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South32 Limited (S32)

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daveh
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South32 Limited (S32)

#230086

Postby daveh » June 17th, 2019, 9:37 am

Last time I posted here on S32 it was moved , but I've just checked and S32 is a LSE Main Market listing.

Today S32 made two announcements:

ILLAWARRA METALLURGICAL COAL, COAL RESERVES UPDATE
www.investegate.co.uk/article.aspx?id=2 ... 4359C&fe=1
and

HERMOSA PROJECT - MINERAL RESOURCE DECLARATION
www.investegate.co.uk/article.aspx?id=2 ... 4358C&fe=1

In the first S32 announces:
changes to its estimates of Coal Reserves for Illawarra Metallurgical Coal following the conclusion of a commercial agreement to relinquish a portion of its Mining Lease in the Appin area.
Coal Reserves for the Bulli seam have been reduced by 22Mt[1] to 114Mt following the change. The Coal Reserves for the Wongawilli seam are unchanged.


In the second S32
is pleased to report for the first time a Mineral Resources estimate for the Taylor Deposit which forms part of its 100% owned Hermosa Project located in Arizona, USA (Appendix 1 - Figure 1). The Mineral Resource (Table A) is reported in accordance with the JORC Code (2012)[1] guidelines at 155 million tonnes, averaging 3.39% zinc, 3.67% lead and 69 g/t silver with a contained 5.3 million tonnes of zinc, 5.7 million tonnes of lead and 344 million ounces of silver. The Mineral Resource remains open at depth and laterally, with multiple targets to be tested as we continue our extensive surface drilling program.

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Re: South32 Limited (S32)

#230182

Postby JIM505 » June 17th, 2019, 4:07 pm

I have taken advantage of the S32 price drop today after the above announcement and I have topped it up at £1.72.
I like the the company's high yield and diversification potential.
Jim

daveh
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Re: South32 Limited (S32)

#237427

Postby daveh » July 18th, 2019, 8:47 am

Quarterly Report June 2019 can be found here:
www.investegate.co.uk/article.aspx?id=2 ... 9489F&fe=1


Looks to be a decent trading statement, market doesn't seemed to have moved much though, slightly down in a falling market.

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Re: South32 Limited (S32)

#246206

Postby daveh » August 22nd, 2019, 9:09 am

Full year results discussion on the HYP board here:
viewtopic.php?f=15&t=19147

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Re: South32 Limited (S32)

#258393

Postby daveh » October 17th, 2019, 9:05 am

Quarterly Report September 2019
www.investegate.co.uk/article.aspx?id=2 ... 1974Q&fe=1

We have maintained annual production guidance for all of our operations with a strong start to the year at our alumina refineries, a 30 per cent increase in production at Illawarra Metallurgical Coal and a 10 per cent increase in manganese ore production.

"With macro conditions creating headwinds for our key commodities, we remain focused on driving cost and operating performance across our portfolio.

"Our disciplined approach to capital allocation has allowed us to return a further US$74 million with the continuation of our US$1.25 billion capital management program, and following the end of the quarter pay our US$139 million ordinary dividend in respect of the prior six months.

"We remain on track to finalise Seriti Resources' offer for our South Africa Energy Coal business in the coming quarter, a significant milestone in the divestment process and a further step towards reshaping our portfolio."

Graham Kerr, South32 CEO

● Net cash increased by US$163M to US$527M1 following the allocation of a further US$74M to our on-market share buy-back, as we benefitted from an unwind in working capital, despite an increase in finished goods inventory during the quarter.
● Maintained FY20 production guidance for all operations.
● Achieved record production at Brazil Alumina and another strong quarter at Worsley Alumina as we deliver initiatives to sustainably increase to nameplate capacity from FY20.
● Continued to operate our aluminium smelters at their maximum technical capacity despite the impact of load-shedding.
● Increased production at Illawarra Metallurgical Coal by 30% as the longwalls continued to perform strongly following the completion of two moves in the prior quarter.
● Maintained higher rates of manganese ore production at our low-cost, flexible operations and commenced exploration drilling in the Southern Areas target at GEMCO following the receipt of approvals.
● Progressed exclusive negotiations with Seriti Resources in respect of its indicative offer to acquire our South Africa Energy Coal business and remain on track to provide a further update in the December 2019 quarter.
● Invested US$17M in exploration at our early stage greenfield projects and existing operations, including at Hermosa to further increase our knowledge of the Taylor Deposit and greater land package.



