Quarterly Report June 2018

RNS Number : 1313V
South32 Limited
19 July 2018
 

June 2018                                                                                                                           

 

South32 Limited

(Incorporated in Australia under the Corporations Act 2001 (Cth))

(ACN 093 732 597)

ASX / LSE / JSE Share Code: S32
ISIN: AU000000S320

 

South32 Limited

Quarterly Report June 2018

"We delivered record annual production at Australia Manganese and Mozal Aluminium, increased payable nickel production at Cerro Matoso by 20 per cent and finished the year on a strong note at the remainder of our operations.

 

"We are actively reshaping our portfolio and are now managing South Africa Energy Coal as a
stand-alone business, allowing us to simplify the Group, lower overhead costs and fundamentally change the way we work.

 

"We also entered into conditional agreements to acquire the remaining 83 per cent of Arizona Mining Inc. that we don't already own and a 50 per cent interest in the Eagle Downs metallurgical coal project.

 

"In accordance with our disciplined capital management framework, we purchased a further 98 million shares in FY18 for a cash consideration of US$254 million. At year end we had completed US$620 million of our approved US$1 billion capital management program."

 

Graham Kerr, South32 CEO

 

 

Achieved record performance at Australia Manganese and a 10% increase in total manganese ore production in FY18 as we continued to take advantage of stronger demand and pricing.

Delivered another production record at Mozal Aluminium in FY18 while South Africa Aluminium finished the year strongly, testing its maximum technical capacity in the June 2018 quarter.

Increased payable nickel production at Cerro Matoso by 20% in FY18 as ore grades temporarily improved following the successful ramp up of La Esmeralda.

Progressed through a higher grade stope sequence at Cannington in the June 2018 quarter with payable silver, lead and zinc production increasing by 37%, 33% and 45%, respectively.

Benefitted from an uplift in calciner availability and a drawdown of hydrate stocks at Worsley Alumina with production increasing by 7% in the June 2018 quarter.

Exceeded revised FY18 production guidance at Illawarra Metallurgical Coal with an annualised mining rate of more than 6Mt achieved throughout the month of June.

Started managing South Africa Energy Coal as a stand-alone business in the June 2018 quarter with the associated restructuring costs to be recorded in our FY18 financial results.

Entered into conditional agreements to acquire Arizona Mining Inc. (TSX:AZ) and a 50% interest in the Eagle Downs metallurgical coal project, with both transactions expected to close in the December 2018 half year.

 

Production summary









South32's share

FY17

FY18

YoY


4Q17

3Q18

4Q18

QoQ

Alumina production (kt)

5,221

5,068

(3%)


1,320

1,232

1,295

5%

Aluminium production (kt)

985

983

(0%)


248

242

246

2%

Energy coal production (kt)

30,289

28,350

(6%)


7,722

7,096

7,253

2%

Metallurgical coal production (kt)

5,697

3,165

(44%)


1,437

794

1,089

37%

Manganese ore production (kwmt)

5,032

5,541

10%


1,314

1,369

1,342

(2%)

Manganese alloy production (kt)

220

244

11%


58

62

64

3%

Payable nickel production (kt)

36.5

43.8

20%


9.7

10.7

11.3

6%

Payable silver production (koz)

15,603

12,491

(20%)


3,326

3,082

4,234

37%

Payable lead production (kt)

132.1

104.4

(21%)


26.9

23.6

31.4

33%

Payable zinc production (kt)

70.4

41.3

(41%)


13.2

8.6

12.5

45%

Unless otherwise noted: percentage variance relates to performance during the financial year ended June 2018 compared with the financial year ended

June 2017 (YoY) or the June 2018 quarter compared with the March 2018 quarter (QoQ); production and sales volumes are reported on an attributable basis.

 

Corporate Update

 

We started managing South Africa Energy Coal as a stand-alone business in the June 2018 quarter. This important milestone has allowed us to simplify the Group and will deliver a meaningful reduction in functional costs, further mitigating industry-wide cost inflation. We expect to be in a position to disclose the expected savings when we report our FY18 financial results, with the full run-rate to be achieved from FY20. The process to broaden and transform the ownership of South Africa Energy Coal is expected to commence in the September 2018 quarter.

