LONDON (ShareCast) - (Sharecast News) - South32 issued its quarterly report for June on Thursday, announcing record performance at Australia Manganese and a 10% increase in total manganese ore production in the full-year, as the company continued to take advantage of stronger demand and pricing.
The London-listed firm said it delivered another production record at Mozal Aluminium in the full-year, while South Africa Aluminium finished the year "strongly", testing its maximum technical capacity in the June 2018 quarter.

It also saw payable nickel production at Cerro Matoso improve by 20% in the full-year, as ore grades temporarily improved following the successful ramp up of La Esmeralda.

The company said it progressed through a higher-grade stope sequence at Cannington in the June quarter, with payable silver, lead and zinc production increasing 37%, 33% and 45%, respectively.

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

South32 exceeded its revised full-year production guidance at Illawarra Metallurgical Coal, with an annualised mining rate of more than 6Mt achieved throughout the month of June.

It started managing South Africa Energy Coal as a stand-alone business in the quarter, with the associated restructuring costs to be recorded in its full-year financial results.

The company additionally noted that it entered into conditional agreements to acquire Arizona Mining, and a 50% interest in the Eagle Downs metallurgical coal project, with both transactions expected to close in the December half-year.

"We delivered record annual production at Australia Manganese and Mozal Aluminium, increased payable nickel production at Cerro Matoso by 20% and finished the year on a strong note at the remainder of our operations," said South32 CEO Graham Kerr.

"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."

Kerr also noted the entering into of conditional agreements to acquire the remaining 83% of Arizona Mining that South32 did not already own, and a 50% interest in the Eagle Downs metallurgical coal project.

"In accordance with our disciplined capital management framework, we purchased a further 98 million shares in the 2018 financial year for a cash consideration of $254m.

"At year end we had completed $620m of our approved $1bn capital management program."

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