Sandfire Resources (SFR) is not the lone casualty of the current market collapse, with its peer group of mid-cap ASX listed Australian domiciled base metal producers down an average ~40% (incorporating IGO, OZL, SFR, and WSA). SFR has fallen the most, down ~50% year-to-date, and is now trading below the value of December Q cash ($201m) plus free cash generation from DeGrussa at current spot commodity prices out to the end of the mine life (mid-2022). The pipeline projects incorporating Botswana and Black Butte and exploration tenure are attributed no value in the current share price. Upon a market recovery, we see this value being reinstated, particularly as the Botswana Project approaches a Final Investment Decision (FID) in mid-2020 and given the likelihood of the Black Butte Project attaining a Record of Decision (RoD: mining approval) in the near term.
To access the full report please log in under the Client Area at the bottom of this page.
Argonaut’s Client Area allows you to view delayed share prices, access Argonaut’s wealth of Research as well as create custom portfolios and set up company watch lists.
If you would like to access our research please contact us to create an account.
