South32 half-year profit jumps on higher output, prices
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The news: Mining giant South32’s first-half profit has soared on the back of improved aluminium and copper sales and higher commodity prices.
The numbers: Net profit for the six months to December 2024 jumped to USD360 million ($573 million) from USD53 million a year ago, while underlying earnings were up eight-fold to USD375 million. The miner reported a 25% lift in revenue to USD3.12 billion and will pay an interim dividend of 3.4 US cents, up from 0.4 US cents a year ago.
The context: The company attributed its improved result to a 5% lift in aluminium production and 16% increase in copper production during the half year. Higher average commodity prices contributed an extra USD627 million to earnings.
That helped offset lower contributions from steel-making commodities following the sale of Illawarra Metallurgical Coal and the weather impact at Australia Manganese. The company has maintained FY25 production guidance for all commodities, except for Mozal Aluminium where it continues to see an impact from civil unrest in Mozambique.
What they said: “Our operating discipline and weaker producer currencies are expected to support lower operating unit costs for the majority of our guided operations in H2 FY25,” chief executive Graham Kerr said.
The source: ASX announcement
