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South32 has lifted its production forecasts for Cannington this financial year as underground mining hits higher grades and the mill continues to perform well.

The guidance has lifted 10 per cent for payable zinc equivalent production in 2020/21, taking the expected output to 11.8Moz silver, 113.9kt for lead and 60.7kt for zinc.

The North-West Queensland site lifted its payable zinc equivalent production by 9 per cent in 2019/20.

Planned higher zinc grades more than offset lower silver and lead grades, and the operation drew down run of mine stocks to a normalised level
following the Queensland flood event early last year, South32 said.

It produced almost 11.8M oz payable silver, 110.4kt lead and 66.7kt zinc.

The drawdown, further improvement in underground mine performance and efficiencies in mill throughput resulted in a 14 per cent lift in ore processed in 2019/20, South32 said.

Company-wide South32 reported a $65 million loss, with chief executive officer Graham Kerr stating that it would be keeping a tight rein on costs as it continued to navigate a period of potentially extended market volatility
and lower commodity prices.