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South32 Limited (S32)

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daveh
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Re: South32 Limited (S32)

#451966

Postby daveh » October 21st, 2021, 12:24 pm

3rd qtr trading/production update
https://www.investegate.co.uk/south32-l ... 00047894P/

Quarterly Report September 2021

"Our operations continue to perform well, achieving record production at South Africa Manganese and maintaining production above nameplate capacity at Worsley Alumina. Production at Mozal Aluminium was higher, with the smelter benefitting from our investment in the AP3XLE energy efficiency technology.

"Our teams continue to achieve strong operating results, despite the ongoing challenges of COVID-19 across the globe.

"Our operating performance has further strengthened our financial position, supporting the continuation of our on-market share buy-back, and subsequent to the end of the period, payment of our US$256M fully franked ordinary and special dividends in respect of the June 2021 half year.

"We continue to actively reshape our portfolio for a low carbon future, and last week entered into binding conditional agreements to acquire a 45 per cent interest in Sierra Gorda, a long life, open pit copper mine in Chile. We have also recently exercised our pre-emptive rights to acquire an additional interest inMozal Aluminium. These initiatives, and our ongoing work with Alcoa in Brazil to investigate the Alumar smelter's potential restart using renewable power, will see us increase our leverage to the metals critical to the green energy transition."

Graham Kerr, South32 CEO



•Maintained FY22 production guidance with our operations continuing to deliver to plan, taking advantage of rising commodity prices

•Delivered a US$254M increase in our net cash position to US$660M1, with higher commodity prices and third party logistics disruptions resulting in a build in working capital

•Achieved a 7% increase in manganese production, with a quarterly record at South Africa Manganese and a strong start to the year at Australia Manganese

•Maintained production above nameplate capacity at Worsley Alumina, with the operation continuing to benefit from improvement initiatives

•Restored production to normalised rates at Brazil Alumina in October, following an incident that damaged one of the bauxite unloaders at the refinery in July 2021

•Increased production at Mozal Aluminium, with smelter productivity benefitting from our investment in the AP3XLE energy efficiency technology

•Recorded sequentially lower base metals production, with Cerro Matoso impacted by a temporary equipment outage, while Cannington extracted a planned series of lower grade stopes

•Entered into binding conditional agreements to acquire a 45% interest in Sierra Gorda, an operating copper mine in Chile which is expected to deliver copper equivalent production of 214kt in CY21e (100% basis)2

•Exercised our pre-emptive rights to acquire an additional interest in our hydro powered aluminium smelter, Mozal Aluminium3



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Re: South32 Limited (S32)

#473750

Postby daveh » January 17th, 2022, 11:02 am

Hermosa Project Update
https://www.investegate.co.uk/south32-l ... 00076415Y/

South32 Limited (ASX, LSE, JSE: S32; ADR: SOUHY) (South32) is pleased to provide an update following completion of a pre-feasibility study (PFS) for the Taylor Deposit, which is the first development option at our 100% owned Hermosa project located in Arizona, USA.

The PFS results support Taylor's potential to be the first development of a multi-decade operation, establishing Hermosa as a globally significant producer of metals critical to a low carbon future, delivering attractive returns over multiple stages. An initial development case demonstrates a sustainable, highly productive zinc-lead-silver underground mine and conventional process plant, in the first quartile of the industry cost curve [footnote 1].

The Taylor Deposit will progress to a feasibility study, including work streams designed to unlock additional value by optimising operating and capital costs, extending the life of the resource and further assessing options identified to target a carbon neutral operation. Completion of the feasibility study and a final investment decision to construct Taylor are expected in mid CY23.

Separately, a scoping study [a] for the spatially linked Clark Deposit has confirmed the potential for a separate, integrated underground mining operation producing battery-grade manganese, as well as zinc and silver. Clark has the potential to underpin a second development stage at Hermosa, with future studies to consider the opportunity to integrate its development with Taylor, potentially unlocking further operating and capital efficiencies.

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Re: South32 Limited (S32)

#475663

Postby daveh » January 24th, 2022, 8:20 am

Quarterly Report:
https://www.investegate.co.uk/south32-l ... 00163509Z/

"We achieved a number of strong production results across our portfolio and realised significantly higher commodity prices in the December 2021 half year, lifting operating margins across the Group.

"We delivered higher base metals production and our integrated aluminium supply chain benefitted from additional alumina volumes and record aluminium prices.

"We took further steps to reshape our portfolio for a low carbon future, increasing our exposure to critical metals with our planned acquisition of a 45% interest in the Sierra Gorda copper mine in Chile and further investment in green aluminium.

"We expect to grow our total share of aluminium production by approximately 24% to 1.2Mt in FY23, through our proposed acquisition of an additional interest in the hydro powered Mozal Aluminium smelter and the restart of the Brazil Aluminium smelter using 100 per cent renewable power.

"We returned US$316M to shareholders during the period through our on-market share buy-back and the payment of ordinary and special dividends. Looking forward our shareholders are well positioned to benefit from stronger markets and production growth, with our capital management framework designed to reward owners as our financial performance improves."

