The Sandfire Resources NL (ASX: SFR) share price has jumped 5.19% higher, up 37 cents to $7.50 early on Thursday.
The copper and gold mining company announced its full-year results, posting a record net profit of $123 million, up 59% on the prior year.
Revenue increased 14% to a record $606.7 million, which was driven by strong copper prices.
Sandfire says the record financial result was underpinned by strong FY2018 production from its flagship DeGrussa Copper-Gold Mine in Western Australia of 64,918 tonnes of copper and 39,273 ounces of gold at a C1 cost of US$0.93/lb.
The DeGrussa Mine segment generated earnings before net finance and income tax expense of $226.3 million, up from $158.5 million in FY17.
Sandfire finished the year with Group cash of $243.4 million, up from $126.7 million the year prior.
The company announced a final fully-franked dividend of 19 cents per share, up 46% from the prior year’s final dividend of 13 cents per share.
Managing Director Karl Simich said: “The combination of strong production, lower operating costs and a significantly improved copper price translated into impressive results at every level of our business – highlighted by record revenues, record cash-flows and exceptional operating margins.”
Sandfire says its copper production for FY19 is forecast at 63-67,000t and gold production at 37-40,000oz at a C1 cash cost of US$1.00-1.05/lb.
It also reported that the Monty Copper-Gold Project development as part of the Springfield Joint Venture is progressing and on track to intersect first development ore in late Q2 FY2019.
Since the beginning of 2018, the Sandfire Resources NL share price has gained 8.39% compared to the S&P/ASX 200 Index which has gained 4.87% in the period.