South32 posts 33% manganese uplift 

South32’s (ASX: S32) FY26 production guidance will remain unchanged after a quarter marked by better-than-expected manganese output. 

Manganese production increased by 33% in Q1, following Australia Manganese’s successful operational recovery plan and ramped up export shipments.  

South Africa Manganese saw a 7% decrease in production, reflecting underground development activity.  

South32 chief executive Graham Kerr comments on the Q1 results. 

“Production highlights included a 12% increase in payable copper equivalent production at Sierra Gorda and a 33% uplift in manganese volumes, as we successfully executed the operational recovery plan at Australia Manganese,” he said. 

“Our financial position remains strong as we continued our investment in growth at Hermosa, supported by [$180m] US$117m in net distributions from our Sierra Gorda and manganese equity accounted investments during the quarter. 

“At Hermosa, we continued critical path shaft sinking for our Taylor zinc-lead-silver project, while the exploration decline for the Clark battery-grade manganese deposit remains on track to be completed in the December 2025 quarter. 

“In addition to Hermosa, we continue to advance a pipeline of high-quality base metals development and exploration options.” 

In early October, US President Donald Trump approved the appeal by the Alaska Industrial Development and Export Authority directing his Administration to issue authorisations necessary for the establishment of the Ambler Access Road. 

The Ambler Access Road is a key enabler in unlocking the value of the Ambler Mining District, where South32 holds high-grade copper and zinc options through its 50% interest in the Ambler Metals joint venture and its100% interest in the Roosevelt exploration project. 

“We welcome the decision of the US Government to support the establishment of the Ambler Access Road,” Mr Kerr said.  

“This is a key step in unlocking the potential of the Ambler Mining District, where we hold high-grade copper and zinc options. 

“Looking ahead, we remain focused on maintaining our operating momentum and capitalising on strengthening market conditions in base metals.” 

The US Government has also agreed to acquire an initial ~10% equity interest in Trilogy Metals, South32’s 50% joint venture partner in Ambler Metals, to support exploration and development activities.  

Under the terms, South32 has agreed to sell more than 8.2 million shares in Trilogy Metals to the US Department of War for about $26.9m (US$17.8m). 

South32 will reinvest the estimated $26.9m into Ambler metals to support exploration and development. 

South32 will retain about 10.4 million shares in Trilogy following completion of the investment, representing a 6% equity interest.