Quarterly Report December 2017

RNS Number : 0984C
South32 Limited
17 January 2018
 

South32 Limited

(Incorporated in Australia under the Corporations Act 2001)

(ACN 093 732 597)

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

south32.net

South32 Limited

QUARTERLY REPORT DECEMBER 2017

Graham Kerr, South32 CEO said:

 

"A record quarter of performance and supportive market dynamics have allowed us to increase FY18 production guidance at South Africa Manganese byeight per cent, while production guidance for all other operations remains unchanged.

"At the Appin colliery, we successfully restarted one underground longwall on 13 October and remain committed to our ramp-up plan as we seek to reset the operation's culture and drive productivity to an acceptable level.

"We are also actively reshaping our portfolio with South Africa Energy Coal to be managed as a stand-alone business from April 2018. This strategic initiative will significantly simplify our organisation and unlock additional value for shareholders.

"In accordance with our disciplined capital management framework we distributed US$333M in shareholder dividends during the December 2017 half year and purchased a further 37M shares for a cash consideration of US$93M."

·      Maintained FY18 guidance for all operations with the exception of South Africa Manganese where strong market demand and record performance has underpinned an eight per cent increase to our prior estimate.

·      Achieved record ore production at Australia Manganese in the December 2017 half year as the performance of our high grade circuit improved and the PC02 circuit continued to operate at capacity.

·      Delivered another production record at Mozal Aluminium in the December 2017 half year while South Africa Aluminium remains on track to increase production in FY18, despite an electric arc incident which impacted 36 pots on 30 November 2017.

·      Established a substantial alumina hydrate inventory position as the Worsley Alumina input circuit continued to operate at a rate of 4.5Mtpa (100% basis) and scheduled calciner maintenance was undertaken.

·      Increased payable nickel production at Cerro Matoso by 23% in the December 2017 half year as ore grades improved with the successful ramp-up of La Esmeralda.

·      Restarted a single longwall at the Appin colliery on 13 October and remain on track to produce 4.5Mt of coal at Illawarra Metallurgical Coal in FY18.

·      Commenced the process to manage South Africa Energy Coal as a stand-alone business from April 20181 and approved 4.3 billion South African Rand (US$301M) investment to extend the life of the Klipspruit colliery by at least 20 years2.

 

Production summary









South32's share

1H17

1H18

HoH


2Q17

1Q18

2Q18

QoQ

Alumina production (kt)

2,613

2,541

(3%)


1,320

1,279

1,262

(1%)

Aluminium production (kt)

492

495

1%


249

249

246

(1%)

Energy coal production (kt)

15,709

14,001

(11%)


7,518

7,014

6,987

(0%)

Metallurgical coal production (kt)

2,829

1,282

(55%)


1,392

494

788

60%

Manganese ore production (kwmt)

2,433

2,830

16%


1,253

1,304

1,526

17%

Manganese alloy production (kt)

115

118

3%


56

56

62

11%

Payable nickel production (kt)

17.7

21.8

23%


9.0

11.7

10.1

(14%)

Payable silver production (koz)

8,729

5,175

(41%)


4,035

2,763

2,412

(13%)

Payable lead production (kt)

73.9

49.4

(33%)


35.5

25.8

23.6

(9%)

Payable zinc production (kt)

42.1

20.2

(52%)


24.4

11.0

9.2

(16%)

Unless otherwise noted: percentage variance relates to performance during the half year ended December 2017 compared with the half year ended December 2016 (HoH) or the December 2017 quarter compared with the September 2017 quarter (QoQ); production and sales volumes are reported on an attributable basis.

CORPORATE UPDATE

·      Industry cost curves steepened during the December 2017 half year as a result of US dollar weakness, rising commodity prices and the environmental policy response in China. As highlighted in our December 2017 strategy and business update, our unit costs are being affected by these external factors despite generally good cost control across our operations. This pressure is most notable in our smelters and refineries as a result of broad-based strength in commodity markets (price-linked power, alumina, pitch and coke), of which we are a net beneficiary. Updated unit cost guidance for FY18 will be provided with our December 2017 half year results.

·      Timing differences for receivables and rising commodity prices have also contributed to a further build in working capital from the US$284M increase reported for the four months to 31 October 2017 in our December 2017 strategy and business update. We expect the component related to timing differences to unwind in the March 2018 quarter.

