South32 drops following guidance cuts
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The news: Shares in South32 have slid 2.6% lower to $3.155 after the miner cut its 2024 production guidance for copper and aluminium.
South32 flagged lower unit costs across most of its assets in the first half but cut full-year guidance for copper by 3% and for aluminium output in Mozambique by 12%.
South32 costs under control but guidance cut for copper, aluminium
The news: Mining giant South32 has flagged cuts to its full-year copper and aluminium guidance but expects first-half operating costs to be in line or below expectations.
The numbers: December quarter production was mixed, with zinc and nickel output up 20% over the prior quarter and silver up 7%, while copper and metallurgical coal output was lower. The company expects overall production growth of 7% in the second half but cut full-year guidance for copper by 3% and for aluminium output in Mozambique by 12%.
The context: However, operating unit costs for the majority of its operations are expected to be in line or below guidance in the first half. “As we enter the second half, strengthening market conditions for many of our commodities, our planned 7 per cent production growth and ongoing cost management focus, position us well to capture higher margins,” CEO Graham Kerr said. The miner remains on track to make a final investment decision in the Taylor zinc-lead-silver deposit in the United States in the March 2024 quarter, he said.
The source: ASX announcement