Graham Kerr, South32 CEO



• Achieved a 4% uplift in quarterly alumina production with Worsley Alumina continuing to operate above nameplate capacity, and record production at Brazil Alumina as it returned to normalised rates following the prior quarter's bauxite unloader outage

• Revised Cannington FY22 production guidance higher by 5% with the operation on-track to transition to 100% truck haulage in the June 2022 quarter

• Increased payable nickel production at Cerro Matoso by 26% with plant availability benefitting from completion of the furnace refurbishment in FY21

• Revised Australia Manganese FY22 production guidance lower by 9% as COVID-19 and weather impacted production, preventing the re-build of stockpiles ahead of the wet season

• Increased South Africa Manganese production by 7% in the December 2021 half year with higher output of premium material

• Completed an extended longwall move at Illawarra Metallurgical Coal in the quarter, resulting in lower production for the December 2021 half year

• Realised record aluminium pricing in the December 2021 half year, while managing the impact of third-party port and freight congestion for our Southern African smelters

• Committed to grow our green aluminium capacity through our agreed acquisition of an additional shareholding in Mozal Aluminium1 and restart of the Brazil Aluminium smelter2

• Added copper exposure to our portfolio, announcing the acquisition of a 45% interest in the Sierra Gorda joint venture, which is expected to complete in the March 2022 quarter3

• Finalised the zinc-lead-silver Taylor Deposit's pre-feasibility study following the end of the period, confirming its potential to be the first development option at our Hermosa project4

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Re: South32 Limited (S32)

#481113

Postby daveh » February 17th, 2022, 8:51 am

Half year results:
https://www.investegate.co.uk/south32-l ... 00089827B/

and

https://www.investegate.co.uk/south32-l ... 00369820B/


South32 accelerates portfolio transformation and delivers increased returns to shareholders

"We achieved a record operating margin of 44% and a significant improvement in our Underlying earnings to US$1.0B in the half, following a broad recovery in commodity prices, while also making substantial progress reshaping our portfolio.

"A number of our operations delivered strong production results during the half. We achieved record quarterly production at Brazil Alumina and South Africa Manganese during the period, while Worsley Alumina continued to operate above nameplate capacity.

"Production guidance at Cannington has been revised higher by five per cent as the operation prepares to transition to 100 percent truck haulage in the June 2022 quarter, which is expected to bring forward access to higher grade material.

"This performance, together with our strong financial position is enabling us to invest in our business, grow base metals production and substantially increase our returns to shareholders, with the Board resolving to pay a record US$405 million fully franked ordinary dividend in respect of the period. The Board has also resolved to expand our capital management program by US$110M to US$2.1B, leaving US$302M to be returned.

"Our business is in excellent financial health and we have continued to reshape our portfolio, with the planned acquisition of a 45 per cent stake in the Sierra Gorda copper mine, and further investment in green aluminium.

"In January we also published a pre-feasibility study for the zinc-lead-silver Taylor Deposit, confirming its potential to be a sustainable and highly productive underground mine in the industry's first cost quartile. We are excited to progress Taylor as the first development option at our Hermosa project, while continuing our work at other opportunities across our landholding, including exploration targeting copper, and studies to confirm the potential for the Clark Deposit to develop a battery-grade manganese product.

"Looking ahead, we are well positioned to capitalise on current market conditions as countries continue their economic recovery from COVID-19, and into the future as they invest in new infrastructure that is expected to see continued growth in demand for the metals critical for a low carbon future."



Dividend info:
South32 Limited (ASX, JSE, LSE: S32; ADR: SOUHY) (South32) announced that the Board has resolved to pay an interim dividend of US 8.7 cents per share (fully franked) for the half year ended 31 December 2021. The record date for determining entitlements to dividends is 11 March 2022; payment date is 7 April 2022.


A very large increase on last years interim dividend which was only 1.4c

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Re: South32 Limited (S32)

#487157

Postby daveh » March 17th, 2022, 2:39 pm

Sterling conversion for the divi:
https://www.investegate.co.uk/south32-l ... 23241221F/


Currency  Exchange rate  Dividend per ordinary share in local currency

Australian cents 0.728113 11.948695

British pence 1.322314 6.579375

New Zealand cents 0.675210 12.884880

daveh
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Re: South32 Limited (S32)

#496485

Postby daveh » April 26th, 2022, 8:56 am

Qtrly report:

https://www.investegate.co.uk/south32-l ... 00143371J/

"We achieved a number of significant milestones in the quarter, making further progress to reshape our portfolio for a low carbon future.

"We reported copper production for the first time, having completed our acquisition of a 45 per cent interest in the Sierra Gorda copper mine.

"We moved a step closer to doubling our share of green aluminium production, delivering first metal from our Brazil Aluminium smelter following the end of the period.

"We also reported the pre-feasibility results for our Taylor Deposit, underlining its potential to add further growth in the metals critical to a low carbon future.

"We achieved another excellent operating result, delivering to plan, capitalising on historically strong end markets for many of our commodities.

"Our strong financial position allowed us to close the acquisition of Sierra Gorda and return our balance sheet to a net cash position by the end of the March quarter.

"In April we paid our fully franked, interim dividend, returning a record US$404 million to shareholders off the back of a significantly improved financial performance in the December 2021 half."

Graham Kerr, South32 CEO





•Our FY22 production guidance remains unchanged with our operations continuing to deliver to plan, capitalising on strong prices

•Our FY22 Operating unit cost guidance has been updated to reflect stronger producer currencies, higher raw material costs and the increase in commodity prices, that in many cases result in higher price-linked royalties at our operations

•We finished the period with net cash1 of US$52M after completing the acquisition of a 45% interest in the Sierra Gorda copper mine2 for US$1.4B during the quarter

•Worsley Alumina remains on-track to creep production beyond nameplate capacity in FY22, with the refinery benefitting from historical investment and ongoing improvement initiatives

•Brazil Aluminium3 delivered first metal from the restart of the renewable-powered Alumar smelter following the end of the period

•Hillside Aluminium and Mozal Aluminium continued to test their maximum technical capacity, taking advantage of record aluminium prices

•Sierra Gorda recorded 9.7kt of copper equivalent production4 for the period following the completion of our acquisition on 22 February 2022

•Cannington delivered a 6% increase in year to date zinc equivalent production 5 , benefitting from higher planned silver grades and a drawdown in run of mine inventory

•Cerro Matoso achieved a 33% increase in year to date nickel production, due to higher grades from the Q&P pit and the prior period's successful furnace refurbishment

•Illawarra Metallurgical Coal realised a 42% increase in quarterly production, despite the ongoing impact of wet weather and disruptions to labour availability caused by COVID-19

