SOUTH32 LIMITED - Cannington Update

Release Date: 06/04/2017 08:50
Code(s): S32
 
Wrap Text
Cannington Update

South32 Limited
(Incorporated in Australia under the Corporations
Act 2001 (Cth))
(ACN 093 732 597)
ASX / LSE / JSE Share Code: S32
ISIN: AU000000S320
south32.net


                                                                                               CANNINGTON UPDATE


South32 Limited (ASX, JSE, LSE: S32; ADR: SOUHY) (South32) advises that mining extraction
at Cannington has been temporarily impacted by an underground fire that damaged the load-out
and shaft haulage infrastructure. Remediation work will be undertaken over a four week period
and extraction of the higher grade (silver/lead) stope 60L will be delayed.

Based upon our initial assessment, payable silver, lead and zinc production of 16.5Moz, 135kt
and 70kt, respectively, is now anticipated in FY17 with revised mill throughput of approximately
3.1Mt (previously 3.3Mt). An update, including revised unit cost (including Sustaining capital
expenditure) guidance, will be provided in our March 2017 Quarterly Report.

 Cannington                                                         9M YTD    New       Prior
 Production and guidance                                            FY17   FY17e     FY17e
 Payable silver production (koz)                                    12,277   16,500    19,050
 Payable lead production (kt)                                       105     135       163
 Payable zinc production (kt)                                       57      70        80


As noted in our December 2016 half year results announcement, production guidance at
Cannington remains predicated on the ability to extract higher grade ore in close proximity to the
existing underground crusher.

About South32

South32 is a globally diversified mining and metals company with high quality operations in
Australia, Southern Africa and South America. Our purpose is to make a difference by
developing natural resources, improving people’s lives now and for generations to come. We are
trusted by our owners and partners to realise the potential of their resources. We have a simple
strategy to maximise the potential of our assets and shareholder returns by optimising our
existing operations, unlocking their potential and identifying new opportunities to compete for
capital.

Forward-looking statements

This release contains forward-looking statements, including statements about currency exchange
rates, commodity prices, production forecasts, plans, exploration and capital expenditure. These
forward-looking statements reflect expectations at the date of this release; however, they are not
guarantees or predictions of future performance. They involve known and unknown risks,
uncertainties and other factors, many of which are beyond our control, and which may cause



Registered Office: Level 35, 108 St Georges Terrace, Perth Western Australia 6000, Australia
ABN 84 093 732 597 Registered in Australia
actual results to differ materially from those expressed in the statements contained in this
release. Readers are cautioned not to put undue reliance on forward-looking statements. Except
as required by applicable laws or regulations, South32 Limited does not undertake to publicly
update or review any forward looking statements, whether as a result of new information or
future events. Past performance cannot be relied on as a guide to future performance.


FURTHER INFORMATION


INVESTOR RELATIONS

Alex Volante                          Rob Ward
T +61 8 9324 9029                     T +61 8 9324 9340
M +61 403 328 408                     M +61 431 596 831
E Alex.Volante@south32.net            E Robert.Ward@south32.net

MEDIA RELATIONS

Hayley Cardy                          James Clothier
T +61 8 9324 9008                     T +61 8 9324 9697
M +61 409 448 288                     M +61 413 319 031
E Hayley.Cardy@south32.net            E James.Clothier@south32.net


Further information on South32 can be found at www.south32.net.




JSE Sponsor: UBS South Africa (Pty) Ltd
6 April 2017

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