Hillside Aluminium saleable production decreased by 1% (or 3kt) to 358kt in the December 2021 half year as the smelter continued to test its maximum technical capacity, despite the impact from higher load-shedding in the period. FY22 production guidance, which does not assume any load-shedding impact, remains unchanged at 720kt10.During the half year, Hillside Aluminium completed a feasibility study for the AP3XLE energy efficiency project, approving its execution. Hillside Aluminium expects to roll the technology out as part of the smelter’s pot relining program starting in FY23. bringing both volume and efficiency benefits, while reducing carbon intensity.Third party port performance at Richards Bay and ongoing congestion in global shipping conditions, impacted the smelter’s capacity to sustainably unwind working capital that was built in the September 2021 quarter. In response we have and continue to establish alternative discharge and cargo shipping options to mitigate these challenges, while maintaining sales volumes into strong market conditions. The smelter realised record prices of US$2.952/t in the December 2021 half year. We expect the current working capital build to unwind once we realise the full benefit of our initiatives, and port congestion and general freight tightness is alleviated.While the smelter has benefitted from the continuation of strong underlying realised prices, that are anticipated to further improve operating margins, elevated raw material input costs and the smelter's energy price linkage to the South Africa Producer Price Index are expected to result in an increase in Operating unit costs in the December 2021 half year (June 2021 half year: US$1.722/t) of approximately 10%.
Hillside Aluminium saleable production decreased by 1% (or 3kt) to 358kt in the December 2021 half year as the smelter continued to test its maximum technical capacity, despite the impact from higher load-shedding in the period. FY22 production guidance, which does not assume any load-shedding impact, remains unchanged at 720kt10.During the half year, Hillside Aluminium completed a feasibility study for the AP3XLE energy efficiency project, approving its execution. Hillside Aluminium expects to roll the technology out as part of the smelter’s pot relining program starting in FY23. bringing both volume and efficiency benefits, while reducing carbon intensity.Third party port performance at Richards Bay and ongoing congestion in global shipping conditions, impacted the smelter’s capacity to sustainably unwind working capital that was built in the September 2021 quarter. In response we have and continue to establish alternative discharge and cargo shipping options to mitigate these challenges, while maintaining sales volumes into strong market conditions. The smelter realised record prices of US$2.952/t in the December 2021 half year. We expect the current working capital build to unwind once we realise the full benefit of our initiatives, and port congestion and general freight tightness is alleviated.While the smelter has benefitted from the continuation of strong underlying realised prices, that are anticipated to further improve operating margins, elevated raw material input costs and the smelter's energy price linkage to the South Africa Producer Price Index are expected to result in an increase in Operating unit costs in the December 2021 half year (June 2021 half year: US$1.722/t) of approximately 10%.