•Manganese production declined by 4% in the quarter with a 1% improvement at Australia Manganese, more than offset by the impact of planned maintenance at both of our South African mines

•We completed a pre-feasibility study for the zinc-lead-silver Taylor Deposit at the Hermosa project during the quarter, underlining its potential to be a globally significant and sustainable producer of base and precious metals in the industry's first cost quartile6


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Re: South32 Limited (S32)

#513631

Postby daveh » July 12th, 2022, 9:19 am

Sale of Royalty Assets:
https://www.investegate.co.uk/south32-l ... 38181441S/

SOUTH32 UNLOCKS UP TO US$200M IN VALUE FROM NON-CORE ROYALTY SALE

South32 Limited (ASX, LSE, JSE: S32; ADR: SOUHY) (South32) is pleased to announce that it has entered into a binding agreement for the sale of a package of four non-core base metals royalties (Base Metals Royalties) to London Stock Exchange listed Anglo Pacific Group Plc (Anglo Pacific). The total sale price includes US$185M of fixed consideration plus contingent payments of up to US$15M[1]. The Base Metals Royalties are across third party interests in a mix of producing assets and advanced development stage projects, largely in copper and nickel in Australia, USA and Chile.

There are no conditions precedent for the transaction, with completion expected within five business days. The fixed consideration includes US$103M in cash payments[2], and US$82M of Anglo Pacific shares, which will be issued to South32 on completion. Following completion, South32 will hold a ~16.9% interest in Anglo Pacific.

Today's transaction follows our successful divestment of four precious metal royalties to Elemental Royalties Corp. (Elemental) in 2021 for a US$40M cash payment and US$15M in Elemental shares[3].

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Re: South32 Limited (S32)

#516951

Postby daveh » July 25th, 2022, 9:00 am

Qtrly Update:
https://www.investegate.co.uk/south32-l ... 00075758T/

QUARTERLY REPORT
June 2022




•Group FY22 copper equivalent production1 was 99% of current guidance, as the majority of our operations delivered to revised plans, despite impacts from weather and labour availability caused by the COVID-19 pandemic

•We expect to report FY22 Operating unit costs in-line with our previously updated guidance at the majority of our operations, with lower than anticipated producer currencies providing a benefit in the June 2022 quarter

•Our stable operating performance allowed us to capitalise on record conditions for a number of our commodities, with strong sales in the June 2022 quarter capturing the benefit of high prices

•Worsley Alumina achieved record annual production in FY22, exceeding guidance and operating above nameplate capacity, as we realised the benefit of embedded improvement initiatives

•Cannington beat our previously upgraded FY22 zinc equivalent production2 guidance by 2%, successfully transitioning to a 100% truck haulage operation in the June 2022 quarter

•Cerro Matoso achieved a 22% increase in payable nickel production, despite unplanned maintenance and weather-related disruptions impacting the operation during H2 FY22

•Illawarra Metallurgical Coal successfully completed three longwall moves across Appin and Dendrobium during the year, with strong price realisations for our premium quality hard coking coal supporting record pricing

•South Africa Manganese delivered record production in the June 2022 quarter as we increased our Manganese production by 22%, supporting higher sales with customer demand for our premium products delivering strong price realisations

•We grew our share of aluminium production by 5% in the June 2022 quarter as we closed the acquisition of an additional shareholding in the hydro-powered Mozal Aluminium smelter3 and achieved first production from the restart of our 100% renewable powered smelter in Brazil4

•We successfully completed the acquisition of Sierra Gorda5 in H2 FY22, receiving our first US$68M in distributions from the joint venture in June 2022


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Re: South32 Limited (S32)

#524544

Postby daveh » August 23rd, 2022, 9:01 am

S32 not to proceed with Dendrobium extension at Illawarra Metallurgical Coal :

https://www.investegate.co.uk/south32-l ... 08328922W/

South32 Limited (ASX, LSE, JSE: S32; ADR: SOUHY) (South32) announces today that we will not proceed with an investment in the Dendrobium Next Domain (DND) project at Illawarra Metallurgical Coal following our consideration of recently completed study work and extensive analysis of alternatives.

While our work on the project demonstrated the potential to meaningfully extend the life of the Dendrobium mine, expected returns from the ~US$700M up-front capital expenditure estimate are not sufficient to support an investment relative to alternatives considered for the complex.

With this decision, we will now focus on continuing to optimise Dendrobium and the broader Illawarra Metallurgical Coal complex to extend the mine life within approved domains. This work includes existing plans for Appin, where we have been investing to support its transition to a single longwall from FY25, bringing further operating and capital efficiencies. Looking forward, our investments at Appin include planned work to install additional ventilation capacity to enable mining in the current Area 7 until at least 2039[1]. Although this ~US$260M[2] investment remains subject to South32 Board approval, it has been incorporated in our previously announced FY23 and FY24 Safe and reliable capital expenditure guidance[3].

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Re: South32 Limited (S32)

#525134

Postby daveh » August 25th, 2022, 9:25 am

Full year results:
https://www.investegate.co.uk/south32-l ... 00041979X/

Dividends
https://www.investegate.co.uk/south32-l ... 00041982X/

Details of results presentation:
https://www.investegate.co.uk/south32-l ... 00041986X/


FINANCIAL RESULTS AND OUTLOOK YEAR ENDED 30 JUNE 2022





South32 accelerates portfolio transformation and delivers record earnings, cash flow and shareholder returns

· Underlying earnings of US$2.6B and free cash flow from operations (including EAI distributions) of US$2.6B

· Record shareholder returns in respect of FY22 of US$1.3B equal to 10% of our market capitalisation4

· Group copper equivalent production5 expected to increase by 14% in FY23



"We delivered record earnings and cash flow in FY22 as our stable operating performance and recent portfolio improvements enabled us to capitalise on the significant tailwind of commodity prices.

