Sandfire Resources (ASX:SFR), the Australian copper-zinc explorer, witnessed a drop in shares by as much as 2.2% to A$7.840, recording their greatest intraday percentage loss since February 23.

Jarden’s analysts have downgraded their rating for Sandfire Resources, a change grounded in the recent trend of share price versus valuation.

Despite this, the brokerage continues to recommend Sandfire Resources as a core holding in the resources sector.

Over the next two years, the company is predicted to yield a 28% growth in copper production.

The company’s operating risks, which are par for the course for all underground miners, along with lower base metals prices and an uninterrupted power supply priced reasonably at the company’s Motheo and MATSA operations, have been marked as key risks for the company.

Despite these risks, the company’s stocks have increased by 9.3% year-to-date as per the last closing.

Sandfire Resources is a well-known Australian copper-zinc explorer and this update is especially crucial for investors.