South32 boosts cash after strong performance

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South32 boosts cash after strong performance

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Published Date: 2021-04-29 | Source: Stephen Gunnion | Author: Stephen Gunnion

South32 boosts cash after strong performance

The diversified mining company has reported production records at Brazil Alumina and Australia Manganese and benefitted from improving commodity prices.

South32 has reported a strong third-quarter performance as it set production records at its Brazil Alumina and Australia Manganese operations and more than doubled its net cash position. It says it capitalised on its strong operating performance while benefitting from improving commodity prices.

In a report for the three months to end-March, the diversified mining company said it remained on track to achieve nameplate production at its Worsley Alumina operation in Australia. It increased its full-year production guidance at South Africa Manganese by 10% as it continued to respond to market conditions. It also lifted guidance at its Cannington silver and lead mine by a further 10% due to a strong underground performance. At Illawarra Metallurgical Coal, also in Australia, it delivered a 17% increase in year-to-date production with the Appin dual longwall configuration continuing to deliver greater efficiencies.

South32 attributed an increase in its net cash position to $517-million to its strong operating performance. Over the period it returned $90-million to shareholders through share buybacks, taking total returns under its capital management programme to $1.5-billion.

The company is busy wrapping up the sale of its local coal business to Seriti Resources. While the competition authorities have approved the transaction, it was still negotiating with Eskom, its main customer.

South32's shares closed 0.9% up at R32.18 yesterday.





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