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South 32 Quarterly Report September 2023 for Manganese ore Business

  • Thursday, October 26, 2023
  • Source:ferro-alloys.com

  • Keywords:Ferroalloy, Vanadium, Molybdenum, Tungsten, Manganese Ore, Chrome Ore,Iron Ore
[Fellow]South 32 Quarterly Report September 2023 for Manganese ore Business

[Ferro-Alloys.com] Manganese ore production increased by 4%, with a quarterly record at South Africa Manganese and a strong start to the year at Australia Manganese.

We received net distributions of US$33M (South32 share) from our equity accounted investments (EAI) during the September 2023 quarter, including US$15M from our manganese business and US$18M from Sierra Gorda.

Our FY24 Underlying effective tax rate (ETR) is expected to reflect the corporate tax rates and earnings of the jurisdictions in which we operate, including our manganese business and Sierra Gorda on a proportional consolidated basis (including royalty related taxes for Australia Manganese and Sierra Gorda). The impact of permanent differences can have a disproportionate effect on our Underlying ETR when profit margins are compressed.

We invested US$71M of growth capital expenditure as we progressed construction of key infrastructure and commenced federal permitting for our Taylor zinc-lead-silver and Clark battery-grade manganese deposits.

AUSTRALIA MANGANESE (60% SHARE)

Australia Manganese saleable production increased by 2% (or 21kwmt) to 890kwmt in the September 2023 quarter as the operation achieved strong primary output, and continued to operate the low-cost PC02 circuit above its design capacity, delivering ~11% of production (FY23: 11%). FY24 production guidance remains unchanged at 3,400kwmt, subject to the impacts from the wet season.

Sales increased by 9% in the September 2023 quarter, as improved road haulage capacity and alternative shipping solutions supported a planned drawdown in inventories. Our average realised price for manganese ore sales was a discount of approximately 6% to the high grade 44% manganese lump ore index16 on a M-1 basis (FY23: 6% discount), reflecting lower planned ore grades, as well as price realisations for our PC02 product.

SOUTH AFRICA MANGANESE (ORE 54.6% SHARE)

South Africa Manganese continued its strong performance, increasing saleable production by 7% (or 42kwmt) to a record 628kwmt in the September 2023 quarter. FY24 production guidance remains unchanged at 2,000kwmt, with planned maintenance scheduled for the December 2023 and March 2024 quarters.

Sales decreased by 4% in the September 2023 quarter, as third-party port congestion impacted the timing of shipments. We expect to complete additional shipments and drawdown inventories during the December 2023 quarter.

Our realised price for manganese ore sales was a premium of approximately 6% to the medium grade 37% manganese lump ore index17 on a M-1 basis (FY23: 6% premium), as we continued to optimise our sales mix.

Source:South 32 report

  • [Editor:tianyawei]

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