Sandfire is an international mining company with its main focus being its copper/gold operations in Western Australia.
“With Oz Minerals Ltd (OZL) being taken over by BHP, SFR will be left as the country’s largest pure play copper producer,” Michael said.
“We expect a global shortage in copper along with increasing demand to put upwards pressure on the copper price.
“Having recently seen its share price fall with the broader market, it now looks like SFR shares are ready to head higher again.
“The breakout above $5.50 in early January was the last tradable rally in SFR. Most recently, it has pulled back to that $5.50 area and then found support.
“As the broader market was being sold off in the past week, SFR was notable for finding very good buying support at these levels.
“It is now moving out of this region and is highly likely to head higher again.
“Current levels are a buying opportunity,” Michael said.
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