Looks to be a decent set of results with an increase in net cash held.

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Re: South32 Limited (S32)

#278011

Postby daveh » January 17th, 2020, 8:41 am

Quarterly Report can be found here:


https://www.investegate.co.uk/south32-l ... 04550013A/

•Increased alumina production by 4%, achieving record year to date production at Brazil Alumina and maintaining higher rates of calciner availability at Worsley Alumina as we deliver initiatives to sustainably increase to nameplate capacity.

•Maintained saleable aluminium production despite the impact of load-shedding at Hillside Aluminium and Mozal Aluminium.

•Reacted to lower manganese prices in the December 2019 quarter, reducing our use of higher cost trucking and completing an extended maintenance shut at our underground operations at South Africa Manganese.

•Reduced activity at South Africa Energy Coal in response to market conditions, resulting in a revision of FY20 production guidance to the bottom end of our range.

•Completed a longwall move at Illawarra Metallurgical Coal's Appin mine during the December 2019 quarter, where the focus remains on lifting development rates to support improved longwall performance and the operation's sustainable return to a three longwall configuration.

•Entered into a binding conditional agreement with Seriti Resources for the sale of our shareholding in South Africa Energy Coal, with the transaction expected to close in the December 2020 half year, subject to a number of material conditions being satisfied.

•Exercised our option with Trilogy Metals to acquire a 50% interest in the Upper Kobuk Mineral Projects embedding another base metals development option into our portfolio.

•Completed the sale of a legacy shareholding owned by our manganese joint venture for US$93M (South32 share), distributing the majority of the proceeds to the Group in the December 2019 quarter.

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Re: South32 Limited (S32)

#283806

Postby SuperCally » February 12th, 2020, 3:12 pm


daveh
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Re: South32 Limited (S32)

#283909

Postby daveh » February 13th, 2020, 8:20 am

And today we have the half year results - not good.

https://www.investegate.co.uk/south32-l ... 00168841C/

The half year report should be read in conjunction with the Financial Report for the year ended 30 June 2019.



US$M  
H1 FY20 H1 FY19 %
Revenue 3,216 3,811 down 16%
Profit/(loss) after tax 99 635 down 84%
Underlying earnings 131 642 down 80%




Net tangible assets per share
Net tangible assets per ordinary share were US$1.98 as at 31 December 2019 (US$1.98 as at 30 June 2019).

Dividends
The Board has resolved to pay an interim dividend of US 1.1 cents per share (fully franked) for the half year ended
31 December 2019 and a special dividend of US 1.1 cents per share (fully franked).
The record date for determining entitlements to dividends is 6 March 2020; payment date is 2 April 2020.

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Re: South32 Limited (S32)

#327455

Postby daveh » July 20th, 2020, 11:02 am

Qtrly production report can be found here:
https://www.investegate.co.uk/south32-l ... 05484612T/

•Achieved record production at Brazil Alumina, Hillside Aluminium and Australia Manganese ore in FY20.

•Increased production at Worsley Alumina by 2% in FY20 due to an uplift in calciner availability, remaining on-track to sustainably increase production to nameplate capacity.

•Exceeded FY20 guidance at Cannington by 8% due to higher mill throughput, enabled by a draw down in run of mine stocks and underground mine performance.

•Returned to a three longwall configuration at Illawarra Metallurgical Coal in the quarter, advancing study work to further optimise for long term value following continued strong longwall performance.

•Took action to maintain the financial strength of our business, reducing capital and exploration expenditure, and initiating a review of activity across the Group aimed at delivering a meaningful reduction in controllable costs.

•Updated the Mineral Resource estimate for the Hermosa project's Taylor Deposit to 167Mt averaging 3.34% zinc, 3.84% lead and 71g/t silver, following the incorporation of new drilling information.

•Disclosed a first time Mineral Resource estimate for the Hermosa project's Clark Deposit of 55Mt averaging 2.31% zinc, 9.08% manganese and 78g/t silver.

