Sandfire Resources Limited (ASX: SFR) has delivered its December 2025 update, reaffirming production targets while navigating operational challenges at its Motheo facility. The Sandfire Resources December 2025 update, released on 12 January 2026, confirms the Company’s commitment to achieving the mid-point of its Copper Equivalent production guidance of 157kt.
Figure 1: Sandfire Resources personnel examining drill core samples during site operations. [Source: Sandfire Resources]
The Sandfire Resources FY26 outlook remains positive despite a revised production weighting. The Company now expects a 46:54 split between the first and second halves of FY26, adjusting from the previously communicated 48:52 distribution.
MATSA Delivers Robust Results
The Sandfire Resources December 2025 update highlighted exceptional performance from the Company’s MATSA operations in Spain. The complex produced 46.4kt of Copper Equivalent in the first half, matching the previous year’s output of 46.3kt.
MATSA’s production represents 48 per cent of the midpoint of its annual guidance range. The improvement came from higher-grade polymetallic ore feed and better flotation recoveries during the quarter.
The underground mining complex continues to demonstrate typical variability in ore types. This characteristic has not affected the Sandfire Resources FY26 outlook for the Spanish operations.
Motheo Operational Challenges Highlighted in Sandfire Resources Production Update
The Sandfire Resources production update revealed challenges at the Motheo Copper Project during the first half of FY26. The Botswana operation produced 25.7kt of Copper Equivalent across the half, down from 29.3kt in the prior corresponding period.
A faulty OEM specification grate in the SAG mill required unscheduled maintenance during the second quarter. The Company brought forward scheduled maintenance to address the premature failure.
Lower mobile fleet availability delayed the transition into higher-grade ore at the T3 pit. The Sandfire Resources December 2025 update noted a strategic decision to increase material movement at the A4 pit following successful dewatering.
The extreme rainfall event from FY25 necessitated the dewatering program. Once completed, the Company prioritised derisking the mine plan through increased material movement.
Motheo’s second quarter production of 12.1kt represented an 11 per cent decrease from the previous quarter. Despite this, the Sandfire Resources FY26 outlook for Motheo remains confident of achieving the mid-point of its annual guidance of 61kt.
Financial Turnaround Strengthens Sandfire Resources FY26 Outlook
The Sandfire Resources December 2025 update revealed an expected unaudited net cash position of $13 million as at 31 December 2025. This represents a substantial improvement from the $62 million net debt position at 30 September 2025.
The Company had reported net debt of $288 million at 31 December 2024. The year-on-year improvement demonstrates significant progress in strengthening the balance sheet.
Figure 2: Sandfire Resources December 2025 quarterly performance snapshot showing copper, zinc, lead, silver, and copper equivalent production metrics. [Source: Marketindex]
At 31 December 2023, Sandfire Resources held net debt of $476 million. The steady reduction over two years positions the Company favourably for growth initiatives and supports the Sandfire Resources FY26 outlook.
Kalkaroo Project Gains Momentum
The improved financial position outlined in the Sandfire Resources production update supports strategic initiatives beyond existing operations. The Company is well-positioned to advance the Kalkaroo Copper-Gold Project in South Australia.
Figure 3: Aerial view of the Kalkaroo Copper-Gold Project area in South Australia. [Source: Australian Mining]
The project is being developed in partnership with Havilah Resources Limited (ASX: HAV). Regional exploration opportunities in the Curnamona Province are also part of the growth strategy.
Advancement of these initiatives depends on satisfying the conditions of the proposed transaction announced on 13 November 2025. If conditions are met and the transaction becomes unconditional, Sandfire Resources can proceed with development activities.
Annual Guidance Remains Unchanged
The Sandfire Resources December 2025 update confirmed that annual guidance for contained metal production remains unchanged. The Company expects to process 10.2 million tonnes of ore across both operations in FY26.
MATSA is guided to produce between 52kt and 58kt of contained copper. Motheo’s guidance range sits between 50kt and 56kt for the full year.
Figure 4: Sandfire Resources FY26 production guidance and operating cost breakdown across MATSA and Motheo operations. [Source: Marketindex]
Combined group copper production guidance ranges from 102kt to 114kt. Zinc production is expected between 94kt and 104kt, while lead output is forecast at 7.5kt to 8.5kt.
Silver production is guided between 5.0 and 5.4 million ounces. Total Copper Equivalent production guidance spans 149kt to 165kt for FY26, reinforcing the positive Sandfire Resources FY26 outlook.
Share Price Performance
Sandfire Resources shares closed at $18.78 on the day of the announcement. The stock has traded within a 52-week range of $8.05 to $19.43 per share.
Figure 5: Sandfire Resources (ASX: SFR) share price performance over the past six months leading into January 2026. [Source: ASX]
The Company’s market capitalisation stands at $8.68 billion. Investors will closely monitor the full December 2025 Quarterly Report scheduled for release on 22 January 2026.
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Final Thoughts
The Sandfire Resources December 2025 update demonstrates the Company’s ability to navigate operational challenges while maintaining production guidance. The significant improvement in financial position from net debt to net cash within a single quarter provides strategic flexibility for future growth initiatives.
MATSA’s consistent performance offsets Motheo’s temporary setbacks, with the revised production weighting reflecting operational realities rather than fundamental issues. As maintenance is completed and higher-grade ore feeds into processing, the Sandfire Resources FY26 outlook appears achievable and well-supported by operational improvements.
The strengthened balance sheet enables the Company to pursue growth opportunities, particularly the Kalkaroo Copper-Gold Project. The Sandfire Resources production update positions the Company favourably as the second half unfolds and production recovers at Motheo.
FAQs
Q1. What does the Sandfire Resources December 2025 update reveal about production targets?
Ans. The Sandfire Resources December 2025 update confirms the Company maintains its FY26 Copper Equivalent production guidance mid-point of 157kt, with a revised production weighting of 46:54 between the two halves.
Q2. Why did the Sandfire Resources production update show a decline at Motheo?
Ans. The Sandfire Resources production update attributed Motheo’s decline to a premature SAG mill grate failure requiring unscheduled maintenance, lower mobile fleet availability, and strategic decisions to derisk the A4 pit mine plan.
Q3. What is the Sandfire Resources FY26 outlook for financial position?
Ans. The Sandfire Resources FY26 outlook shows a strong financial turnaround, with the Company expecting a net cash position of $13 million as at 31 December 2025, compared to $62 million net debt at 30 September 2025.
Q4. When will the full Sandfire Resources December 2025 update quarterly report be released?
Ans. Sandfire Resources will release its full December 2025 Quarterly Report on 22 January 2026, with a teleconference scheduled for 10.00am AWST on the same day.
