South32 has exceeded its FY25 production targets, driven by robust gains in copper and aluminium output, all while continuing to reshape its portfolio to focus on high-returning assets.
Chief executive officer Graham Kerr said the group’s results were driven by growth in key commodities.
“We delivered another strong quarter of operating performance, exceeding the Group’s FY25 production guidance, driven by annual production growth of 20 per cent in copper and 6 per cent in aluminium,” Kerr said.
“Australia Manganese successfully resumed export shipments during the quarter, marking a significant recovery from the impacts caused by Tropical Cyclone Megan.”
South32 achieved 102 per cent of its group production guidance and increased quarterly sales volumes by 21 per cent, contributing to a US$225 million working capital unwind in the second half of the year. Manganese production exceeded guidance by 9 per cent, reflecting recovery in Australia and a strong finish in South Africa.
Aluminium production grew by 6 per cent in FY25, supported by the continued ramp-up of Brazil aluminium and stable operations at Mozal Aluminium, which operated near nameplate capacity despite recent civil unrest in Mozambique.
Alumina production remained in line with guidance, with Worsley Alumina commencing mining under the Worsley Mine Development Project.
Kerr highlighted continued investment in the company’s future-facing projects, particularly the Hermosa development in Arizona.
“We invested US$517M in our regional scale Hermosa project in FY25 to grow our future base metals production. This quarter, we achieved key milestones at Hermosa’s Taylor zinc-lead-silver project, starting the main shaft sink and construction activities for the process plant,” he said.
South32 also received US$54 million in distributions from its Sierra Gorda joint venture during the quarter, with FY25 returns totalling US$176 million.
The company continued to reshape its portfolio, completing the sale of Illawarra Metallurgical Coal earlier in the year and agreeing to divest its Cerro Matoso nickel operation in July.
“With operating momentum, an upgraded portfolio, and a strong balance sheet, we are well positioned to deliver growth and returns,” Kerr said.
