Sandfire Resources Limited (SFR) AI Stock Analysis

• Market Cap: $5.05B
• Dividend Yield: N/A
• Average Volume (3M): 1.48M
• Price to Earnings (P/E): 38.0
• Beta (1Y): 1.85
• Revenue Growth: 42.05%
• EPS Growth: N/A
• Country: AU
• Employees: 1,236
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Copper
• EPS (TTM): 0.16
• Shares Outstanding: 459,071,870
• 10 Day Avg. Volume: 1,461,689
• 30 Day Avg. Volume: 1,484,562
• PEG Ratio: 0.20
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.31
• Enterprise Value/Market Cap: 0.60
• Enterprise Value/Revenue: 0.84
• Enterprise Value/Gross Profit: 10.55
• Enterprise Value/Ebitda: 2.30
• 1Y Price Target: $10.96
• Price Target Upside: -3.25% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 67 Neutral
• Price Target: AU$12.50 ▲(10.33%Upside)

Sandfire Resources Limited's stock is supported by strong technical indicators and positive earnings call highlights, including improved production and reduced debt. However, financial performance concerns and a high valuation weigh down the overall score.

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 Limited generates revenue through the extraction, production, and sale of mineral resources, primarily copper and gold. The company's main revenue stream comes from the sale of these metals, which are extracted from its mining operations. Sandfire operates several mining projects, including the DeGrussa Copper-Gold Mine in Western Australia, which is a significant contributor to its income. Additionally, the company invests in exploration activities to discover new mineral deposits and expand its resource base, ensuring long-term revenue generation. Strategic partnerships and joint ventures with other mining entities also play a role in enhancing Sandfire's operational capabilities and financial performance. The company's ability to effectively manage costs and optimize production processes further supports its profitability.

Sandfire Resources Limited Financial Statement Overview

Summary

Sandfire Resources Limited shows mixed financial performance with solid equity and manageable debt levels. However, volatility in income and cash flow metrics indicates operational challenges, necessitating a focus on stabilizing revenue and improving net income.

Income Statement

Sandfire Resources Limited has faced significant volatility in its income statement metrics. The latest year shows a decline in revenue and a negative net income, resulting in a negative net profit margin. Although the company has maintained a positive gross profit margin, its EBIT and EBITDA margins have decreased, highlighting challenges in operational efficiency.

Balance Sheet

The balance sheet of Sandfire Resources indicates a moderate financial position with a debt-to-equity ratio that reflects a manageable level of debt. The equity ratio is strong, suggesting a stable asset base relative to equity. However, declining stockholders' equity over the years raises concerns about long-term sustainability.

Cash Flow

Sandfire Resources' cash flow statement reveals fluctuating free cash flow trends. Despite generating positive operating cash flow, the company has struggled with maintaining consistent free cash flow growth. The free cash flow to net income ratio is affected by negative net income in the recent year, which is a concern for financial health.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	921.57M	1.16B	1.42B	771.83M	645.46M
Gross Profit	917.78M	-40.98M	435.96M	236.40M	133.48M
EBITDA	358.32M	397.19M	628.87M	338.73M	314.52M
Net Income	-17.35M	-76.68M	153.66M	172.39M	74.05M
Balance Sheet
Total Assets	3.00B	4.75B	4.93B	1.19B	913.93M
Cash, Cash Equivalents and Short-Term Investments	183.34M	213.23M	673.44M	574.51M	291.14M
Total Debt	582.58M	896.25M	1.18B	12.77M	12.49M
Total Liabilities	1.33B	2.14B	2.51B	278.73M	163.71M
Stockholders Equity	1.67B	2.61B	2.42B	907.83M	749.02M
Cash Flow
Free Cash Flow	66.18M	-372.25M	252.22M	346.39M	158.41M
Operating Cash Flow	292.01M	113.86M	536.68M	465.23M	272.61M
Investing Cash Flow	-219.73M	-442.24M	-2.25B	-131.10M	-178.79M
Financing Cash Flow	-86.42M	-125.41M	1.78B	-56.95M	-50.18M

