South32 reiterates FY26 guidance following flat September quarter
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The news: Diversified miner South32 has reiterated its FY26 production guidance across all operations after delivering a quarterly update that was largely in-line with the preceding quarter.
The miner also said it expects to put Mozal Aluminium “on care and maintenance" when the existing energy supply agreement expires in March 2026.
The numbers: The largest production changes include a 12% quarter-on-quarter gain in payable copper equivalent production from the Sierra Gorda project from 22.3 kilo tonnes to 24.9 kilo tonnes and a 33% increase in manganese volumes.
Australia Manganese gained from 467,000 wet metric tonnes to 854,000 wet metric tonnes although South Africa Manganese fell from 593,000 wet metric tonnes to 551,000 wet metric tonnes.
Meanwhile, payable zinc equivalent production declined by 19% as “improved underground mining performance offset by lower average metals grades”.
The context: South32 CEO Graham Kerr said the miner's financial position remains strong as it continues to invest in its Hermosa zinc and manganese project in southern Arizona.
He also welcomed the US government's recent decision to support the establishment of the Ambler access road. Kerr described it as a "key step" in unlocking the potential of the Ambler mining district in western Alaska, where South32 holds high-grade copper and zinc options.
During the quarter, South32 has not progressed any further negotiations “sufficient and affordable electricity” for Mozal Aluminium beyond March 2026 when the current electricity supply agreement expires.
The source: ASX
