South32 has exceeded its full-year production guidance by two per cent in the 2024–25 financial year (FY25), as the company accelerates its shift towards future-facing commodities.
The June quarter was defined by South32 achieving improvements across its global portfolio and a continued pivot away from legacy coal and nickel assets.
“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 six per cent in aluminium,” South32 chief executive officer Graham Kerr said.
“Australia Manganese successfully resumed export shipments during the quarter, marking a significant recovery from the impacts caused by Tropical Cyclone Megan.”
With South Africa Manganese delivering a strong finish to the year, manganese production exceeded FY25 guidance by 9 per cent overall.
Copper volumes were underpinned by the Sierra Gorda joint venture in Chile, which exceeded production targets by four per cent and delivered $US176 million in distributions to South32 over the year.
Meanwhile, South32’s Brazil and Mozal aluminium assets ramped up to near capacity, with the latter overcoming civil unrest to deliver a 13 per cent year-on-year uplift.
“We continued to streamline our portfolio towards higher-returning businesses, completing the sale of Illawarra Metallurgical Coal in the first half and agreeing to divest Cerro Matoso in July,” Kerr said.
“We invested $US517M 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.”
With operating momentum, an upgraded portfolio, and a strong balance sheet, Kerr said South32 is well positioned to deliver continued growth and returns.
The company returned $US350M to shareholders in FY25 via fully-franked ordinary dividends and an on-market share buy-back.
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