Sandfire Resources Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 11.33 is below the 20-day moving average (MA) of 11.43, above the 50-day MA of 10.82, and above the 200-day MA of 10.36, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 52.82 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 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	67 Neutral	$5.05B	38.02	5.11%	―	42.05%	―
Sector *	43 Neutral	AU$1.38B	-6.10	-40.62%	4.25%	-4.78%	-43.21%
HHLKF		$55.16M	―	-4.78%	―	―	―
HGO	41 Neutral	AU$99.21M	―	-49.83%	―	―	-35.29%
STC		€49.83M	―	-52.97%	―	―	―
WA1	46 Neutral	AU$986.62M	―	-4.24%	―	―	-40.25%
AR1	39 Underperform	AU$84.35M	―		―	-25.56%	-339.66%

Sandfire Resources Limited Corporate Events

Sandfire Resources Showcases MATSA Operation to Financial Community

Sandfire Resources Ltd is hosting a financial community site visit at its MATSA Operation in Spain, highlighting its modern processing facility and commitment to sustainability. The company reports increased production and safety improvements, with plans to extend the mine’s life and continue operations beyond 2040, supported by renewable energy and new mineral discoveries.

The most recent analyst rating on (AU:SFR) stock is a Buy with a A$10.80 price target. To see the full list of analyst forecasts on Sandfire Resources Limited stock, see the AU:SFR Stock Forecast page.

Sandfire Resources Unveils Promising Drilling Results at MATSA

Sandfire Resources Ltd has announced promising assay results from its ongoing drilling program at the MATSA mining complex, confirming new mineralised extensions at the Magdalena and Aguas Teñidas sites. These findings are expected to significantly shape future exploration plans and support the company’s strategic objective of increasing ore reserves and extending mine life, thereby enhancing its industry positioning and potential returns for stakeholders.

The most recent analyst rating on (AU:SFR) stock is a Buy with a A$10.80 price target. To see the full list of analyst forecasts on Sandfire Resources Limited stock, see the AU:SFR Stock Forecast page.

Sandfire Resources Sells Old Highway Gold Project to Catalyst Metals

Sandfire Resources Limited has entered into a binding Sale and Purchase Agreement with Catalyst Metals Limited for the sale of the Old Highway Gold Project, located near Sandfire’s DeGrussa Copper-Gold Mine in Western Australia, for A$32.5 million. The transaction is expected to aid Sandfire in covering rehabilitation costs at DeGrussa and create opportunities for local stakeholders, while increasing the likelihood of the project’s future development, benefiting stakeholders including traditional owners and the local community.

Sandfire Resources Updates on Director’s Shareholdings

Sandfire Resources Limited has announced a change in the director’s interest, specifically concerning Brendan Harris. Mr. Harris acquired 366,667 ordinary shares due to the vesting of Tranche 2 of Sign on Rights and disposed of 172,333 shares to cover tax liabilities. This change reflects the company’s ongoing management of executive compensation and equity interests, potentially impacting shareholder perceptions and market dynamics.

Change in Substantial Holder Interests for Sandfire Resources

Sandfire Resources Limited has announced a change in the interests of a substantial holder, State Street Bank and Trust Company, which has lent securities and retains a relevant interest under a securities lending agreement. This change in voting power and relevant interests could impact the company’s governance and decision-making processes, potentially affecting its stakeholders and market positioning.

Sandfire Resources Reports Strong Q3 Despite Weather Challenges

Sandfire Resources Limited reported a decrease in its Total Recordable Injury Frequency and maintained robust production results despite extreme weather challenges in Spain and Botswana. The company achieved significant copper equivalent production and managed cost inflation due to exchange rate fluctuations. Sandfire also simplified its funding arrangements by establishing a new $650M Corporate Revolver Facility, reducing net debt significantly. The company remains on track to meet its annual production guidance and plans to increase copper equivalent production at Motheo in FY26, supported by strong commodity pricing and strategic drilling activities.