The copper price is up by 22.6% so far this year, while Sandfire shares are only up by 2.6%.

Its nearest peer, OZ Minerals, is up by 6% since the start of 2017.

Sandfire released an updated mine plan for the DeGrussa operation in late May, showing that it will run until 2021 on current reserves.

“I think everyone’s just latched onto that…and I think that’s pretty short-sighted,” Simich said on a teleconference today.

“The market is a little myopic, analysts are a little myopic.”

Simich said analysts had done the arithmetic on 350,000 tonnes of copper in the mine plan “in a lazy way” and plugged it into a model.

But Simich said the company held a total of 2 million tonnes of copper and 4 million ounces of resources, including the undeveloped Black Butte project in the US.

“The market has basically ascribed zero value for a 600,000 tonne resource,” Simich said.

“Clearly this project will be developed.”

In a rising copper price environment, the company is also looking at processing oxide resources, which could add another year to DeGrussa.

Sandfire peaked at a 2017 high of A$6.99 back in February when the copper price was US$6103.50/t – nearly 10% below where the price is today.

Sandfire shares closed at just A$5.58 yesterday, more than 20% below its peak.

“I’ve been in this industry for over 30 years, and to have this company valued at this amount is ridiculous,” Simich said.

“Clearly, the pendulum has swung back too far for us.”

The consensus target price among analyst ratings is $6.48.

“In my view, Sandfire trading at $6.50 should be of no great moment – and we’re worth it every day of the week,” Simich said.

“The future has never been brighter for this company.”

Sandfire today delivered a full-year net profit after tax of $75 million, up from $46.4 million for FY16, on higher revenue and cashflow.

The company declared a final dividend of 13c per share, fully franked, up from 9c per share for the prior year.

Group cash and deposits nearly doubled year on year to $126.7 million.

The company will continue “extraordinarily aggressive” exploration, while looking for external opportunities.

With the copper price rising, Simich denied Sandfire had missed the boat for acquisitions.

“You’re always on the boat,” he said.

“Everyone wants to sell high, buy low – but you have to be a magician to do that.”

He said many opportunities were recircling in the higher price environment, but the market still lacked “fresh and exciting” opportunities.

Sandfire shares rose by 3.6% to $5.75.