South32 shares lower on 'mixed' quarter
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More news: South32 shares fell on the ASX after the mining and metals company reporting "mixed" results for the first quarter.
Shares were down 1.1% to $3.66 by 11:20am AEDT, making it one of the worst 10 performing ASX 200 stocks as the wider market added 0.5%.
What they said: "1Q production numbers were mixed, with some seasonality or maintenance impacting output; however, importantly, guidance was maintained and key commodities (copper, aluminium, manganese) were better than expected," said RBC Capital Markets analyst Kaan Peker.
"We expect a neutral reaction today as people will likely look through the minor misses and towards higher [mark to market] pricing."
South32 keeps FY production guidance despite mixed quarter
The news: Mining giant South32 has maintained its full-year production guidance despite reporting a dip in output for some of its commodities.
The numbers: The global miner said aluminium production for the September quarter rose 3% from a year ago to 298,000 tonnes, copper production was up 10% to 17,600 tonnes, while nickel production was up 4%. It reported a dip in alumina, silver, lead and manganese output.
The context: South32 chief executive Graham Kerr said the miner had a strong start to the year in aluminium and a 20% uplift in copper columns from Sierra Gorda in Chile.
Alumina output largely declined due to maintenance and constrained bauxite supply, while zinc production was also down due to challenging ground conditions. The company still expects to maintain its full-year guidance for all operations.
South32 said it has completed the sale of the Illawarra metallurgical coal business, announced in February, for USD1.65 billion ($2.46 billion), freeing up capital to invest in high quality development projects in copper and zinc.
The sources: ASX announcement, RBC Capital Markets research
