South32 delivers strong operating performance and advances portfolio transformation in June 2024 quarter

South32 Limited (ASX: $S32) achieved 98% of its current Group FY24 copper equivalent production guidance and remains on track to deliver FY24 Operating unit costs in line with current guidance. The company also delivered strong sales in the June 2024 quarter, capturing higher commodity prices and releasing working capital to finish the year. South32 advanced its portfolio transformation, completing key milestones for the sale of Illawarra Metallurgical Coal and progressing construction at Hermosa's Taylor zinc-lead-silver deposit as planned.

Executive Commentary on South32's Performance and Future Plans

South32 Chief Executive Officer, Graham Kerr, stated, 'We delivered another quarter of improved operating performance, achieving sequentially higher volumes across the majority of our operations, and remaining on track to achieve FY24 operating unit cost guidance. Our performance enabled us to capitalise on stronger commodity prices, lift sales volumes and release working capital, boosting cash generation in the quarter. The sale of Illawarra Metallurgical Coal is expected to be completed later this quarter, further strengthening our balance sheet, simplifying our business, reducing our capital intensity, and unlocking capital to invest in our high-quality development projects in zinc and copper. Construction and permitting are tracking to plan at the Taylor zinc-lead-silver deposit at Hermosa, the first phase of a regional-scale opportunity to supply commodities critical for the global energy transition.'

Summary of South32's Quarterly Report and Future Outlook

South32 achieved strong sales and made significant progress in advancing its portfolio transformation in the June 2024 quarter. The company remains on track to achieve its FY24 operating unit cost guidance and is set to complete the sale of Illawarra Metallurgical Coal, which is expected to strengthen its balance sheet and unlock capital for investment in high-quality development projects in zinc and copper. South32's construction and permitting activities at the Taylor zinc-lead-silver deposit at Hermosa are progressing as planned, positioning the company to capitalize on the global energy transition. Despite revised lower production guidance for alumina, Sierra Gorda payable copper equivalent, and Cannington payable zinc equivalent in FY25, South32 continues to focus on driving operating performance and cost efficiencies. The company's strategic review of Cerro Matoso is ongoing, and it expects to provide information on the outcomes of this review in H2 FY25.