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The Markets
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The Markets
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General mining & base metals

South32 shares drop on fourth quarter update

"We had a strong finish to the year, with revenue equivalent production growing 10 percent in the quarter," said chief executive Graham Kerr.

South32 Ltd (LON:S32) shares dropped back 0.9% in Thursday’s early deals as it released a fourth quarter update, though the company highlighted production growth.

"We had a strong finish to the year, with revenue equivalent production growing 10 percent in the quarter and 3 percent for the year,” said Graham Kerr, South32 chief executive.

He added: "We also continued to benefit from strong prices for our core commodities during the year, distributing US$657 million in dividends to shareholders and allocating US$281 million to our on-market buy-back.

“At year end we had completed US$986 million of our approved US$1 billion capital management program."

Alumina and aluminium production volumes rose by 9% and 1% respectively in the fourth quarter, energy coal output rose by 12% and metallurgical increased by 29%.

Manganese ore production declined 5%, though the alloy production increased 19%. Payable nickel, silver, lead and zinc all gained materially, respectively between 13% and 36%.

South32 dropped 1.32% to trade at 167.76p.

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