Sandfire Resources (ASX:SFR) is the "premium quality" copper exposure on the Australian Securities Exchange, with net cash and a growth project identified despite a 3% production miss, Jefferies said in a Monday note.

Second-quarter production of 12,100 tonnes of copper equivalent missed expectations due to a semi-autogenous grinding mill grate failure at the Motheo mine in Botswana, a maintenance shutdown, and deferred access to higher-grade ore.

Despite the miss, the company reaffirmed its fiscal 2026 guidance, with a strong second half forecast implying about 85,000 tonnes of copper equivalent at the mine.

Additionally, the company achieved net cash position of AU$13 million, with future cash commitments expected at Havilah Resources' (ASX:HAV) Kalkaroo project in South Australia.

The completion of rapid deleveraging is a significant catalyst for the company, even with consecutive softer quarterly results, the investment advisory firm said.

Jefferies maintained a hold rating and a AU$17 price target on Sandfire Resources.

The company's shares rose 2% in afternoon trade Tuesday and earlier hit an all-time high. Havilah Resources' shares jumped almost 7% and earlier reached their highest since April 2017.