"We achieved record production at Worsley Alumina, while Hillside Aluminium and Mozal Aluminium continued to test maximum technical capacity. At Cannington we exceeded production guidance as we transitioned to a new mine configuration, bringing forward higher-grade material and at Cerro Matoso we achieved a 22% increase in nickel production.

"We made significant progress transforming our portfolio, increasing our exposure to the metals critical to a low-carbon future. We added copper to our portfolio through the acquisition of a 45 per cent interest in Sierra Gorda and doubled our low-carbon aluminium capacity with an additional shareholding in the hydro-powered Mozal Aluminium smelter and the restart of our 100% renewable powered Brazil Aluminium smelter.

"At Hermosa, we completed a pre-feasibility study for the zinc-lead-silver Taylor Deposit, which demonstrated its potential to be a globally significant producer of base metals, and advanced our study of options for the battery-grade manganese Clark Deposit.

"Reflecting our strong financial performance and disciplined approach to capital management, the Board has resolved to pay a US$648 million fully-franked final dividend in respect of H2 FY22 and a US$139 million fully-franked special dividend, taking shareholder returns to a record US$1.3 billion in respect of the 2022 financial year. The Board has also resolved to further expand our capital management program by US$156 million to US$2.3 billion, leaving US$250 million to be returned to shareholders by 1 September 2023.

"Looking forward, we are well positioned to navigate the current economic uncertainty. We have a strong balance sheet with net cash of US$538 million after funding our new investments during the year, while our ongoing focus on cost management and an expected 14% increase in production will mitigate industry-wide cost inflation. We have repositioned our portfolio toward metals critical for a low-carbon future, having already established a pipeline of high-quality development options."



and

PERFORMANCE SUMMARY
The Group's statutory profit after tax increased by US$2,864M to a record US$2,669M in FY22 as our stable operating performance and portfolio changes that increased our exposure to higher margin businesses enabled us to capitalise on the significant tailwind of commodity prices. Underlying earnings increased by US$2,113M to a record US$2,602M in FY22. A reconciliation of statutory to Underlying earnings is set out on page 6.

Underlying revenue increased by 45% to US$10,630M as we implemented innovative logistics solutions to mitigate challenging freight and third-party port performance to deliver volumes into favourable markets, capturing the benefit of higher prices. This translated to a record operating margin of 47% (FY21: 26%), as we held increases in controllable costs to less than 2% of the Group's total cost base for the year(18). Underlying EBITDA increased by US$2,899M to a record US$4,755M and Underlying EBIT increased by US$2,928M to a record US$3,967M as the Group delivered a 30.1% Return on Invested Capital (ROIC)(14).

We generated record free cash flow from operations of US$2,561M, including distributions from our manganese and Sierra Gorda EAIs. Our strong financial performance supported our continued investment in our business and portfolio changes, that have increased our exposure to metals critical for a low-carbon future, while delivering record returns to shareholders. We finished the period with net cash of US$538M having executed our inaugural US dollar bond during the period, issuing US$700M in Senior Unsecured Notes (Notes) to support the funding of our Sierra Gorda acquisition.

Specific highlights for FY22 included:

•Group copper equivalent production(5) was 99% of guidance, as the majority of operations delivered to revised plans, despite adverse impacts from weather and labour availability caused by the COVID-19 pandemic;

•Worsley Alumina continued to operate above nameplate capacity, achieving record annual production;

•Hillside Aluminium and Mozal Aluminium continued to test their maximum technical capacity, despite the impact of higher load-shedding, capitalising on strong aluminium prices to deliver record operating margins;

•Cannington transitioned to 100% truck haulage, while also beating our already increased production guidance; and

•Cerro Matoso achieved a 22% increase in payable nickel production, benefitting from improved plant availability following the prior period's furnace refurbishment and higher-grades from our investment in the Q&P project.

We will return a record US$1,320M to our shareholders in respect of FY22 comprising:

•US$1,053M fully-franked ordinary dividends, including today's announced US$648M fully-franked ordinary dividend in respect of H2 FY22; and

•US$267M as part of our ongoing capital management program, including today's announced US$139M fully-franked special dividend in respect of H2 FY22 and US$128M allocated to our on-market share buy-back across the financial year (46M shares purchased at an average price of A$3.89 per share)


Results look decent with an increased dividend of 14c per share and special of 3.0 cents per share paid 13 October, record date 16th September.

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Re: South32 Limited (S32)

#531456

Postby daveh » September 22nd, 2022, 9:45 am

Dividend currency conversion rates;

https://www.investegate.co.uk/south32-l ... 39191520A/


Conversion rate into sterling: 1.153655
Dividend per ordinary share (ord. dividend + special): 14.735775

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Re: South32 Limited (S32)

#540826

Postby daveh » October 24th, 2022, 9:34 am

Qtrly report
https://www.investegate.co.uk/south32-l ... 00098415D/

• Our share of aluminium production increased by 9% in the September 2022 quarter, as our Southern African smelters continued to test their maximum technical capacity and the Brazil Aluminium smelter was successfully restarted

• We completed planned calciner maintenance at Worsley Alumina and Brazil Alumina

• We achieved an 11% increase in copper equivalent production1 at Sierra Gorda, benefitting from higher copper grades

• We progressed productivity projects at our other base metals operations, with the transition to 100% truck haulage at Cannington and the Ore Sorting and Mechanical Ore Concentration project at Cerro Matoso expected to deliver increased volumes in H2 FY23

• We had a strong start to the year in manganese, tracking ahead of our production guidance, as GEMCO achieved higher primary production and our low-cost PC02 circuit continued to operate above design capacity

• We have revised production guidance down by 5% at Illawarra Metallurgical Coal to 7.0Mt, following an extended longwall move and the impact of industrial action at our Appin mine during the September 2022 quarter

