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South32 Limited (S32) Report Analysis

Corporate Events

Positive

Encounter Resources Limited to Partner with Sou...

2022-06-22 22:21:00

The directors of Encounter Resources Ltd. announced that Encounter and a wholly owned subsidiary of South32 Ltd. have entered into Farm-in and...

Positive

South32 Limited completed the acquisition of an...

2022-05-31 00:00:00

South32 Limited (ASX:S32) agreed to acquire additional 25% stake in Mozal Aluminium from MCA Metals Holding Gmbh for $250 million on September...

Neutral

South32 Limited - Special Call

2022-05-25 09:55:00

To discuss strategy briefing

Neutral

South32 Limited Presents at Bank of America 202...

2022-05-17 08:20:00

South32 Limited Presents at Bank of America 2022 Global Metals, Mining and Steel Conference, May-17-2022 03:00 PM. Venue: Miami, Florida, Unit...

Positive

South32 Limited (ASX:S32) completed the acquisi...

2022-05-02 00:00:00

South32 Limited (ASX:S32) agreed to acquire 18.2% stake in MRN Bauxite Mine from Alcoa Corporation (NYSE:AA) on December 31, 2021. Completion ...

Neutral

Tranche Update on South32 Limited (ASX:S32)'s E...

2022-04-26 07:00:00

From January 1, 2022 to March 31, 2022, the company has repurchased 5,000,000 shares, representing 0.11% for $16 million. With this, the compa...

Neutral

Tranche Update on South32 Limited (ASX:S32)'s E...

2022-02-17 07:00:00

From October 1, 2021 to December 31, 2021, the company has repurchased 25,000,000 shares, representing 0.54% for $60 million. With this, the c...

Neutral

Bank of America Corporation, Bank of America 20...

2021-12-22 06:08:00

Bank of America Corporation, Bank of America 2022 Global Metals, Mining and Steel Conference, May 17, 2022 through May 19, 2022. Venue: Miami,...

Positive

South32 Secures Revolving Credit Facility

2021-12-15 07:00:00

South32 Limited announced that it has successfully executed a refinancing of its multicurrency revolving syndicated credit facility. The refin...

Positive

AusQuest and South32 Extend Strategic Alliance ...

2021-11-15 22:09:00

AusQuest Limited announce that it has agreed with South32 to extend the SAA between the two companies which has been successfully operating si...

Positive

South32 Limited's Subsidiary Enters in Earn-In ...

2021-11-09 19:19:00

Minsud Resources Corp. announced that a wholly-owned subsidiary of South32 Limited has given notice of its intention to fund the third tranche...

Neutral

South32 Limited Presents at Global Metals and M...

2021-11-06 05:33:00

South32 Limited Presents at Global Metals and Mining Conference 2021, Nov-17-2021 06:00 PM. Speakers: Graham Kerr, CEO, MD & Executive Director.

Neutral

The Goldman Sachs Group, Inc., Global Metals an...

2021-11-05 18:43:00

The Goldman Sachs Group, Inc., Global Metals and Mining Conference 2021, Nov 17, 2021 through Nov 18, 2021.

Negative

South32 Limited Steps Down as Company Secretary

2021-10-29 01:08:00

South32 Limited advised that Kelly O'Rourke has stepped down as Company Secretary whilst she takes parental leave, returning September 2022.

Neutral

South32 Limited Approves Amendments to Its Constitution

2021-10-28 08:16:00

South32 Limited at its 2021 Annual General Meeting held on 28 October 2021, approved amendments to Its Constitution.

Neutral

Tranche Update on South32 Limited (ASX:S32)'s E...

2021-10-21 08:49:00

From July 1, 2021 to September 30, 2021, the company has repurchased 10,000,000 shares, representing 0.21% for $22.61 million. With this, the ...

Neutral

South32 Limited Provides Production Guidance fo...

2021-10-21 07:19:00

South32 Limited provided production guidance for the fiscal year 2022. For the year, the company expects Worsley Alumina production to be 3,96...

Positive

South32 Limited (ASX:S32) agreed to acquire 13....

2021-10-14 00:00:00

South32 Limited (ASX:S32) agreed to acquire 13.5% stake in Sierra Gorda S.C.M. from Sumitomo Corporation (TSE:8053) for $660 million on Octobe...

Positive

South32 Limited (ASX:S32) agreed to acquire 31....

2021-10-14 00:00:00

South32 Limited (ASX:S32) agreed to acquire 31.5% stake in Sierra Gorda S.C.M. from Sumitomo Metal Mining Co., Ltd. (TSE:5713) for $1.6 billio...

Neutral

South32 Limited - Special Call

2021-10-13 23:00:00

To acquire a 45% interest in the Sierra Gorda copper mine

Positive

South32 Limited to Acquire a 45% Interest in th...

