Shutdown of South32 Australian manganese unit weighed heavily on its fiscal 2025 results

South32’s Australian’s share manganese ore production was 1,106,000 mt in fiscal 2025 and sales were 253,000 mt vs. 2,324,000 mt and 2,583,000, mt respectively, in fiscal 2024. The Australian unit’s realized price in fiscal the second half of fiscal 2025 $3.68 per wmt compared to $3.77 for all of fiscal 2024. Export shipments restarted in the fourth fiscal quarter of 2025 as planned, following completion of the wharf construction in May 2025. Shipping rates are expected to reach full capacity in the second half of fiscal 2025. South32’s Australia manganese unit is expected to report an underlying EBITDA loss of around $100-million to $120-million (South32 share) in fiscal 2025, following its prolonged shutdown after Cyclone Megan. However, the company exceeded its fiscal 2025 production guidance by 11% with its primary concentrator restarting in the June 2025 quarter. The company kept is production guidance unchanged at 3,200,000 mt in fiscal 2026. Separately, idle capacity and remediation related costs of around $135-million (South32 share) will be excluded from underlying earnings in fiscal 2025 as an earnings adjustment. The company’s South Africa manganese reported saleable production was largely unchanged at 2,151,000 wmt in fiscal 2025. The unit’s average realized price in fiscal 2025 was $3.71 per wmt vs. $3.53 in fiscal 2024. The operation delivered a strong finish to the year, with production increasing by 25% to 593,000 mt in the June 2025 quarter following the prior period’s planned maintenance shut, exceeding fiscal 2025 production guidance by 8%. South32 will continue to monitor and respond to market conditions, in fiscal 2026 the production guidance remains unchanged at 2-million wmt. Sales in fiscal 2025 of were 2,096,000 mt, down 1% from the previous fiscal year. Sales increased by 48% in the June 2025 quarter due to carry-over shipments from the prior quarter. South32 realized around a 11% premium to the medium-grade 37% manganese lump ore-index as the company optimized its sales mix.

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