• All other production guidance is unchanged, with 13 % copper equivalent production2 growth now expected in FY23

• We finalised new industrial agreements at our Appin mine at Illawarra Metallurgical Coal and Hillside Aluminium, subsequent to the end of the quarter

• We completed the sale of four non-core royalties for up to US$200M, unlocking latent value in our portfolio3

• We returned US$784M in fully-franked ordinary and special dividends subsequent to the end of the quarter, with a further US$200M remaining to be returned via our capital management program

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Re: South32 Limited (S32)

#563450

Postby daveh » January 23rd, 2023, 10:40 am

Qtryly Report Dec. 22

https://www.investegate.co.uk/south32-l ... 00044887N/

·Group copper equivalent production1 increased by 12% in H1 FY23, as our recent investments in copper
and low-carbon aluminium capacity2 delivered strong growth

·H1 FY23 Operating unit costs expected to be in-line or below FY23 guidance at the majority of our operations

·We are well positioned to capture the benefit of improved market conditions, with further expected production growth in H2 FY23 and our ongoing focus on cost management to mitigate inflationary pressures

·Worsley Alumina and Brazil Alumina operated above nameplate capacity in the December 2022 quarter, delivering an 8% increase in quarterly alumina volumes

·Aluminium production increased by 15% in the December 2022 half year, with a 50% uplift in low-carbon aluminium, following our acquisition of an additional shareholding in Mozal Aluminium and restart of the Brazil Aluminium smelter

·Sierra Gorda realised sequentially higher copper grades, delivering 45kt of payable copper equivalent production3 in the December 2022 half year

·Cerro Matoso commissioned the Ore Sorting and Mechanical Ore Concentration project in the December 2022 quarter, underpinning a 15 year extension to the mining contract, and supporting higher expected nickel production in H2 FY23

·Australia Manganese achieved record half year production, supporting a 7% increase in total manganese production

·Illawarra Metallurgical Coal delivered a 17% increase in quarterly metallurgical coal production, with improved volumes and labour productivity as we finalised a new industrial agreement at Appin

·FY23 production guidance at Cannington revised lower by 11% due to lower mill throughput and labour availability impacting mining rates, and at Brazil Aluminium by 25kt (or 25%) due to a slower ramp-up to nameplate capacity

·Work completed on Hermosa's Clark selection phase pre-feasibility study confirmed the opportunity to produce high-purity manganese sulphate monohydrate for the growing North American electric vehicle supply chain


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Re: South32 Limited (S32)

#568753

Postby daveh » February 16th, 2023, 9:52 am

Half year results and dividend declaration.

https://www.investegate.co.uk/south32-l ... 00021302Q/

South32 Limited (ASX, JSE, LSE: S32; ADR: SOUHY) (South32) announced that the Board has resolved to pay an interim dividend of US 4.9 cents per share (fully franked) for the half year ended 31 December 2022. The record date for determining entitlements to dividends is 10 March 2023; payment date is 6 April 2023.

A 'Notification of Dividend' form (Appendix 3A) was lodged on the Australian Securities Exchange today and is voluntarily disclosed on the Johannesburg Stock Exchange and London Stock Exchange by way of submission to the National Storage Mechanism and will shortly be available for inspection at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism .

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).


Which is well down on last years 8.7c.

https://www.investegate.co.uk/south32-l ... 00050776Q/

South32 in a strong position for further growth and returns

"In November 2022, we were devastated by the loss of two of our colleagues, Mr Cristovão Alberto Tonela and Mr Alfredo Francisco Domingos João, in a fatal accident at Mozal Aluminium. We continue to provide support and counselling to the families and friends of the deceased. We have completed an investigation and key learnings are being shared across the Group, and with industry participants. We continue to implement our Group-wide Safety Improvement Program to fundamentally shift our safety performance.

"We delivered another period of strong production results, and while commodity prices retreated from record levels, we recorded one of our largest profit results to date with Underlying EBITDA of US$1.36 billion.

"Our strong financial result was underpinned by production growth of 12%, our recent portfolio improvements, which increased our exposure to the metals critical to a low-carbon future, and continued focus on cost efficiencies. This has enabled us to resolve to pay a fully-franked ordinary dividend of US$224 million (US 4.9 cents per share) in respect of the December 2022 half year.

"This is in addition to our record US$784M fully-franked ordinary and special dividends, returned in October 2022, and US$143 million returned via our on-market share buy-back in the December 2022 half year.

"Looking forward and reflecting our strong financial position and confidence in the business outlook, we have increased our flexible capital management program by US$50 million to US$2.3 billion, leaving US$158 million to be returned by 1 September 2023.

"Commodity markets have strengthened, leaving us well placed to capitalise on planned production growth and lower Operating unit costs expected across the majority of our operations in the second half of the 2023 financial year.

"At our Hermosa project in Arizona, we are on-track to make a final investment decision on the Taylor deposit in the middle of this calendar year. We have also confirmed the opportunity for Hermosa's Clark deposit to supply battery-grade manganese into the growing North American electric vehicle supply chain.

"The long-term outlook for our business is positive as a result of our portfolio investments and high-quality development options in the metals critical for a low-carbon future."