One-off redundancy and restructuring charges of approximately US$60M (post-tax ~US$40M) are expected to be recorded in our FY18 financial results. These charges will be excluded from Underlying earnings, and relate to redundancies associated with the simplification of the Group's functional structures and the voluntary redundancy program undertaken at Illawarra Metallurgical Coal during the March 2018 quarter. 

On 29 May we signed a conditional agreement to acquire a 50% interest in the Eagle Downs metallurgical coal project in the Bowen Basin, Queensland for an upfront payment of approximately US$106M (excluding transaction costs), a deferred payment of US$27M due three years after completion and a coal price linked production royalty which is capped at US$80M1.

On 18 June we entered into an agreement to acquire the remaining 83% of issued and outstanding shares of Arizona Mining Inc. that we don't already own via a statutory plan of arrangement, representing a fully funded, all cash offer of US$1.3B2 (C$1.8B). The transaction is subject to a vote of Arizona Mining shareholders on 2 August and a limited number of conditions as disclosed in the transaction announcement.

We bought back a further 98M shares for a cash consideration of US$254M during FY18. To 30 June 2018 we had completed US$620M of our approved US$1B capital management program, comprising the purchase of 204M shares at an average price of A$2.99 per share (US$466M) and a US$154M special dividend which was paid on 5 April 2018.

We invested US$41.3M in exploration programs during FY18 (US$2.3M capitalised). This included US$1.2M for our Equity Accounted Investments (EAI, US$0.6M capitalised) and US$21.3M to expand our exploration footprint and progress 18 early stage greenfield partnerships.

We received net distributions3 of US$561M (South32 share) from our manganese EAI in FY18, including US$165M in the June 2018 quarter.

Our Underlying Effective Tax Rate (ETR), which excludes tax associated with our EAI, largely reflects the geographic distribution of the Group's profit. The corporate tax rates applicable to the Group include: Australia 30%, South Africa 28%, Colombia 37%4, Mozambique 0%4 and Brazil 34%. 

 

Production guidance (South32's share)  

FY17
Actual

FY18
Actual

FY18
Guidance

%a

Worsley Alumina





Alumina production (kt)

3,892

3,764

3,975

95%

South Africa Aluminium





Aluminium production (kt)

714

712

720

99%

Mozal Aluminium





Aluminium production (kt)

271

271

269

101%

Brazil Alumina





Alumina production (kt)

1,329

1,304

1,345

97%

South Africa Energy Coal5





Energy coal production (kt)

28,913

27,271

27,500

99%

Domestic coal production (kt)

16,717

15,154

16,000

95%

Export coal production (kt)

12,196

12,117

11,500

105%

Illawarra Metallurgical Coal





Total coal production (kt)

7,073

4,244

4,100

104%

Metallurgical coal production (kt)

5,697

3,165

2,950

107%

Energy coal production (kt)

1,376

1,079

1,150

94%

Australia Manganese





Manganese ore production (kwmt)

2,994

3,396

3,300

103%

South Africa Manganese





Manganese ore production6 (kwmt)

2,038

2,145

2,150

100%

Cerro Matoso





Payable nickel production (kt)

36.5

43.8

41.6

105%

Cannington





Payable silver production (koz)

15,603

12,491

12,200

102%

Payable lead production (kt)

132.1

104.4

102.0

102%

Payable zinc production (kt)

70.4

41.3

39.0

106%

a.     Percentage difference to latest production guidance. Australia Manganese, South Africa Manganese, Cannington and Illawarra Metallurgical Coal restated FY18 production guidance during the 2018 financial year. FY18 guidance as at FY17 results: Australia Manganese (manganese ore 3,125kt), South Africa Manganese (manganese ore 1,885kt), Cannington (payable silver, lead and zinc 14,360koz, 115kt and 45kt, respectively).  Illawarra Metallurgical Coal FY18 guidance (metallurgical coal 3,350kt, energy coal 1,150kt) was provided with the Strategy and Business Update (5 December 2017).

