13th Feb 2025 07:01
(Alliance News) - South32 Ltd on Thursday attributed its return to interim profit to robust aluminium and copper operations, and improved commodity prices.
The Perth-based mining group said its pretax profit from continuing operations was USD583 million for the first six months that ended December 31, swung from a loss of USD58 million a year earlier.
The diversified miner classified Illawarra metallurgical coal in New South Wales and Eagle Downs metallurgical coal in Queensland as discontinued operations. South32 completed the disposal of these coal assets in August last year.
From continuing operations, revenue was USD2.92 billion, up 26% from USD2.31 billion, lifting underlying earnings before interest, taxes, depreciation and amortisation to USD1.02 billion, up 44% from USD708 million.
Copper production rose 16% in the first half to 36,700 tonnes from 31,600 tonnes. Aluminium production for the first six months was up 5.0% to 604,000 tonnes from 575,000 tonnes.
South32 hiked its interim dividend to 3.4 US cents, up sharply from 0.4 cents, after restoring profit.
Earnings per share were 8.3 US cents, swung from loss per share of 0.6 cents.
"We delivered a strong start to FY25, off the back of our improved operating performance and transformed portfolio," South32 Chief Executive Officer Graham Kerr said.
Kerr said the mining group continued construction of its Taylor zinc-lead-silver project at Hermosa in Arizona, US, and expanded its pipeline of copper exploration options in highly prospective regions.
South32 maintained its production guidance for the 2025 financial year, except for Mozal aluminium, which was disrupted by civil unrest in Mozambique.
At Worsley, annual alumina guidance is 3.75 million tonnes for 2025 financial year and remains the same at 3.75 million tonnes for 2026 financial year.
Alumina production at Brazil Alumina is seen at 1.35 million tonnes in 2025, before rising to 1.38 million tonnes in 2026.
In Brazil, aluminium production is estimated at 130,000 tonnes in 2025 and at 160,000 tonnes in 2026.
Hillside aluminium output prediction is 720,000 tonnes in 2025 and remains unchanged in 2026.
Mozal's aluminium production is guided to 350,000 tonnes in 2025, before rising to 370,000 tonnes in 2026.
At Sierra Gorda, payable copper equivalent production is projected at 84,800 tonnes in 2025 and at 86,100 tonnes in 2026.
Manganese ore production in Australia is expected to reach 1.0 million wet tonnes in 2025 and multiply to 3.2 million wet tonnes in 2026.
Manganese ore production in South Africa is estimated at 2.0 million wet tonnes each in 2025 and 2026.
By Artwell Dlamini, Alliance News reporter
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