South32 reports strong FY26 finish as production exceeds guidance across key operations
Higher sales volumes, record Sierra Gorda distributions and strategic portfolio reshaping strengthen the miner's focus on base metals growth
South32 has ended the 2026 financial year on a high note, exceeding production across several operations, increased sales volumes and major milestones for its copper and zinc growth projects, reinforcing its strategy to become a leading upstream base metals producer.
The diversified mining company reported a 15% increase in quarterly sales volumes, benefiting from favourable market conditions across many of its commodities. The higher sales also released working capital, contributing to stronger cash generation during the quarter.
Among the standout performers was the company’s aluminium business, where production exceeded FY26 guidance by 1%, while alumina production met annual expectations.
The Cannington operation also recorded a strong finish to the financial year, with quarterly production rising by 29%. The operation exceeded its full-year production guidance by 2%, reflecting improved operational performance.
South32’s manganese business delivered another positive result, surpassing FY26 production guidance by 2%. South Africa Manganese contributed significantly to this performance after increasing quarterly production by 6%.
Meanwhile, the Sierra Gorda copper mine continued its strong momentum by exceeding annual production guidance by 2%. The operation also delivered record annual distributions of US$401 million attributable to South32, highlighting its growing contribution to the company’s earnings.
Beyond operational performance, South32 is reshaping its portfolio to strengthen its position in the global energy transition.
Earlier this month, the company announced the sale of its aluminium value chain assets, excluding Mozal Aluminium, to Alcoa Corporation. The transaction has an implied enterprise value of up to US$5.6 billion, together with approximately US$1.2 billion in related rehabilitation provisions.
According to South32 Chief Executive Officer Matt Daley, the transaction marks a significant step in transforming the company’s portfolio.
“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 favourable jurisdictions, with approximately 85% of pro-forma earnings from base and precious metals and approximately 55% production growth from approved projects.”
The company also advanced several strategic growth initiatives during the quarter.
At Sierra Gorda, South32 approved the execution of the fourth grinding line project, which is expected to increase the company’s share of copper equivalent production by approximately 30%.
Construction of the Taylor zinc-lead-silver project at Hermosa also progressed according to plan. The project reached a major regulatory milestone after receiving a Final Record of Decision on July 7, completing the federal permitting process under the United States National Environmental Policy Act.
Daley said the company remains focused on delivering sustainable long-term growth through disciplined operations and investment.
“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.”
With strong operational performance, disciplined capital allocation and continued investment in copper and zinc projects, South32 believes it is well positioned to capitalise on growing global demand for the critical minerals needed to support the energy transition.
