South32 annual production beats guidance after "strong" performance
South32 Ltd on Monday said its annual production largely exceeded its prior guidance across its operations.
The Perth, Australia-based diversified miner said payable copper production at Sierra Gorda fell 3.1% to 69,200 tonnes for the financial year that ended June 30 from 71,400 tonnes a year earlier, exceeded estimates by 2%.
Payable copper output production declined 9.6% to 16,000 tonnes for the fourth quarter alone from 17,700 in the same quarter a year before, and dropped 5.3% from 16,900 in the third quarter that ended March 31.
Aluminium production for the recent financial year exceeded guidance, while alumina output was in line with guidance.
South32 announced early this month it had signed a binding agreement to sell aluminium value chain assets to Alcoa Corp for an implied enterprise value of up to USD5.6 billion.
Worsley alumina production was flat 3.7 million tonnes for financial 2026. Output for the fourth quarter was up 0.7% to 943,000 tonnes year-on-year from 936,000 tonnes, and was up 6.4% from 886,000 tonnes in the third quarter.
Brazil alumina production rose 5.3% to 1.4 million tonnes annually from 1.3 million tonnes. Production for the fourth quarter was 5.3% higher on-year at 351,000 tonnes from 334,000 tonnes, but was unchanged quarter-on-quarter.
Brazil aluminium production rose 4.3% to 144,000 tonnes for all of financial 2026 from 138,000 tonnes in financial 2025. But output for the fourth quarter was down 2.6% to 37,000 tonnes year-on-year and down 12% from 33,000 tonnes quarter-on-quarter.
Hillside aluminium production inched down 0.1% annually to 717,000 tonnes from 718,000 tonnes. For the fourth quarter, production fell 1.1% to 179,000 tonnes year-on-year from 181,000 tonnes, but rose 1.7% from 176,000 tonnes quarter-on-quarter.
Australia manganese production more than doubled to 3.0 million wet metric tonnes in financial 2026 from 1.1 million tonnes in financial 2025. Production for the fourth quarter surged 67% to 782,000 tonnes from 467,000 tonnes a year before and was 33% higher from 589,000 tonnes in the third quarter.
However, South Africa manganese production decreased 3.1% to 2.1 million wet metric tonnes for financial 2026 from 2.2 million wet metric tonnes. For the fourth quarter, production fell 11% to 528,000 wet metric tonnes from 593,000 tonnes a year before and 5.6% from 500,000 tonnes in third quarter.
At Cannington, zinc, silver and lead production declined but exceeded guidance, South32 said.
Payable zinc equivalent production dropped 12% to 205,400 tonnes for financial 2026 from 234,200 tonnes the year before. Output in the fourth quarter was 57,800 tonnes, down 2.9% from 59,500 tonnes a year before and down 29% from 44,800 tonnes in the third quarter.
For financial 2026, silver production fell 13% to 8,906 ounces from 10,292 ounces. Output for the fourth quarter fell 2.8% to 2,506 ounces from 2,578 ounces a year before but was up 31% from 1,913 ounces in the third quarter.
Lead production for financial 2026 was 82,900 tonnes, down 10% from 92,400 tonnes. Output for the fourth quarter fell 9.2% to 22,800 tonnes from 25,100 tonnes a year before and was down 28% from 17,800 tonnes in the third quarter.
"We continued to deliver strong operating results, exceeding group
production guidance for FY26," South32 Chief Executive Officer Matt Daley said.
Looking ahead, South32 said production guidance for the 2027 financial year remains largely unchanged.
Copper production guidance is kept at 90,200 tonnes, while zinc production guidance remains at 204,700 tonnes.
The miner will provide revised Australia manganese production guidance for financial 2027 with its financial 2026 results, but it left South Africa manganese output guidance unchanged at 2.0 million wet metric tonnes.
Shares were up 4.6% to 213.40 pence each on Monday morning in London and were up 4.6% to ZAR47.47 in Johannesburg. In Sydney, the stock closed up 4.6% to AUD4.08 each.
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