South Africa Energy Coal
saleable production decreased by 3% (or 386kt) to 11.8Mt in the December
2019 half year as the operation demobilised contractors in response to
market conditions, more than offsetting a 15% increase in export sales
volumes following improved dragline availability at Klipspruit.
Notwithstanding the improvement in dragline performance, supporting a
46% increase in export sales during the December 2019 quarter, its
ramp-up to full utilisation has been slower than anticipated as a result
of wet weather. Combined with our near-term outlook for domestic demand
and the demobilisation of contractors operating in unprofitable pits, we
now expect FY20 production to be at the bottom end of our guidance range
(26.0Mt). Operating unit costs are expected to be approximately 10%
above the top end of our guidance range of US$40/t in the December 2019
half year, ahead of benefitting from an expected increase in volumes
during the June 2020 half year and the realisation of cost saving
initiatives which include contractor demobilisation.
Illawarra Metallurgical Coal
saleable production decreased by 4% (or 145kt) to 3.7Mt in the December
2019 half year following the completion of a longwall move at the Appin
mine during the December 2019 quarter. FY20 production guidance remains
unchanged at 7.0Mt with both the Dendrobium and Appin longwalls
continuing to perform strongly and a further longwall move scheduled for
the March 2020 quarter. Achieving improved development rates at Appin to
support the improved longwall performance and a sustained return to a
three longwall configuration at the operation from the June 2020 quarter
remains a focus.
T1
Production Summary
South32 share
|
1H19
|
1H20
|
HoH |
2Q19
|
1Q20
|
2Q20
|
QoQ
|
Energy coal production (kt) |
12,929 |
12,621 |
-2% |
6,369 |
6,723 |
5,898 |
-12% |
Metallurgical coal production (kt) |
3,082 |
2,859 |
-7% |
1,567 |
1,651 |
1,208 |
-27% |
T2 Production Guidance
South32 share
|
FY19
|
1H20
|
FY20e
|
South Africa Energy Coal
|
|
|
|
Energy coal production (kt)
|
24,979 |
11,785 |
↓26,000 |
Domestic coal production (kt)
|
14,978 |
6,763 |
↓15,300
|
Export coal production (kt)
|
10,001 |
5,022 |
↓10,700
|
Illawarra Metallurgical Coal
|
|
|
|
Total coal production (kt)
|
6,647 |
3,695 |
7,000 |
Metallurgical coal production (kt)
|
5,350 |
2,859 |
5,800 |
Energy coal production (kt)
|
1,297 |
836 |
1,200 |
T3 South Africa Energy Coal (100%)
South32 share |
1H19 |
1H20 |
HoH |
2Q19 |
1Q20 |
2Q20 |
2Q20
vs 2Q19 |
2Q20
vs 1Q20 |
Energy coal production (kt)
|
12,171 |
11,785 |
-3% |
6,001 |
6,292 |
5,493 |
-8% |
-13% |
Domestic sales (kt)
|
7,749 |
6,688 |
-14% |
3,646 |
3,726 |
2,962 |
-19% |
-21% |
Export sales (kt)
|
4,206 |
4,854 |
15% |
2,283 |
1,977 |
2,877 |
26% |
46% |
T4 Illawarra Metallurgical Coal (100%)
South32 share
|
1H19 |
1H20 |
HoH |
2Q19 |
1Q20 |
2Q20 |
2Q20
vs 2Q19 |
2Q20
vs 1Q20 |
Total coal production (kt) |
3,840 |
3,695 |
-4% |
1,935 |
2,082 |
1,613 |
-17% |
-23% |
Total coal sales (kt) |
3,259 |
3,619 |
11% |
1,755 |
1,848 |
1,771 |
1% |
-4% |
Metallurgical coal production (kt) |
3,082 |
2,859 |
-7% |
1,567 |
1,651 |
1,208 |
-23% |
-27% |
Metallurgical coal sales (kt) |
2,527 |
2,800 |
11% |
1,349 |
1,482 |
1,318 |
-2% |
-11% |
Energy coal production (kt) |
758 |
836 |
10% |
368 |
431 |
405 |
10% |
-6% |
Energy coal sales (kt) |
732 |
819 |
12% |
406 |
366 |
453 |
12% |
24% |
Related Link: Official
Document |
(To contact the reporter on this story: myron.liu@steelhome.cn or 86-21-50582062) |