2021-10-13 22:52:00

South32 Limited announced that it has entered into two binding conditional agreements with Sumitomo Metal Mining and Sumitomo Corporation to a...

Neutral

South32 Limited Presents at 13th Annual Austral...

2021-10-09 01:00:00

South32 Limited Presents at 13th Annual Australia & New Zealand Investment Conference 2021, Oct-14-2021 12:15 PM. Speakers: Graham Kerr, CEO, ...

Positive

AMCI Reportedly Circles Eagle Downs

2021-10-05 04:35:00

AMCI Investments Pty. Ltd. is being tipped as a likely buyer of South32 Limited (ASX:S32)'s Eagle Downs project that is up for sale through Ma...

Positive

South32 Limited (ASX:S32) agreed to acquire add...

2021-09-30 00:00:00

South32 Limited (ASX:S32) agreed to acquire additional 25% stake in Mozal Aluminium from MCA Metals Holding Gmbh for $250 million on September...

Negative

South32 Announces Executive Changes

2021-09-22 16:07:00

South32 Chief Executive Officer, Graham Kerr, announced that Mike Fraser, South32 Chief Operating Officer with accountability for operations i...

Neutral

South32 Limited - Special Call

2021-09-09 03:39:00

To discuss South32’s approach to sustainability including governance, health and safety, human rights, community, environmental management and...

Neutral

South32 Limited - Shareholder/Analyst Call

2021-09-03 01:39:00

AGM

Neutral

South32 Limited to Report Q3, 2022 Results on A...

2021-09-02 02:06:00

South32 Limited announced that they will report Q3, 2022 results on Apr 28, 2022

Neutral

Citigroup Inc., 13th Annual Australia & New Zea...

2021-08-24 16:47:00

Citigroup Inc., 13th Annual Australia & New Zealand Investment Conference 2021, Oct 13, 2021 through Oct 14, 2021. The Citi Australia & New Ze...

Neutral

South32 Limited Propose Amendment to Constitution

2021-08-24 07:55:00

South32 Limited announced that at the 2021 Annual General Meeting of the company it will consider special resolution to amend company's consti...

Neutral

Tranche Update on South32 Limited (ASX:S32)'s E...

2021-08-19 07:59:00

From April 1, 2021 to June 30, 2021, the company has repurchased 64,000,000 shares, representing 1.37% for $258.96 million. With this, the com...

Positive

South32 Limited Announces Special Dividend, Pay...

2021-08-19 06:30:00

South32 Limited announced that the Board has resolved to pay a special dividend of 2.0 US cents per share (fully franked). The record date for...

Positive

South32 Limited's Equity Buyback Plan Extended ...

2021-08-19 00:00:00

On August 19, 2021, the company announced that it has extended its plan duration till September 2, 2022.

Positive

South32 Limited, 0.0271411 (AUD), Cash Dividend...

2021-08-19 00:00:00

South32 Limited, 0.0271411 (AUD), Cash Dividend, Sep-09-2021

Positive

South32 Limited Announces Final Dividend for th...

2021-08-18 22:23:00

The board of South32 Limited has resolved to pay a final dividend of 3.5 US cent per share (fully franked) for the year ended 30 June 2021. Th...

Positive

South32 Limited Reports Update to the Mineral R...

2021-07-20 22:34:00

South32 Limited reported an update to the Mineral Resource estimate for Taylor Deposit which forms part of 100% owned Hermosa project located ...

Neutral

South32 Limited, 2021 Pre Recorded Earnings Cal...

2021-07-15 00:00:00

South32 Limited, 2021 Pre Recorded Earnings Call, Aug 19, 2021

Neutral

South32 Limited, 2021 Earnings Call, Aug 19, 2021

2021-07-15 00:00:00

South32 Limited, 2021 Earnings Call, Aug 19, 2021

Neutral

South32 Limited, 2021 Earnings Call, Aug 19, 2021

2021-07-15 00:00:00

South32 Limited, 2021 Earnings Call, Aug 19, 2021

Neutral

South32 Limited Presents at Diggers and Dealers...

2021-06-30 19:09:00

South32 Limited Presents at Diggers and Dealers Mining Forum, Aug-02-2021 12:20 PM. Venue: Goldfields Arts Centre, Cheetham Street, Kalgoolie,...