 

Worsley Alumina
(86% share)

 

South32's share

FY17

FY18

YoY


4Q17

3Q18

4Q18

4Q18
vs
4Q17

4Q18
vs
3Q18

Alumina production (kt)

3,892

3,764

(3%)


988

918

981

(1%)

7%

Alumina sales (kt) 

3,847

3,763

(2%)


920

910

967

5%

6%

 

Worsley Alumina saleable production decreased by 3% (or 128kt) to 3.8Mt in FY18. The refinery did, however, finish the year on a strong note as an increase in calciner availability underpinned a 7% increase in production in the June 2018 quarter. Calcined alumina production is expected to approach nameplate capacity of 4.6Mtpa (100% basis) in FY19 as the refinery processes excess hydrate stocks that were established in FY18. Calciner maintenance is planned for the September 2018 and March 2019 quarters.

The average realised price for alumina sales in FY18 is expected to reflect a modest discount to the Platts alumina index7 on a volume weighted M-1 basis. This discount reflects the temporary increase in the alumina to aluminium price ratio recorded in the spot market throughout H2 FY18 and the structure of specific Mozal Aluminium supply contracts that are linked to the LME aluminium price, which in this case reduces the price paid by our smelter.

 

South Africa Aluminium
(100%)

 

South32's share

FY17

FY18

YoY


4Q17

3Q18

4Q18

4Q18
vs
4Q17

4Q18
vs
3Q18

Aluminium production (kt)

714

712

(0%)


180

175

179

(1%)

2%

Aluminium sales (kt) 

713

711

(0%)


203

184

183

(10%)

(1%)

 

South Africa Aluminium saleable production decreased by 2kt to 712kt in FY18 as the smelter progressively returned all pots to service following an electric arc incident in the December 2017 quarter. Notwithstanding the smelter's continued strong operating performance, higher prices for alumina and aluminium price-linked power, and still elevated prices for pitch and coke have impacted the cost base in H2 FY18.

 

Mozal Aluminium
(47.1% share)

 

South32's share

FY17

FY18

YoY


4Q17

3Q18

4Q18

4Q18
vs
4Q17

4Q18
vs
3Q18

Aluminium production (kt)

271

271

0%


68

67

67

(1%)

0%

Aluminium sales (kt) 

273

274

0%


73

51

76

4%

49%

 

Mozal Aluminium saleable production increased marginally to a record 271kt in FY18 as the smelter continued to test its maximum technical capacity. Notwithstanding the smelters continued strong operating performance, higher prices for alumina and still elevated prices for pitch and coke have impacted the cost base in H2 FY18. The increase in quarterly sales reflects the scheduling of shipments between periods.

 

Brazil Alumina
(36% share)

 

South32's share

FY17

FY18

YoY


4Q17

3Q18

4Q18

4Q18
vs
4Q17

4Q18
vs
3Q18

Alumina production (kt)

1,329

1,304

(2%)


332

314

314

(5%)

0%

Alumina sales (kt) 

1,316

1,341

2%


322

314

378

17%

20%

 

Brazil Alumina saleable production decreased by 2% (or 25kt) to 1,304kt in FY18 as unplanned maintenance and power outages impacted performance. The increase in quarterly sales reflects the scheduling of shipments between periods.

 

South Africa Energy Coal
(100%)

 

South32's share

FY17

FY18

YoY


4Q17

3Q18

4Q18

4Q18
vs
4Q17

4Q18
vs
3Q18

Energy coal production (kt)

28,913

27,271

(6%)


7,413

6,741

7,107

(4%)

5%

Domestic sales (kt) 

16,922

15,396

(9%)


3,948

3,835

4,227

7%

10%

Export sales (kt)

11,797

12,518

6%


3,068

3,472

3,181

4%

(8%)

 

South Africa Energy Coal saleable production decreased by 6% (or 1,642kt) to 27.3Mt in FY18 as domestic demand remained subdued and sales volumes were reweighted towards the export market. The Wolverkrans-Middelburg Complex (WMC) continued to exceed expectations as it benefitted from the ongoing investment that is providing access to higher margin export tonnes.

