REG - South32 Limited - Quarterly Report - September 2021

South32Announcement

21/10/2021 07:05

RNS Number : 7894P
  
South32 Limited
  
21 October 2021
  
 

  South32 Limited
(Incorporated in Australia under the Corporations Act 2001 (Cth))
(ACN 093 732 597)   
ASX, LSE, JSE Share Code: S32 ADR: SOUHY 
ISIN: AU000000S320
 
21 September 2021
 
South32 Limited
Quarterly Report September 2021
"Our operations continue to perform well, achieving record production at South Africa Manganese and maintaining production above nameplate capacity at Worsley Alumina. Production at Mozal Aluminium was higher, with the smelter benefitting from our investment in the AP3XLE energy efficiency technology. 
"Our teams continue to achieve strong operating results, despite the ongoing challenges of COVID-19 across the globe.
"Our operating performance has further strengthened our financial position, supporting the continuation of our on-market share buy-back, and subsequent to the end of the period, payment of our US$256M fully franked ordinary and special dividends in respect of the June 2021 half year.
"We continue to actively reshape our portfolio for a low carbon future, and last week entered into binding conditional agreements to acquire a 45 per cent interest in Sierra Gorda, a long life, open pit copper mine in Chile. We have also recently exercised our pre-emptive rights to acquire an additional interest inMozal Aluminium. These initiatives, and our ongoing work with Alcoa in Brazil to investigate the Alumar smelter's potential restart using renewable power, will see us increase our leverage to the metals critical to the green energy transition."
Graham Kerr, South32 CEO
 



•


Maintained FY22 production guidance with our operations continuing to deliver to plan, taking advantage of rising commodity prices




•


Delivered a US$254M increase in our net cash position to US$660M1, with higher commodity prices and third party logistics disruptions resulting in a build in working capital




•


Achieved a 7% increase in manganese production, with a quarterly record at South Africa Manganese and a strong start to the year at Australia Manganese 




•


Maintained production above nameplate capacity at Worsley Alumina, with the operation continuing to benefit from improvement initiatives 




•


Restored production to normalised rates at Brazil Alumina in October, following an incident that damaged one of the bauxite unloaders at the refinery in July 2021




•


Increased production at Mozal Aluminium, with smelter productivity benefitting from our investment in the AP3XLE energy efficiency technology




•


Recorded sequentially lower base metals production, with Cerro Matoso impacted by a temporary equipment outage, while Cannington extracted a planned series of lower grade stopes




•


Entered into binding conditional agreements to acquire a 45% interest in Sierra Gorda, an operating copper mine in Chile which is expected to deliver copper equivalent production of 214kt in CY21e (100% basis)2




•


Exercised our pre-emptive rights to acquire an additional interest in our hydro powered aluminium smelter, Mozal Aluminium3










Production summary




























South32 share


YTD FY21


YTD FY22


YoY






1Q21


4Q21


1Q22


QoQ




Alumina production (kt)


1,315


1,278


(3%)






1,315


1,427


1,278


(10%)




Aluminium production (kt)


248


248


0%






248


246


248


1%




Metallurgical coal production (kt)


1,863


1,575


(15%)






1,863


1,340


1,575


18%




Energy coal production (kt)


508


313


(38%)






508


385


313


(19%)




Manganese ore production (kwmt)


1,461


1,565


7%






1,461


1,464


1,565


7%




Payable nickel production (kt)


10.0


9.6


(4%)






10.0


10.9


9.6


(12%)




Payable silver production (koz)


2,863


3,493


22%






2,863


4,178


3,493


(16%)




Payable lead production (kt)


26.4


31.9


21%






26.4


41.2


31.9


(23%)




Payable zinc production (kt)
 


12.4


15.4


24%






12.4


19.5


15.4


(21%)




Unless otherwise noted: percentage variance relates to performance during September 2021 quarter compared with the June 2021 (QoQ); production and sales volumes are reported on an attributable basis.



