21st Jan 2016 08:20
LONDON (Alliance News) - Miner South32 Ltd on Thurdsay said its has maintained production guidance for the majority of its upstream operations but trimmed its outlook for Illawarra Metallurgical Coal.
The group said production at its Carrington zinc, Australia manganese and Worsley Alumina rose in the fourth quarter, but said ore production at South Africa manganese was hit by the temporary suspension of operations at the site during the period.
The group said it had maintained its guidance for all its upstream projects in 2016, but said it has cut its estimate for Illawarra Metallurgical Coal due to difficult geological conditions it experienced during the fourth quarter.
"Following another solid quarter of operating performance we remain on track to meet production guidance for the majority of our upstream operations," said Chief Executive Graham Kerr.
"In order to protect our strong financial position in the currently challenging environment we have already cut or suspended production at our South Africa Manganese ore mines and Alumar, Metalloys, TEMCO and South Africa Aluminium smelters. Further decisive action will be taken as we seek to maximise short-term cash flow while preserving longer-term value," he added.
South32 shares were up 2.6% to 43.58 pence early Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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