South32s FY24 Production Guidance Holds Steady

In South32's Limited (ASX: S32) latest quarterly report for September 2023, the company reaffirms its production guidance for the fiscal year 2024 across all its operations. The report provides an overview of production figures and developments across various commodities, indicating both successes and challenges.

Production Highlights

• Manganese ore production increased by 4%, with South Africa Manganese achieving a quarterly record and Australia Manganese off to a strong start.
• Alumina production increased by 3%, driven by Brazil Alumina's recovery from temporary port infrastructure issues and Worsley Alumina completing planned calciner maintenance.
• Hillside Aluminium continued to test its maximum technical capacity, and low-carbon aluminum production saw growth at Brazil Aluminium and Mozal Aluminium.
• Illawarra Metallurgical Coal production decreased by 33% due to an extended planned longwall move at the Dendrobium mine, with an industrial agreement for deputies at the Appin mine finalized.
• Sierra Gorda payable copper production decreased by 8% due to lower planned copper grades.
• Cannington payable zinc equivalent production decreased by 6% due to lower planned zinc grades, though the operation remains on track to deliver 11% production growth in FY24.
• Cerro Matoso payable nickel production decreased by 19% due to planned plant maintenance and a temporary disruption to gas supply.

Corporate Updates

South32 remains committed to improving safety and reducing operational costs to counteract industry-wide inflationary pressure. The company also addressed its net debt increase and ongoing investments in productivity.

Development and Exploration

The Hermosa project continues to progress, with US$71 million invested in infrastructure and federal permitting for key deposits. The company expects to announce the feasibility study results for the Taylor deposit in Q2 FY24. Greenfield exploration received US$9 million in investment, with a focus on base metals options. South32 also increased its equity interest in Aldebaran Resources Inc., furthering its presence in the Altar copper project.

This quarterly report reflects South32's ongoing efforts to maintain its production guidance, address operational challenges, and invest in future growth opportunities. The company's disciplined approach to capital management and focus on cost efficiency position it well for the future.

The last price for SOUTH32 LIMITED today stands at $3.270, reflecting a decrease of $0.100 (-2.967%), with a trading volume of 21,790,405 shares.

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