 
Corporate Update



•


Our net cash balance1 increased by US$254M to US$660M during the quarter. Notwithstanding our strong cash generation, which included net distributions4 of US$45M (South32 share) from our manganese equity accounted investments (EAI), we have experienced a build in working capital as a result of higher commodity prices and third party logistics disruptions at many ports across our geographic footprint. 




•


We exercised our pre-emptive rights to acquire an additional shareholding in Mozal Aluminium from MCA Metals Holding GmbH (Mitsubishi) during the quarter3. Subsequent to the end of the period, the Industrial Development Corporation of South Africa (IDC) also notified Mitsubishi of its intention to trigger their pre-emptive rights. Accordingly our shareholding is expected to increase by a minimum of 16.6% to 63.7% for a headline purchase price of US$166M. Completion of the transaction is subject to the satisfaction of customary conditions.  




•


Subsequent to the end of the period, we entered into two binding conditional agreements with Sumitomo Metal Mining and Sumitomo Corporation (collectively Sumitomo) to acquire a 45% interest in the Sierra Gorda copper mine in Chile for an upfront cash consideration of US$1.55B and a contingent price-linked consideration of up to US$500M2. The upfront consideration is expected to be funded from cash on hand and a US$1B acquisition debt facility. Completion of the transaction is expected around the end of calendar year 2021, subject to the waiver or non-exercise of pre-emption rights held by 55% joint venture partner KGHM Polska Miedz, and competition and regulatory approvals.




•


Our strong financial position also supported the purchase of a further 10M shares via our on-market share buy-back at an average price of A$2.95 per share in the September 2021 quarter. Subsequent to the end of the period, we also paid a fully franked ordinary dividend of US$163M and a fully franked special dividend of US$93M in respect of the June 2021 half year. Our US$2B capital management program is 88% complete with US$231M remaining to be returned to shareholders ahead of its extension or expiry on 2 September 20225. 




•


Subsequent to the end of the quarter and consistent with our commitment to maintain an investment grade credit rating, S&P and Moody's reaffirmed their respective BBB+ and Baa1 credit ratings for the Group.




•


During the quarter the Colombian government passed legislation to increase the country's corporate tax rate to 35% from 1 January 2022 (it was previously scheduled to reduce from 31% to 30% on this date). Notwithstanding this increase, our FY22 Group Underlying effective tax rate is expected to return to normalised levels that reflect the corporate tax rates of the geographies where the Group operates which include: Australia 30%, South Africa 28%, Colombia 31%6, Mozambique 0%6 and Brazil 34%. 




•


We have commenced a process to investigate the potential divestment of our interest in the Eagle Downs Metallurgical Coal development option. 



 
Development and Exploration Update



•


We continued work on our Taylor Deposit pre-feasibility study (PFS) at our Hermosa project, while making progress with our scoping study for the Clark Deposit. We expect to report the outcomes for the Taylor PFS around the end of the calendar year. 




•


Subsequent to the end of the period, we completed the summer exploration season at our Ambler Metals Joint Venture. Although total drilling metres and productivity were impacted by adverse weather and challenges in fully staffing the program, sufficient material was recovered to complete planned metallurgical work and geotechnical drilling at the Arctic Deposit. 




•


We invested US$7M during the September 2021 quarter in our early stage greenfield exploration opportunities. With COVID-19 restrictions generally diminishing across jurisdictions, activity continues to ramp-up with multiple programs targeting base and precious metals underway in Australia, USA, Canada, Argentina, Peru and Ireland.




•


We directed US$15M towards exploration programs at our existing operations and development options during the September 2021 quarter (US$11M capitalised), including US$0.5M for our EAI (US$0.1M capitalised), US$4M at the Hermosa project (all capitalised) and US$6M at Ambler Metals (all capitalised).



