(Alliance News) - South32 Ltd on Monday downgraded its annual production guidance for some of its operations, after running into setbacks in the third quarter of its financial year.
The Perth, Australia-based diversified miner said its production was below plan in the third quarter due to poor weather and other temporary hiccups.
Alumina production fell by 8.8% to 1.23 million tonnes for the three months that ended March 31 from 1.35 million tonnes in the second quarter. Year-on-year, output was down 3.1% from 1.31 million tonnes in the same period last year.
Over this recent period, aluminium production declined by 3.5% to 279,000 tonnes from 289,000 tonnes the quarter prior. Production was 15% lower from 243,000 tonnes a year before.
Payable copper production was at 15,500 tonnes, down 18% from 18,900 tonnes in the second quarter but more than doubled from 8,400 tonnes a year before.
Manganese ore production was down 16% to 1.261 million wet tonnes from 1.477 million wet tonnes. Year-on-year, it fell by 22% from 1,206 million wet tonnes.
"Several operations faced challenging conditions during the quarter, with production guidance revised down as a result," South32 Chief Executive Graham Kerr said.
At Mozal Aluminium in Mozambique, the group reduced output as it continued to work through their recovery plan following the death of two workers in November. The company also temporarily suspended mining activity at Cannington in Australia during the third quarter to enable the safe return to operations following heavy rainfall.
Shares in South32 slumped 5.7% to ZAR50.26 on Monday morning in Johannesburg. In London, they lost 5.9% to 222.50 pence. They had closed down 7.4% at AUD4.12 in Sydney.
For the nine months that ended March 1, payable copper production multiplied to 53,400 tonnes for the nine months that ended March 31 from 8,400 tonnes a year earlier.
Copper equivalent production was up 7% after nine months, following investments last year which added copper to its portfolio.
Copper equivalent production refers to output that would be required to obtain the same revenue, while payable copper production means the quantity of a mineral produced.
In the recent nine months, aluminium production rose by 15% to 847,000 tonnes from 737,000 tonnes a year before, while alumina production dropped by 2% to 3.92 million tonnes from 3.85 million tonnes.
Manganese ore production was 4.19 million wet tonnes, up 6% from 3.96 million wet tonnes.
Payable nickel production at Cerro Matoso in Colombia was almost flat at 30,900 tonnes from 30,600 tonnes.
Payable silver production fell by 20% 8,291 ounces from 10,363 ounces.
Metallurgical coal production declined by 8% to 3.99 million tonnes from 4.33 million tonnes.
Payable lead production declined by 23% to 73,400 tonnes from 94,800 tonnes, while payable zinc production was 12% lower at 43,000 tonnes from 49,100 tonnes.
The diversified mining said its 2023 financial year production guidance remained unchanged at the majority of its operations.
Mozal aluminium production forecast was lowered to 340,000 tonnes from 370,000 tonnes forecast previously. For the 2022 financial year, output was 278,000 tonnes. However, Hillside aluminium output guidance was unchanged at 720,000 tonnes for financial 2023 from 714,000 tonnes in 2022.
Brazil alumina production projection was reduced to 1.34 million tonnes from 1.39 million tonnes previously. Production was 1.29 million tonnes in 2022. But Worsley alumina production was kept at 4.00 million tonnes from 3.99 million tonnes.
Australian manganese ore production estimate was revised to 3.50 million wet tonnes from 3.40 million wet tonnes in the previous prediction. For 2022, 3.36 million wet tonnes was recorded. South African manganese ore production guidance was maintained at 2.00 million wet tonnes, down from 2.06 million wet tonnes in 2022.
Metallurgical coal production estimate was slashed to 5.50 million tonnes from 7.0 million tonnes previously, compared to 5.71 million tonnes in financial 2022.
By Artwell Dlamini, Alliance News reporter
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