South32 has reported a positive start to the 2027 fiscal year, maintaining full-year production guidance across all operations while advancing key base metals growth projects and reinforcing its balance sheet strength.
The miner reported a net cash position of US$297 million (AU$424 million) for the September quarter, up US$14 million, driven by a record US$153 million quarterly distribution from the Sierra Gorda copper operation in Chile.
Sierra Gorda delivered an 11 per cent increase in payable copper equivalent production due to higher planned grades. The asset has now commenced execution of a fourth grinding line project, expected to lift processing capacity by 25 per cent.
South32 CEO Matt Daley said the strong quarterly performance and development milestones align with the company’s pivot toward base metals.
“We’ve made a positive start to FY27, maintaining production guidance across all our operations and achieving key development milestones for our copper and zinc growth projects,” Daley said.
Manganese production rose 14 per cent across Australian and South African operations as wet weather subsided, while alumina and aluminium outputs remained stable.
However, payable zinc equivalent production at Cannington dropped 27 per cent due to temporary paste backfill constraints, which the company mitigated by processing lower-grade stockpiles.
Growth capital expenditure reached US$197 million at the flagship Hermosa project in Arizona, where both main and ventilation shafts for the Taylor zinc-lead-silver deposit are on track to reach primary production levels in the December quarter. Hermosa also achieved a major federal permitting milestone under the FAST-41 framework.
The quarterly update follows a major corporate milestone on 15 October, when shareholders approved the divestment of South32’s aluminium value chain assets to Alcoa Corporation.
Subject to regulatory approvals, the transaction is expected to close in the first half of 2027, completing South32’s transition into a high-margin, upstream base metals producer focused on critical transition minerals.
