22 JULY 2024
Today we released our Quarterly Report for June 2024. During the period we delivered improved operating performance and continued to advance our portfolio transformation.
Operating performance
We delivered FY24 production to revised plans at the majority of our operations and saw strong sales in the June quarter.
“We delivered another quarter of improved operating performance, achieving sequentially higher volumes across the majority of our operations, and remaining on track to achieve FY24 operating unit cost guidance" said Graham Kerr, South32 CEO.
“Our performance enabled us to capitalise on stronger commodity prices, lift sales volumes and release working capital, boosting cash generation in the quarter,”
FY24 operational highlights include:
- Achieving 98 per cent of current Group FY24 copper equivalent production guidance and we remain on track to deliver FY24 Operating unit costs in line with current guidance.
- Aluminium production was largely unchanged year-on-year, as Hillside Aluminium achieved record production, Brazil Aluminium continued to ramp up, and Mozal Aluminium progressed its recovery plan.
- Cannington payable zinc equivalent production increased by 10 per cent in FY24, despite adverse weather impacts, as the operation realised higher average metal grades.
- South Africa Manganese responded to stronger manganese prices, achieving record annual production.
Portfolio transformation
During the quarter we advanced our portfolio transformation, completing key milestones for the sale of Illawarra Metallurgical Coal, and progressing construction at Hermosa's Taylor zinc-lead-silver deposit as planned.
The sale of Illawarra Metallurgical Coal is expected to be completed later this quarter, further strengthening our balance sheet, simplifying our business, reducing our capital intensity and unlocking capital to invest in our high-quality development projects in zinc and copper.
Construction and permitting are tracking to plan at the Taylor zinc-lead-silver deposit at Hermosa, following final investment approval in February.
Thank you to our teams around the world for your hard work and contribution during the 2024 financial year.