Why Sandfire Resources’ Share Price Shot up by 3.29% Today

Sandfire Resources [ASX: SFR] is a leading Australian copper producer which operates the high-grade DeGrussa copper-gold mine in Western Australia.

Founded in 2003, the company focuses on discovering, developing and operating high-quality resource assets. At time of writing, the stock was up 3.29% for the day.

The reason for the rise

Recently Sandfire’s share price has been on fire. There are some good reasons as to why. Sandfire posted strong half-year results for the six months leading to 31 December, 2017. These included a gain of $296.2 million.

On top of these strong results, today Sandfire commenced drilling at the Lorella prospect in McArthur Basin.

This project is expected to take up to two weeks. Analysis results should be received and reported on in late May. If these results are positive, meaning an adequate amount of oxide copper is found, further drilling will take place.

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Furthermore, US sanctions on Russian individuals and companies could have an ongoing effect on commodities globally. These sanctions only relate to aluminium at this point. They could easily be expanded to include copper.

What’s next for Sandfire?

If the sanctions are expanded to include copper, this could yield an even higher increase to Sandfire’s share price. Russia generates 4% of the global supply of copper. Sanctions would make the world more reliant on alternatives. Copper isn’t the easiest mineral to find either, and is even harder to mine economically. So companies like Sandfire have the potential for continued growth in the future.


Ryan Dinse,
Editor, Money Morning

PS: Sandfire is just one of the many mining companies listed on the ASX. If you’re looking to invest in mining for big returns, your money may be better spent in smaller, up and coming mining companies set to boom. That’s why resources analyst Jason Stevenson has written a free report detailing ‘The Top 10 Mining Stocks in Australia for 2018’, where you could make potentially life-altering returns. Download your free copy here.

Ryan Dinse is an Editor at Money Morning.

He has worked in finance and investing for the past two decades as a financial planner, senior credit analyst, equity trader and fintech entrepreneur.

With an academic background in economics, he believes that the key to making good investments is investing appropriately at each stage of the economic cycle.

Different market conditions provide different opportunities. Ryan combines fundamental, technical and economic analysis with the goal of making sure you are in the right investments at the right time.

Ryan's premium publications include:

Money Morning Australia