Sandfire Resources Limited (SFR) AI Stock Analysis

• Market Cap: AU$7.80B
• Dividend Yield: N/A
• Average Volume (3M): 1.41M
• Price to Earnings (P/E): 53.9
• Beta (1Y): 1.74
• Revenue Growth: 30.33%
• EPS Growth: N/A
• Country: AU
• Employees: 1,236
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Copper
• EPS (TTM): 0.13
• Shares Outstanding: 461,756,600
• 10 Day Avg. Volume: 1,453,062
• 30 Day Avg. Volume: 1,407,057
• PEG Ratio: -0.06
• Price to Book (P/B): 1.88
• Price to Sales (P/S): 2.84
• P/FCF Ratio: 9.99
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$15.04
• Price Target Upside: -10.95% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 11
• EPS Forecast (FY): 0.93
• Revenue Forecast (FY): AU$2.24B

• Rating: 71 Outperform
• Price Target: AU$17.00 ▲(0.65% Upside)

Sandfire Resources Limited demonstrates strong financial performance and operational resilience, as highlighted in the earnings call. The technical indicators support a positive trend, although the high P/E ratio suggests potential overvaluation. The company's ability to manage external challenges effectively contributes positively to its overall score.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market penetration and operational success, supporting long-term financial stability and expansion potential.

Cash Flow Management

Efficient cash flow management enhances financial flexibility, enabling strategic investments and debt reduction, which is crucial for sustainable growth.

Exploration Success

Successful exploration can lead to increased resource base, boosting future production capacity and long-term revenue potential.

Negative Factors

Cost Pressures

Rising costs can erode profit margins, impacting overall profitability and potentially limiting reinvestment in growth initiatives.

Exchange Rate Impact

Adverse currency fluctuations can increase operational costs, affecting competitiveness and financial performance in foreign markets.

Injury Frequency

Increased injury frequency can lead to higher operational risks and costs, potentially affecting workforce morale and productivity.

Sandfire Resources Limited Business Overview & Revenue Model

Company Description

Sandfire Resources Limited, a mining company, engages in the exploration, evaluation, and development of mineral tenements and projects. It primarily explores for copper, gold, silver, lead, and zinc deposits. The company owns a 100% interest in the DeGrussa copper operations located in the Bryah Basin mineral province of Western Australia; a 100% interest in the Minas De Aguas Teñidas (MATSA) Copper operations that comprise three underground mines situated in the Huelva Province of south-western Spain; and an 87% interest in the Black Butte copper project located in central Montana, the United States. It also holds interests in the Motheo copper project situated in the Kalahari Copper Belt in Botswana. Sandfire Resources Limited was incorporated in 2003 and is based in West Perth, Australia.

How the Company Makes Money

Sandfire Resources generates revenue primarily through the production and sale of copper concentrates, which contain copper, gold, and silver. The company sells its copper concentrate to various customers, including smelters and traders, often under long-term contracts, ensuring a steady income stream. In addition to copper, the company also benefits from the sale of gold and silver extracted during the processing of copper ore. Key revenue streams include sales from the DeGrussa mine, contributions from exploration projects, and potential partnerships or joint ventures that may enhance its resource base and production capabilities. Sandfire's strategic focus on sustainable mining practices and efficient operations also plays a vital role in maintaining profitability and attracting investment.

Sandfire Resources Limited Financial Statement Overview

Summary

Sandfire Resources Limited shows strong revenue growth and efficient cash flow management. The company benefits from low leverage and a robust equity base, although there is potential to enhance net profitability.

Income Statement

Sandfire Resources Limited has demonstrated strong revenue growth of 25.88% in the latest period, recovering from previous declines. The company maintains a high gross profit margin of 101.31%, indicating efficient cost management. However, the net profit margin is relatively low at 7.87%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are healthy at 18.95% and 45.53%, respectively, reflecting solid operational performance.

Balance Sheet

The company's balance sheet shows a favorable debt-to-equity ratio of 0.14, indicating low leverage and financial stability. The return on equity (ROE) is modest at 5.22%, suggesting moderate efficiency in generating profits from shareholders' equity. The equity ratio stands at 62.31%, highlighting a strong equity base relative to total assets.