•Continued to reshape and improve our portfolio during the quarter, progressing approvals for the sale of our shareholding in South Africa Energy Coal, placing the Metalloys manganese alloy smelter on temporary care and maintenance and advancing studies for our development options.


Corporate Update

•We continue to prudently manage our balance sheet, taking action to maintain the financial strength of our business. Following our decision to suspend our on-market share buy-back program on 27 March, we did not purchase any shares during the quarter. Our US$1.43B capital management program remains 92% complete with US$121M of our suspended on-market share buy-back program remaining, ahead of its extension or expiry on 4 September 2020 1 .

•We received net distributions 2 of US$313M (South32 share) from our manganese equity accounted investments (EAI) in FY20, including US$153M in the June 2020 quarter.

•Subsequent to the end of the period, we extended the expiry date of our undrawn revolving credit facility by one year to February 2023, providing the Group with ongoing access to a further US$1.45B in liquidity in addition to our strong balance sheet.

•We realised US$50M in annual functional cost savings in FY20, following the simplification of the Group's support structures. In addition, to prepare for a potentially extended period of volatility and lower commodity prices, we initiated a further review of activity during the June 2020 quarter aimed at delivering a meaningful reduction in controllable costs. We expect to provide an update on this work with our FY20 financial results.

•We progressed the sale of our shareholding in South Africa Energy Coal to Seriti Resources Holdings Proprietary Limited (Seriti Resources), acquiring the 8% interest previously owned by our Broad-Based Black Economic Empowerment (B-BBEE) consortium partner and receiving approval for the transaction from the Richards Bay Coal Terminal Proprietary Limited during the June 2020 quarter. Subject to a number of material conditions 3 being satisfied, the transaction remains on track to be completed in the December 2020 half year.

•After consideration of its future economic viability we made the decision with our joint venture partner to place our South African manganese alloy smelter, Metalloys, on temporary care and maintenance. We also progressed the review of our Australian manganese alloy smelter, TEMCO, albeit the process has been impacted by the COVID-19 pandemic, delaying its expected completion.

•In consideration of the future economic viability and continuing review of our Metalloys and TEMCO smelters, we expect to book pre-tax, non-cash impairment charges of approximately US$109M (post-tax ~US$90M, South32 share) in our FY20 financial results. One-off, pre-tax restructuring costs, including redundancies, at Metalloys of approximately US$7M (post tax ~US$5M, South32 share) are also anticipated. These charges will be recorded in the Group's share of profit of EAI and excluded from Underlying earnings in FY20.

•Our geographical earnings mix will have a significant bearing on our effective tax rate (ETR) given differing country tax rates 4 , while the impact of intragroup agreements, exploration expenditure in foreign entities and other permanent differences will continue to be magnified when margins are compressed or losses are incurred in specific jurisdictions. Until it is sold, South Africa Energy Coal is expected to have an ETR of 0%, with all tax assets de-recognised from 30 June 2019 and no benefit to be recorded for losses made prior to sale. Accordingly, our FY20 Group ETR is expected to be in a range between 100% and 125% (excluding EAI).


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Re: South32 Limited (S32)

#327459

Postby jackdaww » July 20th, 2020, 11:07 am

SP 121 - little change .

:arrow:

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Re: South32 Limited (S32)

#348955

Postby daveh » October 19th, 2020, 2:12 pm

Qtrly Update can be found here:
https://www.investegate.co.uk/south32-l ... 00074481C/

"Our priority remains keeping our people safe and well, maintaining safe and reliable operations and supporting our communities through the COVID-19 pandemic. We continue to adjust our response based on the various phases of the pandemic in the jurisdictions where we operate.

"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.

"During the quarter we continued our work to reshape and improve our portfolio, progressing the divestment of South Africa Energy Coal and entering into a binding agreement to divest our interest in the TEMCO manganese alloy smelter."



Personally if there is spare cash in the business I'd prefer to receive it as a dividend rather than share buybacks, but to be fair if the companies shares are undervalued now then now is the time for buybacks.

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Re: South32 Limited (S32)

#379197

Postby daveh » January 21st, 2021, 8:31 am

Qtrly report:
https://www.investegate.co.uk/south32-l ... 00064353M/

Quarterly Report December 2020

"During the quarter, we adjusted to the different phases of the COVID-19 pandemic in the regions where we operate, focussing on keeping our people safe and well, maintaining safe and reliable operations and supporting our communities.

