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South Africa Energy Coal
saleable production decreased by 5% (or 0.5Mt) to 11.2Mt in the
December 2020 half year with domestic sales declining in the
December 2020 quarter following reduced demand from Eskom. Export
sales were also lower following the suspension of activity from
loss-making pits in response to market conditions. Operating unit
costs are expected to be approximately 10%abovethe top end of
our guidance range of US$39/tin the December 2020 half year
following a strengthening of the South African rand. Subject to
the satisfaction of material conditions, we are currently targeting
to complete the divestment of South Africa Energy Coal by 31March
2021withsaleable production of 4.6to 5.2Mtexpected for the March
2021 quarter.
Illawarra Metallurgical Coal
saleable production increased by 11% (or 401kt) to 4.1Mt in
the December 2020 half year with the operation’s successful
return to a three longwall configuration in April 2020 supporting
higher volumes of metallurgical coal. Energy coal production
volumes were flat in the December 2020 half year, despite
the completion of a longwall move at the Dendrobium mine in
the December 2020 quarter, as we monetised low-margin coal wash
material for sale to industrial customers. This material attracts
grade and product-type discounts to the API5 (5,500Kcal) index16 for
our energy coal sales. While the coal wash material is expected to
generate a small margin, the incremental volumes are expected to
result in our Operating unit costs for the December 2020 half year
being approximately 5% lower thanFY21 guidance (US$84/t).
T1 Production Summary
|
South32 share |
1H20 |
1H21 |
HoH |
2Q20 |
1Q21 |
2Q21 |
QoQ |
|
Energy coal production (kt) |
12,621 |
12,077 |
(4%) |
5,898 |
6,771 |
5,306 |
(22%) |
|
Metallurgical coal production (kt) |
2,859 |
3,626 |
14% |
1,208 |
1,863 |
1,399 |
(25%) |
T2 Production Guidance
|
South32 share |
FY19 |
1H20 |
FY20e |
|
South Africa Energy Coal |
|
Energy coal production (kt) |
22,672 |
11,243 |
15,800-16,400 |
|
Domestic coal production (kt) |
12,552 |
6,561 |
9,300-9.700 |
|
Export coal production (kt) |
10,120 |
4,682 |
6,500-6.700 |
|
Illawarra Metallurgical Coal |
|
Total coal production (kt) |
7,006 |
4,096 |
7,700 |
|
Metallurgical coal production (kt) |
5,549 |
3,262 |
6,400 |
|
Energy coal production (kt) |
1,457 |
834 |
1,300 |
T3 South Africa Energy Coal (100%)
|
South32 share |
1H20 |
1H21 |
HoH |
2Q20 |
1Q21 |
2Q21 |
2Q21
vs 2Q20 |
2Q21
vs 1Q21 |
|
Energy coal production (kt) |
11,785 |
11,243 |
(5%) |
5,493 |
6,263 |
4,980 |
(9%) |
(20%) |
|
Domestic sales (kt) |
6,688 |
6,527 |
(2%) |
2,962 |
3,607 |
2,920 |
(1%) |
(19%) |
|
Export sales (kt) |
4,854 |
4,697 |
(3%) |
2,877 |
2,487 |
2,210 |
(23%) |
(11%) |
T4 Illawarra Metallurgical Coal (100%)
|
South32 share |
1H20 |
1H21 |
HoH |
2Q20 |
1Q21 |
2Q21 |
2Q21
vs 2Q20 |
2Q21
vs 1Q21 |
|
Total coal production (kt) |
3,695 |
4,069 |
11% |
1,613 |
2,371 |
1,725 |
7% |
(27%) |
|
Total coal sales (kt) |
3,619 |
4,027 |
11% |
1,771 |
1,940 |
2,087 |
18% |
8% |
|
Metallurgical coal production (kt) |
2,859 |
3,262 |
14% |
1,208 |
1,863 |
1,399 |
16% |
(25%) |
|
Metallurgical coal sales (kt) |
2,800 |
3,165 |
13% |
1,318 |
1,468 |
1,697 |
29% |
16% |
|
Energy coal production (kt) |
836 |
834 |
(0%) |
405 |
508 |
326 |
(20%) |
(36%) |
|
Energy coal sales (kt) |
819 |
862 |
5% |
453 |
472 |
390 |
(14%) |
(17%) |
Source from the official website of South32 |
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