Sandfire flags lower-end FY26 output as weather, delays weigh on performance
Copper miner Sandfire Resources expects full-year production to land in the lower half of its guidance range, after operational challenges weighed on third-quarter performance.
In a March quarter update released on Thursday ahead of its full quarterly report, Sandfire reported group copper-equivalent production of 34 500 t for the three months to March 31, taking year-to-date output to 106500 t.
The company maintained its 2026 financial year production guidance of 149000 t to 165000 t copper equivalent, but said output was now expected to fall within the lower end of the range.
Performance at the MATSA operation in Spain was affected by unusually high rainfall and unplanned maintenance, with quarterly copper-equivalent production of 21700 t.
At the Motheo operation in Botswana, production reached 12800 t for the quarter, with output impacted by delays in accessing higher-grade ore. Sandfire, however, noted a significant improvement in mining and processing rates at Motheo, with annualised rates reaching record levels.
The reduced throughput at MATSA is expected to temporarily increase unit costs during the quarter, although full-year operating cost guidance remains unchanged at $86/t for MATSA and $44/t for Motheo.
Sandfire also lowered its capital expenditure guidance by $15-million to $225-million, reflecting delays in activity at the Kalkaroo project and timing of expenditure on a new tailings facility at MATSA.
The company expects a stronger performance in the June quarter, supported by improved conditions at MATSA and increased production at Motheo as higher-grade ore is accessed. However, it cautioned that ongoing geopolitical uncertainty, particularly in the Middle East, could continue to influence input costs such as freight and energy.