"This was another period of strong operating performance across our business, with three of our operations setting production records for the half year. I'm pleased that the efforts of our people during this challenging period have enabled us to achieve a strong result, and increase our full year production guidance for Cannington and Cerro Matoso.

"We're in a strong financial position, resuming our on-market share buy-back program in October. Our unchanged capital management framework and disciplined approach to capital allocation is designed to reward shareholders as supportive market conditions translate to financial performance.

"The ongoing transformation of our portfolio continues to gain momentum as we focus on exiting lower returning businesses and work towards increasing our base metals exposure."

Graham Kerr, South32 CEO



• Achieved record year to date production at Worsley Alumina with output above nameplate capacity as the refinery benefitted from on-going improvement initiatives.

• Set a year to date production record at Brazil Alumina as the refinery continued to achieve high levels of plant availability, despite planned maintenance.

• Delivered another record for year to date ore production at Australia Manganese as the performance of our high-grade circuit improved.

• Increased production at Illawarra Metallurgical Coal by 11% in the December 2020 half year as the operation continued to benefit from the return to a three longwall configuration.

• Increased FY21 production guidance at Cannington by 5% with underground performance supporting the accelerated extraction of a higher-grade mining sequence.

• Approved an early development timetable for the low capital, higher-grade Q&P project at Cerro Matoso, increasing FY21 and FY22 production guidance by 3% and 13% respectively.

• Determined not to proceed with development of the Eagle Downs Metallurgical Coal project, with the project placed on hold while we assess options for our joint venture interest.

• Entered into a binding agreement to sell a portfolio of non-core minerals royalties to Elemental Royalties Corp.

• Progressed the sale of South Africa Energy Coal during the quarter, receiving approval from the Competition Tribunal of South Africa and advancing discussions with Eskom to meet the material outstanding conditions.

• Following the end of the quarter, completed the sale of GEMCO's shareholding in the TEMCO manganese alloy smelter.


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Re: South32 Limited (S32)

#387629

Postby daveh » February 18th, 2021, 8:38 am

Half year results
https://www.investegate.co.uk/south32-l ... 00055493P/

South32 Limited

Financial Results and Outlook Half Year ended 31 December 2020



South32 delivers strong operating performance and increases returns to shareholders



"As we continue to navigate the uncertainties created by the COVID-19 pandemic, our focus remains on keeping our people safe and well, maintaining safe and reliable operations and supporting our communities.

"During this period of volatility, we have focused on what we can control, delivering a strong operating result, including record production at Worsley Alumina, Brazil Alumina and Australia Manganese, supporting lower Operating unit costs at the majority of our operations during the half.

"Looking ahead, we have increased production guidance at Cannington, Illawarra Metallurgical Coal and Cerro Matoso. Additional volumes and other cost efficiencies across our operations will help offset weaker US dollar headwinds.

"Reflecting the strong position of our business, we recommenced our on-market share buy-back in October and today the Board has expanded the capital management program by US$250 million, leaving US$259 million to be returned. The Board has also resolved to pay an ordinary dividend for the period of US 1.4 cents per share, compared to US 1.1 cents a year earlier.

"We continue to transform our portfolio with our South Africa Energy Coal divestment progressing towards completion. Subsequent to the end of the period, we also completed the sale of the TEMCO alloy smelter and a portfolio of non-core precious metals royalties. As we exit these lower returning businesses we continue to transform our portfolio, moving towards a base metals bias.

"At our Hermosa project in Arizona, we plan to deliver a pre-feasibility study for the Taylor Deposit in the June quarter, while also advancing a scoping study for the Clark Deposit to test its potential to supply the manganese chemical battery market. Work at the Ambler Metals Joint Venture in Alaska is also progressing with a pre-feasibility study underway. Each of these projects has the potential to increase our exposure to metals which are essential for the transition to a low-carbon world.

"We continue to focus on costs and remain on-track to embed US$50 million in annualised savings beyond FY22 as we change the way we work. In order to achieve this goal, we are reducing our office footprint and continue to simplify our corporate and marketing structures.

