South32 shares fall, guidance on track
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The news: Shares in miner South32 fell on Monday after it left its FY24 guidance unchanged in its quarterly update, despite mixed production results across its assets.
The numbers: Manganese and alumina production increased by between 2% and 4%, while metallurgical coal production fell by 33% at S32's Illawarra mine due to an extended longwall relocation. Lower grades reduced copper production by 8% and zinc production by 6%, while nickel production at Cerro Matoso fell 17% due to plant maintenance and a gas supply disruption. S32 shares were down 2% in early trading, fetching $3.30 at 10:15am AEDT.
The context: The Australian Financial Review reports South32 is looking to divest its Illawarra and Eagle Downs coal mines.
What they said: "With macroeconomic conditions creating headwinds for many of our commodities, we remain focused on driving operating performance and cost efficiencies," South32 chief executive Graham Kerr said in a statement.
"This focus, along with our production growth in commodities critical for a low-carbon future, positions us well to capture higher margins as market conditions improve."
The sources: ASX Announcement, AFR
