19th Oct 2020 09:54
(Alliance News) - South32 Ltd on Monday maintained annual production guidance at all operations despite the global pandemic, following a positive first quarter of the financial year.
The diversified mining and metals company said it increased its manganese ore production in the quarter ended September by 19% quarter-on-quarter to 1.5 million wet metric tonnes from 1.2 million tonnes. This is up 3% year-on-year from 1.4 million tonnes.
Metallurgical coal production was up 22% to 1.9 million tonnes from 1.5 million tonnes the quarter prior, and up 13% to the year prior's 1.7 million tonnes.
Alumina production was down 3% to 1.3 million tonnes from 1.4 million tonnes in the quarter prior, and up 1% year-on-year from 1.3 million tonnes.
South 32's net cash position was up USD70 million to USD368 million, despite deploying more working capital as commodity markets improved, the company said.
Chief Executive Graham Kerr said: "With another quarter of strong operating performance behind us and the further strengthening of our financial position, we have lifted the suspension of our on-market share buy-back.
"Our capital management program has USD121 million remaining and recommencing our buy-back will deliver immediate value to our shareholders."
South32 shares were up 2.5% at ZAR25.50 each in Johannesburg on Monday morning, and also up 2.5% at 118.84 pence each in London.
By Greg Roxburgh; [email protected]
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