Citing global market uncertainty, South32 (ASX:S32) said Monday it reduced capital and exploration expenditures during the last quarter.
“With uncertainty remaining in global markets we continue to manage our financial position to ensure we retain the right balance of flexibility, efficiency and prudence. We acted to protect our strong balance sheet by adjusting our capital expenditure priorities, suspending our on-market share buy-back and extending the tenor of our US$1.45 billion revolving credit facility. Our strong balance sheet and simple capital management framework are designed to reward shareholders as our financial performance improves,” said Graham Kerr, South32’s CEO.
Year-on-year production of alumina was up 8%, lead jumped 9% and zinc lept 29%. However, silver production fell 3%.
South32 said it achieved record production at Brazil Alumina, Hillside Aluminium and Australia Manganese ore in FY20.
The company also exceeded guidance at its Cannington Mine in northwest Queensland by 8% due to higher mill throughput, enabled by a draw down in run of mine stocks and underground mine performance. The mine is one of the world’s largest producers of silver and lead.