SFR’s 1HFY25 earnings and cash result was in line with our forecasts, with several key metrics already released with the quarterly results. Guidance ranges are unchanged, but SFR has highlights risks to the downside are emerging given the heavy rainfall seen at both MATSA in Spain and Motheo in Botswana. SFR is continuing its path to net cash, with net debt now below US$300m and the company expected to move to a net cash position in the next 12-18 months. We see upside in the Motheo outlook, with an extension to our eight year mine life likely should exploration continue to deliver. SFR is trading on FY26 EV/Ebitda of 4.1x and a free cash flow yield of ~14%. Buoyant copper prices provide upside risk to our FY25 earnings forecasts, and we reiterate our BUY rating on SFR, lifting our price target 5% to and A$13.40 price target to reflect recent movements in spot prices.
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