South32 Outperforms Production Targets in June Quarter
Synopsis
The diversified miner delivered stronger-than-expected output at Sierra Gorda, Cannington and its manganese operations, lifting quarterly sales by 15%.
South32’s quarterly output beat the company's FY26 guidance for several of its key commodities, with volumes higher across its copper, zinc, silver, manganese and aluminium businesses.
The Group's sales volumes increased by 15 per cent during the quarter due to improved production from the Group's key assets. The June Quarterly Report also marks the first publication from new Chief Executive Officer Matt Daley since he officially took office on 1 July 2026.
In addition to the operating update, South32 advised it will further explore a potential sale of its global aluminium value chain (excluding Mozal Aluminium in Mozambique) to Alcoa for up to US$5.6 billion.
Sierra Gorda Delivers Record Cash Distribution
Chile-based Sierra Gorda generated 87.1 thousand tonnes of copper – 2 per cent above its FY26 guidance, delivering a record annual cash distribution to the Company of US$401 million.
During the June quarter, Cannington (Qld) produced 29 per cent more zinc and silver than 12 months prior and met the prior year’s annual guidance. Australia Manganese exceeded the target by 1 per cent and South Africa Manganese by 4 per cent.
Alumina was also in line at 1 per cent above forecast and aluminium production matched target.
Portfolio Shifts as Copper Demand Grows
South32 has operations across Australia, Chile, South Africa, Brazil, Colombia, Peru and the United States, and copper is becoming an increasingly important part of the Group's business.
The Group's Arizona-based Hermosa project is advancing through its development phase, and work is underway on an expansion study for the Sierra Gorda operation.
In the most recent half-year results, the company generated US$2.81 billion in revenue from continuing operations and reported US$464 million of profit after tax attributable to shareholders for the six months to 31 December 2025.
Copper continues to drive the demand for energy and infrastructure around the world and is reflected in this production update. According to the International Energy Agency’s Global Critical Minerals Outlook 2025, copper demand will remain robust with increased electricity generation, renewables projects, electric vehicles and data centers requiring the metal.
Meanwhile, the International Copper Study Group expects the world mine production of copper to increase by around 2.3 per cent in 2026.
Increased production from Chile, Peru, Zambia and Indonesia will lead to this supply growth.
Source: Capital Brief
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
