South32 Ltd (LSE:S32, ASX:S32, OTC:SHTLF, JSE:S32) shares traded lower, losing around 12.5%, as it announced some $818 million of write-offs – taking a hit for alumina and nickel assets.
It comes as the company’s flagship Worsley alumina operation was performing below target, due in part to equipment downtime.
Meanwhile, global nickel prices are down heavily and, elsewhere in the industry, companies are mothballing mining operations until economic conditions improve.
The dual-listed Australian miner, meanwhile, claimed a strong performance for its June quarter.
It noted improved zinc-equivalent production numbers, but elsewhere its copper, molybdenum, and metallurgical coal production was down year-on-year – albeit the project’s imminent sale is expected to close in the current quarter).
Chief executive Graham Kerr, meanwhile, highlighted in a statement: “We delivered another quarter of improved operating performance, achieving sequentially higher volumes across the majority of our operations, and remaining on track to achieve FY24 operating unit cost guidance.
"Our performance enabled us to capitalise on stronger commodity prices, lift sales volumes and release working capital, boosting cash generation in the quarter.”
In London, South32 shares were down 21.7p or 12.34% changing hands at 154.10p.