Copper stock Sandfire Resources is targeting an injury-free workplace as it gears up for more resource expansion and drilling activity in FY25’s second half.
The West Perth-headquartered miner released its half-year earnings report on Thursday, highlighting a 16 per cent increase in copper production over the last six months of 2024.
Sandfire’s promoted its safety performance as the headline metric: the company maintained a total recordable injury frequency rate (TRIFR) of 1.6, but managing director Brendan Harris wants to bring that number down to zero.
“[We] must believe it’s possible to have a workplace that is injury free,” Mr Harris told investors on Thursday.
A company’s TRIFR measures everything from fatalities to lost time injuries, calculated against every million hours worked.
According to WorkCover WA’s most recent industry benchmark report, the three-year TRIFR average for metal ore miners is 5.3.
Although the global copper miner has reaffirmed its production guidance for the full year, Sandfire is keeping a close eye on weather conditions around its international copper assets in FY25’s second half.
“We are monitoring heavy rainfall at both MATSA and Motheo as it may create an element of risk if it doesn’t abate,” Mr Harris said.
Moving into the next six months, Sandfire is focused on ramping up underground development across its MATSA copper mine in Spain to open up new mining paths.
During FY25’s first half, the company secured mining approval for a new tailings facility at MATSA which it claims will support mining through 2040.
Meanwhile, at the Botswana-based Motheo copper hub, Sandfire cut its underlying operating cost guidance by 7 per cent to reflect greater economies of scale.
“We are increasingly confident that our annual planning cycle will confirm an incremental increase in copper equivalent production at Motheo in FY26, when compared with our prior disclosures, as well as a smoother production profile in the medium term,” Mr Harris said.
On the financial side, Sandfire reported a 78 per cent jump in its underlying operations earnings, bringing its earnings margin for that category up to 51 per cent.
The company’s profit after tax came in at $50 million, while revenue rose 37 per cent to reach $572 million.
Sandfire also shaved off 39 per cent of its net debt, bringing its total owings down to $288 million during the half.
Mr Harris described the first half as a “robust start to the year” thanks to a healthy pricing environment for the company’s key commodities.
“Pleasingly, this is being reflected in our balance sheet with net debt reducing by a further $108 million during the period.
“Since then, we have also received credit approval for a new unsecured $650 million corporate revolver facility that reduces our annual financing costs and fundamentally derisks our financial position.”
Sandfire shares are trading 0.33 per cent in the red for $10.70 per share at 12:26 pm AWST.