Sandfire Resources Ltd (SFR.AU) saw its stock plummet by 5.02% during Wednesday's trading session, as ASX-listed copper miners tracked weaker copper prices amid concerns over looming U.S. tariffs on China. The sharp decline reflects the broader impact on the copper mining sector, with several companies facing significant pressure.
The primary driver behind the sell-off appears to be the impending 104% U.S. tariff on major copper consumer China, which is set to take effect soon. This development has sent shockwaves through the copper market, leading to a drop in copper prices and causing investors to reassess their positions in copper mining stocks. Sandfire Resources, along with other ASX-listed copper miners such as Capstone Copper and MAC Copper, experienced notable declines as a result.
Despite the current downturn, some analysts remain optimistic about Sandfire's long-term prospects. Goldman Sachs recently upgraded Sandfire to a "buy" rating, citing the stock as undervalued and poised to benefit from medium- and long-term copper tailwinds. The investment bank highlighted Sandfire's strong free cash flow and forecasted the company to be net cash positive by the end of FY 2026. However, Goldman Sachs also acknowledged the likelihood of continued volatility in the short term, which is evident in today's sharp stock movement.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.