Sandfire Resources reported a 214% jump in underlying profit to $350 million for the year ended June 30, 2026, as net debt of $397 million two years prior converted to net cash of $353 million following debt repayments and strong operational performance.
The company posted record annual sales revenue of $1.7 billion and underlying EBITDA of $867 million, while statutory profit after tax rose 294% to $354 million. Operating cash flow reached $887 million, with capital expenditure totaling $266 million for the year. Sandfire fully repaid a $234 million debt facility during FY26 and maintains $650 million in undrawn capacity on its Corporate Revolver Facility, bringing total liquidity to over $1 billion.
The board declared a fully franked final dividend of 35 Australian cents per share, marking the company’s first shareholder distribution since 2021 and representing 48% of second-half underlying earnings. Shares rose 7.46% in pre-market trading to $24.48, approaching the 52-week high of $25.
Group copper equivalent production hit a record 154.2 kilotonnes, with MATSA in Spain producing 94.5 kilotonnes at an underlying EBITDA of $499 million and a 55% operating margin. Motheo in Botswana processed a record 6.1 million tonnes, yielding 59.7 kilotonnes of copper equivalent and $461 million in underlying EBITDA at a 62% margin. Quarterly revenue of $574 million fell 33.49% short of analyst forecasts of $862.98 million.
FY27 capital expenditure is forecast to rise to $299 million, including $51 million for the Kalkaroo Copper-Gold Project in South Australia, where an 80% interest was acquired. The project holds a maiden ore reserve of 100 million tonnes at 0.47% copper and 0.44 grams per tonne gold. Exploration spending is expected to increase to $68 million, with regional programs nearly doubling to $56 million.
CEO Brendan Harris emphasized capital discipline, stating that consistency in cost management and margin maximization would guide future allocations. He described Kalkaroo as a "compelling risk-reward opportunity" supported by the strengthened balance sheet. Harris also noted FY26 as the company’s "most difficult year" due to safety challenges, despite improvements in total recordable injury frequency and high-potential incident reductions.
Sandfire maintained copper treatment and refining charges at zero for the remainder of 2026 and expects an update on the strategic review of its Black Butte project in Montana before the end of the first quarter of FY27. The Kalkaroo Pre-Feasibility Study is targeted for completion in the second half of FY28, while a new tailings storage facility at MATSA is slated for development beyond 2040 to support ongoing operations.
