27th Apr 2021 09:33
(Alliance News) - South32 Ltd on Tuesday said its cash generation improved amid higher output of metallurgical coal and silver in its financial third quarter.
The Perth, Western Australia-headquartered mining and metals company said its net cash increased by USD242 million to USD517 million in the quarter to the end of March as it capitalised on the strong operating performance combined with improving commodity prices.
Aluminium production for the third quarter totalled 240,000 tonnes, down from 248,000 tonnes produced in the prior quarter and from 245,000 tonnes a year earlier. For the nine months to the end of March, aluminium output slipped by 1% to 736,000 tonnes.
Alumina production, meanwhile, dropped by 13% quarter-on-quarter to 1.2 million tonnes. For the nine months, alumina production increased by 1% year-on-year to 3.9 million tonnes.
Energy coal production fell by 24% from the second quarter to 4.0 million tonnes, while metallurgical coal production rose 12% to 1.6 million tonnes. For the nine months, energy coal output decreased by 13% to 16.1 million tonnes, while metallurgical coal production was up 20% to 4.8 million tonnes.
Payable silver production jumped to 3.5 million ounces in the third quarter compared to 3.1 million ounces produced in the prior quarter and 2.4 million ounces a year ago. For the nine months, silver output was 10% higher at 9.5 million ounces.
Among other metals, manganese ore production declined by 3% quarter-on-quarter, while nickel output rose by 16%. Lead output rose 6% but zinc production slipped by 1%.
Turning to development activities. South32 said it directed USD11 million in the nine months ended March to regional exploration programs at Hermosa, in the US state of California, as drilling activity that had been halted by Covid-19 restrictions resumed.
The company also said it continues to progress its pre-feasibility study for the Taylor deposit, in US state of Arizona, with work expected to be completed in the June quarter.
South32 shares were trading 0.5% lower in London on Tuesday at 160.81 pence each. The stock closed up 0.7% in Sydney, while the Johannesburg market was closed for a holiday on Tuesday.
By Evelina Grecenko; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
South32