Cash Flow

Sandfire Resources Limited exhibits impressive free cash flow growth of 272.34%, showcasing robust cash generation capabilities. The operating cash flow to net income ratio is strong at 2.39, indicating efficient conversion of income into cash. The free cash flow to net income ratio is also healthy at 0.64, reflecting good cash flow management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	941.67M	1.19B	921.57M	1.16B	1.42B	771.83M
Gross Profit	287.42M	1.20B	917.78M	-40.98M	435.96M	236.40M
EBITDA	389.11M	539.76M	358.32M	397.19M	565.76M	384.43M
Net Income	-19.67M	93.25M	-17.35M	-76.68M	153.66M	172.39M
Balance Sheet
Total Assets	3.00B	2.87B	3.00B	4.75B	4.93B	1.19B
Cash, Cash Equivalents and Short-Term Investments	183.34M	110.67M	183.34M	213.23M	673.44M	574.51M
Total Debt	582.58M	253.24M	582.58M	896.25M	1.18B	12.77M
Total Liabilities	1.33B	1.09B	1.33B	2.14B	2.51B	278.73M
Stockholders Equity	1.67B	1.79B	1.67B	2.61B	2.42B	907.83M
Cash Flow
Free Cash Flow	90.55M	337.16M	66.18M	-372.25M	252.22M	346.39M
Operating Cash Flow	316.95M	523.71M	292.01M	113.86M	536.68M	465.23M
Investing Cash Flow	-220.27M	-185.65M	-219.73M	-442.24M	-2.25B	-131.10M
Financing Cash Flow	-55.82M	-411.19M	-86.42M	-125.41M	1.78B	-56.95M

Sandfire Resources Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SFR, the sentiment is Positive. The current price of 16.89 is above the 20-day moving average (MA) of 16.41, above the 50-day MA of 16.09, and above the 200-day MA of 12.61, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 58.14 is Neutral, neither overbought nor oversold. The STOCH value of 58.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:SFR.

Sandfire Resources Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SFR	71 Outperform	AU$7.80B	53.93	5.39%	―	30.33%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
WA1	46 Neutral	AU$1.36B	-255.59	-4.85%	―	―	-17.57%
HGO	41 Neutral	AU$136.56M	-4.65	-29.41%	―	281.37%	2.27%
CVV	41 Neutral	AU$156.45M	-20.29	-73.21%	―	―	-11.29%
AR1	40 Underperform	AU$76.45M	-0.52	―	―	-57.00%	-1789.13%
HCH	31 Underperform	AU$228.17M	-17.55	-4.91%	―	―	-20.00%

Sandfire Resources Limited Corporate Events

Sandfire Resources Seeks ASX Quotation for New Securities

Sandfire Resources Limited has announced the application for the quotation of 50,076 fully paid ordinary securities on the Australian Securities Exchange (ASX). This move, involving securities issued under an employee incentive scheme, reflects the company’s ongoing efforts to enhance its financial structure and incentivize its workforce, potentially impacting its market position and stakeholder interests.

Sandfire Resources Announces New Securities Issuance

Sandfire Resources Limited has announced the issuance of 919,240 new fully paid ordinary securities, which are set to be quoted on the Australian Securities Exchange (ASX). This move is part of the company’s strategy to enhance its financial flexibility and support its ongoing operations, potentially impacting its market positioning and offering implications for its stakeholders.

Sandfire Resources Announces Director’s Interest Changes

Sandfire Resources Limited announced a change in the director’s interest, specifically involving Brendan Harris. The changes include the acquisition and disposal of shares and performance rights, reflecting adjustments in Harris’s holdings due to the exercise of options and participation in incentive plans. This announcement highlights the company’s ongoing efforts to align director incentives with corporate performance, potentially impacting shareholder value and market perceptions.

Macquarie Group Ceases Substantial Holding in Sandfire Resources

Sandfire Resources Limited has announced that Macquarie Group Limited and its controlled entities have ceased to be substantial holders in the company. This change in substantial holding may impact the company’s shareholder structure, potentially affecting its market perception and investor relations.

