Sandfire Resources (ASX:SFR) has released a preliminary March operations update, reporting a resilient financial position despite operational headwinds across its key global assets.
The copper miner established an unaudited net cash balance of $76 million as of March 31, bolstered by a significant $63 million increase over the previous quarter.
The growth was achieved alongside substantial outlays, including a $26.1 million inaugural tax instalment at Motheo and $46.5 million in payments to Havilah Resources.
The group delivered 34.5kt of copper equivalent production for the quarter, bringing the nine-month total to 106.5kt.
Performance at the MATSA operation in Spain was hampered by unusually high rainfall and unplanned maintenance, leading to a quarterly output of 21.7kt CuEq.
MATSA’s underlying unit costs are expected to rise temporarily above the $87/t seen in the first half of the year.
Meanwhile, the Motheo operation in Botswana contributed 12.8kt CuEq as it navigated a delayed transition into higher-grade ore, though mining and processing rates reached record annualised levels.
Sandfire maintained its FY26 group CuEq guidance of 149kt to 165kt, though it now expects full-year volumes to land in the lower half of that range.
Management noted that while unit costs currently align with guidance, external factors—specifically ongoing conflict in the Middle East—pose risks to freight rates and input costs.
The group has trimmed its capital expenditure guidance by $15 million to $225 million, citing mobilisation delays at the Kalkaroo project.