South32 manganese output plunges after cyclone, restart expected by year-end
South32 reports 61% drop in Q1 manganese output
Company maintains FY25 guidance across all operations
Reduces net debt after selling Illawarra metallurgical coal
Updates with share moves in paragraph 2, analyst comments in paragraphs 3-4 and executive comments in paragraph 5
By Shivangi Lahiri
Oct 21 (Reuters) -Miner South32 S32.AX said its Australian manganese business was on track to resume production by the end of the year after the firm posted a sharp decline in quarterly production for the commodity, hurt by a cyclone in March.
Its shares rose as much as 1.6% in early trade but were last down 1.1% at 0019 GMT, after a 61% drop in its first-quarter manganese production, as the firm reiterated production guidance across all operations for the current financial year ending June 30, 2025 and narrowed its net debt in the period.
"As always with S32, a mix of positive and negative surprises with the quarterly report," analysts at Citi wrote.
Citi added South32's Illawarra metallurgical coal sale proceeds of $964 million decreased the company's net debt by $723 million to $39 million.
"The sale has also lowered our sustaining capital intensity and strengthened our financial position, enabling us to...deliver returns to shareholders via our on-market share buy-back," South32 CEO Graham Kerr said.
The miner's Groote Eylandt Mining Co (GEMCO) project, part of its Australian manganese division, has been suspended since mid-March after Tropical Cyclone Megan wreaked havoc in northern Australia, significantly damaging its infrastructure at the site.
"We progressed a substantial dewatering program and a phased mining restart during the September quarter and remain on track to resume production from the primary concentrator during the December quarter," South32 said in a statement.
The company produced 597,000 wet metric tons (wmt) of the steel additive for the quarter ended Sept. 30, compared with a Visible Alpha consensus estimate of about 527,900 wmt, with the firm's South African manganese division contributing all of the production.
South32 added that it had scheduled maintenance for its South African manganese operations in the June 2025 half-year.
Reporting by Shivangi Lahiri and Sherin Sunny in Bengaluru; Editing by Lisa Shumaker, Aurora Ellis and Jamie Freed
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
