South32 beats earnings estimates, announces $295m buy back
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The news: South32 reported a 60% fall in underlying earnings in the 2024 financial year, beating average forecasts, as the global miner unveiled a USD200 million ($295 million) share buyback following the sale of Illawarra Metallurgical Coal.
The numbers: South32 reported underlying earnings of USD380 million for the year, down 59% from FY23 but ahead of average forecasts of USD334.2 million, according to Visible Alpha data.
The miner extended its after tax loss to $203 million from $173 million a year earlier, as underlying revenue lowered 8% to $8.3 billion. The loss was partly attributed to post-tax impairment expenses of USD388 million at Worsely Alumina and USD248 million at Cerro Matoso.
The board declared a final dividend of 3.1 US cents per share, down from 3.2 US cents in FY23 but above consensus estimates of 2.4 US cents per share. The company also said it has expanded its capital management program by USD200 million, which will be returned via an on-market share buy back.
South32 said it expects to increase its low-carbon aluminium production by 17% in FY25 as Brazil Aluminium continues to ramp up and Mozal Aluminium delivers its recovery plan. It expects to lift copper production by 15% as Sierra Gorda realises higher planned grades.
The context: South32 said it transformed its portfolio in FY24, with the approval to develop its Taylor zinc-lead-silver deposit at its Hermosa site in Arizona, and the sale of Illawarra Metallurgical Coal which is expected to complete later today.
It noted that the sale of Illawarra Metallurgical Coal simplifies the company's portfolio, strengthens its balance sheet and unlocks capital to invest in new development projects and growth options in base metals.
The sources: ASX announcement, ASX announcement