Positive

Encounter Resources Limited to Partner with South32 to Accelerate Northern Territory Copper Exploration

2022-06-22 22:21:00

The directors of Encounter Resources Ltd. announced that Encounter and a wholly owned subsidiary of South32 Ltd. have entered into Farm-in and Joint Venture Agreements covering the Carrara Copper-Zinc Project and the Jessica Copper Project in the Northern Territory ("NT") (the "South32 Agreements"). Jessica covers 6,300km along key structural corridors east of Tennant Creek and is prospective for sediment-hosted copper and IOCG style deposits. Access to the project is via the sealed Tablelands Highway that traverses the western side of Jessica. Jessica is situated along key structural corridors east of Tennant Creek and is prospective for large sediment-hosted copper and IOCG style deposits. Carrara is located at an interpreted structural offset of the western margin of the Carrara Sub- basin which hosts the Century Zinc Mine on the eastern margin.

Positive

South32 Limited completed the acquisition of an additional 16.6% stake in Mozal Aluminium from MCA Metals Holding Gmbh for $200 million.

2022-05-31 00:00:00

South32 Limited (ASX:S32) agreed to acquire additional 25% stake in Mozal Aluminium from MCA Metals Holding Gmbh for $250 million on September 30, 2021. The transaction is subject to customary adjustments for working capital and net debt. The transaction has an acquisition multiple of 3.6x FY21 EBITDA. Post Completion South32 Limited (ASX:S32) will own 72.1% stake in Mozal Aluminium. The transaction will be funded from cash in hand. The transaction is subject to approval from the Competition Regulatory Authority in Mozambique be satisfied. As of January 24, 2022, the transaction is expected to close in first quarter of 2022. As of February 2, 2022, the transaction is expected to close in the third quarter of 2022. As of March 30, 2022, the transaction is expected to close in mid 2022. The transaction is accretive. South32's current shareholding of Mozal Aluminium is 47.1%, while the Industrial Development Corporation of South Africa (IDC) also holds pro-rata pre-emptive rights based on their 24% shareholding which they have yet to exercise. If the IDC exercises its entire pre-emptive rights South32 would increase our shareholding in Mozal Aluminium to 63.7%, while IDC would increase their shareholding to 32.5%. If the IDC do not exercise its pre-emptive rights, then South32's shareholding in Mozal Aluminium would increase to 72.1%. Following transaction, South32 Limited's stake increased to 63.7% in Mozal Aluminium. South32 Limited completed the acquisition of an additional 16.6% stake in Mozal Aluminium from MCA Metals Holding Gmbh for $200 million on May 31, 2022.

Neutral

South32 Limited - Special Call

2022-05-25 09:55:00

To discuss strategy briefing

Neutral

South32 Limited Presents at Bank of America 2022 Global Metals, Mining and Steel Conference, May-17-2022 03:00 PM

2022-05-17 08:20:00

South32 Limited Presents at Bank of America 2022 Global Metals, Mining and Steel Conference, May-17-2022 03:00 PM. Venue: Miami, Florida, United States. Speakers: Graham Kerr, CEO, MD & Executive Director.

Positive

South32 Limited (ASX:S32) completed the acquisition of additional 18.2% stake in MRN Bauxite Mine from Alcoa Corporation (NYSE:AA).

2022-05-02 00:00:00

South32 Limited (ASX:S32) agreed to acquire 18.2% stake in MRN Bauxite Mine from Alcoa Corporation (NYSE:AA) on December 31, 2021. Completion is expected in the June 2022 subject to the satisfaction of conditions. South32 Limited (ASX:S32) completed the acquisition of additional 18.2% stake in MRN Bauxite Mine from Alcoa Corporation (NYSE:AA) on May 2, 2022.

Neutral

Tranche Update on South32 Limited (ASX:S32)'s Equity Buyback Plan announced on March 27, 2017.

2022-04-26 07:00:00

From January 1, 2022 to March 31, 2022, the company has repurchased 5,000,000 shares, representing 0.11% for $16 million. With this, the company has completed the repurchase of 689,000,000 shares, representing 13.84% for $1,575.57 million under the buyback announced on March 27, 2017.

Neutral

Tranche Update on South32 Limited (ASX:S32)'s Equity Buyback Plan announced on March 27, 2017.

2022-02-17 07:00:00

From October 1, 2021 to December 31, 2021, the company has repurchased 25,000,000 shares, representing 0.54% for $60 million. With this, the company has completed the repurchase of 684,000,000 shares, representing 13.73% for $1,559.57 million under the buyback announced on March 27, 2017.

Neutral

Bank of America Corporation, Bank of America 2022 Global Metals, Mining and Steel Conference, May 17, 2022 through May 19, 2022

2021-12-22 06:08:00

Bank of America Corporation, Bank of America 2022 Global Metals, Mining and Steel Conference, May 17, 2022 through May 19, 2022. Venue: Miami, Florida, United States.

