Key Points
- Manganese output expected to exceed FY25 guidance by 5%.
- Hermosa project progresses with shaft-sinking at Taylor deposit.
- $169 million returned to shareholders through buyback program.
With the exception of Mozal Aluminium in Mozambique, South32, a mining and metals firm with listings in Johannesburg, Sydney, and London, announced a strong start to the year on Monday, enabling it to maintain output guidance across all operations. The effects of the civil disturbance in Mozal are being addressed by the company.
South32 boosts manganese and aluminium production globally
South32 reported higher base metals production in the December 2024 quarter, and the country’s manganese output is predicted to climb by 5% over the fiscal 2025 (FY25) projection of 2 million wet metric tonnes. Stronger alumina pricing helped to support a 14% increase in alumina production.
As stated by Mining weekly, near-maximum technical capacity was maintained at the company’s Hillside Aluminium smelter in Richards Bay, South Africa, the biggest in the southern hemisphere.
During the half-year, Hillside’s aluminum production rose 1% to 362,000 metric tons, but the full-year FY25 target remained unchanged at 720,000 metric tons. As inventory levels returned to normal, sales increased by 10% in the December quarter.
Mozal Aluminium and Brazil Aluminium had a 12% increase in low-carbon aluminium output during the same time period. Brazil Alumina profited from increased plant availability, while Australia’s Worsley facility, which provides alumina to Hillside, finished calciner maintenance. Worsley’s mine development proposal was also approved by the state for environmental reasons, and by March 2025, the federal government is expected to approve it.
Shareholder returns grow with strong capital management
Under the direction of CEO Graham Kerr, South32’s continuous share buyback program gave $169 million back to shareholders over that time. The capital management strategy of the corporation still requires the repatriation of an additional $171 million. In addition to strengthening the company’s balance sheet, the September 2024 quarter divestiture of the Illawarra metallurgical coal business created a foundation for expansion in minerals and metals crucial to the energy transition.
At its Hermosa project in Arizona, South32 made great strides, starting the process of shaft-sinking to reach the Taylor zinc/lead/silver deposit. Drilling at the Peake copper deposit attempts to unlock more value at the site, while an exploration decline was also advanced at the Clark battery-grade manganese deposit.
In order to secure an option to purchase the Nakinilerak copper porphyry exploration discovery in British Columbia, Canada, the business also expanded its ownership of American Eagle to 19.9% and added new copper exploration options.
The company is still well-positioned for growth in minerals that are essential to the global energy shift because to South32’s diverse portfolio. The corporation is still in a strong position going into 2025 thanks to increased production across major assets and advancements on strategic projects.
