SOUHY - South32 to take $1.3B impairment on Arizona mining project delays

2023-07-24 10:58:43 ET

Australian miner South32 ( OTCPK:SOUHY ) on Monday warned it would take a ~$1.3B non-cash impairment charge in FY 2023 at its Hermosa project in Arizona, while FQ4 commodities production rose at most of its operations.

South32 ( OTCPK:SOUHY ) said it took the impairment on the Taylor zinc-lead-silver deposit at the Hermosa project because of delays from the impact of COVID-19, significant de-watering requirements and current inflationary market conditions.

The company said operations stabilized at the Sierra Gorda copper mine in Chile, leading to a 2.4% increase in copper production for the quarter.

South 32 ( OTCPK:SOUHY ), one of the world's biggest manganese producers, said manganese ore Q4 output edged lower to 1.45M wet metric tons from 1.47M tons a year ago, while metallurgical coal production jumped 21% and aluminum output climbed 3%.

The miner previously had lowered production guidance for some of its operations, citing adverse weather conditions and other temporary issues.

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