** Shares of South32 fall as much as 1.6% to A$3.640
** Diversified miner reports 61% drop in Q1 manganese production to 597,000 wmt
** However, co says net debt fell by $723 mln to $39 mln after sale of Illawarra metallurgical coal ops
** S32 reiterates FY25 production forecasts across all operations
** Stock up 11.1% YTD, as of last close
(Reporting by Shivangi Lahiri in Bengaluru)
((shivangi.lahiri@thomsonreuters.com))
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