Specific highlights in H1 FY23 included:

•Increased production by 12%, supported by our recent investments in copper and low-carbon aluminium;

•Delivered strong production results, including record half-year production at Australia Manganese;

•Commissioned the Ore Sorting and Mechanical Ore Concentration (OSMOC) project at Cerro Matoso, unlocking value by underpinning a 15-year extension to the mining contract, and supporting higher future nickel production;

•FY23 production guidance is unchanged and we expect to deliver a further 6% increase in production volumes in H2 FY23;

•FY23 Operating unit cost guidance has been lowered or held largely unchanged for the majority of our operations;

•Invested US$96M at Hermosa on critical path dewatering infrastructure and study work, ahead of a final investment decision for the Taylor zinc-lead-silver deposit expected in mid CY23;

•Completed work on Hermosa's Clark selection phase pre-feasibility study which confirmed the opportunity to produce battery-grade manganese for the growing North American electric vehicle supply chain;

•Completed the sale of four non-core royalties for up to US$200M, unlocking further latent value in our portfolio(15), receiving US$55M of the cash consideration in H1 FY23;

•Expanded our climate change goals(16) to include net zero Scope 3 greenhouse gas (GHG) emissions by 2050;

•Advanced near-term decarbonisation programs to support our target(16) to halve operational GHG emissions by 2035, with Worsley Alumina expected to complete its first onsite boiler conversion in mid CY23; and



Sierra Gorda secured an agreement for cost efficient, 100% renewable electricity supply from January 2023.

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Re: South32 Limited (S32)

#576068

Postby daveh » March 16th, 2023, 9:39 am

Currency exchange rates for interim dividend:

https://www.investegate.co.uk/south32-l ... 58162083T/


Currency              Exchange rate        Dividend per ordinary share in local currency

Australian cents 0.668036 7.334934

British pence 1.197198 4.092890

New Zealand cents 0.625730 7.830854

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Re: South32 Limited (S32)

#584826

Postby daveh » April 24th, 2023, 8:47 am

QTRLY Report

https://www.investegate.co.uk/south32-l ... 00091427X/

QUARTERLY REPORT
March 2023

· Group copper equivalent production1 increased by 7% year to date, as our recent investments delivered strong growth in copper and low-carbon aluminium2, and Australia Manganese achieved record production.

· Improved market conditions supported higher prices across most of our commodities quarter-on-quarter, with strong price realisations for our premium hard coking coal and manganese products.

· While we remain on-track to meet FY23 production guidance at the majority of our operations, Group production was below plan in the March 2023 quarter due to adverse weather and other temporary impacts.

· FY23 Operating unit cost guidance has been held largely unchanged and Group capital expenditure guidance is unchanged, as we remain focused on delivering efficiencies to mitigate cost pressures.

· Aluminium production increased by 15% year to date as Hillside Aluminium continued to test its technical capacity and we realised the benefit of our increased ownership of Mozal Aluminium and planned ramp-up of Brazil Aluminium.

· At Mozal Aluminium, we reduced output to enable a safe recovery plan following the fatal incident in November 2022, with this work impacted by local flooding in the quarter. FY23 production guidance is revised down by 8%.

· Brazil Alumina lifted production by 6% year to date and Worsley Alumina completed planned calciner maintenance.

· Sierra Gorda delivered strong volume growth in copper and remains on-track to achieve FY23 production guidance.

· Cannington experienced severe wet weather during the quarter which resulted in a temporary suspension of mining activity and prevented a rebuild in mining stocks, with FY23 production guidance revised down by 6%.

· Cerro Matoso nickel production year to date was largely unchanged, reflecting a temporary reduction in access to higher grade ore in the quarter, with FY23 production guidance revised down by 7%.

· Australia Manganese achieved record production and a 6% increase in year to date volumes, supporting a 3% increase in FY23 production guidance.

· South Africa Manganese increased production by 5% year to date and remains on-track to achieve FY23 guidance.

· Illawarra Metallurgical Coal's Appin mine encountered challenging strata conditions in the quarter, resulting in lower longwall productivity and a 7% reduction in FY23 production guidance.

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Re: South32 Limited (S32)

#588035

Postby daveh » May 9th, 2023, 1:10 pm

Hermosa project update:
https://www.investegate.co.uk/announcement/7516942

HERMOSA PROJECT UPDATE

South32 Limited (ASX / LSE / JSE: S32; ADR: SOUHY) (South32) is pleased to advise that our 100% owned Hermosa project located in Arizona, United States, has been confirmed by the US Federal Permitting Improvement Steering Council, an independent federal agency, as the first mining project added to the FAST-41 process.

To qualify for the FAST-41 process, critical infrastructure projects must meet rigorous criteria to demonstrate benefit to the nation. Our Hermosa project is currently the only advanced project in the United States that could supply two federally designated critical minerals, zinc and manganese.

Including the Hermosa project on the FAST-41 dashboard is expected to create a more efficient and transparent process, supporting the attainment of federal permits required for the later years of our proposed development of the Taylor and Clark deposits at Hermosa.

We now expect to complete the feasibility study for our Taylor zinc-lead-silver deposit in the second half of CY23, as we undertake additional engineering studies to align the mine development schedule for a federal permitting process under FAST-41 and incorporate current market cost estimates.

Separately, the current phase of study work for our Clark battery-grade manganese deposit has confirmed its potential to supply battery-grade material to the rapidly forming North American electric vehicle supply chain. Study work will now progress to a definition phase pre-feasibility study, including the provision of sample qualification product to potential customers with pilot plant production having commenced in recent weeks.

Further information on the completed study work for the Clark deposit is contained in this announcement.

South32 Chief Executive Officer Graham Kerr said: "The inclusion of Hermosa as the first mining project added to the FAST-41 process is an important milestone that recognises the project's potential to strengthen the domestic supply of critical minerals in the US.

"Hermosa presents a significant opportunity to sustainably produce commodities critical to a low-carbon future."

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Re: South32 Limited (S32)

#604227

Postby daveh » July 24th, 2023, 9:05 am

A number of posts from S32 today:

1) Qtrly Update:
https://www.investegate.co.uk/announcem ... 3-/7649778

QUARTERLY REPORT
June 2023



· We achieved strong year-on-year growth in aluminium, copper and manganese, setting three annual production records and realising the benefit of our investments in commodities for a low-carbon future.

· Group copper equivalent production1 increased by 9% in the June 2023 quarter, underpinned by a return to stable operations following adverse weather and other temporary impacts in the prior quarter.