 
Production Summary




Production guidance

(South32 share) 


FY21


3M YTD FY22


FY22e(a)





Worsley Alumina
















Alumina production (kt)


3,963


1,006


3,965




Brazil Alumina
















Alumina production (kt)


1,398


272


1,300




Hillside Aluminium7
















Aluminium production (kt)


717


180


720




Mozal Aluminium7
















Aluminium production (kt)


265


68


273




Illawarra Metallurgical Coal
















Total coal production (kt)


7,645


1,888


7,300




Metallurgical coal production (kt)


6,170


1,575


6,300




Energy coal production (kt)


1,475


313


1,000




Australia Manganese
















Manganese ore production (kwmt)


3,529


897


3,500




South Africa Manganese 
















Manganese ore production8 (kwmt)


2,264


668


2,200




Cerro Matoso
















Payable nickel production (kt)


34.1


9.6


43.8




Cannington
















Payable zinc equivalent production9 (kt)


319.0


78.2


278.3




Payable silver production (koz)


13,655


3,493


11,647




Payable lead production (kt)


131.8


31.9


112.6




Payable zinc production (kt)


67.7


15.4


63.9



a.         The denotation (e) refers to an estimate or forecast year. All guidance is subject to further potential impacts from COVID-19.
 
 
Worsley Alumina (86% share)



South32 share


YTD FY21


YTD FY22


YoY






1Q21


4Q21


1Q22


1Q22

vs

1Q21


1Q22

vs

4Q21




Alumina production (kt)


963


1,006


4%






963


1,078


1,006


4%


(7%)




Alumina sales (kt) 


1,001


924


(8%)






1,001


1,086


924


(8%)


(15%)



 
Worsley Alumina saleable production decreased by 7% (or 72kt) to 1,006kt in the September 2021 quarter. Following the prior period's drawdown of hydrate inventory, the refinery continued to operate above nameplate capacity with calcination rates now normalised. FY22 production guidance remains unchanged at 3,965kt with the refinery continuing to benefit from improvement initiatives. Notwithstanding the continued strong operating performance, elevated caustic soda prices are expected to further impact the refinery's Operating unit cost guidance for FY22 of US$241/t. 
Sales decreased by 15% during the September 2021 quarter as our shipping schedule was impacted by adverse weather and COVID-19 quarantine requirements. 
We realised a circa 15% premium to the Platts Alumina Index10 on a volume weighted M-1 basis for alumina sales in the September 2021 quarter, with our realised prices benefitting from a legacy supply contract with Mozal Aluminium, and elevated global freight rates which are also reflected in Operating unit costs. 
 
Brazil Alumina (36% share)



South32 share


YTD FY21


YTD FY22


YoY






1Q21


4Q21


1Q22


1Q22

vs

1Q21


1Q22

vs

4Q21




Alumina production (kt)


352


272


(23%)






352


349


272


(23%)


(22%)




Alumina sales (kt) 


340


247


(27%)






340


333


247


(27%)


(26%)



 
Brazil Alumina saleable production decreased by 22% (or 77kt) to 272kt in the September 2021 quarter following an incident in July that damaged one of the two bauxite unloaders at the refinery. The operation took immediate action to mitigate the disruption through the installation of temporary loading infrastructure and returned to full capacity in October. With the ramp-up of the refinery meeting prior expectations, FY22 production guidance remains unchanged at 1,300kt.
Separately, we are working with our partner Alcoa to investigate a potential restart of the Alumar aluminium smelter in H2 FY22 using 100% renewable energy from 2024. We expect to make a decision on the potential restart by the end of the calendar year. 
 
Hillside Aluminium (100%)



South32 share


YTD FY21


YTD FY22


YoY






1Q21


4Q21


1Q22


1Q22

vs

1Q21


1Q22

vs

4Q21




Aluminium production (kt)


180


180


0%






180


180


180


0%


0%




Aluminium sales (kt) 


175


160


(9%)






175


169


160


(9%)


(5%)



 
Hillside Aluminium saleable production remained at 180kt in the September 2021 quarter as the smelter continued to test its maximum technical capacity, despite the impact of further load-shedding. FY22 production guidance7 remains unchanged at 720kt. 
Sales decreased by 5% in the September 2021 quarter as port congestion impacted the timing of shipments.
In August we finalised a new agreement with Eskom which secures the smelter's energy supply until 2031. The new tariff is South African rand based, with a rate of escalation linked to the South Africa Producer Price Index. 
 
