South32 has delivered bumper results for the first half of the 2024–25 financial year (H1 FY25), driven by strong production across its copper and aluminium operations.
The company saw a significant 838 per cent increase in underlying earnings, delivering $US375 million ($597 million) for the period.
South32’s aluminium business recorded underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $US136 million for H1 FY25 largely due to an uptick in aluminium prices.
South32 increased its aluminium production by five per cent, producing 604,000 tonnes (t) in H1 FY25. Low-carbon aluminium production from the Brazil Aluminium and Mozal Aluminium operations also increased by 12 per cent.
The miner’s copper division saw similar success, delivering an underlying EBITDA of $US215 million ($342 million).
The Sierra Gorda copper operation in Chile increased its payable copper equivalent production by 21 per cent, producing 46,400t of copper for H1 FY25. South32 credited the growth to improved ore quality in the current phase of Sierra Gorda’s mine plan.
“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.
“The sale of Illawarra Metallurgical Coal has unlocked significant value and streamlined our portfolio to be focused 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.”
South32’s payable zinc equivalent production from the Cannington in Queensland decreased by 17 per cent to 129,900t in H1 FY25. Kerr explained how South32 plans to increase this amount.
“We invested to grow our future production during the period, as we continued construction of our large-scale, long-life Taylor zinc-lead-silver project at Hermosa in Arizona, United States, and expanded our pipeline of copper exploration options in highly prospective regions,” Kerr said.
South32 declared a fully franked interim ordinary dividend of $US154 million ($245 million), or US 3.4 cents per share. The company will also return $US171 million to shareholders as part of its capital management program.
“We are focused on continuing our strong operating performance into the second half, unlocking value from our growth pipeline and continuing to reward shareholders as our financial performance improves,” Kerr said.
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.
