Economic news

South32 takes $1.3 billion hit against Hermosa; Q4 output steady

2023.07.25 02:50


© Reuters. FILE PHOTO: The logo of Australian miner South32 can be seen at the venue of a media conference in Perth, Western Australia, November 18, 2015. REUTERS/David Gray/File Photo

By Navya Mittal and Rishav Chatterjee

(Reuters) -Australian diversified miner South32 (ASX:) on Monday said it will take an about $1.3 billion one-off charge in fiscal 2023 against its Hermosa project in Arizona, even as the company restored output at most of its operations in the fourth quarter.

Mining at South32’s Taylor sulphide deposit in Hermosa has been impacted by operational hazards as well as restrictions due to the COVID-19 pandemic.

Inflationary pressures pushed up prices of steel, cement and electrical components, forcing the miner to forecast higher pre-production expenditure estimates for the project, South32, which was spun off from the BHP Group (ASX:) in 2015, said.

“We are disappointed by the delays resulting from the impact of COVID, the significant dewatering requirements and current inflationary market conditions,” said Chief Executive Officer Graham Kerr.

“The feasibility study for Taylor remains on track and will benefit from 41% increase in measured mineral resource announced today,” Kerr said.

Shares fell as much as 2.6% to A$3.72 as of 0344 GMT to hit their lowest in about two weeks.

“The impairment charge is obviously a big setback for the business, which is why the stock is under pressure,” said Josh Gilbert, market analyst at eToro AUS Capital.

“Investors will soon begin to lose patience with South32, with shares marginally gaining over the last five years and well underperforming the broader materials sector,” added Josh.

South 32 said output of manganese ore, used to make steel, fell to 1,455 thousand wet metric tons (kwmt) during the quarter, compared to 1,469 kwmt a year ago.

For the full year, manganese ore output jumped 4% to 5,653 kwmt.

Alumina production declined 4% in the 2023 financial year due to temporary outages in the June quarter.

Output of metallurgical coal, the miner’s biggest revenue-generating commodity, jumped 9% to 1,504 thousand tonnes (kt) for the June quarter, while annual output slipped 4% to 5,497 kt.

 

 

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 98,534.40 0.36%
ethereum
Ethereum (ETH) $ 3,435.44 2.85%
tether
Tether (USDT) $ 1.00 0.15%
solana
Solana (SOL) $ 259.10 1.45%
bnb
BNB (BNB) $ 660.51 2.75%
xrp
XRP (XRP) $ 1.49 4.56%
dogecoin
Dogecoin (DOGE) $ 0.445961 5.08%
usd-coin
USDC (USDC) $ 1.00 0.06%
cardano
Cardano (ADA) $ 1.09 0.26%
staked-ether
Lido Staked Ether (STETH) $ 3,435.23 2.87%
tron
TRON (TRX) $ 0.215618 4.31%
stellar
Stellar (XLM) $ 0.606477 39.16%
avalanche-2
Avalanche (AVAX) $ 42.64 1.98%
the-open-network
Toncoin (TON) $ 6.40 15.72%
shiba-inu
Shiba Inu (SHIB) $ 0.000027 0.33%
wrapped-steth
Wrapped stETH (WSTETH) $ 4,065.38 2.84%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 98,017.26 0.80%
polkadot
Polkadot (DOT) $ 9.32 32.43%
chainlink
Chainlink (LINK) $ 17.94 7.94%
bitcoin-cash
Bitcoin Cash (BCH) $ 521.85 4.01%
sui
Sui (SUI) $ 3.53 1.05%
weth
WETH (WETH) $ 3,434.32 2.86%
pepe
Pepe (PEPE) $ 0.000021 4.08%
leo-token
LEO Token (LEO) $ 8.67 1.72%
near
NEAR Protocol (NEAR) $ 6.40 4.65%
litecoin
Litecoin (LTC) $ 102.61 1.83%
aptos
Aptos (APT) $ 13.23 5.70%
uniswap
Uniswap (UNI) $ 10.92 7.80%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,620.12 2.97%
hedera-hashgraph
Hedera (HBAR) $ 0.156907 3.60%
internet-computer
Internet Computer (ICP) $ 11.88 7.66%
crypto-com-chain
Cronos (CRO) $ 0.201123 5.89%
usds
USDS (USDS) $ 1.00 0.07%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.591547 13.51%
ethereum-classic
Ethereum Classic (ETC) $ 30.17 3.23%
render-token
Render (RENDER) $ 7.98 5.11%
bittensor
Bittensor (TAO) $ 535.05 3.11%
kaspa
Kaspa (KAS) $ 0.155954 0.63%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.47 12.95%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.10%
bonk
Bonk (BONK) $ 0.000049 2.57%
cosmos
Cosmos Hub (ATOM) $ 9.30 19.96%
arbitrum
Arbitrum (ARB) $ 0.88325 9.34%
vechain
VeChain (VET) $ 0.044433 14.15%
whitebit
WhiteBIT Coin (WBT) $ 24.80 0.47%
filecoin
Filecoin (FIL) $ 5.90 20.33%
dai
Dai (DAI) $ 1.00 0.14%
dogwifcoin
dogwifhat (WIF) $ 3.36 6.16%
mantra-dao
MANTRA (OM) $ 3.73 4.08%
celestia
Celestia (TIA) $ 7.47 26.66%