Positive

South32 Secures Revolving Credit Facility

2021-12-15 07:00:00

South32 Limited announced that it has successfully executed a refinancing of its multicurrency revolving syndicated credit facility. The refinancing has secured $1.4 billion of commitments from lenders for a five-year term to 2026, with options to extend for up to a further two years by mutual agreement. The facility refinances the Group's existing undrawn revolving credit facility that was due to expire in 2023. The facility has been established as a Sustainability-Linked Loan with measures linked to ongoing commitment to emissions reduction and improving energy and water use efficiency. It complements sustainability approach which is aligned with the International Council on Mining and Metals (ICMM) Mining Principles and is informed by the United Nations Sustainable Development Goals and the United Nations Global Compact Ten Principles - to which remain committed.

Positive

AusQuest and South32 Extend Strategic Alliance Agreement

2021-11-15 22:09:00

AusQuest Limited announce that it has agreed with South32 to extend the SAA between the two companies which has been successfully operating since its inception on 17th February 2017. The SAA has been extended for a further two years to 31st December 2023, subject to further extension. The SAA established an innovative framework under which AusQuest could use its extensive expertise to target new deposits and mineral provinces with major ore potential, to generate and secure prospective early-stage exploration opportunities which are offered exclusively to South32. The two companies have developed a strong working relationship over the past five years and will continue to work together to develop a pipeline of high-potential exploration opportunities both in Australia and internationally. Targeted commodities in Australia, Peru and other agreed jurisdictions include copper, zinc and nickel with potential for associated gold, silver and lead credits. The possibility of expanding this list of commodities is always open for discussion. Under the SAA, projects secured by AusQuest and offered exclusively to and accepted by South32, undergo a staged evaluation process which sees projects classified as either Exploration Opportunities or Drill-Ready Opportunities. If a project is rejected twice by South32, at either the Exploration or Drill-Ready Opportunity stage, it becomes a rejected property and will no longer be the subject of the SAA. For Exploration Opportunities, work programs and budgets to advance each project to a drill-ready stage are agreed by the parties with South32 providing the necessary funds to complete the programs. All funding to advance projects to a drill-ready stage form part of the total earn-in expenditure of USD 4.5 Million for South32 to acquire a 70% interest in each project. Once a project is accepted by South32 as a Drill-Ready Opportunity, South32 can elect to earn a 70% interest in the project. AusQuest must prepare a drill program and budget of at least US$500,000 in value and following agreement on the program, a joint venture may be established, and a Joint Venture Agreement entered into on the key terms and conditions set out in the SAA. A summary of the key joint venture terms and conditions is appended at the end of this announcement. AusQuest will continue to be the initial operator for each joint venture. Under the agreed joint venture terms, South32 must contribute a total USD 4.5 Million to earn a 70% joint venture interest and can earn an 80% interest in each project by completing a pre-feasibility study. Six of AusQuest's projects are currently Exploration Opportunities under the SAA (three in Australia and three in Peru). Four have been the subject of initial drill testing of targets (Balladonia in Western Australia, Hamilton in Queensland, and the Cerro de Fierro and Parcoy Projects in Peru) with follow-up drilling to come; one will be the subject of a maiden drilling program scheduled for December of this year (Los Otros in Peru); and one is being advanced towards drilling (Morrisey in Western Australia). The SAA also includes an arrangement to incentivise AusQuest's project generation activities, with South32 agreeing to pay AusQuest a USD 300,000 Bonus Generation Fee in the event that at least two Exploration Opportunities are accepted by South32 in a calendar year. AusQuest will also receive an administration fee equal to 15% of monies expended on all projects under the SAA to help cover company overhead expenses and assist with the ongoing requirements for project generation studies.

Positive

South32 Limited's Subsidiary Enters in Earn-In Agreement

2021-11-09 19:19:00

Minsud Resources Corp. announced that a wholly-owned subsidiary of South32 Limited has given notice of its intention to fund the third tranche exploration activities in 2022 as per the earn-in agreement executed on November 1, 2019. The 2022 program will largely include in-fill and scouting drilling, with the broader objectives of continuing the delineation of the resource footprint at Chinchillones area and establish additional porphyry centres along the Chita Valley Project, in the Province of San Juan, Argentina. The Earn-in Agreement grants to South32 the right to acquire a 50.1% direct interest in the Company's 0Argentinean operating subsidiary Minera Sud Argentina S.A. ("MSA") at the end of the earn-in period. Under the Earn-in Agreement, South32 will provide further funding to MSA over the next two (2) remaining years such that its aggregate funding is (i) not less than CAD 10.5 million by December 31, 2022; and (ii) not less than CAD 14 million by December 31, 2023. South32 has the right to withdraw at the end of each year. If South32 exercises its earn-in right, it may elect to fund a pre-feasibility study with a minimum spend of C$41 million, which would entitle it to elect to increase its 50.1% direct interest in MSA to 70%.

