24th Oct 2024 13:30
(Alliance News) - South32 Ltd has warned that it expects global volatility that has hurt key commodities to continue, given prevailing geopolitical tensions and uncertainty.
In a statement released ahead of the annual general meeting on Thursday, Chair Karen Wood said the diversified miner is focused on what it can control.
Wood said the board has continued to oversee the company's strategy to streamline its portfolio towards base metals.
South32 late in August sold its Illawarra Metallurgical Coal in New South Wales, and approved a USD2.16 billion investment in Hermosa project in US in February.
"Through these changes, we have further Following the sale of Illawarra Metallurgical Coal, approximately 90% of our portfolio's underlying revenue is now expected to come from base metals including our aluminium value chain, with the remainder from manganese," Wood said.
This compares to about 50% of the portfolio's underlying revenue that came from these base metals at demerger in 2015.
At Groote Eylandt Mining Co Pty Ltd, or Gemco, South32 has commenced a phased return to mining activities and continue to work towards resuming ore export shipments, Wood said. Gemco was temporarily suspended due to tropical cyclone Megan.
The chair said the miner continues to engage with the West Australian government and seek approval of the Worsley Alumina project on conditions that it believes are reasonable.
At nickel refinery at Cerro Matoso in Colombia, South32 expects recorded an impairment expense of USD264 million, reflecting structural changes in the nickel market.
At the AGM, Chief Executive Officer Graham Kerr said the company is still seeing "too many serious injuries".
Lost time injury frequency, a lagging indicator, increased 19% for 2024 financial year, compared to 2023.
Looking ahead, the Perth-based mining group expects volume growth in copper and low-carbon aluminium in 2025 and 2026, Kerr said, noting also that construction of Taylor is progressing to plan.
South32 said Keith Rumble has retired as a non-executive director following the 2024 AGM on Thursday. Rumble joined the board in 2015
Shares in South32 were up 2.5% to ZAR43.76 on Thursday afternoon in Johannesburg, and up 3.1% to 190.60 pence in London.
By Artwell Dlamini, Alliance News reporter
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