Tag: ASX:SFR

Our ALGO engine gave a buy signal for SFR on September 12th at $6.75.

Since then the stock has lifted over 8% and reached a high of $7.32 in early trade today.

Over the same time, the price of spot copper has stabilized in the $2.70 area after dipping as low as $2.55 on August 15th.

As the technical picture improves for both Copper and Gold, we see an initial upside target of $8.80 for SFR over the medium-term.

Sandfire Resources

Our ALGO engine triggered a buy signal in Sandfire Resources last week at $6.75.

The “higher low” pattern is referenced to the intra-day low of $6.42 posted on December 15th last year.

SFR operates the DeGrussa Copper/Gold mine in WA and reported a 50% jump in net profit to $123 million for FY 2018.

As a low-cost producer, SFR traded as high as $10.00 in mid-June, but has slipped along with the price of Copper over the last two months.

With an announced 38 cent per year dividend, the current price of $6.70 reflects a forward yield of just under 5.7%.

As the technical picture improves for both Copper and Gold, we see an initial upside target of $8.80 for SFR over the medium-term.

Sandfire Resources