Key points
- Net cash position increased by US$299M to US$252M
- Aluminium, copper, and manganese production up year-to-date
- Worsley Mine Development Project commenced, Hermosa Taylor project progressing
Full summary
South32 Chief Executive Officer Graham Kerr reported another strong quarter of operating performance, with the company's net cash position increasing by US$299M to US$252M. Production highlights for the year to date included an 18% increase in copper and a 6% increase in aluminium as Mozal Aluminium managed the impacts of civil unrest in Mozambique and approached nameplate capacity. The company commenced its Worsley Mine Development Project following environmental approval, and is progressing toward the resumption of export sales from Australia Manganese. Construction of the large-scale, long-life Taylor zinc-lead-silver project at Hermosa also continued to advance, with sinking of the main shaft on track to commence in the June 2025 quarter. South32 remains focused on operating discipline, active cost management, and maintaining a strong balance sheet to manage potential uncertainty in global markets. The company lowered its FY25 production guidance for Cannington by 10% due to challenging geotechnical conditions and reduced operator availability, but all other FY25 guidance remains unchanged. South32 also simplified its functional structures, expects to reduce functional support costs by US$30M from FY26, and returned US$42M to shareholders via its on-market share buyback program.
Guidance
FY25 production guidance is unchanged, except for Cannington which has been lowered by 10% to 239.2kt payable zinc equivalent. FY25 capital expenditure guidance is also unchanged.
Outlook
South32 remains focused on operating discipline, active cost management, and maintaining a strong balance sheet to manage potential uncertainty in global markets. The company is progressing key development projects at Worsley and Hermosa, and expects to resume export sales from Australia Manganese in the June 2025 quarter.