South32 has released its September 2023 quarter report, where it has revealed that production guidance for the 2024 financial year (FY24) remains unchanged across all operations.
During the quarter, the company’s manganese ore production increased by four per cent, with a quarterly record set at its South Africa manganese operation. It also recorded a strong start to FY24 at its Australian manganese operation.
A three per cent increase in alumina and aluminium production was also recorded.
“We have maintained annual production guidance for all of our operations with a strong start to the year at our manganese operations, a 34 per cent increase in production at Brazil Alumina and continued growth in low-carbon aluminium volumes,” South32 chief executive officer Graham Kerr said.
South32 also saw a 33 per cent production decrease at the Illawarra metallurgical coal operation, as it commenced an extended planned longwall move at the Dendrobium mine. A new industrial agreement covering deputies at the Appin mine was finalised after the end of the September quarter.
Its copper production at Sierra Gorda decreased by eight per cent and zinc equivalent production at Cannington decreased by six per cent.
“With macroeconomic conditions creating headwinds for many of our commodities, we remain focused on driving operating performance and cost efficiencies. This focus, along with our production growth in commodities critical for a low-carbon future, positions us well to capture higher margins as market conditions improve,” Kerr said.
“During the quarter, we continued to advance our portfolio of high-quality growth options in critical commodities. At our Hermosa project, we commenced federal permitting for the Taylor and Clark deposits under FAST-41 and remain on-track to complete Taylor’s feasibility study in the December 2023 quarter.”
Outside of its production, South32 has continued to implement its multi-year Safety Improvement Program by investing in safety leadership through its ‘lead safely everyday’ training.
Financially, the company’s net debt increased to $US782 million ($1.2 billion) during the quarter.
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