Diversified miner South32 says it has managed to meet annual production guidance for most of its commodities despite cutting output during the year.
The company, a spin-off from BHP Billiton, also said it is on course to achieve a forecast reduction in unit costs by the end of the 2016/17 financial year after completing a heavy round of restructuring at its major operations.
Its June quarter alumina production dropped three per cent from the March quarter, while nickel and aluminium production each fell one per cent.
Despite this, South32 said it exceeded or met full year forecasts for alumina, aluminium, coal, manganese ore in Australia and nickel.
"We have built a strong foundation in our first full year of operation, despite the challenging market," chief executive Graham Kerr said.
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"We prioritised value over volume and took decisive action to restructure our operations, reduce controllable costs and improve efficiencies."
South32 listed in 2015 after demerging from BHP, and is the world's largest producer of manganese ore and a global producer of manganese alloy, used in making steel and aluminium products.
The company in February flagged writedowns of $US1.7 billion amid an extended downturn in the commodities sector, has axed more than a 1,000 jobs globally, slashed manganese supply by a quarter, and has cut production at several high cost mines and smelters.
It said on Thursday it had now completed restructuring at five of its major operations - Worsley Alumina, Illawarra Met coal, Australian and South African Manganese operations, and its Columbian nickel unit, putting it on track to achieve unit cost guidance by the end of 2016/17.
The company has also reached agreement with the Northern Territory's Anindilyakwa Land Council to expand exploration around its current manganese operations. It has also signed a farm-in agreement in Canada's Quebec region for prospecting for copper, nickel and platinum.
South32 shares dropped two cents to $1.83. The stock has more than doubled in value over the last six months as the market bets on improved performance following the restructuring.
