(Alliance News) - South32 Ltd said on Monday it remained focused on keeping costs under control in the first half, while maintaining stable operational performance.
For the first half that ended December 31, the Perth, Australia-based diversified miner improved aluminium production to 568,000 tonnes, up 15% from 494,000 in the same period a year earlier, thanks to its increased stake in Mozal Aluminium in Mozambique and the restart of Brazil Aluminium smelter.
Alumina production was flat at 2.61 million tonnes for the first six months.
But the group delivered an 8% increase in alumina volumes to 1.35 million tonnes for the second quarter to December 31, from 1.25 million tonnes in a similar quarter in 2021.
Payable copper production was at 37,900 tonnes in the first half. No copper output figures were provided for the first half 2021.
Manganese ore production rose by 7% to 2.93 million wet tonnes in the first half from 2.75 million kwmt, due to strong performance in Australia.
South32 said manganese operations in Australia achieved record production in the first half.
However, metallurgical coal production dropped marginally by 1% to 2.75 million tonnes in the first half from 2.76 million tonnes.
Payable nickel production was almost flat at 20,400 tonnes from 20,300 tonnes.
South32 Chief Executive Graham Kerr said the group expected operating unit costs for the first half to be in-line with or below guidance for the 2023 financial year at the majority of its operations, despite industry-wide inflationary pressures.
Back in October, the miner guided for operating unit cost of USD296 per tonne.
Kerr said the company remained focused on stable operational performance, and efficiencies to mitigate cost pressures.
The diversified miner said Cerro Matoso operations in Colombia commissioned the ore sorting and mechanical ore concentration project in December, underpinning a 15-year extension to the mining contract, and supporting higher expected nickel production in second half of its 2023 financial year.
South32 cut by 11% its 2023 production guidance at Australia-based Cannington zinc, silver, and led project due to lower mill throughput.
It expects to record a build-in working capital of about USD100 million in the second half, primarily related to an increase in inventories. "This impact is most acute in our aluminium value chain in Southern Africa due to ongoing shipping delays," it added.
Shares in South32 rose by 1.2% to ZAR54.74 each in Johannesburg on Monday morning. In London, the stock closed 0.4% higher at 255.00 pence on Friday. London opens at 1000 SAT. In Australia, shares ended 1.3% stronger at AUD4.63.
By Artwell Dlamini, Alliance News reporter
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South32 (S32)