The Sandfire Resources Ltd (ASX: SFR) share price has dropped today despite the company announcing record shipments of copper concentrate.
Near market close, the Sandfire share price was trading down 1.83% at $5.37.
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Record shipment
Earlier today, Sandfire advised that it has completed the largest-ever single shipment of copper concentrate. The mineral was extracted from its 100% owned DeGrussa operations in Western Australia.
Weighing more than 23,000 wet metric tonnes (wmt), the copper concentrate left the Port of Geraldton in Western Australia bound for Europe, to be refined in smelters. The process will be overseen by Sandfire's strategic partner, Concord Resources.
At the current spot copper prices, its estimated that the shipment is worth more than $52 million.
Management commentary
Commenting on the shipment, Sandfire managing director and CEO Karl Simich said:
Apart from being a significant milestone in itself, this record shipment is also testament to the strong demand for the high-grade, high-quality copper concentrate that we produce at DeGrussa from a range of long-term customers around the world.
Sandfire has a strong global network of concentrate customers spanning China, Japan, Korea, The Philippines and Europe which we have built up over the past decade, thanks to the consistency of production from the DeGrussa Operations and the exceptional quality of our product.
Addressing the US$150 billion industry as a whole, Mr Simich said government stimulus measures around the world had positively impacted the copper market. This included measures taken to increase infrastructure, green energy and reduce carbonisation – all of which were heavily reliant on copper.
He added:
Europe and China are both currently investing heavily in incentivising electric vehicles, which underpins a buoyant demand outlook for copper over the medium and long-term.
About the Sandfire share price
The Sandfire share price has been on a rollercoaster ride over the past 12 months. It reached as high as $6.27 in January before falling to a decade low of $2.75 in March. The company's shares are 10% down year-to-date.
Sandfire has a market capitalisation of $962.7 million and a price-to-earnings (P/E) ratio of 12.5.
