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South32 Ltd on Monday reported lower annual production at most of its operations as extreme weather, supply chain disruptions and the Covid-19 pandemic weighed.
The Perth, Australia-based diversified miner said Worsley Alumina achieved record annual production for the financial year ended June 30. Output was up 1% to 3,991 tonnes from 3,963 in the prior year, exceeding guidance of 3,965 tonnes and operating above nameplate capacity.
But total alumina production for the group fell by 1% to 5,288 tonnes from 5,361.
Aluminium production inched up by 1% to 992,000 tonnes from 982,000 tonnes.
South32 said its copper operations delivered to revised plans despite knocks from weather and labour availability caused by the pandemic. For 2022, copper production was 25.3 million tonnes, below guidance of 27.0 million tonnes.
No copper output figures were provided for 2021, as South32 in October 2021 agreed to buy a 45% interest in Sierra Gorda, a long-life copper mine in Chile.
Annual payable lead production dropped by 8% to 120.6 million tonnes from 131.8 million tonnes, while payable zinc production was 5% down at 64.5 million tonnes from 67.7 million tonnes. Payable silver production was also 3% lower at 13.7 million ounces from 13.2 million ounces.
Also struggling, metallurgical coal production slipped by 7% to 5.7 million tonnes from 6.2 million tonnes, and manganese ore production fell by 3% to 5.4 million tonnes from 5.6 million tonnes.
But payable nickel production rose to 41.7 million tonnes from 34.1 million.
South32 expects to report operating unit costs in-line with its previously updated guidance at the majority of its operations.
South32 Chief Executive Graham Kerr said: ‘Our teams delivered another strong operating performance in the June quarter, despite challenges that included extreme weather, supply chain disruptions and reduced labour availability caused by the Covid-19 pandemic.’
‘Record annual production at Worsley Alumina, along with record quarterly production at South Africa Manganese and a strong sales result in June, capturing the benefit of high prices, capped another year of substantial progress for South32.’
In 2022, it spent $56 million across its portfolio of greenfield and development options, and this amount is expected to increase further to around $90 million in 2023.
Shares in South32 were down 1.2% at 204.50 pence on Monday morning in London, while its Johannesburg shares were 0.4% lower at R 41.36.
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