The company today announced a 66% jump in half-year net profit after tax to A$59.5 million on record revenue of $296.2 million and cashflow from operating activities of $106.3 million.
Sandfire declared a fully franked interim dividend of 8c per share, up from 5c per share for the previous corresponding period.
Sandfire closed 2017 with no debt and $164.4 million in cash, and chief financial officer Matt Fitzgerald told a teleconference that the company was “accumulating cash at a very pleasing rate”.
Simich said the company was in a strong position to act on external growth opportunities.
“We’re very active and in an excellent position from a strategic point of view, from a financial point of view, from a people point of view,” he said.
“We’re in an excellent position to act on worthwhile opportunities.”
Sandfire is looking at base and precious metals opportunities with a specific focus on copper and zinc.
Simich said the company could spend anywhere between “$0 and $1 billion, depending on the opportunity” and didn’t rule out a merger if it created value.
He said Sandfire would prefer a clear path to control, but didn’t rule out taking stakes in smaller explorers.
Simich admitted the company had opportunities to go the Democratic Republic of Congo but decided it was “not for us”, instead preferring to focus on stable jurisdictions.
He said the three areas of focus were people, projects and money.
“We’ve got people and money – the project seems to be the hardest thing,” Simich said.
In the meantime, Sandfire is hoping to break ground at Black Butte in Montana by the end of the year, while the new Monty mine near DeGrussa is nearing first production.
Simich said Sandfire would continue an aggressive exploration program in the Doolgunna area, which he described as the “centre of the universe in terms of creating value”.
“Extending the mine life at DeGrussa would be an absolute boon for this company,” he said.
“Technically, we believe we’re seeing very promising signs.”
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