 
Mozal Aluminium (47.1% share)



South32 share


YTD FY21


YTD FY22


YoY






1Q21


4Q21


1Q22


1Q22

vs

1Q21


1Q22

vs

4Q21




Aluminium production (kt)


68


68


0%






68


66


68


0%


3%




Aluminium sales (kt) 


64


55


(14%)






64


68


55


(14%)


(19%)



 
Mozal Aluminium saleable production increased by 3% (or 2kt) to 68kt in the September 2021 quarter as the smelter's productivity benefitted from our investment in the AP3XLE energy efficiency project. Notwithstanding the further impact of load-shedding, the smelter continues to test its maximum technical capacity, and FY22 production guidance7 of 273kt remains unchanged.
Sales decreased by 19% in the September 2021 quarter as port congestion impacted the timing of shipments.
The smelter sources alumina from our Worsley Alumina refinery with approximately 50% priced as a percentage of the LME aluminium index under a legacy contract and the remainder linked to the Platts alumina index on an M-1 basis, with caps and floors embedded within specific contracts. As a result of these contracts the smelter paid a premium to the Platts index on an M-1 basis for alumina sourced during the September 2021 quarter. 
 
Illawarra Metallurgical Coal (100%)



South32 share


YTD FY21


YTD FY22


YoY






1Q21


4Q21


1Q22


1Q22

vs

1Q21


1Q22

vs

4Q21




Total coal production (kt)


2,371


1,888


(20%)






2,371


1,725


1,888


(20%)


9%




Total coal sales11 (kt)


1,940


1,708


(12%)






1,940


1,766


1,708


(12%)


(3%)




Metallurgical coal production (kt)


1,863


1,575


(15%)






1,863


1,340


1,575


(15%)


18%




Metallurgical coal sales (kt)


1,468


1,490


1%






1,468


1,367


1,490


1%


9%




Energy coal production (kt)


508


313


(38%)






508


385


313


(38%)


(19%)




Energy coal sales (kt)


472


218


(54%)






472


399


218


(54%)


(45%)



 
Illawarra Metallurgical Coal saleable production increased by 9% (or 163kt) to 1,888kt in the September 2021 quarter with longwall productivity improving, following challenging strata conditions and a longwall move in the prior period. Notwithstanding, energy coal production declined as no sales of low-margin coal wash material were made in the quarter, with elevated freight rates making them uneconomic. 
While the lower total volumes are expected to adversely impact Operating unit costs, realised prices will benefit due to fewer sales of the lower priced product and the current strong metallurgical coal market. FY22 production guidance remains unchanged at 7.3Mt, with an extended longwall move scheduled at the Dendrobium mine in the December 2021 quarter. Further longwall moves are planned for the March 2022 and June 2022 quarters.
 
Australia Manganese       (60% share)



South32 share


YTD FY21


YTD FY22


YoY






1Q21


4Q21


1Q22


1Q22

vs

1Q21


1Q22

vs

4Q21




Manganese ore production (kwmt)


880


897


2%






880


866


897


2%


4%




Manganese ore sales (kwmt)


994


906


(9%)






994


891


906


(9%)


2%





Australia Manganese saleable production increased by 4% (or 31kwmt) to 897kwmt in the September 2021 quarter with the PC02 circuit continuing to operate above nameplate capacity, supported by an improvement in product yield. FY22 production guidance remains unchanged at 3,500kwmt.
We disclosed our updated Mineral Resource estimate in September to incorporate results from the initial phase of our ongoing Southern Areas exploration program, adding a further 17Mt to GEMCO's Total Mineral Resource of 157Mt12. 
 
