South32 Boosts Illawarra Guidance, Reports Strong Manganese Output

South32 saw a 17-percent increase in profit for the half year ended December 31, 2018 on the back of strong operational performance.

South32 (ASX:S32,LSE:S32,JSE:S32) saw a 17-percent rise in profit for the half year ended December 31, 2018 on strong operational performance and record production at Australia Manganese.

Alongside growth in profit after tax, South32’s revenue was up 9 percent to US$3.8 billion from the same period last year, with underlying earnings up 18 percent to US$642 million.

The company also saw a 106-percent increase in production to 3.8 million tonnes (Mt) at its Illawarra metallurgical coal operation in New South Wales.

South32 pointed to strong performances from Illawarra’s Dendrobium and Appin longwalls, along with the establishment of metallurgical coal stockpiles, for the production boost, adding that operating unit costs decreased by 42 percent to US$87 per tonne.

The decrease in operational costs come from a “substantial” US$327-million increase in sales volumes; the company has now increased the project’s production guidance for the 2019 fiscal year by 7 percent, to 6.5 Mt.

Record ore production of over 1.8 million wet metric tonnes was also reached at the company’s Australia Manganese operations, which consist of Groote Eylandt Mining Company (GEMCO) in the Northern Territory and Tasmanian Electro Metallurgical Company (TEMCO) in Tasmania.

This came as the primary circuit continued to see high utilization rates and the premium concentrate ore circuit operated at 120 percent of its design capacity, contributing 9 percent of total production.

Despite the record results, production guidance for the 2019 fiscal year will remain the same at Australia Manganese as the wet season is expected to impact H2 2019 production.

South32 is also putting forth improvement initiatives at its Worsley Alumina asset in Western Australia to support production ramp up to nameplate capacity of 4.6 Mt, which is expected to push sustaining capital expenditure to US$60 million in the 2019 fiscal year.

“We are well positioned for the second half of the year, with a net cash balance of US$678 million and an improving outlook for production and costs,” South32 CEO Graham Kerr said in a statement.

“This strong position has allowed us to return US$511 million to shareholders in respect of the period with today’s declaration of a US$258 million fully franked interim dividend and a US$86 million fully franked special dividend,” he added.

South32’s share price was up 3.54 percent at the end of trading on the ASX on Thursday (February 14), ending the day at AU$3.80.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.

Torian Resources Limited Significant Gold Results from Surface at Mt Stirling

Perth, Australia (ABN Newswire) – Torian Resources Ltd (ASX:TNR) is pleased to advise that recent drilling results continue to extend the Mt Stirling Gold System over ~1.1km of Strike, ~300m at depth, and it remains open in multiple directions.


– The interpreted strike of the Mt Stirling gold system exceeds 1.160km with Mt Stirling Main Zone; Hanging Wall and Viserion lodes all remaining open along strike and down-dip.

Keep reading... Show less

eMetals Limited Updates Shareholders On Exploration – April 12, 2021

eMetals Limited (ASX:EMT) (eMetals or Company) is pleased to update shareholders on exploration activities which have commenced across the Company’s projects.


Keep reading... Show less

Discovery Harbour Provides Newcrest’s Planned Program for Fortuity 89, Nevada

Discovery Harbour Resources Corp. (TSXV: DHR) (OTC Pink: DCHRF) (FSE: 4GW) (the “Company” or “Discovery Harbour”) is pleased to announce that Newcrest Resources Inc., a wholly owned subsidiary of Newcrest Mining Limited (“Newcrest”), has provided the details of its planned program for the Fortuity 89 epithermal gold property in Nevada.

The Fortuity 89 property covers very limited outcrop surrounded by a large covered area. The outcrop and interpreted geology are prospective for concealed low sulphidation epithermal gold mineralization below shallow unconsolidated alluvial gravels. Newcrest’s planned activities include a geophysical program encompassing a 675 line kilometre drone airborne magnetic survey, a 250 station ground gravity survey and a 45 line kilometre audio band magnetotellurics (AMT) resistivity survey. It is intended that geologic and alteration sampling and mapping will also be undertaken with a soil geochemical sampling program. The intended outcome of this program is to identify potential drill targets for testing this calendar year.

Keep reading... Show less

Blackdome-Elizabeth Gold Project 2021 Exploration Plan and Update

Tempus Resources Ltd. (“Tempus” or “the Company”) (ASX:TMR)(TSXV:TMRR) is pleased to provide an update on the exploration plan for the upcoming field season at the Blackdome-Elizabeth Gold Project, located in British Columbia, Canada

The 2021 exploration program at Elizabeth and Blackdome is fully permitted and on schedule to commence at the end of Q2, 2021. The program will consist of 7,500 metres of down plunge and along strike diamond drilling at Elizabeth to expand the known gold mineralisation, in parallel with detailed alteration and mapping studies at Blackdome in support of future resource expansion drilling.

Keep reading... Show less

Rio Tinto reaches agreement with Turquoise Hill Resources on financing plan for Oyu Tolgoi

Rio Tinto has entered into a binding Heads of Agreement (HoA) with Turquoise Hill Resources (TRQ) for an updated funding plan (the “Funding Plan”) for the completion of the Oyu Tolgoi (OT) Underground Project in Mongolia. The Funding Plan addresses the estimated remaining known funding requirement of approximately $2.3 billion 1 , building on and replacing the arrangements established in the Memorandum of Understanding that Rio Tinto and TRQ previously entered into on 9 September, 2020.

Under the HoA, subject to securing approval by OT LLC and any required support from the Government of Mongolia, and subject to timing, availability, and terms and conditions being acceptable to both parties, Rio Tinto and TRQ will:

Keep reading... Show less

Top News

Related News