24th Oct 2022 10:30
(Alliance News) - South32 Ltd on Monday posted a mostly lower production performance in the first quarter, but guided for strong annual output growth overall, despite lowering guidance for coal.
The Perth, Australia-based diversified miner said aluminium production rose by 13% to 279,000 tonnes for the first quarter that ended September 30, up from 248,000 tonnes in the prior year as its Southern African smelters continued to test their maximum technical capacity and the Brazil Aluminium smelter was successfully restarted.
But alumina production fell slightly by 2% to 1.26 million tonnes from 1.28 million tonnes.
Metallurgical coal production dropped by 19% to 1.27 million tonnes from 1.58 million tonnes, while energy coal output was up 4% to 325,00 tonnes from 313,000 tonnes.
Also in the first quarter, manganese ore output eased by 3% to 1.46 million wet tonnes from 1.51 million wet tonnes.
South32 said Sierra Gorda payable copper equivalent production increased by 11% to 22.6 million tonnes in the first in the quarter. No copper output figures were provided for the first-quarter 2021. The miner in October 2021 agreed to buy a 45% interest in Sierra Gorda, a long-life copper mine in Chile.
The net cash position declined by USD92 million to USD446 million as at September 30, following the allocation of a further USD50 million to the group's share buy-back and tax payments of USD243 million, including USD111 million in relation to its acquisition of Sierra Gorda.
In its financial year 2023 guidance, the group expects 13% production growth.
Annual aluminium production is expected to rise to 1.19 million tonnes from 992,300 tonnes in 2022, while alumina output is seen increasing to 4.0 million tonnes from 3.9 million tonnes.
Metallurgical coal production forecast is trimmed to 6.0 million tonnes from 7.4 million previously. In 2022, coal output was at 5.7 million tonnes.
Manganese ore production is predicted to grow to 3.40 million wet tonnes from 3.36 million wet tonnes.
Shares in South32 shed 5.8% at 201.50 pence on Monday morning in London, while its Johannesburg shares were 4.4% lower at ZAR41.91. In Australia, the stock ended 1.9% down at AUD3.65.
By Artwell Dlamini; [email protected]
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