Australia’s South32 quarterly manganese output beats estimates, shares rise 6%

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Australia’s South32 quarterly manganese output beats estimates, shares rise 6%

7:03 CAT | 22 Oct 2025

FILE - A sign adorns the building where Australian miner South32 has their office in Perth, Western Australia, November 19, 2015. [File photo: Reuters/David Gray]

Meanwhile, the threat of closure of the Mozambique aluminium smelter continues to hang over the firm, which said the negotiations to secure affordable power have not progressed.

South32 posted a better-than-expected manganese output for the first quarter on Tuesday, after a recovery at its Australian operations following weather-related disruptions.

Shares of the world’s biggest manganese producer jumped as much as 6.3% to A$3.315, their highest level since late March.

The diversified miner said it had successfully executed an operational recovery plan at its Australian manganese segment and ramped up export shipments after Tropical Cyclone Megan damaged infrastructure last year.

The unit has completed an insurance settlement related to the impacts of the tropical cyclone, the company said, adding that an additional $153 million was agreed upon under the external insurance recoveries, bringing the approved total to $503 million.

Analysts at Jefferies said that the additional cost exceeded their estimates but noted the overall strong performance in the core assets.

The company posted a 135% rise in quarterly manganese production to 1.4 million wet metric tons, beating Visible Alpha’s consensus estimate of 1.23 million wmt, helped by the domestic manganese division, which produced 854,000 wmt during the quarter, compared to nil output last year.

South Africa manganese operations produced 551,000 wmt in the first quarter, lower than the prior year’s production.

For fiscal 2026, the company maintained its production forecasts across all operations.

“Looking ahead, we remain focused on maintaining our operating momentum and capitalising on strengthening market conditions in base metals,” said CEO Graham Kerr.

Meanwhile, the threat of closure of the Mozambique aluminium smelter continues to hang over the firm, which said the negotiations to secure affordable power have not progressed.

Source: Reuters