·      We received net distributions of US$238M3 (South32 share) from our equity accounted investments in the December 2017 half year and our strong balance sheet was recognised by both Standard & Poor's and Moody's when they reaffirmed their respective BBB+ and Baa1 credit ratings.

·      In accordance with our disciplined capital management framework we paid our US$333M final dividend in respect of FY17 in October 2017 and purchased a further 37M shares for a cash consideration of US$93M during the December 2017 half year. To 31 December 2017, we have purchased 143M shares at an average price of A$2.80 per share for a cash consideration of US$305M, representing 41% of our approved US$750M capital management program.

·      In the December 2017 half year we made tax payments totalling US$180M (net, excluding equity accounted investments) across the various jurisdictions in which we operate. Our Underlying Effective Tax Rate (ETR), which excludes tax associated with equity accounted investments, largely reflects the geographic distribution of the Group's profit. The corporate tax rates applicable to the Group for the December 2017 half year include: Australia 30%, South Africa 28%, Colombia 40% and Brazil 34%. Permanent differences have a disproportionate effect on the Group's tax rate when profit margins are low.

·      We invested US$23.9M in brownfield and greenfield exploration programs during the December 2017 half year (US$1.1M capitalised). This included US$1.1M for our equity accounted investments (US$0.6M capitalised) and expenditure associated with our portfolio of high quality, early stage exploration opportunities.

 

Production guidance (South32's share)

FY17

H1 FY18

FY18e

Comments

Worsley Alumina





Alumina production (kt)

3,892

1,865

3,975


South Africa Aluminium





Aluminium production (kt)

714

358

720


Mozal Aluminium





Aluminium production (kt)

271

137

269


Brazil Alumina





Alumina production (kt)

1,329

676

1,345


South Africa Energy Coal4





Energy coal production (kt)

28,913

13,423

27,500


Domestic coal production (kt)

16,717

7,426

16,000

Subject to market demand

Export coal production (kt)

12,196

5,997

11,500


Illawarra Metallurgical Coal





Total coal production (kt)

7,073

1,860

4,500


Metallurgical coal production (kt)

5,697

1,282

3,350


Energy coal production (kt)

1,376

578

1,150


Australia Manganese





Manganese ore production (kwmt)

2,994

1,701

3,125

Subject to market demand

South Africa Manganese





Manganese ore production5 (kwmt)

2,038

1,129

2,040

Subject to market demand

Cerro Matoso





Payable nickel production (kt)

36.5

21.8

41.6


Cannington





Payable silver production (koz)

15,603

5,175

14,360


Payable lead production (kt)

132

49

115


Payable zinc production (kt)

70

20

45


 

WORSLEY ALUMINA

(86% share)

South32's share

1H17

1H18

HoH


2Q17

1Q18

2Q18

2Q18
vs
2Q17

2Q18
vs
1Q18

Alumina production (kt)

1,940

1,865

(4%)


973

942

923

(5%)

(2%)

Alumina sales (kt) 

1,909

1,886

(1%)


949

966

920

(3%)

(5%)

 

Worsley Alumina hydrate production was largely unchanged at 1.95Mt in the December 2017 half year as the refinery's input circuit continued to operate at a rate of 4.5Mtpa (100% basis). In contrast, calcined alumina production declined by 4% (or 75kt) to 1.87Mt in the December 2017 half year as scheduled calciner maintenance was undertaken and a substantial hydrate inventory position was established. FY18 production guidance remains unchanged at 4.0Mt with additional calciner maintenance scheduled for the March 2018 quarter.

SOUTH AFRICA ALUMINIUM

(100%)

South32's share

1H17

1H18

HoH


2Q17

1Q18

2Q18

2Q18
vs
2Q17

2Q18
vs
1Q18

Aluminium production (kt)

356

358

1%


181

180

178

(2%)

(1%)

Aluminium sales (kt) 

347

344

(1%)


169

162

182

8%

12%

 

South Africa Aluminium saleable production increased by 1% (or 2kt) to 358kt in the December 2017 half year and remains on track to increase in FY18 despite an electric arc incident which impacted 36 pots on 30 November 2017. The pots are being progressively returned to service during the March 2018 quarter. A temporary increase in finished goods inventory related to our shipping schedule is expected to unwind in the March 2018 quarter.

