South32 maintains FY27 guidance after copper output surge
- South32 maintained its FY27 production guidance across all operations while delivering an 11% increase in payable copper equivalent production at Sierra Gorda.
- The company increased its net cash balance by US$14 million to reach US$297.
- South32 plans to expand its base metals exposure through key capital investments, including US$197 million invested at the Hermosa Project.
South32 (ASX:S32) maintained its FY27 production guidance across all global operations while increasing payable copper equivalent production by 11% at its Sierra Gorda mine.
The higher planned copper grades offset temporary wet weather disruptions in the quarter, contrasting with a 27% drop in Cannington payable zinc equivalent production due to paste backfill availability delays.
"Manganese had a strong start to the year, with production increasing by 14% as Australia Manganese benefitted from improved operating conditions following the wet season and South Africa Manganese lifted underground productivity at Wessels," said South32 CEO Matt Daley.
The group invested US$197 million at the Hermosa project to advance construction on the Taylor zinc-lead-silver project, with both shafts targeted to reach primary production levels in the December 2026 quarter.
The mining company also paid a fully franked ordinary dividend of US$242 million for the June half year and received a record quarterly distribution of US$153 million from Sierra Gorda.
Following the announcement, the South32 share price was up at $4.54.
On Oct. 15, shareholders approved the sale of the group's aluminium value chain assets to Alcoa.
The transaction remains on track for completion in the June 2027 half year, subject to regulatory approvals.
