The metal sheet fine blanking process of a circular hole is simulated using a two-dimensional axisymmetric finite element model. A numerical model used in our computer simulation is based on a dynamic explicit scheme. Yield curve that is implemented in the numerical model is obtained upon tension test data. Its particularity is first the extension into a post-necking part, which is determined by an inverse identification procedure, and second, the abrupt reduction to a small constant value after the maximal equivalent plastic strain is reached. To reduce finite element mesh distortion in the sheared zone remeshing steps, based on arbitrary Lagrangian-Eulerian formulation, are implemented during the simulation. After the apparent crack is developed through the metal sheet, the sheet domain is divided into two domains with possible friction contact evolution between the separated domains enabled. Taking contact evolution between the separated domains into account results in a better determination of the final fine blanked surface. Time evolution of the punch force obtained in computer simulation proves good agreement with the experimental one.