Strong sales and an advancement in portfolio transformation have been the markers of a solid June quarter for South 32.
The major remains on track to deliver operating costs for the 2023–24 financial year (FY24), in line with current guidance.
“We delivered another quarter of improved operating performance, achieving sequentially higher volumes across the majority of our operations, and remaining on track to achieve FY24 operating unit cost guidance,” South32 chief executive officer Graham Kerr said.
“Our performance enabled us to capitalise on stronger commodity prices, lift sales volumes and release working capital, boosting cash generation in the quarter.”
South32 invested $US372 million of growth capital expenditure at its Hermosa project in Arizona, progressing construction of key infrastructure. Greenfield exploration also received a boost, with the company investing $US27 million in opportunities throughout Australia, the US, Canada, Argentina, and Ireland.
The sale of Illawarra Metallurgical Coal for $US1.65 million, expected to be completed later in the quarter, will further boost South32’s balance sheet.
Sustainability was also a key focus for South32 during the quarter, as the company completed planned milestones in its multi-year Safety Improvement Program by deploying its Lead Safely Every Day program.
“Construction and permitting are tracking to plan at the Taylor zinc-lead-silver deposit at Hermosa, the first phase of a regional-scale opportunity to supply commodities critical for the global energy transition,” Kerr said.
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.