"We are off to a strong start in 2021, as we continue to build on our recent operating performance. Our net cash has increased from US$275 million on 31 December to US$452 million at the end of January, and we are now seeing a rebound in demand from markets outside of China for some of our key commodities, that is underpinning a recovery in prices. With this, our business is well placed to benefit as the global economy recovers, enabling us to deliver value for all our stakeholders."



Balance sheet, dividends and capital management

The Group's net cash balance decreased by US$23M during the period to US$275M at 31 December 2020 as the stronger Australian dollar contributed to an increase in our lease liabilities balance of US$36M.

Reflecting our strong financial position and demonstrating the disciplined and flexible approach we are taking to our capital management program, we recommenced our on-market share buy-back in October 2020, returning a further US$112M to shareholders in addition to our US$48M FY20 final ordinary dividend paid during H1 FY21.

Consistent with our commitment to maintain an investment grade credit rating, Standard and Poor's and Moody's reaffirmed their respective BBB+ and Baa1 credit ratings for the Group.


...snip...

Our unchanged capital management framework is designed to reward shareholders as financial performance improves. Consistent with our dividend policy, the Board has resolved to pay a fully franked ordinary dividend of US 1.4 cents per share (US$67M), representing 49% of Underlying earnings in respect of H1 FY21.

outh32 shareholders registered on the South African branch register will not be able to dematerialise or rematerialise their shareholdings between 10 and 12 March 2021 (both dates inclusive), nor will transfers to/from the South African branch register be permitted between 4 and 12 March 2021 (both dates inclusive).

Details of the currency exchange rates applicable for the dividend will be announced to the relevant stock exchanges. Further dividend information is available on our website (http://www.south32.net).

South32 American Depositary Receipts (ADRs) each represent five fully paid ordinary shares in South32 and ADR holders will receive dividends accordingly, subject to the terms of the Depositary Agreement.

Dividend timetable
Announce currency conversion into rand: 5 March 2021
Last day to trade cum dividend on the Johannesburg Stock Exchange (JSE): 9 March 2021
Ex-dividend date on the JSE: 10 March 2021
Ex-dividend date on the ASX and London Stock Exchange (LSE): 11 March 2021
Record date (including currency election date for ASX): 12 March 2021

Payment date: 8 April 2021


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Re: South32 Limited (S32)

#407287

Postby daveh » April 27th, 2021, 8:35 am

3rd Qtr results:
https://www.investegate.co.uk/south32-l ... 08306939W/

South32 Limited
Quarterly Report March 2021



"Strong operating performance across the portfolio during the quarter combined with improving prices for most of our commodities saw our net cash position increase to US$517 million.

"During the period we returned US$90 million to our shareholders via our on-market share buy-back bringing total returns under our capital management program to US$1.5 billion.

"We set year to date production records at Brazil Alumina and Australia Manganese. We increased our production guidance for South Africa Manganese as we continue to respond to market conditions and at Cannington off the back of continued strong underground performance.

"Having successfully completed a major furnace refurbishment at Cerro Matoso, we approved further investment in a new project that will lift future nickel production.

"We continue to reshape our portfolio, moving closer to the divestment of South Africa Energy Coal while progressing studies for our base metals development options.

"Looking ahead, we expect the global economic recovery combined with fiscal stimulus to continue, driving a rebound in metal demand and sustaining higher prices for many of our key commodities."

Graham Kerr, South32 CEO





•Net cash increased by US$242M to US$517M in the quarter as we capitalised on our strong operating performance combined with improving commodity prices, partially offset by the continuation of our capital management program.

•Set a year to date production record at Brazil Alumina and remain on-track to achieve nameplate production at Worsley Alumina following the completion of planned maintenance.



Set a year to date production record at Australia Manganese and increased FY21 production guidance at South Africa Manganese by 10% as we continue to respond to market conditions.

•Delivered a 17% increase in year to date production at Illawarra Metallurgical Coal with the Appin dual longwall configuration continuing to deliver greater efficiencies.

•Increased FY21 production guidance at Cannington by a further 10% with continued strong underground performance supporting the accelerated extraction of a higher-grade mining sequence.

•No change to production guidance at all other operations.

•Completed the furnace refurbishment at Cerro Matoso and approved execution of the Ore Sorting and Mechanical Ore Concentration (OSMOC) project to lift nickel processing capacity from FY23.

