29th Aug 2024 09:14
(Alliance News) - South32 Ltd reported on Thursday that its annual loss widened, as it battled rising costs and regulatory uncertainty around its alumina refining operation Worsley Alumina in Western Australia.
The Perth-based mining group said its pretax loss from continuing operations deteriorated to USD735 million for the financial year that ended June 30 from USD466 million a year earlier.
Illawarra Metallurgical Coal in New South Wales and Eagle Downs Metallurgical Coal are held for sale and are classified as discontinued operations.
South32 said on Thursday it had completed the sale of its Illawarra mine to an entity owned by Golden Energy & Resources Pte Ltd and M Resources Pty Ltd.
Over the 2024 financial year, expenses excluding finance costs were down 6.4% to USD6.26 billion from USD6.69 billion, but till exceeded revenue.
Revenue from continuing operations was 3.0% lower at USD5.47 billion from USD5.64 billion. Underlying earnings before interest, taxes, depreciation and amortisation declined 295 to USD1.80 billion from USD2.53 billion.
South32 declared a final dividend of 3.1 US cents, down slightly from 3.2 cents a year earlier. The total payout was 3.5 cents, down sharply from 8.1 cents.
Total loss per share widened to 4.5 cents from 3.8 cents, and loss per share from continuing operations worsened to 14.1 cents from 13.5 cents.
South32 said its maiden ore reserve estimate at Sierra Gorda copper mine was at 782 million tonnes in Chile. South32 holds 45% interest in Sierra Gorda and joint venture partner KGHM Polska Miedz SA owns the rest.
At Worsley Alumina, South32 said it continues to progress the environmental approval process for the Worsley Mine Development Project to enable access to bauxite to sustain production.
It took an impairment charge due to the increased uncertainty around this project.
In the near term, South32 Chief Executive Officer Graham Kerr said the group's investments include the development of the Taylor deposit in the US and projects to grow its copper production at Sierra Gorda.
Shares in South32 were up 3.8% to 161.10 pence each in London on Thursday morning. In Johannesburg, they were up 3.3% to ZAR37.96 each.
By Artwell Dlamini, Alliance News reporter
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