord Minnett has marginally increased its price target to $16.50 from $16.45. It has maintained its accumulate recommendation.
Based on this updated price target, there is an estimated upside of just 1.35%.
It seems Sandfire Resources shares are close to fair value.
