• Pure play copper miner Sandfire Resources posted near disastrous financial results for both the full year 2023 and the half year 2024.
  • The share price is still rising, outperforming rival diversified copper producers BHP and RIO.
  • Most analysts agree copper demand will rise.

Pure play copper miner Sandfire Resource’s DeGrussa copper/gold mine is in operation in Australia.  The company also has assets in development in the US, Spain, and Africa.

The price of copper has turned volatile since 2022, as have most commodities mined in Australia.

copper price 2024 ycharts

Source: https://ycharts.com/indicators/copper_price

The tailwinds from the copper price coupled with global economic uncertainty fueled by inflation, high interest rates, and war completed the challenging environment. Sandfire’s financial metrics saw both revenues and net profit decline in FY 2023.


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Sandfire Financial Performance

sfr sandfire financial performance 2023

Source: ASX

The bad news for investors continued into the first half of FY 2024, with Sandfire reporting revenue decline of 3% and a 96% loss after tax attributable to members.  Despite the loss, investors drove up the share price following an initial dip on the 16 February announcement.

sfr sandfire resources limited stock price chart 2024

Source: (ASX)

Some analysts point to a possible 75% rise in the price of copper to 2025 fueled by rising demand in the face of the green energy transition and mining supply disruptions.

An analyst at Fairmont Equities has a BUY recommendation on Sandfire Resources shares, telling investors the firm is “positive about the prospects for copper with the expectation lower supplies and sustained global demand twill  result in higher prices during the next few years”

Marketsreener.com has an analyst consensus rating of OUTPERFORM on Sandfire shares, with six of the sixteen analysts reporting at BUY, at four OUPPERFORM, five at HOLD, and one at SELL.

The Wall Street Journal has a consensus analyst rating of OVERWEIGHT with six of the eighteen analysts reporting at BUY, four at OVERWEIGHT, seven at HOLD, and one at SELL.

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