South Africa Manganese (60% share)



South32 share


YTD FY21


YTD FY22


YoY






1Q21


4Q21


1Q22


1Q22

vs

1Q21


1Q22

vs

4Q21




Manganese ore production8 (kwmt)


581


668


15%






581


598


668


15%


12%




Manganese ore sales8 (kwmt)


517


566


9%






517


636


566


9%


(11%)



 
South Africa Manganese saleable production increased by 12% (or 70kwmt) to a record 668kwmt in the September 2021 quarter, due to higher volumes of premium material from our Mamatwan mine. While starting the year well ahead on an annualised basis, FY22 production guidance remains unchanged at 2,200kwmt as we monitor market conditions and our continued use of higher cost trucking. 
Ore sales decreased by 11% during the September 2021 quarter as we established additional finished goods inventory ahead of a planned shut. Notwithstanding the lower volumes, we achieved a premium to the medium grade 37% manganese lump ore index13 on a volume weighted M-1 basis as we optimised our sales mix. 
 
Cerro Matoso (99.9% share)



South32 share


YTD FY21


YTD FY22


YoY






1Q21


4Q21


1Q22


1Q22

vs

1Q21


1Q22

vs

4Q21




Payable nickel production (kt)


10.0


9.6


(4%)






10.0


10.9


9.6


(4%)


(12%)




Payable nickel sales (kt)


10.4


10.4


0%






10.4


10.3


10.4


0%


1%



 
Cerro Matoso payable nickel production decreased by 12% (or 1.3kt) to 9.6kt in the September 2021 quarter as plant availability was impacted by an unplanned transformer outage. FY22 production guidance remains unchanged at 43.8kt with the operation implementing mitigating actions to recover volumes across the remainder of the year.
Our ferronickel product sells with reference to the LME Nickel index price on a M or M+1 basis. While product discounts averaged 9% during the September 2021 quarter, these have reduced for recently completed sales.  
 
Cannington (100% share)



South32 share


YTD FY21


YTD FY22


YoY






1Q21


4Q21


1Q22


1Q22

vs

1Q21


1Q22

vs

4Q21




Payable zinc equivalent production9 (kt)


64.1


78.2


22%






64.1


97.1


78.2


22%


(19%)




Payable silver production (koz)


2,863


3,493


22%






2,863


4,178


3,493


22%


(16%)




Payable silver sales (koz)


2,967


2,718


(8%)






2,967


4,460


2,718


(8%)


(39%)




Payable lead production (kt)


26.4


31.9


21%






26.4


41.2


31.9


21%


(23%)




Payable lead sales (kt)


29.5


25.3


(14%)






29.5


41.9


25.3


(14%)


(40%)




Payable zinc production (kt)


12.4


15.4


24%






12.4


19.5


15.4


24%


(21%)




Payable zinc sales (kt)


11.8


14.3


21%






11.8


21.3


14.3


21%


(33%)



 
Cannington payable zinc equivalent production decreased by 19% (or 18.9kt) to 78.2kt in the September 2021 quarter as planned surface maintenance lowered plant throughput, and average grades declined following the prior period's extraction of a higher grade mining sequence. Ore mined increased by 8% as continued strong underground performance supported the establishment of additional run of mine inventory during the surface outage.
The operation remains on-track to transition to 100% truck haulage from the June 2022 quarter, with FY22 production guidance remaining unchanged (silver 11,647koz, lead 112.6kt and zinc 63.9kt).
 
Notes



1


Net cash number is unaudited and should not be considered as an indication of or alternative to an IFRS measure of profitability, financial performance or liquidity. 




2


Refer to market release "South32 to acquire a 45% interest in the Sierra Gorda copper mine" dated 14 October 2021. Upfront consideration subject to customary working capital and net debt adjustments. Contingent price-linked consideration payable at threshold copper production rates and prices in the years 2022-25.




3


Refer to market release "South32 to acquire up to an additional 25% of Mozal Aluminium" dated 30 September 2021. 




4


Net distributions from equity accounted investments includes net debt movements and dividends, which are unaudited and should not be considered as an indication of or alternative to an IFRS measure of profitability, financial performance or liquidity.




5


Since inception, US$1.4B has been allocated to the on-market share buy-back (659M shares at an average price of A$2.87 per share) and US$385M returned in the form of special dividends. 




6


The Colombian corporate tax rate is 31% in CY21 and will increase to 35% from 1 January 2022 in accordance with recently passed legislation. The Mozambique operations are subject to a royalty on revenues instead of income tax.




