Sandfire signs first copper concentrate contract

THE BOURSE WHISPERER: Sandfire Resources has signed the first sales contract for copper concentrate to be produced from its 100 per cent-owned DeGrussa Copper-Gold Mine in Western Australia, marking another key milestone ahead of the start of plant commissioning later this quarter.

Sandfire is aiming to finalise product sales agreements with four concentrate customers for up to three-year terms to cover the majority of its annual concentrate production, while allowing for delivery of a targeted 10-15 per cent of production into the spot market.

“The premium quality and grade of its concentrate has resulted in strong market demand from potential customers predominantly in the Asian region, enabling the company to obtain superior smelter terms including discounted treatment and refining costs,” said Sandfire’s managing director, Karl Simich in the company’s release to the Australian Securities Exchange.

“We are looking forward to concluding the remaining contracts over the coming weeks, ahead of the anticipated commencement of concentrate deliveries,” he added.

Degrussa copper mine location. Source: Company announcement

Product sales agreements are already in place for all of the high-grade chalcocite Direct Shipping Ore currently being mined and shipped from the open pit mining operation at DeGrussa.

Over 30,000 tonnes of massive sulphide ore grading 5 per cent copper has been mined from underground and stockpiled on the ROM pad ready for plant commissioning.