South32 posts production increase and asset sale

• South32 announced a 15% increase in quarterly sales volumes and production results that exceeded its annual guidance.
• The company reported record annual distributions of US$401 million from its copper-heavy Sierra Gorda joint venture.
• The business is divesting its aluminium value chain assets to accelerate its portfolio transition towards base metals.

South32 (ASX:S32) raised quarterly sales volumes by 15% after exceeding its full-year production guidance.

The production outperformance included a 29% quarterly surge at the Cannington operation to beat full-year company targets by 2%.

"We continued to deliver strong operating results, exceeding Group production guidance for FY26," said South32 CEO Matt Daley.

The company stated that the divestment to Alcoa Corporation (NYSE:AA) has an enterprise value of up to US$5.6 billion.

Following the announcement, the South32 share price was unchanged at $4.04.

The business invested approximately US$710 million during the fiscal year to advance its Hermosa zinc-lead-silver development project.

The joint venture at Sierra Gorda also approved a plant expansion expected to boost copper equivalent production by 30%.