South32 delivers 20% copper and 6% aluminium production growth in FY25

Published 21/07/2025, 07:38
South32 delivers 20% copper and 6% aluminium production growth in FY25

LONDON - South32 (OTC:SOUHY) has exceeded its FY25 production guidance, driven by 20% annual growth in copper and 6% growth in aluminium production, according to its quarterly report released Monday.

The diversified miner successfully resumed export shipments from Australia Manganese during the quarter, marking a significant recovery following disruptions caused by Tropical Cyclone Megan. The operation received $350 million in insurance payments during the fiscal year.

"We delivered another strong quarter of operating performance, exceeding the Group’s FY25 production guidance," said South32 Chief Executive Officer Graham Kerr. "With operating momentum, an upgraded portfolio, and a strong balance sheet, we are well positioned to deliver growth and returns."

The company increased group sales volumes by 21% in the quarter, supporting a working capital unwind of approximately $225 million in the second half of FY25.

South32 continued portfolio streamlining efforts, completing the sale of Illawarra Metallurgical Coal in the first half and agreeing to divest Cerro Matoso in July for nominal upfront consideration and future cash payments of up to $100 million.

The company invested $517 million in its Hermosa project in Arizona during FY25, achieving key milestones at the Taylor zinc-lead-silver project, including starting the main shaft sink and construction activities for the process plant.

Sierra Gorda copper equivalent production increased by 20% in FY25, exceeding guidance by 4%. The operation delivered $176 million in distributions to South32 during the fiscal year.

South32 returned $350 million to shareholders in FY25 through fully-franked ordinary dividends and an on-market share buy-back.

The company noted it continues to engage with stakeholders on securing affordable electricity supply for Mozal Aluminium beyond March 2026, with production guidance for the operation remaining under review due to uncertainty about future operations.

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