South32 Cuts Full-Year Output Estimate; Sees 1st Half Costs Mostly In-Line, Below Forecasts

By Rhiannon Hoyle

South32 on Monday said it expects full-year group output to be 3% lower than previously forecast, citing plant setbacks and power outages. The company also said it expects first-half operating costs in-line or below its annual estimates for most operations amid a company-wide cost-cutting push.

The Australia-based miner said the reduction in annual copper-equivalent production guidance for the 12 months through June 2024 reflects revised guidance for the Brazil Alumina and Mozal Aluminium operations, and weaker-than-expected molybdenum output from the Sierra Gorda mine.

"We are well positioned to capture the benefit of improved market conditions through expected production growth of 7% in H2 FY24 and our ongoing focus on cost efficiencies," South32 said.

The company estimated first-half operating unit costs, for the six months ended Dec. 31, will be in line or below guidance for the majority of its operations. The miner is benefiting from cost efficiencies and lower raw-material input prices, it said.

In the second half, costs should also benefit from the planned increase in group volumes, said the miner.

Write to Rhiannon Hoyle at [e-mail]

(END) Dow Jones Newswires

January 21, 2024 17:22 ET (22:22 GMT)

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