Sandfire Resources produced 13,341 tonnes of copper and 631,000 ounces of silver at its Motheo mine in Botswana during the three months ended 30 September 2026, compared with 12,050 tonnes of copper and 423,000 ounces of silver during the corresponding period last year.
The Australian mining company said in its quarterly report released on 27 October that copper-equivalent production reached 16,137 tonnes, compared with 13,927 tonnes a year earlier, as the higher-grade A4 open pit continued contributing to production.
The A4 deposit supplied approximately half of the ore processed at Motheo during the quarter, while the mine processed 1.41 million tonnes of ore, compared with 1.77 million tonnes in the preceding June quarter.
Sandfire maintained its production forecast of between 50,000 and 56,000 tonnes of copper and between 2.4 million and 2.6 million ounces of silver for the financial year ending June 2027.
The company said Motheo’s processing facilities operated at an annualised rate of 5.6 million tonnes during the quarter.
Copper production costs decline
Motheo’s underlying operating cost decreased to US$48 per tonne of ore processed, compared with US$54 in the preceding quarter, while its implied C1 copper production cost fell to US$0.65 per pound from US$0.70.
The September 2025 quarter recorded a higher implied C1 cost of US$1.47 per pound.
Sandfire attributed the lower costs partly to favourable treatment and refining charges and the capitalisation of waste removal expenditure associated with the fourth-stage development of the T3 open pit.
However, the company warned that elevated global fuel prices could increase operating expenses during the remainder of the financial year.
Motheo remains adequately supplied with diesel and other essential consumables, although Sandfire’s annual cost projections assume that diesel prices will return to earlier levels during the second half of the financial year.
Chief executive Brendan Harris said the company was closely monitoring energy markets because of the mine’s reliance on diesel-powered open-pit mining equipment.
“We are continuing to closely monitor energy markets given the potential for currently elevated prices to persist and supply chains to be further affected, recognising the greater reliance of Motheo on diesel to undertake its open pit mining operations,” Harris said.
US$20 million spent on Motheo
Sandfire invested US$20 million at Motheo during the September quarter, including approximately US$14 million on waste removal and US$3 million on sustaining and strategic projects.
Another US$3 million was associated with the acquisition of the Kgolo East and West exploration licences, situated northeast of Motheo and near the Khoemacau underground mining complex.
The company also completed 6.5 kilometres of resource conversion and infill drilling across the T3 and A4 deposits, involving 27 drillholes.
The next phase of drilling at T3 will concentrate on improving confidence in mineral resources and confirming copper grades in areas scheduled for future mining.
Across its wider Botswana exploration portfolio, Sandfire completed 11.7 kilometres of drilling during the quarter, testing three regional prospects and another three areas within the Motheo mining hub.
Exploration at A4 identified enriched copper mineralisation approximately 200 metres below the existing open pit, extending westwards over several hundred metres.
Sandfire said additional funding and drilling equipment would be allocated to establish whether the mineralisation continues between the identified zones and assess the potential for future underground mining.
21MW solar plant under construction
Construction of a 21-megawatt solar power facility at Motheo continued during the quarter, with supporting structures installed and solar panel installation under way.
The facility is expected to supply approximately 30% of the mine’s annual stationary electricity requirements once operational, reducing reliance on external electricity supplies and exposure to future tariff increases.
Commissioning is scheduled to begin during the third quarter of Sandfire’s 2027 financial year.
Across its operations in Botswana and Spain, Sandfire produced 38,900 tonnes of copper-equivalent metal during the September quarter, compared with 35,600 tonnes during the corresponding period last year.
The company generated unaudited revenue of US$480 million and underlying earnings before interest, tax, depreciation and amortisation of US$272 million.
Sandfire ended September with net cash of US$342 million, compared with US$353 million at the end of June, after paying US$117 million in dividends to shareholders.
The company maintained its full-year production, operating cost and capital expenditure guidance.