Neutral

South32 Limited Presents at Global Metals and Mining Conference 2021, Nov-17-2021 06:00 PM

2021-11-06 05:33:00

South32 Limited Presents at Global Metals and Mining Conference 2021, Nov-17-2021 06:00 PM. Speakers: Graham Kerr, CEO, MD & Executive Director.

Neutral

The Goldman Sachs Group, Inc., Global Metals and Mining Conference 2021, Nov 17, 2021 through Nov 18, 2021

2021-11-05 18:43:00

The Goldman Sachs Group, Inc., Global Metals and Mining Conference 2021, Nov 17, 2021 through Nov 18, 2021.

Negative

South32 Limited Steps Down as Company Secretary

2021-10-29 01:08:00

South32 Limited advised that Kelly O'Rourke has stepped down as Company Secretary whilst she takes parental leave, returning September 2022.

Neutral

South32 Limited Approves Amendments to Its Constitution

2021-10-28 08:16:00

South32 Limited at its 2021 Annual General Meeting held on 28 October 2021, approved amendments to Its Constitution.

Neutral

Tranche Update on South32 Limited (ASX:S32)'s Equity Buyback Plan announced on March 27, 2017.

2021-10-21 08:49:00

From July 1, 2021 to September 30, 2021, the company has repurchased 10,000,000 shares, representing 0.21% for $22.61 million. With this, the company has completed the repurchase of 659,000,000 shares, representing 13.19% for $1,499.57 million under the buyback announced on March 27, 2017.

Neutral

South32 Limited Provides Production Guidance for the Fiscal Year 2022

2021-10-21 07:19:00

South32 Limited provided production guidance for the fiscal year 2022. For the year, the company expects Worsley Alumina production to be 3,965 kt; Brazil Alumina production to be 1,300 kt; Hillside Aluminium production to be 720 kt; Mozal Aluminium production to be 273 kt; Illawarra Metallurgical Total coal production to be 7,300 kt; Metallurgical coal production to be 6,300 kt; Energy coal production to be 1,000 kt; Australia Manganese ore production to be 3,500 kwmt; South Africa Manganese ore production to be 2,200 kwmt; Cerro MatosoPayable nickel production to be 43.8 kt; Cannington Payable zinc equivalent production to be 278.3 kt; Payable silver production to be 11,647 koz; Payable lead production to be 112.6 kt; and Payable zinc production to be 63.9 kt.

Positive

South32 Limited (ASX:S32) agreed to acquire 13.5% stake in Sierra Gorda S.C.M. from Sumitomo Corporation (TSE:8053) for $660 million.

2021-10-14 00:00:00

South32 Limited (ASX:S32) agreed to acquire 13.5% stake in Sierra Gorda S.C.M. from Sumitomo Corporation (TSE:8053) for $660 million on October 14, 2021. The transaction consideration will be approximately $510 million as upfront cash consideration, subject to certain adjustments. In addition to the upfront cash consideration, up to $150 million in contingent consideration will be payable if certain copper price and production thresholds are met during the period through to the end of 2025. In a related transaction, South32 Limited will acquire 31.5% stake in Sierra Gorda S.C.M. from Sumitomo Metal Mining Co., Ltd. for $1.5 billion. Funding will be via a combination of cash on hand and an underwritten $1 billion acquisition debt facility that will maintain our balance sheet strength and flexibility. The Group’s unaudited net cash balance at the end of September 2021 was $660 million. The transaction is subject to satisfaction of certain customary closing conditions and regulatory approvals and anti-trust approvals, for which South32 Limited has agreed to a break fee payable in limited circumstances. The transaction is subject to the waiver or non-exercise of pre-emption rights held by KGHM under the Joint Venture Agreement. As of November 25, 2021, KGHM Polska Miedz (KGHM) has not exercised its pre-emptive rights to increase its shareholding in the Sierra Gorda copper mine in Chile. The transaction is expected to close in early calendar year 2022. There will be minimal fees payable by South32 Limited on the acquisition debt facility in this scenario. The Transaction is expected to be immediately earnings accretive. UBS AG is acting as financial advisor and Jay Leary of Herbert Smith Freehills as legal advisor to South32 Limited. Cariola Díez Pérez-Cotapos is acting as Chilean legal advisor to South32 Limited. BC Capital Markets acted as the exclusive financial advisor and Sergio Galvis , Benjamin Kent, Andrew Ferry. Daniel Bleiberg, Juan Rodriguez and Axel Beckmerhagen of Sullivan & Cromwell LLP acted as the legal advisors to Sumitomo Corporation and SMM in connection with the transactions. As on February 1, 2022, The European Commission (EC) gave the green light to the acquisition.