MOZAL ALUMINIUm

(47.1% share)

South32's share

1H17

1H18

HoH


2Q17

1Q18

2Q18

2Q18
vs
2Q17

2Q18
vs
1Q18

Aluminium production (kt)

136

137

1%


68

69

68

0%

(1%)

Aluminium sales (kt) 

134

147

10%


70

65

82

17%

26%

 

Mozal Aluminium saleable production increased by 1% (or 1kt) to a record 137kt in the December 2017 half year as the smelter continued to operate at its maximum technical capability. Aluminium sales increased by 10% as our inventory position returned to more normal levels, however the timing of those sales ensures that our aluminium working capital position remained elevated at 31 December 2017. FY18 production guidance remains unchanged at 269kt.

Brazil Alumina

(36% share)

South32's share

1H17

1H18

HoH


2Q17

1Q18

2Q18

2Q18
vs
2Q17

2Q18
vs
1Q18

Alumina production (kt)

673

676

0%


347

337

339

(2%)

1%

Alumina sales (kt) 

638

649

2%


339

333

316

(7%)

(5%)

 

Brazil Alumina saleable production increased by 3kt to 676kt in the December 2017 half year as the refinery continued to operate at capacity. FY18 production guidance remains unchanged at 1.3Mt with Phase I of the refinery debottlenecking project nearing completion.

South Africa Energy Coal

(100%)

South32's share

1H17

1H18

HoH


2Q17

1Q18

2Q18

2Q18
vs
2Q17

2Q18
vs
1Q18

Energy coal production (kt)

14,825

13,423

(9%)


7,081

6,689

6,734

(5%)

1%

Domestic sales (kt) 

8,918

7,334

(18%)


4,472

3,788

3,546

(21%)

(6%)

Export sales (kt)

5,856

5,865

0%


2,952

2,748

3,117

6%

13%

 

As anticipated, South Africa Energy Coal saleable production decreased by 9% (or 1.4Mt) to 13.4Mt in the December 2017 half year. Export coal production exceeded expectations as productivity lifted at both the Klipspruit mine and the export oriented areas of the Wolvekrans-Middelburg Complex (WMC). In contrast, domestic production was impacted by a reduction in demand from the Duvha power station and scheduled maintenance in the domestically focused areas of the WMC. The continued build of inventory across the December 2017 half year reflects ongoing constraint in the supply chain and weather related delays at Richards Bay Coal Terminal (RBCT).

While the development of new mining areas at the WMC is progressing according to plan and FY18 production guidance remains unchanged at 27.5Mt (11.5Mt export; 16.0Mt domestic), the potential for weaker demand to persist in the June 2018 half year does imply a degree of downside risk for loss making domestic volumes.

During the period, we also commenced the process to manage South Africa Energy Coal as a stand-alone business from April 20181 and approved a 4.3 billion South African Rand (US$301M) investment to extend the life of the Klipspruit colliery by at least 20 years2.

illawarra metallurgical coal

(100%)

South32's share

1H17

1H18

HoH


2Q17

1Q18

2Q18

2Q18
vs
2Q17

2Q18
vs
1Q18

Total coal production (kt)

3,713

1,860

(50%)


1,829

819

1,041

(43%)

27%

Total coal sales (kt)

3,605

1,660

(54%)


1,412

778

882

(38%)

13%

Metallurgical coal production (kt)

2,829

1,282

(55%)


1,392

494

788

(43%)

60%

Metallurgical coal sales (kt)

2,788

1,057

(62%)


1,065

403

654

(39%)

62%

Energy coal production (kt)

884

578

(35%)


437

325

253

(42%)

(22%)

Energy coal sales (kt)

817

603

(26%)


347

375

228

(34%)

(39%)

 

Illawarra Metallurgical Coal saleable production decreased by 50% (or 1.9Mt) to 1.9Mt in the December 2017 half year as the Appin colliery recovered from an extended outage and the Dendrobium longwall progressed through a faulted zone. FY18 production guidance of 4.5Mt remains unchanged with a longwall move scheduled for Dendrobium in the March 2018 quarter. The depreciation and amortisation charge for Illawarra Metallurgical Coal is expected to decline by approximately 15% from the prior period (H1 FY17: US$93M) as a result of the lower extraction rates.

