The most recent quarterly report for South32 [ASX:S32] has displayed some positive figures regarding resource production.
Today their shares grew by 1.15%. They have been growing consistently for a year alongside other large mining businesses.
Finalised plans are expected to grow further
2019 will see further development in its projects. With South32 having more freedom to operate.
Payable silver production has increased by 28%.
Mozal Aluminium has delivered a production record of 21%.
Coal is also expected to deliver higher levels of production.
Managing their coal energy production as their own business has contributed to positive figures.
South32 stated they have remained on track, managing the standalone business in an efficient manner.
South32 have been able to lower costs and deliver a less complicated business structure and operating ratio.
During March, their net cash elevated on their working capital. Also receiving net distributions totalling to $158 million on increased production rates.
Sellable ore, harvested in Australia, increased by 14% exceeding South32’s capacity.
This increased their production guidance by 6%, also managing to counter any negative impacts the wet season brought.
They also expect further alumina production to rise by the end of their financial year. This is due to a more focused rate of production.
Self-managing some of their segments have helped them turnover a higher work rate.
Allan Seccombe from BusinessLIVE reported, saying: :
‘South32 CEO Graham Kerr has said the power utility’s demands for 51% empowerment ownership of coal suppliers, which would leave South32 as a minority participant in its mines, had played a role in the decision to separate the thermal coal business. Anglo American has sold all its thermal coal mines that supply Eskom, citing similar reasons.’
South32 continue to produce high levels of cash while improving their working capital.
For Money Morning