Positive

South32 Limited (ASX:S32) agreed to acquire 31.5% stake in Sierra Gorda S.C.M. from Sumitomo Metal Mining Co., Ltd. (TSE:5713) for $1.6 billion.

2021-10-14 00:00:00

South32 Limited (ASX:S32) agreed to acquire 31.5% stake in Sierra Gorda S.C.M. from Sumitomo Metal Mining Co., Ltd. (TSE:5713) for $1.6 billion on October 14, 2021. The transaction will include an upfront consideration of $1.2 billion and copper price-linked payments of up to $350 million. In a related transaction, South32 Limited (ASX:S32) agreed to acquire 13.5% stake in Sierra Gorda S.C.M. from Sumitomo Corporation (TSE:8053) for $660 million on October 14, 2021. Funding will be via a combination of cash on hand and an underwritten $1 billion acquisition debt facility that will maintain our balance sheet strength and flexibility. The transaction is subject to satisfaction of certain customary closing conditions and regulatory approvals and anti-trust approvals, for which South32 Limited has agreed to a break fee payable in limited circumstances. The transaction is subject to the waiver or non-exercise of pre-emption rights held by KGHM under the Joint Venture Agreement. As of November 25, 2021, KGHM Polska Miedz (KGHM) has not exercised its pre-emptive rights to increase its shareholding in the Sierra Gorda copper mine in Chile. As of February 2, 2022, European Comission has approved the merger. The transaction is expected around the end of calendar year 2021. There will be minimal fees payable by South32 Limited on the acquisition debt facility in this scenario. The Transaction is expected to be immediately earnings accretive. UBS AG is acting as financial advisor and Jay Leary of Herbert Smith Freehills as legal advisor to South32 Limited. Cariola Díez Pérez-Cotapos is acting as Chilean legal advisor to South32 Limited. BC Capital Markets acted as the exclusive financial advisor and Sergio Galvis , Benjamin Kent, Andrew Ferry. Daniel Bleiberg, Juan Rodriguez and Axel Beckmerhagen of Sullivan & Cromwell LLP acted as the legal advisors to Sumitomo Corporation and Sumitomo Metal Mining in connection with the transactions.

Neutral

South32 Limited - Special Call

2021-10-13 23:00:00

To acquire a 45% interest in the Sierra Gorda copper mine

Positive

South32 Limited to Acquire a 45% Interest in the Sierra Gorda Copper Mine

2021-10-13 22:52:00

South32 Limited announced that it has entered into two binding conditional agreements with Sumitomo Metal Mining and Sumitomo Corporation to acquire a 45% interest in the Sierra Gorda copper mine in Chile (Sierra Gorda) via the acquisition of a 45% indirect interest in Sierra Gorda S.C.M. (SGSCM) for an upfront cash consideration of USD 1.55 billion. South32 has also agreed to provide Sumitomo with a contingent price-linked consideration of up to USD 500 million, payable at threshold copper production rates and prices in the years 2022-25. Sierra Gorda is an operating mine in the prolific Antofagasta copper mining region, which is expected to produce 180kt of copper, 5kt of molybdenum, 54koz of gold and 1.6Moz of silver in 2021 (100% basis) 3. The acquisition provides South32 with joint control alongside 55% joint venture partner KGHM Polska Miedz (KGHM), a global miner listed in Poland. The Transaction is expected to be immediately earnings accretive, with the upfront purchase consideration benchmarking favourably to historical investment, production and valuation multiples (3.3x fiscal year 21 Underlying EBITDA). Funding will be via a combination of cash on hand and an underwritten USD 1 billion acquisition debt facility that will maintain Company's balance sheet strength and flexibility. The Group's unaudited net cash balance at the end of September 2021 was USD 660 million. The company expects to use its current strong cash generation to minimise acquisition debt facility utilisation, replacing it with long-term funding following completion, with the intention of maintaining company's investment grade credit rating through the cycle. The Company will continue flexible execution approach with regards to the remaining USD 231 million capital management program balance.

Neutral

South32 Limited Presents at 13th Annual Australia & New Zealand Investment Conference 2021, Oct-14-2021 12:15 PM

2021-10-09 01:00:00

South32 Limited Presents at 13th Annual Australia & New Zealand Investment Conference 2021, Oct-14-2021 12:15 PM. Speakers: Graham Kerr, CEO, MD & Executive Director.

Positive

AMCI Reportedly Circles Eagle Downs

2021-10-05 04:35:00

AMCI Investments Pty. Ltd. is being tipped as a likely buyer of South32 Limited (ASX:S32)'s Eagle Downs project that is up for sale through Macquarie Capital. Others potential buyers include Bowen Coking Coal Limited (ASX:BCB), run by former Stanmore Coal boss Nick Jorss, along with high-net-worth individuals scouring the landscape for opportunities to turn projects into production swiftly. It is thought Eagle Downs could sell for about $120 million.

