21 JULY 2025
We’ve released our Quarterly Report for June 2025, highlighting another strong quarter of operating performance.
We achieved 102% of current Group FY25 production guidance and expect to deliver FY25 Operating unit costs in line with current guidance.
A 21% increase in Group sales during the quarter supported a working capital unwind of ~US$225M in H2 FY25.
South32 Chief Executive Officer, Graham Kerr, said: “We delivered another strong quarter of operating performance, exceeding the Group's FY25 production guidance, driven by annual production growth of 20% in copper and 6% in aluminium.
“Australia Manganese successfully resumed export shipments during the quarter, marking a significant recovery from the impacts caused by Tropical Cyclone Megan.”
Aluminium production increased by 6% in FY25, as Brazil Aluminium continued to ramp-up, while Mozal Aluminium operated near nameplate capacity in the quarter, having successfully mitigated the impacts of civil unrest in Mozambique.
Alumina production was in-line with FY25 guidance. Worsley Alumina commenced mining of bauxite areas from the Worsley Mine Development Project, which is expected to sustain production to at least FY36.
Sierra Gorda payable copper equivalent production increased by 20% in FY25, exceeding guidance by 4%.
Cannington achieved revised FY25 production guidance, supported by improved mining rates in the quarter.
Manganese production exceeded FY25 production guidance by 9%, as Australia Manganese successfully completed its operational recovery plan and South Africa Manganese had a strong finish to the year.
We returned US$350M to shareholders in FY25 via fully-franked ordinary dividends and our on-market share buy-back.
This month, we entered into a binding agreement to divest Cerro Matoso, which will further streamline our portfolio toward minerals and metals critical to the world's energy transition.
At our Hermosa project, we invested US$517m in FY25 to grow our future base metals production, with some key milestones achieved in the June quarter.
A key milestone in the FAST-41 federal permitting process for Hermosa was achieved, with the US Forest Service releasing a Draft Environmental Impact Statement.
We progressed construction of the Taylor zinc-lead-silver project, where we commenced sinking the main shaft and continued sinking the ventilation shaft during the quarter, while also commencing construction activities for the process plant.
Construction of the exploration decline for Clark remains on track to be completed by the end of CY25.
“We continued to streamline our portfolio toward higher-returning businesses, completing the sale of Illawarra Metallurgical Coal in the first half and agreeing to divest Cerro Matoso in July,” said Graham.
“With operating momentum, an upgraded portfolio, and a strong balance sheet, we are well positioned to deliver growth and returns.”