South32's Mozal aluminium operation in Mozambique
Diversified mining and metals company South32 on Thursday announced a 25% increase in revenue, reaching $3.12-billion, and a 579% surge in profit after tax, totalling $360-million for the half-year to December 31, 2024.
The company's underlying earnings before interest, taxes, depreciation and amortisation rose by 44% to $1.02-billion, driven by strong operational results across its portfolio. Notably, aluminium production increased by 5%, and copper production saw a 16% rise, enabling South32 to capitalise on improved commodity prices.
"We delivered a strong start to FY25, off the back of our improved operating performance and transformed portfolio," said CEO Graham Kerr.
Reflecting its financial position and commitment to shareholder value, South32 declared a fully-franked interim ordinary dividend of $154-million, equating to 3.4c a share. The company also announced the continuation of its capital management programme, with $171-million remaining to be returned to shareholders.
During the half-year, South32 continued its portfolio transformation with the completion of the sale of Illawarra Metallurgical Coal, streamlining its portfolio to focus on minerals and metals critical to the world's energy transition. "The sale has also simplified our business, lowered our sustaining capital intensity and strengthened our balance sheet, enabling us to self-fund our growth in zinc and copper," said Kerr.
Construction is progressing at the large-scale, long-life Taylor zinc/lead/silver deposit, in the US, with shaft sinking under way. Taylor represents the first phase of Hermosa’s regional scale opportunity, and the company continues to explore future growth options, including the Clark and Peake deposits. Recent drilling at Peake has returned high-grade copper intercepts, including 137 m at 1.79% copper equivalent.
South32 is also investing to expand its portfolio of growth options in copper. During the period, the company acquired a 19.9% interest in American Eagle Gold, which holds an option to acquire a 100% interest in the NAK copper exploration prospect in Canada, and entered into a strategic alliance with Noronex to explore copper in the Kalahari copper belt in Namibia.
Looking ahead, South32 maintained its 2025 production guidance, with the exception of Mozal Aluminium, where guidance has been updated as the company continues to mitigate the impact of civil unrest in Mozambique.
At its Groote Eylandt Mining Company (GEMCO) operation, in Australia, South32 has been implementing an operational recovery plan following the impact of Tropical Cyclone Megan. Recovery efforts include the construction of a new wharf and ongoing dewatering, allowing for a phased restart of mining activities. Export sales are expected to increase progressively over the June quarter, subject to potential wet season disruptions. 