Sandfire Resources (SFR) reported strong September Q results with copper production maintaining levels above 17kt for two quarters in a row on the back of high grades and improving recoveries. Gold production was up 17% to 11.1koz. C1 cash costs of US$0.89/lb we well below FY19 guidance of US$1.00-1.05/lb. The Monty decline development is running 18% behind schedule, however first ore will still be intercepted in the current Q with stoping to commence in the March Q. Post quarter, SFR completed the acquisition of Talisman Mining’s (TLM) 30% stake in the Springfield Exploration and Mining Joint Ventures for $72m cash and a 1% Net Smelter Return (NSR) royalty. A total of 64,987m were drilled in the greater Doolgunna region during the Q, but no significant intercepts were reported. At 30 September, the Company had $218m cash and negligible debt.
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