Positive

South32 Limited (ASX:S32) agreed to acquire additional 25% stake in Mozal Aluminium from MCA Metals Holding Gmbh for $250 million.

2021-09-30 00:00:00

South32 Limited (ASX:S32) agreed to acquire additional 25% stake in Mozal Aluminium from MCA Metals Holding Gmbh for $250 million on September 30, 2021. The transaction is subject to customary adjustments for working capital and net debt. The transaction has an acquisition multiple of 3.6x FY21 EBITDA. Post Completion South32 Limited (ASX:S32) will own 72.1% stake in Mozal Aluminium. The transaction will be funded from cash in hand. The transaction is subject to approval from the Competition Regulatory Authority in Mozambique be satisfied. As of January 24, 2022, the transaction is expected to close in first quarter of 2022. As of February 2, 2022, the transaction is expected to close in the third quarter of 2022. As of March 30, 2022, the transaction is expected to close in mid 2022. The transaction is accretive. South32's current shareholding of Mozal Aluminium is 47.1%, while the Industrial Development Corporation of South Africa (IDC) also holds pro-rata pre-emptive rights based on their 24% shareholding which they have yet to exercise. If the IDC exercises its entire pre-emptive rights South32 would increase our shareholding in Mozal Aluminium to 63.7%, while IDC would increase their shareholding to 32.5%. If the IDC do not exercise its pre-emptive rights, then South32's shareholding in Mozal Aluminium would increase to 72.1%. Following transaction, South32 Limited's stake increased to 63.7% in Mozal Aluminium.

Negative

South32 Announces Executive Changes

2021-09-22 16:07:00

South32 Chief Executive Officer, Graham Kerr, announced that Mike Fraser, South32 Chief Operating Officer with accountability for operations in Africa and Colombia, has decided to leave the company to pursue other opportunities. Noel Pillay, currently Vice President Operations at Worsley Alumina, will be appointed to the role of Chief Operating Officer, alongside Jason Economidis, who remains Chief Operating Officer with accountability for operations in Australia. Pillay will shortly return to South Africa to assume his accountabilities following a handover period with Fraser.

Neutral

South32 Limited - Special Call

2021-09-09 03:39:00

To discuss South32’s approach to sustainability including governance, health and safety, human rights, community, environmental management and climate change

Neutral

South32 Limited - Shareholder/Analyst Call

2021-09-03 01:39:00

AGM

Neutral

South32 Limited to Report Q3, 2022 Results on Apr 28, 2022

2021-09-02 02:06:00

South32 Limited announced that they will report Q3, 2022 results on Apr 28, 2022

Neutral

Citigroup Inc., 13th Annual Australia & New Zealand Investment Conference 2021, Oct 13, 2021 through Oct 14, 2021

2021-08-24 16:47:00

Citigroup Inc., 13th Annual Australia & New Zealand Investment Conference 2021, Oct 13, 2021 through Oct 14, 2021. The Citi Australia & New Zealand Investment Conference is the largest Australasian conference for influential ideas and actionable advice, attracting over 1000 investors, fund managers, CFOs and CEOs from Australia, New Zealand and around the globe. Throughout the two-day conference, attendees discuss issues affecting major markets and hear insights from policy makers, economists, political leaders and CEOs of some of Australia’s most enterprising corporations.

Neutral

South32 Limited Propose Amendment to Constitution

2021-08-24 07:55:00

South32 Limited announced that at the 2021 Annual General Meeting of the company it will consider special resolution to amend company's constitution To insert into our company's constitution the following new clause 7.6 (l): Member resolutions at general meeting: The Members in general meeting may by ordinary resolution express an opinion or request information about the way in which a power of the company partially or exclusively vested in the directors has been or should be exercised. However, such a resolution must relate to an issue of material relevance to the company or the company's business and cannot either advocate action which would violate any law or relate to any personal claim or grievance. Such a resolution is advisory only and does not bind the directors or the company.

Neutral

Tranche Update on South32 Limited (ASX:S32)'s Equity Buyback Plan announced on March 27, 2017.

2021-08-19 07:59:00

From April 1, 2021 to June 30, 2021, the company has repurchased 64,000,000 shares, representing 1.37% for $258.96 million. With this, the company has completed the repurchase of 649,000,000 shares, representing 12.98% for $1,476.96 million under the buyback announced on March 27, 2017.

Positive

South32 Limited Announces Special Dividend, Payable on 7 October 2021

2021-08-19 06:30:00

South32 Limited announced that the Board has resolved to pay a special dividend of 2.0 US cents per share (fully franked). The record date for determining entitlements to dividends is 10 September 2021; payment date is 7 October 2021.

