South32 production update for Sep Qtr 2016

Company News

by David Chau

South32 Ltd (ASX:S32) has released its quarterly operational update.

The mining company says its net cash position increased by US$239 million to US$551 million in the September quarter.

The company also says strong domestic demand underpinned a 2% increase in South African Energy Coal production. On the other hand, an expected decline in ore grades and scheduled maintenance led to a 9% reduction in nickel, 7% fall in silver, and a 5% fall in zinc production.

The company has also entered an agreement with Alcoa of Australia Ltd to access ground directly to the west of its existing Marradong mining area at Worsley Alumina in Western Australia.

South32 posted a net loss of $2.1 billion at 30 June 2016.

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