This article first appeared on GuruFocus .
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Revenue:$672 million for the first half of FY26, a record for a six-month period.
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Copper Equivalent Production:72,100 tonnes for the six months to December 31, 2025.
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Underlying EBITDA:$304 million.
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Underlying Profit:$107 million, more than doubled from the last half.
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Statutory Profit:$96 million.
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Operating Margin at Motheo:57%.
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Operating Unit Cost at Motheo:$43 per tonne.
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Underlying Operations EBITDA at Matta:Increased by 37% to $184 million with a 47% margin.
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Operating Unit Cost at Matta:$87 per tonne.
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G&A Expense:$144 million, including $113 million at Masa and $30 million at Motheo.
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Underlying Net Finance Expense:$11.4 million, decreased by 58% compared to the prior half.
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Income Tax Expense:$42 million with an effective tax rate of 28%.
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Capital Expenditure:Increased by 14% to $112 million.
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Net Cash Position:$13 million, a significant improvement from peak net debt of $481 million.
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Dividend:No dividend declared for the first half of FY26.
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Capital Expenditure Guidance:Increased by $10 million to $240 million.
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Exploration and Evaluation Expenditure Guidance:Increased by $5 million to $51 million.
Release Date: February 19, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Sandfire Resources Ltd ( SFRRF ) achieved a record revenue of $672 million for the first half of FY26, driven by strong commodity prices.
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The company reported an underlying EBITDA of $304 million and an underlying profit of $107 million, more than doubling from the previous half.
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Sandfire Resources Ltd ( SFRRF ) has transitioned from a peak net debt of $481 million to a net cash position of $13 million, significantly strengthening its balance sheet.
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The company has secured approximately 75% of its concentrate sales for calendar years 2026 and 2027 at favorable TCRC terms, reflecting strong market demand.
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Sandfire Resources Ltd ( SFRRF ) is advancing its sustainability initiatives, including the construction of a 21-megawatt solar facility at Motheo, which will provide up to 33% of the operation's power requirements.
Negative Points
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The company's hedging program associated with the MATSA acquisition negatively impacted revenue by $23 million.
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Sandfire Resources Ltd ( SFRRF ) faced challenges with lower-than-expected production at Motheo, impacting operational performance.
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The company experienced a 15% increase in underlying operating costs at Matta, driven by currency fluctuations and recovery improvement initiatives.
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No dividend was declared for the first half of FY26, as the company focuses on preserving its strong financial position.
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Sandfire Resources Ltd ( SFRRF ) anticipates an increase in depreciation and amortization expenses in the second half due to planned throughput increases at both MATSA and Motheo.
Q & A Highlights
Q: Brendan, you mentioned a production skew for the second half. Can you clarify the split between Q3 and Q4 for both assets, and is there a dominance of copper or zinc in the mine sequence? A: Brendan Harris, CEO: The split is more balanced at MATSA, around 48-52 or 49-51. Motheo has a more significant skew due to opening the A4 ore body and accessing high-grade ore. Jason Grace, COO, added that the copper-only ore proportion will be maintained, with a slight increase in copper and zinc grades expected in the second half.
Q: With BHP's recent silver stream, how do you plan to maximize the value of your silver revenue for shareholders? A: Brendan Harris, CEO: We aim to provide pure exposure to our commodities, avoiding streams that increase beta and cost structure. Our byproducts, including silver, enhance our cost position and competitiveness. We focus on being effective risk managers and maintaining a simple strategy to deliver value.
Q: Can you confirm if the solar facility at Motheo is being done off Sandfire's balance sheet with a PPA in place? A: Brendan Harris, CEO: Yes, it's a third-party lease agreement with no meaningful impact on our P&L. It aligns with our decarbonization commitment and mitigates risks like power tariff hikes and grid instability.
Q: Megan, regarding the Motheo concentrate offtake, can you elaborate on the prevailing market conditions for TCRC terms? A: Megan Jansen, CFO: We've locked in approximately 75% of our concentrate sales for 2026 and 2027 at prevailing market conditions, with TCRCs in negative territory, ranging from negative $50 to negative $100 million. For 2027, a more conservative approach is advised.
Q: On the Kalkaroo opportunity, how much of the drilling is planned for extension versus infill? A: Brendan Harris, CEO: The primary objective is to test the ore body's scale, focusing on step-out drilling to understand its true extent. Over time, we will increase drill density if results are promising. Jason Grace, COO, added that both RC and diamond drilling will be used for comprehensive data collection.
Q: Has the recent wet weather in Spain impacted operations at MATSA? A: Brendan Harris, CEO: While heavy rains have affected the region, our MATSA team managed well with new water storage facilities. There was a temporary reduction in throughput, but no material impact is expected for the full year. Jason Grace, COO, noted the community impact and the team's effective management.
Q: Regarding the broader tenement package at Kalkaroo, what are you seeing outside the main deposit? A: Brendan Harris, CEO: The broader tenement package offers significant exploration potential. We are focused on understanding the scale and continuity of high-grade mineralization. The Kinamona province's prospectivity is a key factor in our strategy, and we believe the investment will be worthwhile.
Q: What is the relevance of the NPL versus the ML at Kalkaroo? A: Brendan Harris, CEO: The configurations are historical, and as the project evolves, we may seek to expand MLs or add NPLs. This will accommodate infrastructure needs as the opportunity grows. We plan to provide more insights once we have a meaningful presence on the ground.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
