Sandfire Resources' (ASX:SFR) fiscal fourth-quarter production was strong to finish the year, in line with company guidance, Jefferies said in a note on Thursday.

It reported fiscal fourth-quarter copper-equivalent production of 47,600 tonnes, up from 41,800 tonnes a year earlier.

Despite inflationary headwinds, costs were better than expectations and helped to maintain the firm's net-cash position.

Its fiscal year 2027 guidance is largely in line with fiscal year 2026 performance, at 150,000 tonnes to 166,000 tonnes of copper-equivalent. Jefferies forecast fiscal 2027 production of 151,000 tonnes of copper-equivalent. It modelled underlying operating costs of $60.45 per tonne. Fiscal year 2027 capital expenditure is guided to increase by around 33%, from the $225 million in fiscal year 2026.

The investment firm maintained its buy rating and AU$24 per share price target on Sandfire Resources.