South32 Q4 copper output declines, missing market estimates
Australian diversified miner South32 reported lower fourth-quarter copper production on Monday, missing market estimates, as impacts from inclement weather continued to hamper mining operations at the Sierra Gorda project in Chile.
Processing operations at Sierra Gorda were temporarily suspended in the March quarter after heavy rainfall affected access to a mining area.
South32 flagged that its operating unit costs for fiscal 2027 for the project will be around 10% above the forecast for financial year 2026, owing to the timing of a previously announced one-off workforce payment and higher diesel prices.
The Sierra Gorda mine, located in Chile's mineral-rich Antofagasta region, is owned jointly by Polish State-run copper producer KGHM with a 55% stake while South32 holds the remaining 45% interest.
The joint venture recently approved a fourth grinding line expansion to lift processing capacity by about 25%, with growth capital expenditure expected at around $725-million between 2027 and 2030.
South32 reported payable copper output of 16 000 tons from its stake in the Sierra Gorda project for the three months ended June 30, compared with 17 700 tons posted a year ago and missing the Visible Alpha consensus estimate of 17 500 tons.
