July 20, 2026 - South32 has reported that it has exceeded its 2026 financial year production guidance across several key operations while accelerating its transition to a base metals-focused portfolio, highlighted by the proposed sale of its aluminum value chain assets and continued investment in copper and zinc growth projects.

Aluminum output exceeded expectations by one percent, Sierra Gorda surpassed guidance by two percent, Cannington finished two percent above target, and manganese production exceeded guidance at both its Australian and South African operations.

South32 also increased quarterly sales volumes by 15 percent, supported by improved logistics and stronger commodity markets.

Chief executive officer Matt Daley said the company had delivered a strong operational performance while repositioning the business for future growth.

“We continued to deliver strong operating results, exceeding group production guidance for FY26,” he said.

“We increased quarterly sales volumes by 15 percent, capturing the benefit of strong market conditions across many of our commodities, and releasing working capital which added to the group’s cash generation.

“On 1 July, we announced a step change for South32, with the sale of our aluminum value chain business to Alcoa. Once complete, this sale will unlock significant value for shareholders and reposition South32 as a leading upstream base metals focused company.

“Our portfolio will be built around high-margin, long-life assets in favorable jurisdictions, with approximately 85 percent of pro-forma earnings from base and precious metals and approximately 55 percent production growth from approved projects.” 

South32 said the Sierra Gorda joint venture approved the fourth grinding line project during the quarter, which is expected to lift copper equivalent production by around 30 percent from FY31. At the Hermosa project in Arizona, construction of the Taylor zinc-lead-silver project continued, while the operation received its Final Record of Decision from the US Forest Service, completing the federal permitting process.

Daley said the company’s development pipeline would underpin long-term growth.

“Looking ahead, our focus on operational excellence, a strong balance sheet and transformational growth in base metals leaves us well positioned to deliver value for shareholders,” he said.