Domestic sales decreased by 9% in FY18 as a result of lower demand from the Duvha power station. The commencement of a long term contract to sell lower quality stockpiles to a domestic customer underpinned the 10% increase in domestic sales in the June 2018 quarter.

The redirection of volumes towards export markets, whilst margin accretive, has added washing and logistics costs and is expected to contribute to a modest increase in Operating unit costs from our prior FY18 guidance of US$34/t.

 

Illawarra Metallurgical Coal
(100%)

 

South32's share

FY17

FY18

YoY


4Q17

3Q18

4Q18

4Q18
vs
4Q17

4Q18
vs
3Q18

Total coal production (kt)

7,073

4,244

(40%)


1,746

1,149

1,235

(29%)

7%

Total coal sales (kt)

7,296

4,116

(44%)


1,711

1,091

1,365

(20%)

25%

Metallurgical coal production (kt)

5,697

3,165

(44%)


1,437

794

1,089

(24%)

37%

Metallurgical coal sales (kt)

5,952

2,937

(51%)


1,470

760

1,120

(24%)

47%

Energy coal production (kt)

1,376

1,079

(22%)


309

355

146

(53%)

(59%)

Energy coal sales (kt)

1,344

1,179

(12%)


241

331

245

2%

(26%)

 

Illawarra Metallurgical Coal saleable production decreased by 40% (or 2,829kt) to 4.2Mt in FY18 as the Appin colliery recovered from an extended outage in H1 FY18. Notwithstanding longwall moves at both Appin and Dendrobium during the June 2018 quarter, metallurgical coal production increased by 37% (or 295kt) to 1.1Mt as we achieved an annualised mining rate of more than 6Mt throughout the month of June.

 

Our metallurgical coal continues to be sold with reference to market indices and we achieved a realised price equivalent to the premium low-volatile hard coking coal index8 on a volume weighted M-1 basis in FY18.

 

Australia Manganese
(60% share)

 

South32's share

FY17

FY18

YoY


4Q17

3Q18

4Q18

4Q18
vs
4Q17

4Q18
vs
3Q18

Manganese ore production (kwmt)

2,994

3,396

13%


776

830

865

11%

4%

Manganese ore sales (kwmt)

3,087

3,290

7%


838

803

875

4%

9%

Manganese alloy production (kt)

147

165

12%


41

41

42

2%

2%

Manganese alloy sales (kt)

155

170

10%


36

37

55

53%

49%

 

Australia Manganese saleable ore production increased by 13% (or 402kwmt) to a record 3.4Mwmt in FY18 as the Premium Concentrate Ore (PC02) circuit operated at approximately 107% of its design capacity, contributing 9% of total production (6% FY17). 

 

Our low cost PC02 fines product has a manganese content of approximately 40%, which leads to both grade and product-type discounts when referenced to the high grade 44% manganese lump ore index. Notwithstanding the contribution of the PC02 circuit to our sales profile, our average realised price for external sales of Australian ore will reflect a modest premium to the high grade 44% manganese lump ore index on a volume weighted M-1 basis9 in FY18. Internal sales continue to occur on commercial terms.

 

Manganese alloy saleable production increased by 12% (or 18kt) to 165kt in FY18 as all four furnaces continued to operate. The increase in quarterly sales reflects a permanent change to the shipping schedule for a specific customer.

