South32 delivered solid March‑quarter operating results, with aluminium production rising despite weather‑related disruptions.
The company said net cash increased by US$121M to US$96M in the fiscal third quarter, driven by continued strength in aluminium and base metals markets, as well as a record US$135 million distribution from the Sierra Gorda copper mine in Chile.
Alumina production increased by 1 per cent year to date to March, with Brazil Alumina achieving record production.
Aluminium production was largely unchanged relative to the prior year to date period, as Hillside Aluminium continued to test its maximum technical capacity.
South32 CEO Graham Kerr said: “Our teams delivered several strong operating results in the March quarter, despite adverse weather impacts.
“Our strong balance sheet leaves us well placed to manage short-term volatility in global markets, while continuing shareholder returns and investing in high-quality growth options to increase our production of copper, zinc and silver.”
While most operations maintained their annual guidance, the company was forced to slash its Australia Manganese production outlook by 6 per cent. The region was hit by heavy wet-season rainfall and Tropical Cyclone Narelle, leading to elevated site water levels that continue to be managed.
In North West Queensland, the Cannington silver-lead-zinc mine successfully mitigated impacts from significant flooding.
Third-party rail access was restored late in the quarter, paving the way for higher sales volumes in the upcoming June period.
Looking ahead, South32 remains well-positioned with a strong balance sheet to navigate global market volatility and Middle East supply chain pressures.
While the company has not experienced diesel fuel shortages, it has implemented measures across its operations to mitigate potential supply chain impacts arising from the conflict.
The company paid a US$175 million interim dividend following the quarter’s end, continuing its commitment to shareholder returns while funding its transition toward green metals like copper and zinc.
