South32 Limited
South32 Limited
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The fall in commodity prices from their recent record levels and rising costs have overwhelmed strong operational performance for South32, sending the Australian-based international base metals miner to a 34% profit plunge for the Dec half-year.
S32 posted H1FY23 after-tax profit of $US685M, down from $1.03B in the previous corresponding period. On revenue of $3.7B (H1FY22: $4B), underlying EBITDA fell to $1.36B ($1.87B) and earnings to $0.56B ($1B).
Strong growth attributed to its recent investments in copper and low-carbon aluminium capacity have positioned international miner South32 to deliver higher production and mitigate inflationary pressures into improving markets.
Group copper equivalent production rose by 12% for the Dec half-year (H1FY23) and CEO Graham Kerr says operating unit costs to be in line with or below guidance despite inflationary pressures.
Restarting its Brazilian smelter and testing maximum technical capacity at its Southern African smelters helped lift international base metals miner South32’s Sept qtr (Q1FY23) aluminium production to 279,000t, from 255,000t in the previous period. Q3 alumina production fell to 1.26Mt (Q4FY22: 1.36Mt).
International base metals miner South32 has welcomed a strong operating performance in the face of the weather and COVID-induced labour shortages, highlighted by record FY22 production at Worsley Alumina in Australia and record Q4 at South Africa Manganese.
Payable production of silver was 13.2Moz (13.7Moz), lead 120,600t (131,800oz), zinc 64,500t (67,700t) and nickel 41,700t (34,100t).
West Australian engineer SRG Global has won a 2-year contract extension by South32 at its Worsley Alumina operations and another earthworks and civil services extension by BCI Minerals at its Mardie salt and potash project.
The South32 contract, continuing SRG’s 6-year relationship with the Worsley site, covers civil services for continuous enhancement of embankments with other civil and road maintenance services.
International base metals miner South32 has maintained its FY22 production guidance after a March qtr (Q3) where operations continued to plan, capitalising on strong prices.
Significant improvements in commodity prices have enabled international base metals miner South32 to lift operating margins for the Dec qtr (Q2FY22) amid higher base metals production and integrated aluminium supply chain benefiting from additional alumina volumes and record aluminium prices.
South32 has laid out the potential for a multi-decade operation in studies that establish its Hermosa project in Arizona, USA as a globally significant producer of metals critical to a low-carbon future.
International base metal miner South32 has identified the potential for a multi-decade operation as a globally significant producer of metals critical to a low-carbon future at its 100%-owned Hermosa zinc-lead-silver project in Arizona, USA on the back of a PFS for the Taylor deposit, its first development option.
When it comes to finding ways for the mining sector to improve its climate change performance, every aspect of a company’s operations will come under close scrutiny.
Australian-based South32 has teamed with global shipping innovator KCC Chartering with the signing of a new 6-year agreement for the haulage of caustic soda to the Worsley Alumina refinery near Perth in WA that establishes a framework for reducing carbon emissions.