Timing of Sandfire's Potential Sale of Black Butte Unclear

Dow Jones08:18

0018 GMT - How quickly Sandfire Resources might sell its stake in the Black Butte copper project in the U.S. is unclear, according to Macquarie. "The previously anticipated 1QFY27 strategic-review outcome has shifted to an active assessment of alternatives, including a sale," says the bank. "Management attributed the slower process partly to difficult equity markets and confirmed continued funding support, leaving the timing of potential divestment of the project hard to quantify." The Black Butte project is expected to be relatively small compared to Sandfire's other assets, says Macquarie. It says a decision on Black Butte could be a key catalyst for the stock, on which it has a neutral rating. Macquarie cuts its stock target by 8.7% to A$21.00, citing lower-than-expected near-term earnings. Shares are up 5.4% at A$20.67.

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