Stock and production gains for South32 as cyclone, | Australian Markets
Shares in South32 rose after the multi-commodity miner posted production gains regardless of earlier setbacks at its cyclone-damaged manganese and civil unrest-afflicted Mozambique aluminium operations.
Record rainfall and blustering winds from tropical cyclone Megan tore by S32’s Groote Elyandt mine and wharf within the Northern Territory in March final yr and halted operations.
S32 clarified on Monday that the operation had carried out higher than anticipated for the 2025 financial yr after restarting final quarter, delivering 1.1 million moist metric tonnes, and could be back at full pelt for the following 12 months.
“Export shipments recommenced in the quarter as planned, following completion of the wharf construction in May 2025. Shipping rates are expected to reach full capacity in the September 2025 quarter.”
Insurance funds acquired by S32 and three way partnership accomplice Anglo American for the clean-up stood at $US350m ($537.8m).
Despite operational recoveries the mine is anticipated to ebook an underlying earnings earlier than curiosity depreciation tax and amortisation loss of up to $US120m ($184.4m) for the yr due to the climate setbacks.
Meanwhile the miner’s Mozal aluminium operations in Mozambique have slowly been returning to regular production after civil turmoil engulfed the nation following the end result of its election in October final yr.
The group’s aluminium production was up 6 per cent during the ultimate quarter of 2025, and alumina production landed within steerage.
The smelter operated “near nameplate capacity” within the June quarter. However, vitality provide points imply the miner hasn’t been capable of pin down particular output figures for the approaching yr.
“Given the uncertainty of operating beyond March 2026, FY26 production guidance remains under review.”
Years of talks with the southern African nation’s authorities to energy the smelter past that date have thus far didn’t yield a deal for the project, which final financial yr turned over more than $800 million.
S32 has already disclosed there’s more likely to be an impairment stemming from the uncertainty.
Closer to WA S32 has began mining new bauxite areas at its Worsley mine after securing environmental approvals on the finish of 2024.
Operating prices are anticipated to fall in keeping with projected steerage.
S32 shares had been up 4.84 per cent by 12.25pm at $3.03.
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