Sandfire Resources (SFR) released March Q results with 16.1kt Cu and 10.9koz Au in concentrate at a total cash cost of US$1.08lb, (vs Argonaut’s forecast 17.4kt Cu and 9.7koz Au at US$1.06/lb). Low grade ore from the first Monty stopes were included in the blend, and this mine should start contributing higher grades in the current quarter. Strong year to date results has prompted SFR to increase guidance to 68-68kt Cu and 40-42koz Au in concentrate at C1 costs of ~US$0.90/lb (previously 63-67kt and 37-40koz at US$0.90-0.95/lb). The DeGrussa Project has ~3 years remaining on reserves (“The Autumn Years”) and we believe SFR will need intensify M&A efforts to replace production. The draft Environmental Impact Statement for the Black Butte Project in Montana, USA (86% SFR) has been released and will now move into a public comment period. A Maiden Reserve for this project is due shortly and a Feasibility Study is targeted for release mid-2019.
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