7


Production guidance for Hillside Aluminium and Mozal Aluminium does not assume any load-shedding impact on production. 




8


Consistent with the presentation of South32's segment information, South Africa Manganese ore production and sales have been reported at 60%. The Group's financial statements will continue to reflect a 54.6% interest in South Africa Manganese ore.




9


Payable zinc equivalent production (kt) was calculated by aggregating revenues from payable silver, lead and zinc, and dividing the total Revenue by the price of zinc. FY21 realised prices for zinc (US$2,357/t), lead (US$1,862/t) and silver (US$25.4/oz) have been used for FY21, Q1 FY22 and FY22e.




10


The quarterly sales volume weighted average of the Platts Alumina Index (FOB Australia) on the basis of a one month lag to published pricing (Month minus one or "M-1") was US$293/t in the September 2021 quarter.




11


Illawarra Metallurgical Coal sales are adjusted for moisture and will not reconcile directly to Illawarra Metallurgical Coal production.




12


Information in this report that relates to Mineral Resource estimates for GEMCO was declared as part of South32's annual Resource and Reserve declaration in the FY21 Annual Report (www.south32.net) issued on 3 September 2021 and prepared by Competent Person in accordance with the requirements of the JORC Code. South32 confirms that it is not aware of any new information or data that materially affects the information included in the original announcements. All material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. South32 confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement. 




13


The quarterly sales volume weighted average of the Metal Bulletin 37% manganese lump ore index (FOB Port Elizabeth, South Africa) on the basis of a one month lag to published pricing (Month minus one or "M-1") was US$3.11/dmtu in the September 2021 quarter.



The following abbreviations have been used throughout this report: US$ million (US$M); US$ billion (US$B); grams per tonne (g/t); tonnes (t); thousand tonnes (kt); thousand tonnes per annum (ktpa); million tonnes (Mt); million tonnes per annum (Mtpa); ounces (oz); thousand ounces (koz); million ounces (Moz); thousand wet metric tonnes (kwmt); million wet metric tonnes (Mwmt); million wet metric tonnes per annum (Mwmt pa); thousand dry metric tonnes (kdmt). 
Figures in Italics indicate that an adjustment has been made since the figures were previously reported. The denotation (e) refers to an estimate or forecast year.
 
Operating Performance




South32 share


YTD FY21


YTD FY22






1Q21


2Q21


3Q21


4Q21


1Q22





Worsley Alumina (86% share)




































Alumina hydrate production (kt)


1,010


997






1,010


1,002


977


992


997




Alumina production (kt)


963


1,006






963


1,047


875


1,078


1,006




Alumina sales (kt)


1,001


924






1,001


1,077


840


1,086


924




Brazil Alumina (36% share)




































Alumina production (kt)


352


272






352


354


343


349


272




Alumina sales (kt)


340


247






340


334


384


333


247




Hillside Aluminium (100%)




































Aluminium production (kt)


180


180






180


181


176


180


180




Aluminium sales (kt)


175


160






175


172


191


169


160




Mozal Aluminium (47.1% share)




































Aluminium production (kt)


68


68






68


67


64


66


68




Aluminium sales (kt)


64


55






64


66


64


68


55




South Africa Energy Coal (100% share divested)
































Energy coal production (kt)


6,263


-






6,263


4,980


3,764


3,079


-




Domestic sales (kt)


3,607


-






3,607


2,920


2,025


1,823


-




Export sales (kt)


2,487


-






2,487


2,210


1,879


1,449


-




Illawarra Metallurgical Coal (100%)




































Total coal production (kt)


2,371


1,888






2,371


1,725


1,824


1,725


1,888




Total coal sales11 (kt)


1,940


1,708






1,940


2,087


1,823


1,766


1,708




Metallurgical coal production (kt)


1,863


1,575






1,863


1,399


1,568


1,340


1,575




Metallurgical coal sales (kt)


1,468


1,490






1,468


1,697


1,542


1,367


1,490




Energy coal production (kt)


508


313






508


326


256


385


313




Energy coal sales (kt)