 

Our average realised price in the December 2017 half year will reflect a modest premium to the low-volatile hard coking coal index6 on a volume weighted M-1 basis. The timing of shipments and a higher proportion of sales with pricing linked to the month of shipment (i.e. M) combined to offset a temporary product quality discount associated with a higher proportion of Dendrobium product in the sales mix. Sales volumes were impacted by the deferral of one shipment at the end of the period.

Australia manganese

(60% share)

South32's share

1H17

1H18

HoH


2Q17

1Q18

2Q18

2Q18
vs
2Q17

2Q18
vs
1Q18

Manganese ore production (kwmt)

1,499

1,701

13%


736

808

893

21%

11%

Manganese ore sales (kwmt)

1,500

1,612

7%


743

790

822

11%

4%

Manganese alloy production (kt)

78

82

5%


40

39

43

8%

10%

Manganese alloy sales (kt)

82

78

(5%)


28

36

42

50%

17%

 

Australia Manganese achieved record performance in the December 2017 quarter and half year as saleable ore production increased to 893kwmt and 1,701kwmt, respectively. Lower than expected rainfall in the December 2017 quarter underpinned higher throughput in the primary circuit while favourable market conditions allowed the PC02 circuit to operate at full capacity. The PC02 circuit contributed 8% of total manganese ore production in the December 2017 half year (5% H1 FY17; 6% FY17). FY18 production guidance remains unchanged at 3,125kwmt with the wet season expected to impact production across the remainder of the financial year.

 

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. Given the contribution of the PC02 circuit to our sales profile, our average realised price for external ore sales in the December 2017 half year will reflect the high grade 44% manganese lump ore index7 on a volume weighted M-1 basis. Internal sales continue to occur on commercial terms.

 

Saleable Manganese alloy production increased by 5% (4kt) to 82kt in the December 2017 half year.

SOUTH AFRICA manganese

(60% share)

South32's share

1H17

1H18

HoH


2Q17

1Q18

2Q18

2Q18
vs
2Q17

2Q18
vs
1Q18

Manganese ore production (kwmt)

934

1,129

21%


517

496

633

22%

28%

Manganese ore sales (kwmt)

928

1,067

15%


511

528

539

5%

2%

Manganese alloy production (kt)

37

36

(3%)


16

17

19

19%

12%

Manganese alloy sales (kt)

40

28

(30%)


20

14

14

(30%)

0%

 

South Africa Manganese achieved record performance in the December 2017 quarter as saleable ore production increased by 22% to 633kwmt. A continuation of higher cost trucking and the sale of lower quality fines products enabled us to take advantage of favourable market conditions while the Wessels central block, which was successfully commissioned in the March 2017 quarter, also operated at maximum capacity ahead of planned maintenance in the June 2018 quarter. Given the record start to the year, we have increased FY18 ore production guidance by 8% to 2,040kwmt with this projection remaining subject to continued strong market demand. The increase in ore inventory in the December 2017 quarter is also expected to unwind in the June 2018 half year.

 

The average realised price for external ore sales in the December 2017 half year is expected to reflect the medium grade 37% manganese lump ore index8 on a volume weighted M-1 basis. Wessels concentrate and other fines products receive a substantial discount when referenced to index prices and accounted for 17% of sales across the December 2017 half year (15% H1 FY17; 9% FY17). Favourable negotiated price outcomes for our primary products, as well as a temporary increase in the proportion of sales priced in the month of shipping (i.e. M, as opposed to M-1) offset the impact of these discounts. Internal sales continue to occur on commercial terms.

