Sandfire Resources (ASX:SFR) announced that its net profit was up 132% to A$171.6 million.
The Australian copper miner announced its year end for the 12 months to 30 June 2021.
The company said strong metal prices helped.
The strong revenue result was supported by the rising copper price, which reached an 8-year high of US$8,000 a tonne in
December 2020 and has continued to climb since, wrote the company.
Copper sales were down slightly, 65,689 tonnes compared to 69,593 tonnes during the same period a year ago.
Cash position currently stands at A$573.7 million.
For 2022 the company is forecasting between 64,000 and 68,000 tonnes of copper and 30,000 to 34,000 ounces of gold.
The company expects to add to production with its Motheo Mine in Botswana. The company received its mining permit last month.
“The announcement of a Final Investment Decision for the US$259 million development of the T3 Motheo Mine in Botswana is a significant milestone for the Company and represents our first mine development outside DeGrussa – and one of the few significant new copper mines currently being developed anywhere in the world, said Sandfire’s Managing Director, Mr Karl Simich.
“The T3 development is expected to form the cornerstone of the new, long-term Motheo copper hub for
Sandfire in the Kalahari Copper Belt. The Base Case 3.2Mtpa development outlined in the December 2020 DFS confirmed strong economics over an initial 12.5-year mine life using conservative copper pricing, however we expect to be able to quickly expand to a 5.2Mtpa operation through the inclusion of the A4 satellite deposit.