ASX:SFR

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Sandfire Resources

Executive Summary

Sandfire Resources Limited explores for, evaluates, and develops mineral tenements and projects in Australia and internationally. More Details


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has Sandfire Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SFR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.5%

SFR

1.0%

AU Metals and Mining

0.3%

AU Market


1 Year Return

-25.9%

SFR

15.6%

AU Metals and Mining

-5.4%

AU Market

Return vs Industry: SFR underperformed the Australian Metals and Mining industry which returned 15.3% over the past year.

Return vs Market: SFR underperformed the Australian Market which returned -5.7% over the past year.


Shareholder returns

SFRIndustryMarket
7 Day5.5%1.0%0.3%
30 Day4.5%0.2%6.3%
90 Day-18.3%0.2%3.7%
1 Year-20.7%-25.9%21.0%15.6%-2.1%-5.4%
3 Year-13.4%-22.9%60.1%38.3%18.3%3.3%
5 Year-17.2%-29.8%136.1%91.3%43.1%14.0%

Price Volatility Vs. Market

How volatile is Sandfire Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sandfire Resources undervalued compared to its fair value and its price relative to the market?

10.73x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SFR (A$4.6) is trading above our estimate of fair value (A$1.56)

Significantly Below Fair Value: SFR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SFR is good value based on its PE Ratio (10.7x) compared to the AU Metals and Mining industry average (11.6x).

PE vs Market: SFR is good value based on its PE Ratio (10.7x) compared to the Australian market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: SFR's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SFR is good value based on its PB Ratio (1.1x) compared to the AU Metals and Mining industry average (2.6x).


Next Steps

Future Growth

How is Sandfire Resources forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

-49.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SFR's earnings are forecast to decline over the next 3 years (-49.4% per year).

Earnings vs Market: SFR's earnings are forecast to decline over the next 3 years (-49.4% per year).

High Growth Earnings: SFR's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SFR's revenue is expected to decline over the next 3 years (-36.2% per year).

High Growth Revenue: SFR's revenue is forecast to decline over the next 3 years (-36.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SFR is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Sandfire Resources performed over the past 5 years?

11.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SFR has high quality earnings.

Growing Profit Margin: SFR's current net profit margins (11.3%) are lower than last year (18%).


Past Earnings Growth Analysis

Earnings Trend: SFR's earnings have grown by 11.6% per year over the past 5 years.

Accelerating Growth: SFR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SFR had negative earnings growth (-30.4%) over the past year, making it difficult to compare to the Metals and Mining industry average (22.2%).


Return on Equity

High ROE: SFR's Return on Equity (9.6%) is considered low.


Next Steps

Financial Health

How is Sandfire Resources's financial position?


Financial Position Analysis

Short Term Liabilities: SFR's short term assets (A$393.1M) exceed its short term liabilities (A$72.2M).

Long Term Liabilities: SFR's short term assets (A$393.1M) exceed its long term liabilities (A$71.6M).


Debt to Equity History and Analysis

Debt Level: SFR is debt free.

Reducing Debt: SFR has no debt compared to 5 years ago when its debt to equity ratio was 33.8%.

Debt Coverage: SFR has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SFR has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Sandfire Resources's current dividend yield, its reliability and sustainability?

4.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SFR's dividend (4.13%) is higher than the bottom 25% of dividend payers in the Australian market (2.14%).

High Dividend: SFR's dividend (4.13%) is low compared to the top 25% of dividend payers in the Australian market (5.48%).


Stability and Growth of Payments

Stable Dividend: SFR has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SFR's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.3%), SFR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SFR is forecast to pay a dividend in 3 years whilst incurring a loss, therefore the dividend is not forecast to be well covered.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.1yrs

Average management tenure


CEO

Karl Simich (56 yo)

11.25yrs

Tenure

AU$2,183,210

Compensation

Mr. Karl Matthew Simich, B.Comm, B.Com, FCA, ASIA, F. Fin, has been the Chief Executive Officer and Managing Director of Sandfire Resources Limited (Formerly, Sandfire Resources NL) since July 1, 2009. Mr. ...


CEO Compensation Analysis

Compensation vs Market: Karl's total compensation ($USD1.54M) is above average for companies of similar size in the Australian market ($USD711.63K).

Compensation vs Earnings: Karl's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Karl Simich
MD, CEO & Executive Director11.25yrsAU$2.18m2.75%
A$ 21.6m
Matthew Fitzgerald
CFO & Company Secretary9.75yrsAU$994.46kno data
Jason Grace
Chief Operating Officer1.08yrsAU$819.65kno data
Victoria Twiss
General Counsel and Head of Legal & Procurement0.25yrno datano data
Shannan Bamforth
Head of Exploration – APAC & AMERno datano datano data
Samantha Masters
Head of Health0.25yrno datano data
Julian Hanna
Head of Exploration in Botswanano datano datano data

1.1yrs

Average Tenure

Experienced Management: SFR's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Karl Simich
MD, CEO & Executive Director11.25yrsAU$2.18m2.75%
A$ 21.6m
Robert Scott
Independent Non-Executive Director10.25yrsAU$130.00k0.0028%
A$ 22.0k
Roric Smith
Independent Non-Executive Director3.83yrsAU$124.00kno data
Paul Hallam
Independent Non-Executive Director7.42yrsAU$130.00k0.0056%
A$ 44.0k
Derek La Ferla
Independent Non-Executive Chairman10.42yrsAU$220.00k0.012%
A$ 95.4k
Sally Langer
Independent Non-Executive Director0.25yrno datano data

8.8yrs

Average Tenure

59.5yo

Average Age

Experienced Board: SFR's board of directors are considered experienced (8.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.7%.


Top Shareholders

Company Information

Sandfire Resources Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sandfire Resources Limited
  • Ticker: SFR
  • Exchange: ASX
  • Founded: 2003
  • Industry: Copper
  • Sector: Materials
  • Market Cap: AU$784.306m
  • Shares outstanding: 178.25m
  • Website: https://www.sandfire.com.au

Number of Employees


Location

  • Sandfire Resources Limited
  • 10 Kings Park Road
  • Level 2
  • West Perth
  • Western Australia
  • 6005
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SFRASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMar 2004
SFRR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2004
S2ZDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2004
SFRCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMar 2004

Biography

Sandfire Resources Limited explores for, evaluates, and develops mineral tenements and projects in Australia and internationally. It primarily explores for copper, gold, and silver, as well as volcanogenic ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 10:37
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.