South32 shares rise after quarterly update
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More news: South32 shares climbed at market open after the miner told investors that operations and export sales of its manganese business would be halted until Q3 FY25, after it was hit by Tropical Cyclone Megan last month.
Shares were up 6.6% to $3.40 by 10:40am AEST.
Last month, Macquarie analysts said that despite South32 withdrawing guidance for its manganese ore production, the suspension of operations at its Groote Eylandt Mining Company (GEMCO), which supplies around 10% of the global manganese market, are expected to drive up global manganese prices.
Analysts consequently modelled changes to South32 earnings per share at -13% in FY24, +12% in FY25, and +4% in FY26.
South32 manganese operations down until Q3 FY25
The news: South32 said its manganese business remains temporarily suspended, with operations and export sales expected to recommence in the third quarter of the 2025 financial year, due to the impacts of Tropical Cyclone Megan earlier this year.
The numbers: South32 said saleable production of manganese ore decreased 13% in the nine months to March 2024, as it temporarily suspended operations at its Groote Eylandt Mining Company (GEMCO).
South32 holds a 60% stake in GEMCO, which is one of the largest manganese ore producing mines in the world, exporting 5.9 million tonnes worth $1.53 billion in FY23.
Prior to withdrawing its guidance for GEMCO last month following damages by Tropical Cyclone Megan, the Perth-based miner had estimated full-year output of 3,400 thousand wet metric tonnes (kwmt) from the operation in FY24.
The context: In a quarterly update, the South32's CEO Graham Kerr said operations at the mine remain temporarily suspended, while the company progresses recovery plans to enable the safe return of operations. The miner said that based on a preliminary schedule estimate, it expects to recommence wharf operations and export sales in the third quarter of 2025.
South32 maintained guidance for its alumina, aluminium, copper, silver, lead, zinc, nickel and coal operations.
The source: ASX announcement