472


218






472


390


281


399


218




Australia Manganese (ore 60% share, alloy 60% share divested)




























Manganese ore production (kwmt)


880


897






880


954


829


866


897




Manganese ore sales (kwmt)


994


906






994


871


865


891


906




Ore grade sold (%, Mn)


44.3


44.2






44.3


44.5


44.4


44.5


44.2




Manganese alloy production (kt)


27


-






27


24


-


-


-




Manganese alloy sales (kt) 


26


-






26


33


-


-


-




South Africa Manganese (60% share)




































Manganese ore production8 (kwmt)


581


668






581


505


580


598


668




Manganese ore sales8 (kwmt)


517


566






517


586


497


636


566




Ore grade sold (%, Mn)


39.7


40.3






39.7


40.0


40.6


39.5


40.3




Manganese alloy production (kt)


-


-






-


-


-


-


-




Manganese alloy sales (kt) 


8


-






8


3


-


-


-




Cerro Matoso (99.9% share)




































Ore mined (kwmt)


645


1,058






645


825


594


1,174


1,058




Ore processed (kdmt)


698


620






698


457


528


702


620




Ore grade processed (%, Ni)


1.58


1.76






1.58


1.55


1.60


1.76


1.76




Payable nickel production (kt) 


10.0


9.6






10.0


6.1


7.1


10.9


9.6




Payable nickel sales (kt)


10.4


10.4






10.4


6.1


6.7


10.3


10.4




Cannington (100%)




































Ore mined (kwmt)


700


750






700


709


714


696


750




Ore processed (kdmt)


630


687






630


672


724


720


687




Silver ore grade processed (g/t, Ag)


169


185






169


179


177


213


185




Lead ore grade processed (%, Pb)


5.0


5.5






5.0


5.2


5.8


6.6


5.5




Zinc ore grade processed (%, Zn)


2.9


3.2






2.9


3.7


3.5


3.9


3.2




Payable Zinc equivalent production9 (kt)


64.1


78.2






64.1


76.4


81.4


97.1


78.2




Payable silver production (koz)


2,863


3,493






2,863


3,130


3,484


4,178


3,493




Payable silver sales (koz)


2,967


2,718






2,967


3,359


2,950


4,460


2,718




Payable lead production (kt)


26.4


31.9






26.4


31.2


33.0


41.2


31.9




Payable lead sales (kt)


29.5


25.3






29.5


31.9


28.4


41.9


25.3




Payable zinc production (kt)


12.4


15.4






12.4


18.0


17.8


19.5


15.4




Payable zinc sales (kt)


11.8


14.3






11.8


20.0


15.9


21.3


14.3



 
Forward-looking statements
This release contains forward-looking statements, including statements about trends in commodity prices and currency exchange rates; demand for commodities; production forecasts; plans, strategies and objectives of management; capital costs and scheduling; operating costs; anticipated productive lives of projects, mines and facilities; and provisions and contingent liabilities. These forward-looking statements reflect expectations at the date of this release, however they are not guarantees or predictions of future performance. They involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results to differ materially from those expressed in the statements contained in this release. Readers are cautioned not to put undue reliance on forward-looking statements. Except as required by applicable laws or regulations, the South32 Group does not undertake to publicly update or review any forward-looking statements, whether as a result of new information or future events. Past performance cannot be relied on as a guide to future performance. South32 cautions against reliance on any forward looking statements or guidance, particularly in light of the current economic climate and the significant volatility, uncertainty and disruption arising in connection with COVID-19. 
 
Further information
 



INVESTOR RELATIONS
Tom Gallop
M  +61 439 353 948 
E   Tom.Gallop@south32.net 


MEDIA RELATIONS
Miles Godfrey

M  +61 415 325 906
E   Miles.Godrey@south32.net


 
Jenny White

M  +44 7900 046 758
E   Jenny.White@south32.net



 
 
21 October 2021

Approved for release by Graham Kerr, Chief Executive Officer

JSE Sponsor: UBS South Africa (Pty) Ltd
 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
  END
 
 
MSCEASEFALLFFEA