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Highlights:
Record FY26 PerformanceSandfire Resources Limited (ASX: SFR) delivered a step-change in profitability in FY26, supported by resilient operations and stronger commodity pricing. The copper producer announced its full-year financial results on 26 August 2026, reporting revenue of US$1.654 billion, up 41% year-on-year, while profit after tax surged to US$354.3 million from US$89.9 million in FY25.Earnings Momentum AcceleratesSandfire’s underlying EBITDA climbed 64% to US$867.0 million, with the EBITDA margin expanding to 52% from 45%. Underlying earnings increased 214% to US$350.0 million, while operating cash flow advanced 54% to US$887 million. Strong commodity markets, favourable treatment and refining charges and disciplined operating performance supported the result.
Operationally, group copper-equivalent production reached 154.2kt, supported by annual and quarterly ore-processing records at MATSA and Motheo. Underlying operating costs were US$89 per tonne at MATSA and US$46 per tonne at Motheo despite inflationary and supply-chain pressures. Balance Sheet StrengthA major shift occurred in Sandfire’s financial position. The company closed June with US$353 million in net cash and no debt, alongside an undrawn US$650 million Corporate Revolver Facility.
That stronger position also supported a fully franked final dividend of AU$0.35 per share, scheduled for payment on 30 September 2026. FY27 Growth InvestmentAttention now turns to execution. Sandfire expects FY27 Group copper-equivalent production of 150kt–166kt, while underlying operating costs are guided at US$90 per tonne for MATSA and US$47 per tonne for Motheo.
Capital expenditure is expected to increase 30% to US$299 million, including US$51 million for Kalkaroo, where a planned ~130km drilling campaign and pre-feasibility study are progressing. Exploration and evaluation expenditure is also expected to rise to US$68 million. What Comes Next?Sandfire enters FY27 with materially stronger earnings, substantial liquidity and an expanding development pipeline. The next phase will depend on maintaining operating discipline while converting higher exploration and development spending into reserve growth. If MATSA and Motheo continue delivering dependable margins and Kalkaroo advances successfully, FY27 could strengthen Sandfire’s longer-term position as a significant copper producer.
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