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Quarterly Report March 2024

22 APRIL 2024

We've released our Quarterly Report for March 2024, highlighted by improved operating results and significant milestones aligned with our strategy to transform our portfolio.

During the period we delivered improved operating results, highlighted by record year to date production at Hillside Aluminium and South Africa Manganese, and a 60 per cent uplift in quarterly volumes at Illawarra Metallurgical Coal. We also achieved significant milestones aligned with our strategy to transform our portfolio.

Operating performance 

In Q3, we maintained FY24 production and operating unit cost guidance across all our operations, with the exception of Australia Manganese, where operations were suspended following Tropical Cyclone Megan.

Aluminium production increased by 1 per cent year to date, as Hillside Aluminium achieved record production and Brazil Aluminium continued to ramp up toward nameplate capacity.

Cannington payable zinc equivalent production increased by 15 per cent year to date, as the operation realised higher average metal grades, and mitigated the impact of heavy rainfall following Tropical Cyclone Kirrily.

Illawarra Metallurgical Coal saleable coal production increased by 60 per cent in the quarter, as the operation completed two planned longwall moves in the prior quarter and delivered improved longwall performance at Appin mine.

Alumina production decreased by 1 per cent year to date, as we completed planned calciner maintenance at Worsley Alumina, while Brazil Alumina remains on track to achieve production guidance.

Sierra Gorda payable copper equivalent production decreased by 13 per cent year to date, as higher throughput was offset by lower planned copper grades, and lower molybdenum recoveries in the current phase of the mine plan.

Cerro Matoso payable nickel production decreased by 5 per cent year to date, while increasing by 8 per cent in the quarter due to higher planned nickel grades.

South Africa Manganese achieved record production, delivering an 8 per cent uplift in year-to-date production.

Operations at Australia Manganese were temporarily suspended in March 2024 due to Tropical Cyclone Megan, with recovery plans underway to enable a safe return to operations and ore exports.

Reshaping our portfolio

During the quarter we also took several steps towards reshaping our portfolio including:

  • Announcing final investment approval to develop the Taylor zinc-lead-silver deposit at our Hermosa project in Arizona;
  • Announcing our conditional agreement to sell IMC to an entity owned by Golden Energy and Resources Pte Ltd (GEAR) and M Resources Pty Ltd; and
  • Entering into a binding agreement to divest our 50 per cent interest in the Eagle Downs metallurgical coal project to a subsidiary of Stanmore Resources Limited.
  • Following the end of the quarter, we completed the acquisition of a 50.1 per cent interest and operatorship of the Chita Valley copper exploration project in San Juan, Argentina.

“We achieved significant milestones aligned with our strategy to transform our portfolio toward commodities critical in the transition to a low-carbon future,” said Graham Kerr, Chief Executive Officer. 

Looking ahead

Strengthening market conditions for many of our commodities positions us well to capture higher margins as we move into Q4. 

“Operations at Australia Manganese remain temporarily suspended following Tropical Cyclone Megan, while we progress recovery plans to enable a safe return to operations,” said Graham.

“We remain focused on the safety and wellbeing of our workforce and the Groote Eylandt community.”

“With the exception of Australia Manganese, our FY24 production and Operating unit cost guidance is unchanged, placing us in a strong position to capitalise on strengthening market conditions for many of our key commodities," said Graham.

Click here to see the full report.