19 OCTOBER 2026
We’ve released South32's Quarterly Report for September 2026, maintaining production guidance and balance sheet strength while investing in base metals growth.
“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,” said Matt Daley, South32 Chief Executive Officer.
Sierra Gorda increased payable copper equivalent production by 11 per cent on higher planned copper grades and paid a record quarterly distribution of US$153 million. Sierra Gorda also commenced execution of the fourth grinding line project, which is expected to increase processing capacity by 25 per cent, increasing our exposure to copper.
Manganese had a strong start to the year, with production increasing by 14 per cent as Australia Manganese benefitted from improved operating conditions following the wet season and South Africa Manganese lifted underground productivity at Wessels.
At Cannington, we successfully processed lower-grade stockpiles to mitigate lower mining rates caused by a temporary reduction in paste backfill availability. We expect upgrades to the paste delivery system to support higher mining rates over the remainder of FY27, with continued processing of lower-grade stockpiles providing additional mill feed.
Alumina production increased by 1%, with both refineries operating near nameplate capacity. Aluminium production was largely unchanged as Hillside Aluminium continued to test nameplate and Brazil Aluminium ramped-up.
At Hermosa, we continued construction of underground and surface infrastructure for the Taylor zinc-lead-silver project and achieved a significant permitting milestone with completion of the federal permitting process under FAST-41.
On 15 October, South32 shareholders approved the sale of our aluminium value chain assets to Alcoa.
“The transaction remains on track for completion in the June 2027 half year, subject to relevant regulatory approvals, and will reposition South32 as a leading upstream base metals focused company with high-margin assets and transformational growth,” said Matt.