Sandfire results below estimates PDF Print E-mail
Friday, 25 January 2013 08:06

Sandfire Resources has for the first time issued production guidance for its DeGrussa copper and gold mine, saying it expects to produce 67,000 to 71,000 tonnes of copper and 49,000 ounces of gold this financial year.

The company released the guidance in its quarterly report yesterday, with December quarter production falling below analyst projections.

Still ramping up the processing plant at DeGrussa, Sandfire produced 16,392t of copper and 14,695oz gold in the period.

Patersons Securities resources analyst Simon Tonkin said yesterday the Sandfire results were "significantly below" his estimates, as the DeGrussa plant recovery rate averaged about only 65 per cent rather than the estimated 90 per cent.

Sandfire managing director Karl Simich said the company had seen a number of minor issues with metallurgical recovery as it commissioned the plant, but that January recovery rates were averaging 80 per cent and the company still expected to hit the target 90 per cent rate by the middle of the year.

He said the company would not give quarterly cost guidance until the DeGrussa plant was running at full capacity.

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