Australia-headquartered South32’s financial results for the 2024 financial year were bolstered by an improved operating performance, disciplined cost management and higher prices for its key commodities in the latter half, CEO Graham Kerr says.

This resulted in full-year underlying earnings before interest, taxes, depreciation and amortisation (Ebitda) of $1.8-billion and underlying earnings of $380-million.

Kerr says that, despite challenges, the group had a strong finish to the year, resulting in an improved operating performance and a strengthened financial position.

“Reflecting our strengthened financial position and disciplined approach to capital allocation, the board has resolved to pay a $140-million fully-franked ordinary dividend in respect of the second half of the financial year.

“The board has also expanded our capital management programme by $200-million, to be returned via an on-market share buyback, following the sale of Illawarra Metallurgical Coal,” he highlights.

The group’s South African manganese production increased by 3% to a record 2.2-million wet metric tonnes in the year, as the group lifted output of secondary products to capitalise on stronger manganese prices in the fourth quarter.

Underlying Ebitda decreased by 2% to $65-million, for an operating margin of 19%, as higher sales volumes were offset by lower average realised manganese prices. South Africa manganese production is expected to be two-million wet metric tonnes across full-year 2025 and full-year 2026, as the group continues to use higher-cost trucking to optimise sales volumes and margins.

Kerr says the group considered potentially increasing the volumes moved by rail; however, this was complicated by logistics bottlenecks.

During the year, South32 further transformed its portfolio, with the approval to develop its Taylor zinc/lead/silver deposit at our Hermosa project, in Arizona, in the US, and the sale of Illawarra Metallurgical Coal, Kerr highlights.

“The sale of Illawarra Metallurgical Coal simplifies our portfolio, strengthens our balance sheet and unlocks capital to invest in our development projects and growth options in base metals,” Kerr says.

“In the near term, these investments include the development of the Taylor deposit and projects to grow the group’s copper production at Sierra Gorda. Moreover, South32 is seeking to increase its base metals exposure over the longer term by investing in a pipeline of growth options which are being advanced through study phases and a portfolio of exploration prospects in highly prospective regions, Kerr informs.

“Looking ahead, the outlook for our business is positive as we focus on safe and reliable operations, managing our costs, and capitalising on our transformed portfolio which, more than ever, is focused on commodities critical to a low-carbon future,” he says.

South32 is aiming to halve operational greenhouse-gas (GHG) emissions (Scope 1 and 2) by 2035 and achieve net-zero GHG emissions across all scopes (Scope 1, 2 and 3) by 2050.

Its climate change approach entails reshaping the portfolio to commodities critical in the transition to a low-carbon world, decarbonising operations and working with others to decarbonise the value chain.

During the year, Worsley Alumina converted the first two coal-fired boilers to natural gas, and Hillside Aluminium converted a further 18% of pots to AP3XLE energy efficiency technology, bringing the total to 36%.

South32’s operational emissions decreased by 6% and Scope 3 emissions decreased by 17% in the period.

South32’s total recordable injury frequency for the year improved by 14% to 5.1 from 2023, while the lost time injury frequency increased to 1.9 from 1.6.

The group’s leading safety indicator, significant hazard frequency, increased to 122.3 from 91.6, indicating improved hazard awareness and a positive reporting culture, it avers.