 

Manganese alloy saleable production decreased by 3% (or 1kt) to 36kt in the December 2017 half year as Metalloys continued to operate one of its four furnaces.

cerro matoso

(99.9% share)

South32's share

1H17

1H18

HoH


2Q17

1Q18

2Q18

2Q18
vs
2Q17

2Q18
vs
1Q18

Payable nickel production (kt)

17.7

21.8

23%


9.0

11.7

10.1

12%

(14%)

Payable nickel sales (kt)

17.6

21.3

21%


9.4

11.4

9.9

5%

(13%)

 

Cerro Matoso payable nickel production increased by 23% (or 4.1kt) to 21.8kt in the December 2017 half year as ore grades improved following the ramp-up of production at La Esmeralda. Production was 14% lower in the December 2017 quarter as planned maintenance was undertaken in the furnace. FY18 production guidance remains unchanged at 41.6kt with additional maintenance planned for the furnace in the March 2018 quarter.

cannington

(100%)

South32's share

1H17

1H18

HoH


2Q17

1Q18

2Q18

2Q18
vs
2Q17

2Q18
vs
1Q18

Payable silver production (koz)

8,729

5,175

(41%)


4,035

2,763

2,412

(40%)

(13%)

Payable silver sales (koz)

8,860

5,429

(39%)


3,797

2,926

2,503

(34%)

(14%)

Payable lead production (kt)

73.9

49.4

(33%)


35.5

25.8

23.6

(34%)

(9%)

Payable lead sales (kt)

73.3

48.6

(34%)


33.2

25.9

22.7

(32%)

(12%)

Payable zinc production (kt)

42.1

20.2

(52%)


24.4

11.0

9.2

(62%)

(16%)

Payable zinc sales (kt)

40.8

25.7

(37%)


22.3

13.6

12.1

(46%)

(11%)

 

As anticipated, Cannington silver, lead and zinc payable production decreased by 41%, 33% and 52% in the December 2017 half year, respectively, due to lower ore grades and a reduction in mill throughput. Mining rates remained constrained in the December 2017 quarter as additional underground development was prioritised in preference to the planned replenishment of above ground stocks. Throughput is expected to improve with the ramp-up of the replacement underground crusher which is on schedule to be commissioned in March 2018. FY18 production guidance (silver 14,360koz, lead 115kt, zinc 45kt) remains unchanged and is predicated on a significant improvement in silver and lead ore grades as determined by the sequence of stope extraction with production weighted towards the June 2018 quarter.

We remain focussed on the safe extraction of the remaining underground ore reserves at Cannington with the optimal stope sequence designed to reduce geotechnical risk and maximise value. A significant increase in underground activity and complexity will drive greater variability of mine performance as the underground mine progresses towards the end of its life.

Finalisation adjustments and the provisional pricing of Cannington concentrates will increase Underlying EBIT9 by US$5.5M in the December 2017 half year (US$4.1M FY17; US$0.5M H1 FY17). Outstanding concentrate sales (containing 1.8Moz of silver, 21.1kt of lead and 3.9kt of zinc) were revalued at 31 December 2017. The final price of these sales will be determined in the June 2018 half year.

Notes:

1.     Refer to market announcement dated 27 November 2017 "South Africa Energy Coal to Become a Stand-alone Business".

2.     Refer to market announcement dated 27 November 2017 "South32 Approves Klipspruit Life Extension Project".

3.     Net distributions from equity accounted investments includes net debt movements and dividends.

4.     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%.

5.     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.

6.     Platts Low-Vol Hard Coking Coal Index FOB Australia

7.     Metal Bulletin 44% manganese lump ore index (CIF Tianjin, China).

8.     Metal Bulletin 37% manganese lump ore index (FOB Port Elizabeth, South Africa).

9.     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.

10.    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

1H17

1H18


2Q17

3Q17

4Q17

1Q18

2Q18

Worsley Alumina
(86% share)









Alumina hydrate production (kt)

1,946

1,947


966

993

959

974

973

Alumina production (kt)

1,940

1,865


973

964

988

942

923

Alumina sales (kt)

1,909

1,886


949

1,018

920

966

920

South Africa Aluminium
(100%)









Aluminium production (kt)

356

358


181

178

180

180

178

Aluminium sales (kt)

347

344


169

163

203

162

182

Mozal Aluminium
(47.1% share)









Aluminium production (kt)

136

137


68

67

68

69

68

Aluminium sales (kt)

134

147


70

66

73

65

82

Brazil Alumina
(36% share)









Alumina production (kt)

673

676


347

324

332

337

339

Alumina sales (kt)

638

649


339

356

322

333

316

South Africa Energy Coal
(100%)









Energy coal production (kt)

