SOUTH32 delivered higher-than-revised manganese production from its South African assets, completing a strong finish to its 2019 financial year with similar performances at its aluminium, metallurgical and silver and lead operations.
The group also said it was edging towards finalising the sale of its South African thermal coal mines – with an update due by the calendar year-end – and has set about “portfolio adjustment” of its upstream manganese facilities, also in South Africa.
Graham Kerr, South32 CEO, described the quarter as “a strong finish” for a year in which the group all but completed its $1bn capital return programme. Some $986m had been returned in share buy-backs and cash payments as of the quarter-end raising the question as to the group’s approach to returns for the 2020 financial year.
“We had a strong finish to the year, with revenue equivalent production growing 10% in the quarter and three percent for the year,” said Kerr in commentary to the fourth quarter production update.
“We achieved record annual production at Hillside Aluminium, increased production at Illawarra Metallurgical Coal by 57% and delivered 5.5 million tonnes (Mt) of manganese ore into a favourable market,” he added.
Shares in South32 were about 1.6% weaker on the Sydney Stock Exchange. The share has been under pressure losing about a third of its value since mid-year. Only Glencore, of the South32’s peer group, had experienced similar downward pressure this year.