 

South Africa Manganese
(60% share)

 

South32's share

FY17

FY18

YoY


4Q17

3Q18

4Q18

4Q18
vs
4Q17

4Q18
vs
3Q18

Manganese ore production (kwmt)

2,038

2,145

5%


538

539

477

(11%)

(12%)

Manganese ore sales (kwmt)

2,024

2,082

3%


542

476

539

(1%)

13%

Manganese alloy production (kt)

73

79

8%


17

21

22

29%

5%

Manganese alloy sales (kt)

74

67

(9%)


20

21

18

(10%)

(14%)

 

South Africa Manganese saleable ore production increased by 5% (or 107kwmt) to 2.1Mwmt in FY18 as we continued to take advantage of favourable market conditions by selling lower quality fines product and utilising higher cost trucking. Planned major maintenance at the Wessels underground mine remains on track for completion in July 2018 with the impact on production in the June 2018 quarter mitigated by a draw down of inventory established in advance of the outage.

 

Our fine grained Wessels concentrate product, which accounted for 13% of sales across FY18 (9% FY17), receives a product discount when referenced to index prices. As a result, our average realised price for external sales of South African in FY18 ore will reflect a modest discount to the medium grade 37% manganese lump ore index (FOB Port Elizabeth, South Africa) on a volume weighted M-1 basis10. Internal sales continue to occur on commercial terms. 

 

Manganese alloy saleable production increased by 8% (or 6kt) to 79kt in FY18 as Metalloys continued to operate one of its four furnaces. 

 

Cerro Matoso
(99.9% share)

 

South32's share

FY17

FY18

YoY


4Q17

3Q18

4Q18

4Q18
vs
4Q17

4Q18
vs
3Q18

Payable nickel production (kt)

36.5

43.8

20%


9.7

10.7

11.3

16%

6%

Payable nickel sales (kt)

36.6

43.3

18%


9.8

10.8

11.2

14%

4%

 

Cerro Matoso payable nickel production increased by 20% (or 7.3kt) to 43.8kt in FY18 as ore grades temporarily improved with the ramp up of La Esmeralda and the operation continued to benefit from an improvement in plant utilisation and throughput rates. The improvement in the nickel market during H2 FY18 has resulted in higher price-linked royalties being paid by our operation and is expected to contribute to a modest increase in Operating unit costs from our prior FY18 guidance of US$3.61/lb. 

 

Cannington
(100% share)

 

South32's share

FY17

FY18

YoY


4Q17

3Q18

4Q18

4Q18
vs
4Q17

4Q18
vs
3Q18

Payable silver production (koz)

15,603

12,491

(20%)


3,326

3,082

4,234

27%

37%

Payable silver sales (koz)

16,270

11,985

(26%)


3,866

3,014

3,542

(8%)

18%

Payable lead production (kt)

132.1

104.4

(21%)


26.9

23.6

31.4

17%

33%

Payable lead sales (kt)

138.1

97.9

(29%)


32.3

23.5

25.8

(20%)

10%

Payable zinc production (kt)

70.4

41.3

(41%)


13.2

8.6

12.5

(5%)

45%

Payable zinc sales (kt)

67.4

45.0

(33%)


9.8

6.3

13.0

33%

106%

 

Cannington silver, lead and zinc payable production increased by 37%, 33% and 45%, respectively, in the June 2018 quarter to marginally exceed revised FY18 guidance. This significant improvement in performance was achieved as the mine moved through a higher grade stope sequence, as planned. Annual and quarterly grade variability is expected to persist over the remaining life of the operation as the stope sequence is optimised to maximise long term value. Metal production declined in FY18 as mining and processing rates were reset in order to deliver greater predictability and stability in the underground mine11.

Finalisation adjustments and the provisional pricing of Cannington concentrates will increase Underlying EBIT12 by US$0.1M in FY18 (US$4.1M: FY17, US$5.5M: H1 FY18). Outstanding concentrate sales (containing 2.2Moz of silver, 18.8kt of lead and 4.9kt of zinc) were revalued at 30 June 2018. The final price of these sales will be determined in the December 2018 half year.

 

Notes:

1.     Refer to media release on 29 May 2018  "South32 to acquire 50% interest in Eagle Downs and assume operatorship".

2.     Based on a CAD/USD exchange rate of 0.7574 as of 15 June 2018.

3.     Net distributions from equity accounting investments includes net debt movements and dividends, which are unaudited.

