South32 delivers consistent operating results with strong financial position
South32 continued to deliver consistent operating results, with FY26 production guidance maintained across its operated assets and first half operating unit costs tracking in line with guidance.
South32 Chief Executive Officer, Graham Kerr: “Our consistent operating performance, combined with strengthening market conditions, enabled the Group to maintain a strong financial position while investing in our high-returning growth options and delivering returns to shareholders.
“Completing the divestment of Cerro Matoso during the quarter further simplified our business, consistent with our strategy to focus our portfolio on high-quality operations and growth options in base metals.
“We also progressed construction of Hermosa’s large-scale, long-life, Taylor zinc-lead-silver project, and completed the exploration decline for the Clark battery-grade manganese deposit.
“Sierra Gorda delivered strong copper volumes and cash returns, and we are pursuing further copper growth through our pipeline of development options and exploration prospects.
“During the quarter, Ambler Metals joint venture approved a ~US$35M work program to advance the high-grade Arctic polymetallic deposit and test exploration targets within this underexplored, regional land package in Alaska.”
• FY26 production guidance remains unchanged for all operated assets. Guidance for non-operated Brazil Aluminium is under review as we await the operator’s revised ramp-up profile, following lower than planned quarterly volumes.
• H1 FY26 Operating unit costs are tracking in line with or below FY26 guidance across the majority of operations.
• Alumina production increased by 3% in the December 2025 half year, as Brazil Alumina achieved record half year production and Worsley Alumina delivered planned volumes while completing scheduled calciner maintenance.
• Aluminium production increased by 2% in the December 2025 half year, as Hillside Aluminium continued to test its maximum technical capacity, while Mozal Aluminium ceased pot relining ahead of its transition to care and maintenance from March 20261.
• Sierra Gorda continued to perform ahead of FY26 guidance, delivering copper production to plan and strong first half volumes of molybdenum, gold and silver. Distributions of US$180M (South32 share) were received from Sierra Gorda in the first half.
• Cannington payable zinc equivalent production2 increased by 13% in the December 2025 quarter, as the operation exceeded planned processing rates and realised higher silver and zinc grades in accordance with the mine plan.
• Manganese production increased by 58% in the December 2025 half year, as Australia Manganese returned to normalised production rates, while South Africa Manganese completed planned maintenance.
• Invested US$338M at Hermosa in the December 2025 half year, progressing construction of the shafts and surface infrastructure for the Taylor zinc-lead-silver project, and completing the decline for the Clark battery-grade manganese deposit.
