South32 posts $267m loss after write-down

The news: Mining giant South32 has recorded a USD173 million ($267 million) annual loss following a USD1.3 billion write-down on its flagship Hermosa project in Arizona.

The numbers: South32's revenue slipped 20% to USD7.4 billion in FY22. It recorded a loss per share of 3.8 US cents, down from earnings of 57.4 US cents per share the year before. South32 declared an ordinary dividend of 8.1 US cents, 64% down from 22.7 US cents.

The context: Last month South32 blamed the costs of steel, cement and electrical components for cost blow-outs at its flagship zinc-lead-silver Taylor deposit in the Patagonia Mountains, the Australian Financial Review reported. COVID-19 restrictions and the rising costs of labour have also been rising for critical minerals producers.