South32 Reports Mixed Production Results for Q1, Maintains Annual Guidance
South32 reported mixed production performance for the first quarter of its financial year, while maintaining its annual output guidance. The Perth-based mining company saw a rise in aluminium production but reported declines in other areas, including silver and lead.
Aluminium output increased by 3.5% year-on-year to 298,000 tonnes in the three months ending September 30, up from 288,000 tonnes during the same period last year. This also marked a 4.6% rise compared to the fourth quarter ending June 30, when production stood at 285,000 tonnes. The increase was partly driven by the Hillside asset operating near its technical capacity, along with a 12% rise in low-carbon aluminium production from Brazil Aluminium and Mozal Aluminium.
Alumina production, on the other hand, experienced an 8.5% decline on an annual basis, falling to 1.18 million tonnes from 1.29 million tonnes, along with a 5.6% drop compared to the fourth quarter.
Copper production showed an increase of 10% year-on-year, reaching 17,600 tonnes, but fell by 15% compared to the previous quarter. Silver production dropped sharply, decreasing by 39% year-on-year to 2,066 ounces, while lead output saw a decline of 32% to 19,300 tonnes. Zinc production was down by 8.3% year-on-year, while nickel production increased by 3.6% to 8,600 tonnes.
Manganese ore production recorded a significant annual decline of 61%, dropping to 597,000 wet tonnes from 1.52 million wet tonnes. Quarter-on-quarter, output decreased by 12%.
South32 also highlighted that the sale of Illawarra Metallurgical Coal in New South Wales has reduced its capital intensity, strengthening the company's financial position and enabling it to fund growth in base metals, as well as return value to shareholders through an ongoing share buy-back. The disposal of the Illawarra operation was finalized in late August.
Construction work at Hermosa in the United States on the Taylor zinc-lead-silver project is reported to be progressing as planned. South32 confirmed that production guidance for all operations remains unchanged for the 2025 financial year.