•Committed to provide additional financial support to underpin the sustainability of South Africa Energy Coal under the ownership of Seriti, with the divestment and additional support remaining conditional on Eskom Holdings SOC Limited's final approval1.

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Re: South32 Limited (S32)

#429260

Postby daveh » July 21st, 2021, 10:25 am

A number of announcements today:

Quarterly report:
https://www.investegate.co.uk/south32-l ... 01019471F/

• Record annual production at Worsley Alumina and Brazil Alumina with both refineries benefitting from high plant availability

• Record annual production at Australia Manganese and a 21% year-on-year increase at South Africa Manganese with both operations exceeding guidance

• A 14% year-on-year increase in zinc equivalent production1 at Cannington with strong underground performance enabling the acceleration of a higher-grade mining sequence

• A 9% year-on-year increase in production at Illawarra Metallurgical Coal with the return to a three longwall configuration delivering greater efficiencies

• A 54% increase in nickel production at Cerro Matoso during the June 2021 quarter following the successful refurbishment of a furnace and first ore from the higher-grade Q&P project

• Steady year-on-year production and a 21% lift in average realised prices at our aluminium smelters

• Successful divestment of South Africa Energy Coal and the TEMCO manganese alloy smelter during FY21, simplifying and improving our portfolio

• Updated Mineral Resource for our Taylor Deposit2 at Hermosa, confirming higher zinc equivalent grades and improved confidence in the orebody to support our ongoing pre-feasibility study work


Hermosa project mineral resources update:
https://www.investegate.co.uk/south32-l ... 01019476F/

Illawarra metallurgical coal impairment:
https://www.investegate.co.uk/south32-l ... 00049477F/

South32 Limited (ASX, LSE, JSE: S32; ADR: SOUHY) (South32) has undertaken a review as of 30 June 2021 of the carrying values of its assets in accordance with the Group's accounting policies and the accounting standards. As a result we will recognise a pre-tax impairment charge for Illawarra Metallurgical Coal (IMC) of US$728M (post-tax ~US$510M) with our FY21 financial results. This charge reflects the increased approval uncertainty created by the NSW Independent Planning Commission's (IPC) decision to refuse our application for the Dendrobium Next Domain life extension project (DND project) and the resultant potential impact on the economics of the broader IMC complex.

We have scaled back activity on the DND project while we consider alternative options following the IPC decision. This includes the commencement of proceedings in the Land and Environment Court of New South Wales (NSW) for a judicial review of the decision and the potential submission of an alternate mine plan to the NSW Minister for Planning and Public Spaces for determination of the project as State Significant Infrastructure. We expect to provide a further update before the end of the calendar year.

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Re: South32 Limited (S32)

#435862

Postby daveh » August 19th, 2021, 9:30 am

Finals here:
https://www.investegate.co.uk/south32-l ... 58391619J/
https://www.investegate.co.uk/south32-l ... 01091506J/

South32 delivers strong operating result, progresses portfolio transformation and increases returns to shareholders

"We delivered a strong operating result, despite the ongoing challenges of COVID-19, achieving record production at Worsley Alumina, Brazil Alumina and Australia Manganese. We also exceeded our initial production guidance at South Africa Manganese, Cerro Matoso and Cannington.

"During the year, we made substantial progress reshaping our portfolio, completing the divestments of South Africa Energy Coal, the TEMCO manganese alloy smelter, and a portfolio of non-core precious metals royalties. This simplifies our business, reduces capital intensity and will improve our underlying operating margin.

"At Hermosa we continue to progress studies for the Taylor and Clark deposits. We have also commenced the summer field season drilling program at the Ambler Metals Joint Venture in Alaska.

"Reflecting our strong financial position and disciplined approach to capital management, the Board has resolved to pay a US$164 million fully franked final ordinary dividend in respect of H2 FY21 and a US$93 million fully franked special dividend. The Board has also resolved to further expand our capital management program by US$120 million to US$2 billion, leaving US$252 million to be returned to shareholders by 2 September 2022.

"Looking ahead, we expect to see strong volumes at our base metals operations - Mozal Aluminium, Cerro Matoso and Cannington - following investment in improvement projects that are designed to increase production into favourable markets. At the same time, we continue to pursue cost and volume efficiencies to offset stronger producer currencies and cyclical inflation.

