Sandfire Resources (SFR) – Dependable
November 13, 2025
Sandfire Resources is a mining company that produces copper, gold, silver and zinc from projects in Australia, Spain and Botswana. The company was incorporated in 2003 and is based in West Perth, Australia.
Sandfire Resources delivered a decent September-quarter result where slight variances against our estimates were driven by polymetallic variability that affected grades at its Minas de Aguas Teñidas (MATSA) copper project in Spain. The miner is tracking well to FY26 guidance, with production trading towards the mid-point of its target band at 157,000 tonnes of copper equivalent (CuEq) and costs to increase marginally at the Motheo operation in Botswana as A4 open pit operation ramps up across the year. Motheo is tracking slightly under cost guidance at US$42 a tonne currently but this should increase to circa US$44 per tonne as the ramp-up of A4 increases haulage and handling costs.
The company is nearing net cash, a position we expect to be reached in the current quarter, which should free up future cash flows for capital returns. We assume a dividend in the very first instance given the current franking balance of US$262 million ($400 million). We have incorporated the September-quarter result into our model and adjusted our outlook to better align with FY26 company guidance. This included increasing our haulage and handling costs at Motheo slightly, which drives minor downgrades to our FY26 earnings estimates.
Our Target Price increases marginally to $16.50 from $16.45 as we roll forward our model, and we retain our Accumulate recommendation.
Insights that count
Discover the best opportunities to outperform the market. Our research team dig deep into the market, company and stock data to bring you insights others might overlook.
ResMed (RMD) – Out of the Matrix
ResMed designs and manufactures medical devices and cloud-based software applications for the sleep apnoea and respiratory care markets.
Orora (ORA) – Bottled up
Orora designs and manufactures aluminium cans and glass bottles, principally for beer, wine and spirits, in Australia, New Zealand, the US and Europe. Orora was incorporated in 1949 and is headquartered in Hawthorn in Melbourne.
Virgin Australia Holdings (VGN) – Keeping it simple
Virgin Australia is the nation’s No.2 airline and offers domestic air services under its own brand and overseas travel via its international partners, which include Qatar Airways, Singapore Airlines, United Airlines, Air Canada, Air New Zealand, Hawaiian Airlines, and All Nippon Airways, and owns the Velocity loyalty business.
.webp)