Australian Retirement Trust Ceases Substantial Holding in Sandfire Resources

Sandfire Resources Limited has announced that Australian Retirement Trust Pty Ltd has ceased to be a substantial holder in the company as of November 13, 2025. This change in substantial holding could impact the company’s shareholder dynamics and influence its market perception, as substantial holders often play a significant role in corporate governance and strategic decisions.

Sandfire and Havilah Partner to Advance Kalkaroo Copper-Gold Project

Sandfire Resources Limited and Havilah Resources Limited have signed a binding term sheet to advance the Kalkaroo Copper-Gold Project in South Australia. The agreement allows Sandfire to earn an 80% interest in the project through a two-stage earn-in structure, involving a total consideration of A$210M and a commitment to regional exploration. This collaboration aims to unlock one of Australia’s largest undeveloped copper-gold deposits and enhance regional exploration potential, potentially transforming the Curnamona Province into a major copper hub.

Sandfire Resources’ AGM Results: Key Resolutions Passed

Sandfire Resources Limited, a company involved in the mining industry, held its 2025 Annual General Meeting where several resolutions were passed. Key resolutions included the re-election of directors and the approval of incentive grants for the CEO and Managing Director, reflecting strong shareholder support and potentially impacting the company’s leadership stability and strategic direction.

Sandfire Resources Reports Strong 2025 Performance and Strategic Focus

Sandfire Resources Limited reported a successful 2025 financial year, marked by a 12% increase in Group Copper Equivalent Production and strong financial results, including a significant reduction in net debt. The company maintained a strong safety performance and continued its commitment to sustainability, with strategic efforts to increase reserves and mine life. The Board reviewed its committee structure to support its copper portfolio, and no dividend was declared for FY25, prioritizing disciplined investment and balance sheet de-gearing.

Sandfire Resources Surpasses Production Targets and Reduces Net Debt in Q1 FY26

Sandfire Resources Limited reported a reduction in its Total Recordable Injury Frequency to 1.4, with no injuries in Q1 FY26, highlighting its commitment to safety. The company achieved a CuEq production of 35.5kt, surpassing its plan by nearly 5%, and maintained its production and cost guidance for FY26. The MATSA and Motheo operations contributed significantly to this output, despite challenges with ore quality and processing rates. Financially, Sandfire achieved $328M in sales revenue and reduced its net debt by $61M, reflecting strong operational and financial discipline. The company also received regulatory approval for a new tailings storage facility and continued its exploration investments, positioning itself strategically for future growth.

Sandfire Resources to Release September 2025 Quarterly Report

Sandfire Resources Limited has announced that its September 2025 Quarterly Report will be released on October 27, 2025. The company will host a teleconference to discuss the report, highlighting its ongoing commitment to transparency and communication with stakeholders. This announcement underscores Sandfire’s proactive approach in keeping investors informed about its operational progress and market strategies.

Sandfire Resources Announces Quotation of New Securities on ASX

Sandfire Resources Limited has announced the quotation of 1,636,175 fully paid ordinary securities on the Australian Securities Exchange (ASX). This development follows the exercise of options or conversion of other convertible securities, potentially impacting the company’s capital structure and market presence.

Australian Retirement Trust Ceases Substantial Holding in Sandfire Resources

Sandfire Resources Limited has announced that Australian Retirement Trust Pty Ltd has ceased to be a substantial holder in the company as of October 2, 2025. This change in substantial holding could impact the company’s shareholder structure and influence its market positioning, potentially affecting stakeholders’ interests and the company’s strategic decisions moving forward.

Sandfire Resources Announces Hybrid Format for 2025 AGM

Sandfire Resources Limited has announced its 2025 Annual General Meeting (AGM) will be held as a hybrid event, allowing shareholders to participate either in person or via a live webcast. The AGM is scheduled for October 31, 2025, at the Parmelia Hilton in Perth, Western Australia. This approach reflects Sandfire’s commitment to accessibility and shareholder engagement, ensuring stakeholders can participate in the governance process regardless of their location. The company has made meeting documents available online and provided detailed instructions for voting and participation, emphasizing its focus on transparency and modern communication methods.