"In May, we announced our medium-term target to halve our operational carbon emissions by 2035 from our 2021 baseline. To achieve this we are investing in efficiency projects, shifting to low-carbon energy, applying low-carbon design principles and adopting new technologies. At the same time, we are increasing our exposure to the base metals required for a low-carbon future."


PERFORMANCE SUMMARY
The Group's statutory profit after tax declined by US$130M to a loss of US$195M in FY21 following the recognition of impairment charges totalling US$728M (US$510M post-tax) in relation to Illawarra Metallurgical Coal and a loss on sale of US$159M following our divestment of South Africa Energy Coal. Excluding these one-off charges, strong operating performance and higher prices for most of our commodities translated into a 153% increase in Underlying earnings to US$489M. Our production performance, including three records, partially offset cyclical inflation and stronger producer currencies. Accordingly, our cost base(13) remained largely unchanged and our Operating margin increased to 26% with Underlying EBITDA improving by 32% to US$1.6B.

Specific highlights for FY21 included:

• Record production at Worsley Alumina and Brazil Alumina with both refineries benefitting from higher plant availability;

• Record production at Australia Manganese and a 21% year-on-year increase at South Africa Manganese with both operations exceeding guidance;

• A 14% increase in zinc equivalent production(14) at Cannington with strong underground performance enabling the acceleration of a higher-grade mining sequence during the year;

• A 9% increase in production at Illawarra Metallurgical Coal with the return to a three longwall configuration delivering greater efficiencies;

• First ore from the higher-grade Q&P project and successful refurbishment of a furnace at Cerro Matoso, laying the foundation for 28% nickel production growth in FY22;

• The announcement of our target to achieve a 50% reduction in operational carbon emissions (Scope 1 and 2) by FY35(15), which steps up our ambition on climate change and supports a pathway to net zero by 2050; and

• Successful divestment of South Africa Energy Coal, the TEMCO manganese alloy smelter and a portfolio of non-core precious metals royalties during FY21, simplifying and improving our portfolio.

We finished the period with net cash of US$406M, having generated free cash flow from operations, including distributions from our manganese equity accounted investments (EAI), of US$825M. Reflecting our strong financial position and demonstrating the continuation of the disciplined and flexible approach we are taking to our capital management program, we returned US$670M to our shareholders in respect of FY21 comprised of:

• A US$66.5M fully franked interim ordinary dividend paid in April 2021 in respect of H1 FY21, and the Board resolving to pay a US$164M fully franked final ordinary dividend in respect of H2 FY21; and

• US$439M as part of our ongoing capital management program, with US$346M allocated to our on-market share buy-back (172M shares at an average price of A$2.68 per share), and the Board resolving to pay a US$93M fully franked special dividend in October 2021.

Having returned 7%(16) of our market capitalisation to shareholders in respect of FY21, and having also established a strong track record of returning excess capital in a timely and efficient manner, the Board has today further expanded our capital management program by US$120M to US$2B, leaving US$252M to be returned by 2 September 2022.



Dividends
https://www.investegate.co.uk/south32-l ... 01091507J/

South32 Limited (ASX, LSE, JSE: S32; ADR: SOUHY) (South32) announced that the Board has resolved to pay a final dividend of US 3.5 cents per share (fully franked) for the full year ended 30 June 2021 and a special dividend of US 2.0 cents per share (fully franked).

The record date for determining entitlements to dividends is 10 September 2021; payment date is 7 October 2021.

South32 UK Depository Interest holders will be paid dividends in Pound sterling (GBP) and South32 shareholders who hold shares on the South African Branch Register will be paid dividends in South African rand (ZAR).

tjh290633
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Re: South32 Limited (S32)

#438749

Postby tjh290633 » August 31st, 2021, 8:00 pm

South32 had a marked rise today, +7.78% on the day. Presumably in response to a notice posted in Australia.

The notice is a PDF file, the essence of which is:

ASX +security Security description Number of +securities The +securities have ceased due to Date of cessation
code that have ceased

S32AA RIGHTS 3,214,757 Lapse of conditional right to 20/08/2021
securities because the
conditions have not been, or
have become incapable of
being, satisfied

Refer to next page for full details of the announcement

The full document can be viewed or downloaded from the web site https://www.south32.net/investors-media ... e-releases dated 27 Aug 2021.

