SFR hosted an Exploration focused Strategy Day in Sydney. The core strategy of its exploration efforts is to deliver fifteen-year reserve lives at its core operating centres at MATSA and Motheo. The upside at MATSA can be delivered through extensions of current deposits, particularly at Magdelena, and we already capture a material extension to the mine life in our base case. Exploration potential at Motheo is significant and we see upside risk to our eight-year mine life assumption through extending existing resources at both the A4 and A1 deposits, and also from regional targets. Exploration spend has increased 75% in FY25 and we expect to see increased spend over time as the balance sheet de-gearing is completed. SFR has reiterated its FY25 guidance ranges, which should underpin further de-gearing of its balance sheet over the course of 2025. Updated reserve and resource estimates at Motheo in the 2HFY25 present a key potential catalyst for SFR and we reiterate our BUY rating, lowering our price target 6% to A$12.30 due to the recent decline in spot copper prices.
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