4.     The Colombian corporate tax rate was 40% until 31 December 2017. The Mozambique operations are subject to a royalty on revenues instead of income tax.

5.     8% of South Africa Energy Coal is owned by a Broad-Based Black Economic Empowerment (B-BBEE) consortium. The interests owned by the B-BBEE consortium were acquired using vendor finance, with the loans repayable to South32 via distributions attributable to these parties, pro rata to their share in South Africa Energy Coal. Until these loans are repaid, South32's interest in South Africa Energy Coal is accounted at 100%.

6.     Consistent with the presentation of South32's segment information, South Africa Manganese ore production and sales have been reported at 60%. The Group's financial statement will continue to reflect a 54.6% interest in South Africa Manganese ore.

7.     The quarterly sales volume weighted average of the Platts Alumina Index (PAX) (FOB Australia) on the basis of a one month lag to published pricing (Month minus one or "M-1") was US$403/t in FY18.

8.     The quarterly sales volume weighted average of the premium low-volatile hard coking coal Platts index (FOB Australia) on the basis of a one month lag to published pricing (Month minus one or "M-1") was US$202/t in FY18.

9.     The quarterly sales volume weighted average of the Metal Bulletin 44% manganese lump ore index (CIF Tianjin, China) on the basis of a one month lag to published pricing (Month minus one or "M-1") was US$6.45/dmtu in FY18.

10.    The quarterly sales volume weighted average of the Metal Bulletin 37% manganese lump ore index (FOB Port Elizabeth, South Africa) on the basis of a one month lag to published pricing (Month minus one or "M-1") was US$5.46/dmtu in FY18.

11.    Underground mine plan as per the current life of operation plan reflecting lower mining rates and consequentially longer mine life.

12.    Underlying EBIT is earnings before net finance costs, taxation and any earnings adjustments. Underlying EBIT is reported net of South32's share of net finance costs and taxation of equity accounted investments. 

13.    The following abbreviations have been used throughout this report: grams per tonne (g/t); tonnes (t); thousand tonnes (kt); thousand tonnes per annum (ktpa); million tonnes (Mt); million tonnes per annum (Mtpa); thousand ounces (koz); million ounces (Moz); thousand wet metric tonnes (kwmt); million wet metric tonnes (Mwmt); million wet metric tonnes per annum (Mwmt pa); thousand dry metric tonnes (kdmt).

 

 

Operating Performance

 

South32's share

FY17

FY18


4Q17

1Q18

2Q18

3Q18

4Q18

Worsley Alumina
(86% share)









Alumina hydrate production (kt)

3,898

3,796


959

974

973

938

911

Alumina production (kt)

3,892

3,764


988

942

923

918

981

Alumina sales (kt)

3,847

3,763


920

966

920

910

967

South Africa Aluminium
(100%)









Aluminium production (kt)

714

712


180

180

178

175

179

Aluminium sales (kt)

713

711


203

162

182

184

183

Mozal Aluminium
(47.1% share)









Aluminium production (kt)

271

271


68

69

68

67

67

Aluminium sales (kt)

273

274


73

65

82

51

76

Brazil Alumina
(36% share)









Alumina production (kt)

1,329

1,304


332

337

339

314

314

Alumina sales (kt)

1,316

1,341


322

333

316

314

378

South Africa Energy Coal
(100%)









Energy coal production (kt)

28,913

27,271


7,413

6,689

6,734

6,741

7,107

Domestic sales (kt)

16,922

15,396


3,948

3,788

3,546

3,835

4,227

Export sales (kt)

11,797

12,518


3,068

2,748

3,117

3,472

3,181

Illawarra Metallurgical Coal
(100%)









Total coal production (kt)

7,073

4,244


1,746

819

1,041

1,149

1,235

Total coal sales (kt)

7,296

4,116


1,711

778

882

1,091

1,365

Metallurgical coal production (kt)

5,697

3,165


1,437

494

788

794

1,089

Metallurgical coal sales (kt)

