By Digifin Pty Ltd · About this coverage
Key Points
- FY27 production guidance unchanged across all operations
- Net cash up US$14M to US$297M
- Sierra Gorda payable copper equivalent production up 11% to 22.4kt
- Cannington payable zinc equivalent production down 27% to 59.2kt
- US$197M invested at Hermosa in the September 2026 quarter
About South32 (ASX:S32)
South32 Limited is an ASX-listed mining and metals company headquartered in Perth. Its producing assets include the Cannington silver, lead and zinc mine in north-west Queensland, manganese operations in the Northern Territory and South Africa, and a 45 per cent interest in the Sierra Gorda copper mine in Chile, while the Hermosa zinc, lead and silver project in Arizona is under development. The company reports in US dollars and its shares are also quoted in London and Johannesburg.
South32 (ASX:S32) has kept FY27 production guidance unchanged across all operations in its September quarter report, as higher Sierra Gorda copper output offset a temporary paste backfill problem that cut production at Cannington.
Net cash increased by US$14M to US$297M, as South32 received a US$153M distribution from Sierra Gorda (its share), continued investing at Hermosa and saw a temporary working capital build of approximately US$80M. Sierra Gorda payable copper equivalent production rose 11% to 22.4kt on higher planned copper grades. Cannington payable zinc equivalent production fell 27% to 59.2kt, as reduced paste backfill availability delayed access to planned stopes; South32 processed lower-grade stockpiles and expects paste system upgrades to support improved mining rates over the remainder of FY27. Manganese production increased by 14%. South32 invested US$197M at Hermosa, where both shafts at the Taylor zinc-lead-silver project are expected to reach the primary production level in the December 2026 quarter. After quarter end it paid a fully-franked ordinary dividend of US$242M. Shareholders approved the sale of the aluminium value chain assets to Alcoa Corporation on 15 October 2026.
The Alcoa sale is expected to complete in the June 2027 half year, subject to satisfaction or waiver of remaining conditions precedent. South32 links its unchanged Cannington guidance of 290.0kt to expected paste delivery upgrades and continued processing of lower-grade stockpiles, and the release does not give a completion date for the upgrades.
Source: South32 Limited (ASX:S32), 19 October 2026. Summary content supplied by Digifin Pty Ltd.
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