· FY23 Operating unit costs are expected to be in-line with our previously updated guidance.

· Aluminium production increased by 14% in FY23, as Hillside Aluminium achieved record production and we benefited from our investments in low-carbon aluminium2 capacity at Mozal Aluminium and Brazil Aluminium.

· Alumina production declined by 4% in FY23 due to temporary outages in the June 2023 quarter. Both refineries have returned to nameplate production rates and FY24 guidance is unchanged.

· Base metals production increased by 17%3 in FY23 as we embedded the Sierra Gorda copper operation4 in our portfolio, while our Cannington zinc-lead-silver and Cerro Matoso nickel operations achieved revised guidance.

· Australia Manganese and South Africa Manganese achieved annual production records, delivering a 4% increase in manganese production in FY23.

· Illawarra Metallurgical Coal achieved revised FY23 production guidance, with improved longwall performance delivering a 21% increase in metallurgical coal production in the June 2023 quarter.

· We advanced study work for our Taylor zinc-lead-silver and Clark battery-grade manganese development options at our Hermosa project, the first mining project in the United States to be covered by the FAST-41 process.

· Today, we announced an upgrade to the Mineral Resource estimate for the Taylor deposit5, and our best exploration drill results to date from our Peake copper exploration prospect6.

· We will record a non-cash impairment expense for our Taylor deposit in our FY23 financial results7, reflecting delays from the impact of COVID-19, significant dewatering requirements and current inflationary market conditions.


2) Hermosa project update:
https://www.investegate.co.uk/announcem ... s-/7649723

HERMOSA PROJECT - MINERAL RESOURCE ESTIMATE UPDATE
AND EXPLORATION RESULTS



South32 Limited (ASX, LSE, JSE: S32; ADR: SOUHY) (South32) reports an update to the Mineral Resource estimate for the Taylor deposit, as well as Exploration Results for the Peake prospect, which form part of our 100% owned Hermosa Project located in Arizona, USA (Annexure 1 - Figure 1).

The Hermosa Project is a polymetallic development option located in Santa Cruz County, Arizona. It comprises the Taylor zinc-lead-silver deposit, the Clark battery-grade manganese deposit, and an extensive, highly prospective land package with potential for the discovery of polymetallic and copper mineralisation.

The Taylor Mineral Resource estimate (Table A) is reported in accordance with the JORC Code (2012 edition)[1] at 153 million tonnes, averaging 3.53% zinc, 3.83% lead and 77 g/t silver. The upgrade includes a 41% increase in the Measured Mineral Resource, providing a compelling base to underpin future production. The deposit remains open in several directions, offering the potential for further growth.

Separately, we have today released exploration drilling results from our Peake copper-lead-zinc-silver prospect, a lateral zone prospective for copper mineralisation, located south of the Taylor deposit.

The results include our best intercept at Peake to date, with diamond drill hole HDS-813 returning a downhole intersection of 139m @ 1.88% copper, 0.51% lead, 0.34% zinc and 52g/t silver at 2.49% CuEq[2] including 58.2m @ 3.1% copper, 0.6% lead, 0.24% zinc, 74g/t silver and 0.015% molybdenum at 3.84% CuEq. Further detail is shown in Annexure 1 - Sections 1 and 2.

We consider the results to be supportive of future exploration potential, with the Peake prospect remaining open in several directions. Further exploration drilling at Peake is planned in H1 FY24.


3) Hermosa project non-cash impairment charge:
https://www.investegate.co.uk/announcem ... nt/7649771

South32 Limited (ASX, LSE, JSE: S32, ADR: SOUHY) (South32) has undertaken a review as of 30 June 2023 of the carrying value of its assets in accordance with the Group's accounting policies and the accounting standards.

As a result of this review, we will recognise a non-cash impairment expense for our Hermosa project with our FY23 financial results.

At our Hermosa project, recently completed study work has confirmed that our Taylor zinc-lead-silver and Clark battery-grade manganese deposits can be developed independently, offering the potential for multiple long-life operations in critical minerals.

Given this, for accounting purposes, we are now required to separately assess the Taylor deposit, Clark deposit and regional exploration land package, which were previously considered a single area of interest for impairment indicators. As a result of this assessment, the Group's FY23 financial statements will include a non-cash impairment expense of ~US$1,300M in relation to the Taylor deposit. The impairment expense will be excluded from FY23 Underlying earnings, in accordance with our accounting policies.

Following the impairment expense, the carrying value of the Hermosa project as at 30 June 2023 will be ~US$1,001M, with ~US$482M for the Taylor deposit[1]. The carrying value of the Clark deposit and regional exploration land package is unchanged at ~US$519M.

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Re: South32 Limited (S32)

#610745

Postby daveh » August 24th, 2023, 8:41 am

Finals:
https://www.investegate.co.uk/announcem ... 3-/7714324

South32 delivers strong growth in commodities critical for a low-carbon future

"We continued our work to fundamentally shift our safety performance following the devastating loss of two of our colleagues, Mr Cristovão Alberto Tonela and Mr Alfredo Francisco Domingos João, in a fatal incident at Mozal Aluminium in November 2022.

"We are working to enhance our safety culture through the use of our 'safety guarantee' - an internal approach where each of us stop and ask ourselves whether we can guarantee our own safety and that of our colleagues before undertaking each task.

"During the year, we delivered strong production growth in commodities that are critical for a low-carbon future. We set three annual production records and realised the benefit of our recent portfolio improvements, increasing aluminium production by 14 per cent, base metals by 17 per cent and manganese by 4 per cent.

"This growth, coupled with our continued focus on cost efficiencies, underpinned one of our largest underlying financial results, with Underlying EBITDA of US$2.5 billion. This was achieved despite lower commodity prices and industry-wide inflationary pressures.

"A record US$1.2 billion was returned to shareholders during the 2023 financial year and the Board has today resolved to pay a fully-franked ordinary dividend of 3.2 cents per share or US$145 million in respect of the June 2023 half year.

