South32 on track to meet production guidance for the year ending in June; aluminium output till Q3 records 15% growth

According to a report published on Monday, April 24, South32, a leading mining and metals company headquartered in Perth, is close to meeting production guidance across most of its operations for the financial year to end June 30, 2023.

However, the company’s share price dropped nearly 6 per cent to INR 50.17 on the Johannesburg Stock Exchange soon after the announcement of the third quarter (end-March) results. Regarding this, CEO Graham Kerr commented that production in the said quarter stood lower than anticipated because of adverse weather in Mozambique and Australia.

Kerr also apprised that operating unit cost guidance for the year has remained unchanged alongside the group capital expenditure. He said “improved market conditions supported higher prices across most of our commodity’s quarter-on-quarter with strong price realisations for our premium hard coking coal and manganese products.”

In the past nine months ended March 31, South32’s aluminium production grew 15 per cent to 847,000 tonnes, attributed to the company’s increased equity stake in Mozal Auminium and a 6 per cent rise in Brazil Aluminium output.

Kerr also noted the Hillside Aluminium smelter in South Africa increased production by 1 per cent to 539,000 tonnes in the first three quarters of the year “as the smelter continued to test its maximum technical capacity despite the impact of elevated load-shedding.”