The 4QFY24 production result was mixed, with lower grades driving a weaker result for MATSA which was offset by higher grades driving a stronger result at Motheo. The FY25 guidance is positive highlighting a full 5.2mtpa run-rate at Motheo and paste-fill infrastructure recovery at MATSA; which drives 13% CuEq production growth YoY. SFR boasts a large resource base, particularly at MATSA, and we believe the rising M&A activity in the copper sector is likely to see increased value ascribed to this asset. The exploration program to increase LOM to beyond 15 years remains a key catalyst. We maintain our BUY recommendation and reduce our price by 6% to A$10.50.
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