South32 Begins Cost Review; Records Mixed 1Q Output

By Rhiannon Hoyle

South32 said Monday it has started a group-wide cost review to help offset inflation pressures in the global mining industry, as it reported mixed first-quarter output across its commodities.

The Australia-based company said it began the cost review in the first quarter of fiscal 2024 and that it expects to cut spending across its operations and offices this fiscal year and next.

"With macroeconomic conditions creating headwinds for many of our commodities, we remain focused on driving operating performance and cost efficiencies," said Chief Executive Graham Kerr.

"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."

South32 said net debt increased by $299 million to $782 million during the quarter due to lower commodity prices and a temporary build in working capital.

The miner said it produced more alumina, aluminum, manganese ore and lead during the three months through September versus the quarter immediately prior. Output of copper, metallurgical coal, nickel, zinc and silver was lower, it said.

"We have maintained annual production guidance for all of our operations with a strong start to the year at our manganese operations, a 34% increase in production at Brazil Alumina and continued growth in low-carbon aluminium volumes," said Kerr.

Write to Rhiannon Hoyle at [e-mail]

(END) Dow Jones Newswires

October 22, 2023 18:07 ET (22:07 GMT)

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