14,825

13,423


7,081

6,675

7,413

6,689

6,734

Domestic sales (kt)

8,918

7,334


4,472

4,056

3,948

3,788

3,546

Export sales (kt)

5,856

5,865


2,952

2,873

3,068

2,748

3,117

Illawarra Metallurgical Coal
(100%)









Total coal production (kt)

3,713

1,860


1,829

1,614

1,746

819

1,041

Total coal sales (kt)

3,605

1,660


1,412

1,980

1,711

778

882

Metallurgical coal production (kt)

2,829

1,282


1,392

1,431

1,437

494

788

Metallurgical coal sales (kt)

2,788

1,057


1,065

1,694

1,470

403

654

Energy coal production (kt)

884

578


437

183

309

325

253

Energy coal sales (kt)

817

603


347

286

241

375

228

Australia Manganese
(60% share)









Manganese ore production (kwmt)

1,499

1,701


736

719

776

808

893

Manganese ore sales (kwmt)

1,500

1,612


743

749

838

790

822

Ore grade sold (%, Mn)

46.4

46.0


46.1

46.0

46.2

46.1

46.0

Manganese alloy production (kt)

78

82


40

28

41

39

43

Manganese alloy sales (kt) 

82

78


28

37

36

36

42

South Africa Manganese
(60% share)









Manganese ore production (kwmt)

934

1,129


517

566

538

496

633

Manganese ore sales (kwmt)

928

1,067


511

554

542

528

539

Ore grade sold (%, Mn)

40.3

40.3


40.8

40.1

39.8

40.7

39.9

Manganese alloy production (kt)

37

36


16

19

17

17

19

Manganese alloy sales (kt) 

40

28


20

14

20

14

14

South32's share

1H17

1H18


2Q17

3Q17

4Q17

1Q18

2Q18

 

Cerro Matoso
(99.9% share)









 

Ore mined (kwmt)

2,347

2,087


1,109

1,044

1,056

1,051

1,036

 

Ore processed (kdmt)

1,289

1,340


644

648

624

696

644

 

Ore grade processed (%, Ni)

1.53

1.83


1.55

1.60

1.69

1.91

1.75

 

Payable nickel production (kt) 

17.7

21.8


9.0

9.1

9.7

11.7

10.1

 

Payable nickel sales (kt)

17.6

21.3


9.4

9.2

9.8

11.4

9.9

 

Cannington
(100%)









 

Ore mined (kwmt)

1,639

1,209


859

675

595

647

562

 

Ore processed (kdmt)

1,669

1,168


841

739

628

593

575

 

Silver ore grade processed (g/t, Ag)

198

165


182

183

196

175

155

 

Lead ore grade processed (%, Pb)

5.5

5.1


5.2

5.3

5.2

5.2

4.9

 

Zinc ore grade processed (%, Zn)

3.7

2.6


4.2

3.0

3.1

2.8

2.3

 

Payable silver production (koz)

8,729

5,175


4,035

3,548

3,326

2,763

2,412

 

Payable silver sales (koz)

8,860

5,429


3,797

3,544

3,866

2,926

2,503

 

Payable lead production (kt)

73.9

49.4


35.5

31.3

26.9

25.8

23.6

 

Payable lead sales (kt)

73.3

48.6


33.2

32.5

32.3

25.9

22.7

 

Payable zinc production (kt)

42.1

20.2


24.4

15.1

13.2

11.0

9.2

 

Payable zinc sales (kt)

40.8

25.7


22.3

16.8

9.8

13.6

12.1

 

 

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     +44 20 7798 1778

M    +44 74 6853 3005

E     Alex.Volante@south32.net

Rob Ward

T     +61 8 9324 9340

M    +61 431 596 831

E     Robert.Ward@south32.net


MEDIA RELATIONS

Hayley Cardy

T     +61 8 9324 9008

M    +61 409 448 288

E     Hayley.Cardy@south32.net

James Clothier

T     +61 8 9324 9697

M    +61 413 319 031

E     James.Clothier@south32.net



Further information on South32 can be found at www.south32.net 

 

17 January 2018

JSE Sponsor: UBS South Africa (Pty) Ltd


This information is provided by RNS
The company news service from the London Stock Exchange
 
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