South32 (ASX:S32) is gradually shifting its focus toward copper and other critical minerals, as highlighted in its September quarter report. The company maintained production guidance across its operations, with notable progress at the Sierra Gorda copper mine in Chile. Sierra Gorda's payable copper equivalent production increased due to higher copper grades, and a fourth grinding line project has begun to boost processing capacity.
In Brazil, aluminium production rose to tonnes as the smelter reached full operational capacity, while alumina production fell to tonnes. The Hermosa project in Arizona, a key growth initiative, is on track to reach primary production levels in the December quarter. South32 also invested US in exploration, including drilling at the Peake copper deposit, where high-grade copper and polymetallic intercepts were recently announced.
South32 returned US to shareholders through share buybacks at an average price of A, demonstrating confidence in its balance sheet and share value. Group capital expenditure, excluding equity-accounted investments and Hermosa, amounted to US. The company's manganese production improved after weather-related disruptions, though some shipments were delayed into the December quarter.
The miner reported higher underlying earnings, supported by stronger prices and operational improvements. This financial strength allows South32 to fund growth projects while maintaining shareholder returns. The company's diversified portfolio, including exposure to copper and critical minerals, positions it as a lower-volatility alternative to single-commodity producers in the ASX Metal and Mining sector.