5,952

2,937


1,470

403

654

760

1,120

Energy coal production (kt)

1,376

1,079


309

325

253

355

146

Energy coal sales (kt)

1,344

1,179


241

375

228

331

245

Australia Manganese
(60% share)









Manganese ore production (kwmt)

2,994

3,396


776

808

893

830

865

Manganese ore sales (kwmt)

3,087

3,290


838

790

822

803

875

Ore grade sold (%, Mn)

46.2

45.7


46.2

46.1

46.0

45.0

45.7

Manganese alloy production (kt)

147

165


41

39

43

41

42

Manganese alloy sales (kt) 

155

170


36

36

42

37

55

South Africa Manganese
(60% share)









Manganese ore production (kwmt)

2,038

2,145


538

496

633

539

477

Manganese ore sales (kwmt)

2,024

2,082


542

528

539

476

539

Ore grade sold (%, Mn)

40.1

39.9


39.8

40.7

39.9

40.1

39.1

Manganese alloy production (kt)

73

79


17

17

19

21

22

Manganese alloy sales (kt) 

74

67


20

14

14

21

18

Cerro Matoso
(99.9% share)









Ore mined (kwmt)

4,447

3,741


1,056

1,051

1,036

831

823

Ore processed (kdmt)

2,561

2,722


624

696

644

672

710

Ore grade processed (%, Ni)

1.59

1.79


1.69

1.91

1.75

1.76

1.73

Payable nickel production (kt) 

36.5

43.8


9.7

11.7

10.1

10.7

11.3

Payable nickel sales (kt)

36.6

43.3


9.8

11.4

9.9

10.8

11.2

Cannington
(100%)









Ore mined (kwmt)

2,909

2,463


595

647

562

571

683

Ore processed (kdmt)

3,036

2,355


628

593

575

544

643

Silver ore grade processed (g/t, Ag)

194

194


196

175

155

207

237

Lead ore grade processed (%, Pb)

5.4

5.3


5.2

5.2

4.9

5.2

5.8

Zinc ore grade processed (%, Zn)

3.4

2.6


3.1

2.8

2.3

2.5

2.8

Payable silver production (koz)

15,603

12,491


3,326

2,763

2,412

3,082

4,234

Payable silver sales (koz)

16,270

11,985


3,866

2,926

2,503

3,014

3,542

Payable lead production (kt)

132.1

104.4


26.9

25.8

23.6

23.6

31.4

Payable lead sales (kt)

138.1

97.9


32.3

25.9

22.7

23.5

25.8

Payable zinc production (kt)

70.4

41.3


13.2

11.0

9.2

8.6

12.5

Payable zinc sales (kt)

67.4

45.0


9.8

13.6

12.1

6.3

13.0

 

Forward-looking statements

This release contains forward-looking statements, including statements about trends in commodity prices and currency exchange rates; demand for commodities; production forecasts; plans, strategies and objectives of management; capital costs and scheduling; operating costs; anticipated productive lives of projects, mines and facilities; and provisions and contingent liabilities. These forward-looking statements reflect expectations at the date of this release, however they are not guarantees or predictions of future performance. They involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results to differ materially from those expressed in the statements contained in this release. Readers are cautioned not to put undue reliance on forward-looking statements. Except as required by applicable laws or regulations, the South32 Group does not undertake to publicly update or review any forward-looking statements, whether as a result of new information or future events. Past performance cannot be relied on as a guide to future performance.

 

Further information

 

Investor Relations

Alex Volante
T    
+61 8 9324 9029

M    +61 403 328 408

E     Alex.Volante@south32.net

Media Relations

James Clothier
T    
+61 8 9324 9697

M    +61 413 319 031

E     James.Clothier@south32.net

 

Jenny White
T    
+44 20 7798 1773

M    +44 7900 046 758

E     Jenny.White@south32.net

19 July 2018
JSE Sponsor: UBS South Africa (Pty) Ltd


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
MSCUKAVRWKABARR
UK 100

Latest directors dealings