- Sandfire Resources (SFR) extends its MATSA syndicated debt facility worth US$452 million (A$667.5 million) for an additional two years
- This follows the release of the company’s updated ore reserve estimate for its MATSA polymetallic project to 4.7 million tonnes per annum
- SFR re-payed US$198 million to its MATSA debt facility within 12 months and will hand over the remaining funds in three repayments until June 2025
- SFR also intends to extend its copper forward hedging program for MATSA into mid-2024 to target up to 30 per cent of its scheduled payable production
- SFR shares are down 1.14 per cent, trading at $6.53 at 3:55 pm AEST
Sandfire Resources (SFR) has extended its MATSA syndicated debt facility worth US$452 million (A$667.5 million) for an additional two years.
The company’s debt extension to the end of December 2028 follows the release of its updated ore reserve estimate for its MATSA polymetallic operation in Spain to 4.7 million tonnes per annum.
The mining operation comprises three underground mines and a central processing facility in the Huelva province, from which the company expects to produce 98,000 tonnes of copper equivalent this year.
This will include 56,000 tonnes of copper at US$1.84 per pound (A$2.72), with the cost inclusive of the by-product credits of zinc, lead, and silver, which can be extracted alongside copper during the mining process and sold to generate additional revenue.
The MATSA loan Facility has formed an integral part of the company’s funding package for the acquisition of its project. To date, SFR has completed scheduled repayments totalling US$198 million (A$292.4 million) within its first 12 months.
“Today’s extension of the US$452M MATSA finance facility highlights the confidence that our banking syndicate has in MATSA’s three mines and centralised processing facility and marks another important milestone for our business,” SFR Managing Director and CEO Brendan Harris said.
“We greatly appreciate the support of our international banking syndicate and the important role they play as we continue to transform Sandfire into a global copper
producer of significance.”
SFR is scheduled to make further repayments of US$20 million in the June 2023 quarter, US$46 million in the fiscal year 2024, and US$73 million in the fiscal year 2025.
These repayments are spread out more evenly over time compared to the previous repayment profile, which had a more heavily front-loaded repayment schedule.
SFR also reported it intends to extend its copper forward hedging program for MATSA by one year into mid-2024, targeting around 30 per cent of its scheduled payable production.
Through the extension, the company aims to reduce the risks associated with the price volatility of copper to ensure a more stable revenue stream over a longer period.
SFR shares were down 1.14 per cent, and trading at $6.53 at 3:55 pm AEST.