TJH

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Re: South32 Limited (S32)

#446484

Postby daveh » September 30th, 2021, 8:45 am

purchase of increased stake in Mozal Aluminium

https://www.investegate.co.uk/south32-l ... 00135150N/

SOUTH32 TO ACQUIRE UP TO AN ADDITIONAL 25% OF MOZAL ALUMINIUM

South32 Limited (ASX, LSE, JSE: S32; ADR: SOUHY) (South32) is pleased to announce that we have exercised our pre-emptive rights to acquire up to an additional 25% shareholding and related rights in Mozal Aluminium, from MCA Metals Holding GmbH (Mitsubishi). In doing so we will match a headline purchase price of US$250M to acquire the interest, taking our ownership of the smelter up to 72.1%[1]. Increasing our shareholding lifts our Group wide annualised equity share of aluminium production by 15% (or 145kt) to 1,138kt[2].

The accretive transaction, with an acquisition multiple of 3.6x FY21 EBITDA, will be funded from cash on hand. The Group's net cash balance at the end of August 2021 was US$553M[3].

South32 Chief Executive Officer, Graham Kerr said "We have established a long operating track record at the Mozal Aluminium smelter in Mozambique over the past 20 years. During this time, we have formed strong relationships with our workforce, the community, the Mozambican government and other key stakeholders.

" The smelter benefits from access to hydroelectric power and key export markets into Europe. Our investment in the AP3XLE energy efficiency technology is expected to further improve the competitiveness of the smelter, which continues to operate at its technical capacity. The smelter is an important customer for the alumina produced from our Worsley Alumina refinery and the transaction will further integrate that relationship in our supply chain.

"We are pleased to be able to increase our shareholding on value accretive terms, with a transaction that we expect will deliver a strong return for our shareholders. We are also working with our partner at Alumar in Brazil to investigate a restart of the smelter using renewable energy. Both investments are consistent with our strategy to increase our exposure to the base metals required for the critical transition to a low carbon future."

Transaction details

Completion is expected following the satisfaction of customary conditions, with the transaction consideration comprising:

· a purchase price of US$250M based on our acquisition of Mitsubishi's 25% shareholding and related rights, which would be adjusted downwards on a pro-rata basis should the Industrial Development Corporation of South Africa (IDC) trigger their pre-emptive rights 1 ;

· joint profit sharing on our increased shareholding with Mitsubishi for the period 1 July 2021 until completion of the transaction; and

· customary adjustments for working capital and net debt.

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Re: South32 Limited (S32)

#448682

Postby tjh290633 » October 8th, 2021, 9:52 am

Just checked the amount paid by South32, and the GBP dividends were:

Ordinary 2.5356p (3.5USc)
Special 1.4489p (2.0USc)

TJH

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Re: South32 Limited (S32)

#450176

Postby tjh290633 » October 14th, 2021, 5:39 pm

Big rise in S32 today. https://www.investegate.co.uk/south32-l ... 35380794P/ indicates:

SOUTH32 TO ACQUIRE A 45% INTEREST IN THE SIERRA GORDA COPPER MINE

South32 Limited (ASX, LSE, JSE: S32; ADR: SOUHY) (South32) is pleased to announce that it has entered into two binding conditional agreements with Sumitomo Metal Mining (TYO: 5713) and Sumitomo Corporation (TYO: 8053) (collectively Sumitomo) to acquire a 45% interest in the Sierra Gorda copper mine in Chile (Sierra Gorda) via the acquisition of a 45% indirect interest in Sierra Gorda S.C.M. (SGSCM) for an upfront cash consideration of US$1.55B[1] (Transaction). South32 has also agreed to provide Sumitomo with a contingent price-linked consideration of up to US$500M, payable at threshold copper production rates and prices in the years 2022-25[2].

Sierra Gorda is an operating mine in the prolific Antofagasta copper mining region, which is expected to produce 180kt of copper, 5kt of molybdenum, 54koz of gold and 1.6Moz of silver in 2021 (100% basis)[3]. The acquisition provides South32 with joint control alongside 55% joint venture partner KGHM Polska Miedz (KGHM), a global miner listed in Poland.


TJH


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