“
Ladies and Gentlemen, today is a celebration of many things
but, most importantly, it is a celebration of a new chapter for
Sandfire, for this region, and for the base metals industry in
WA” – Karl Simich speaking at the official opening ceremony of
the DeGrussa copper mine on Sunday, 4 August 2013.
It was with these words that Sandfire Managing Director
Karl Simich joined with his Chairman Derek La Ferla and
Western Australian Premier Colin Barnett to officially open the
DeGrussa copper mine – one of the standout new copper mines
in the Asia-Pacific region.
“
I have often said that we at Sandfire will ultimately be judged
on how successful we are in capitalising on the opportunity we
have been given,” Karl Simich told the 200-strong crowd of
dignitaries, shareholders, Diggers & Dealers delegates, media,
staff and contractors in a marquee specially set up in front
of the 1.5 million tonnes per annum (Mtpa) DeGrussa
concentrator on the eve of the 2013 Diggers & Dealers Mining
Forum in Kalgoorlie.
“
I am delighted to say that, so far, our team has done a
marvellous job in making the most of our good fortune.”
The comments were echoed by the large international media
contingent who made the trip to site. “Sandfire a shining beacon
in hard times” declared one newspaper the next day, while
the global CNBC network broadcast a special documentary on
“
The Sandfire story”.
That remarkable story was captured in a commemorative
book,
Opportunity Realised
,
produced for the occasion. To put
it in Karl Simich’s words: “This is a celebration of the spirit
of resilience, of optimism in the face of adversity, and the
‘
never-say-die’ attitude which forms the backbone of the
Western Australian mining and exploration industry”.
The discovery of the high-grade DeGrussa copper-gold
deposit catapulted Sandfire from obscure junior to leading
mid-tier miner. And what has continued to impress those who
follow the company is how it has delivered on its core objectives
with great focus, diligence and professionalism.
The $400 million DeGrussa copper mine, which is now
WA’s biggest copper mine, was completed on time and on
budget last year. The project has ramped up over the past 12
months, producing 64,017 tonnes of copper and 42,697 ounces
of gold for FY2013, including a highly profitable open pit direct
shipping ore operation which was completed in the first half.
This underpinned an impressive maiden annual net profit
after income tax of $88 million for the year on sales revenue of
$507.3 million. DeGrussa generated strong operating cash flow
of $250.2 million, and earnings before net finance and income
tax of $194.5 million.
These strong cash flows have enabled Sandfire to reduce the
balance of its project finance facility to $285 million, repaying
almost $100 million in the first year, and to fund an aggressive
exploration program both at DeGrussa and more broadly within
its Australian exploration portfolio.
Drilling for the next deposit at Doolgunna
Shiningbeacon
Sandfire goes from strength to strength
Karl Simich
Managing Director
Sandfire Resources Ltd
Minesite 2013
•
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