20th Apr 2020 06:48
(Alliance News) - South32 Ltd on Monday reported a series of production falls in its third quarter, a period hurt by the Covid-19 pandemic, but said its year-to-date output numbers are "strong".
In the quarter ended March 31, alumina production, or aluminium oxide, slipped 4.0% quarter-on-quarter to 1.3 million tonnes. Energy coal production was down 0.8% to 5.9 million tonnes, while metallurgical coal output slipped 3.4% to 1.2 million tonnes from the second quarter.
Elsewhere, the Perth, Australia-based miner reported a 6.5% quarter-on-quarter drop in manganese ore production to 1.3 wet metric tonnes. Payable silver output was down 24% to 2.4 million ounces.
During the quarter, South32 removed full-year guidance at its South African and Colombian operations, due to the pandemic, and cut its Australia manganese forecast by 5%.
It also suspended its share buyback and said it is hoping to cut spending by USD160 million
"We have acted to protect our strong financial position, reducing capital and exploration expenditure, suspending our on-market share buy-back and commencing a group wide review aimed at delivering a reduction in controllable costs," South32 said.
"At our operations, we have delivered a strong operating result in the year to date, highlighted by record production at Brazil Alumina and Hillside Aluminium."
On Friday, South32 shares closed 3.7% higher at 103.16 pence each in London. In Johannesburg, where it is also listed, shares climbed 6.0% on Friday, closing at ZAR24.36 each.
By Eric Cunha; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
South32