South32 shares lower after return to full-year profit
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More news: South32 shares tumbled in morning trade, even after the mining company swung to a full-year profit following improved copper and aluminium production.
Shares were down 5.3% to $2.76 at 11:40am AEST. Fellow metals producers IGO and Mineral Resources were also down 5-6%.
South32 swings to full-year profit as metals prices rise, output climbs
The news: Diversified miner South32 has climbed to a full-year net profit of USD210 million ($323 million) after a USD205 million loss in the previous year, having increased its output of copper by 20% and aluminium by 6% compared to the prior corresponding period.
The numbers: The result was softer than consensus estimates of USD483.1 million, according to Visible Alpha.
Total revenue was up 17% year on year to USD5.78 billion. The company will pay a final dividend of 2.6 US cents per share, down from 3.1 US cents last year, and below average forecasts of 2.71 US cents.
The context: South32 pointed to "key operational milestones" achieved during the period, including its Worsley Alumina mine securing environmental approvals for new bauxite mining areas, and its Australia Manganese unit completing its operational recovery plan following the impacts of Tropical Cyclone Megan.
On 14 August, South32 flagged an impairment of USD372 million on its Mozal Aluminium smelter in Mozambique after failing to secure ongoing electricity supply. It now expects the site will be put into care and maintenance in March 2026.
The source: ASX
