The South32 Ltd (ASX: S32) share price has started the week in a positive fashion.
In morning trade the mining giant's shares are up almost 3% to $2.17.
Why is the South32 share price pushing higher?
Investors have been buying South32's shares on Monday following the release of its first quarter update this morning.
For the quarter, the company achieved alumina production of 1,315kt, aluminium production of 248kt, manganese ore production of 1,461kt, and metallurgical coal production of 1,651kt.
As a comparison, a note out of Goldman Sachs reveals that it was expecting production of 1,328kt, 248kt, 1,302kt, and 1,650kt, respectively. While this means it alumina production fell slightly short of expectations, its manganese made up for this with significantly better than forecast production.
This ultimately led to South32 delivering a US$70 million increase in its net cash position over the three months to US$368 million. This was despite a build in working capital as commodity markets improved.
Share buy-back to resume.
Pleasingly for shareholders, this strong operating performance and the further strengthening of its financial position, has allowed South32 to lift its on-market share buy-back suspension.
Its US$1.43 billion capital management program is 92% complete with US$121 million remaining to be returned to shareholders.
South32's CEO, Graham Kerr, was very pleased with the quarter, particularly given the challenges it faces from operating in the current environment.
He commented: "Despite the health crisis, we have maintained annual production guidance at all operations. We delivered a 19 per cent increase in manganese ore production and a 22 per cent increase in metallurgical coal production."
"With another quarter of strong operating performance behind us and the further strengthening of our financial position, we have lifted the suspension of our on-market share buy-back. Our capital management program has US$121 million remaining and recommencing our buy-back will deliver immediate value to our shareholders," Mr Kerr concluded.