"Reflecting our disciplined approach to capital management, the Board has also resolved to further expand our capital management program by US$50 million to US$2.4 billion, leaving US$133 million to be returned by 1 March 2024.

"We invested to grow our future production of critical commodities and achieved significant milestones at our Hermosa project in Arizona, the first mining project added to the FAST-41 process. We are on-track to make a final investment decision to develop Hermosa's Taylor base metals deposit in FY24, and continue to progress the opportunity at Hermosa's Clark deposit to supply battery-grade manganese for rapidly forming North American markets.

"Sierra Gorda continued work on its capital efficient plant de-bottlenecking project and advanced studies for the fourth grinding line expansion, designed to deliver a significant uplift in future copper production.

"We added further greenfield exploration options as we worked to discover our next generation of base metals mines, consolidating our position in San Juan, Argentina.

"We continue to execute our strategy and our portfolio is leveraged to the increasing commodity demand required for the global energy transition."


Specific highlights for FY23 included:

· Record annual production at three operations;

· Embedded portfolio improvements in copper and low-carbon aluminium(17);

· 15% production growth(18) in aluminium and base metals;

· Record US$1.2B returned to shareholders, equivalent to 11% of our current market capitalisation(19);

· Advanced our portfolio of high-quality growth options, progressing work to support planned investment decisions for the development of Hermosa's Taylor zinc-lead-silver deposit and the Sierra Gorda copper expansion in FY24;

· Confirmed the opportunity to produce battery-grade manganese from Hermosa's Clark deposit and signed multiple non-binding, non-exclusive memorandums of understanding for future potential supply into North American markets;

· Consolidated our position in San Juan, Argentina, exercised our earn-in right for a 50.1% interest in the Chita Valley copper prospect(20) and acquired a strategic interest(21) in Aldebaran Resources Inc.;

· Advanced near-term decarbonisation programs to support our target(22) to halve operational greenhouse gas (GHG) emissions by 2035, with Worsley Alumina on-track to convert its first onsite boiler from coal to natural gas in Q1 FY24;

· Sierra Gorda transitioned to cost efficient, 100% renewable electricity supply from January 2023; and

· Progressed partnerships to address value chain emissions and expanded our climate change goals(23) to include net zero Scope 3 GHG emissions by 2050.

EARNINGS RECONCILIATION
The Group's statutory profit after tax decreased by US$2,842M to a loss of US$173M in FY23, including the US$1,300M non-cash impairment of Hermosa's Taylor deposit, while Underlying earnings decreased by US$1,686M to US$916M.

Consistent with our accounting policies, various items are excluded from the Group's statutory profit/(loss) to derive Underlying earnings. Total adjustments to derive Underlying EBIT (US$1,418M), shown in the table below, include:

· Net impairment loss of non-financial assets (+US$1,300M): non-cash impairment expense of Hermosa's Taylor deposit, as announced on 24 July 2023(13). The impairment reflected the impact of delays due to COVID-19, significant dewatering requirements, and current inflationary pressures;

· Significant items (-US$186M): gain on disposal of non-core base metal royalties to Ecora Resources PLC(15) (-US$189M pre-tax) and recognition of other income in relation to the indemnity for Chilean mining tax changes(24) negotiated as part of our acquisition of Sierra Gorda (-US$48M pre-tax), partially offset by a non-cash asset write-off following our decision not to proceed with the Dendrobium Next Domain (DND) project at Illawarra Metallurgical Coal(25) (+US$51M pre-tax);

· Sierra Gorda (+US$144M) and Manganese (+US$147M) joint venture adjustments: adjustments to reconcile the statutory equity accounting position to a proportional consolidation basis; and

· Net impairment loss of financial assets (+US$71M): periodic revaluation of the shareholder loan receivable from Sierra Gorda reflecting copper price and other macroeconomic assumptions. An offsetting amount is recorded in the Sierra Gorda joint venture adjustments noted above.

Further information on these earnings adjustments is included on page 40.

The Group's Underlying EBITDA decreased by US$2,221M (or 47%) to US$2,534M in FY23, as lower commodity prices (-US$1,781M) and sales volumes (-US$539M), together with higher inflation, raw material and energy costs (-US$445M), more than offset the benefit of weaker producer currencies (+US$369M). Our recent portfolio improvements in Sierra Gorda and an additional interest in Mozal Aluminium added US$240M to Group Underlying EBITDA with a combined operating margin of 38%. This was partially offset by Brazil Aluminium (-US$32M) as the smelter continued to ramp-up, following the restart of all three potlines.

The Group's Underlying EBIT decreased by US$2,351M (or 59%) to US$1,616M, as Underlying depreciation and amortisation increased by US$130M to US$918M with the inclusion of Sierra Gorda in our portfolio.



The results don't look that good with them falling to a loss due to non-cash impairment charge, but even with this removed underlying earnings and profit are down.

Also the dividend is well down compared to last year:

South32 Limited (ASX, JSE, LSE: S32; ADR: SOUHY) (South32) announced that the Board has resolved to pay an final dividend of US 3.2 cents per share (fully franked) for the full year ended 30 June 2023. The record date for determining entitlements to dividends is 15 September 2023; payment date is 12 October 2023.


https://www.investegate.co.uk/announcem ... a-/7714407

plus a third announcement:
Sierra Gorda mineral declaration
https://www.investegate.co.uk/announcem ... n-/7714403

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Re: South32 Limited (S32)

#616295

Postby daveh » September 21st, 2023, 12:29 pm

Currency exchange rates for dividend:
https://www.investegate.co.uk/announcem ... s-/7769585

Currency    Exchange rate      Dividend per ordinary share in local currency

Australian cents 0.642260 4.982406

British pence 1.250204 2.559582

New Zealand cents 0.592806 5.398056



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