South32 manganese record eclipsed by $818m write-down

SOUTH32 said on Monday manganese ore production from its Northern Cape mines hit a record 2.18 million tons for the group’s 2024 financial year ended June.But this was small beer for the miner however after saying in its fourth quarter and half year production update it would write down assets for a total of $818m. The company’s shares were mauled on the Australian Securities Exchange fallling as much as 12.9% in intraday trade.South32, which is due to report its full year numbers on August 29, said a pre-tax writedown of $554m has been booked on the value of its Worsley alumina asset, while the value of its Cerro Matoso nickel project in Colombia was reduced by $264m.South32 received environmental approval to expand Worsley for a further 15 years, but the Western Australia government imposed conditions described by the company as creating “significant operating challenges” which could impact the future of refinery.The conditions came after environmentalists raised concerns about mining in Western Australia’s Jarrah forests and the impact operations would have on wildlife. South32 is appealing the restrictions, said Bloomberg News in an article.The share closed 12.4% down on the Johannesburg Stock Exchange.Commenting in its production update, South32 said South Africa manganese “delivered improved mining performance and lifted output of secondary products to capitalise on stronger manganese prices”. The operatons beat guidance by 9%.The manganese price ex-South Africa surged 34% in the second half of South32’s financial year to $4.05 per dry metric ton (FOB). On a 12 month basis, the metal’s price at $3.53/dmt was 1% weaker. Sales from the manganese assets were 2% higher year-on-year.South32 shares the mines with Anglo American which is selling its platinum, diamonds, metallurgical coal and – potentially – its South African manganese assets in terms of a restructuring aimed at throwing the spotlight on its copper and iron ore potential.But Graham Kerr, CEO of South32 said in June that his company would not pay over the odds for Anglo’s 40% stake in the manganese mines. “We’re not going to pay a control premium for something we already run,” Kerr told News24.Record production was also achieved at South32’s Hillside aluminium smelter as it “continued to test its maximum technical capacity, despite the impact of load-shedding” during the 12 months. Guidance for 2025 is set to match 2024’s 720,000 tons.The post South32 manganese record eclipsed by $818m write-down appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com