Positive

South32 Limited's Equity Buyback Plan Extended till September 2, 2022.

2021-08-19 00:00:00

On August 19, 2021, the company announced that it has extended its plan duration till September 2, 2022.

Positive

South32 Limited, 0.0271411 (AUD), Cash Dividend, Sep-09-2021

2021-08-19 00:00:00

South32 Limited, 0.0271411 (AUD), Cash Dividend, Sep-09-2021

Positive

South32 Limited Announces Final Dividend for the Year Ended 30 June 2021, Payable on 7 October 2021

2021-08-18 22:23:00

The board of South32 Limited has resolved to pay a final dividend of 3.5 US cent per share (fully franked) for the year ended 30 June 2021. The record date for determining entitlements to dividends is 10 September 2021; payment date is 7 October 2021.

Positive

South32 Limited Reports Update to the Mineral Resource Estimate for Taylor Deposit Which Forms Part of 100% Owned Hermosa Project Located in Arizona, USA

2021-07-20 22:34:00

South32 Limited reported an update to the Mineral Resource estimate for Taylor Deposit which forms part of 100% owned Hermosa project located in Arizona, USA. The updated Mineral Resource is reported in accordance with the JORC Code (2012)1 at 138 million tonnes, averaging 3.82% zinc, 4.25% lead and 81 g/t silver with a contained 5.3 million tonnes of zinc, 5.9 million tonnes of lead and 360 million ounces of silver. The updated estimate reflects the continuation of work in support of the pre-feasibility study (PFS) for the Taylor Deposit. The PFS was scheduled for completion prior to the end of the June 2021 quarter but has been delayed given the impact of ongoing COVID-19 related workforce restrictions. Study work to date has confirmed a preference to pursue a dual shaft development that prioritises early access to higher grade mineralization, identified through improved understanding of the updated Taylor Mineral Resource estimate. When compared to the prior estimate2 the updated overall Mineral Resource estimate reflects higher grades for zinc (by 14%), lead (by 11%) and silver (by 14%), with zinc equivalent grade increasing from 7.62% to 8.61%, partially offsetting a 17% reduction in total tonnage. The updated Mineral Resource reflects the enhanced confidence obtained from additional drilling and refinements to structural interpretation. In addition, improvements to anticipated project economics have been reflected in a reduction to the net smelter return (NSR) cut-off grade of USD 80/dmt (from USD 90/dmt used in previous estimates). This results in an increase of 8Mt in the Measured category, with 83% of the total resource now contained in the Measured and Indicated categories. The Mineral Resource remains open at depth and laterally, with infill and extensional opportunities identified for the next phase of drilling to support study work beyond the current PFS. The updated Mineral Resource also reflects improved understanding of the boundary between the Taylor sulphide and Clark oxide (oxidised zinc-manganese-silver deposit which sits above Taylor), improving ability to better plan the future potential development of either or both deposits. The company expects to report scoping study outcomes and future work plans for the Clark Deposit in first half of fiscal year 2022. The Hermosa project is a polymetallic development option located in Santa Cruz county, Arizona which is 100% owned by South3. It comprises the Taylor Deposit, the Clark Deposit and an extensive, highly prospective land package with potential for discovery of polymetallic and copper mineralization. The mineralization envelope has the potential to extend beyond current drilling into the surrounding unpatented claims which are untested, presenting significant upside potential.

Neutral

South32 Limited, 2021 Pre Recorded Earnings Call, Aug 19, 2021

2021-07-15 00:00:00

South32 Limited, 2021 Pre Recorded Earnings Call, Aug 19, 2021

Neutral

South32 Limited, 2021 Earnings Call, Aug 19, 2021

2021-07-15 00:00:00

South32 Limited, 2021 Earnings Call, Aug 19, 2021

Neutral

South32 Limited, 2021 Earnings Call, Aug 19, 2021

2021-07-15 00:00:00

South32 Limited, 2021 Earnings Call, Aug 19, 2021

Neutral

South32 Limited Presents at Diggers and Dealers Mining Forum, Aug-02-2021 12:20 PM

2021-06-30 19:09:00

South32 Limited Presents at Diggers and Dealers Mining Forum, Aug-02-2021 12:20 PM. Venue: Goldfields Arts Centre, Cheetham Street, Kalgoolie, Western Australia, Australia. Speakers: Vanessa Torres, Chief Technical Officer.

Fundamental Summary

According to their recent financial report, which was published on 2022-02-16, South32 had several impressive financial metrics that should make them more attractive than their peers going forward. Specifically, their growth, value, and income factors indicate a well-planned and balanced effort, which is generating exciting growth. This relative strength should allow South32 to continue to perform well even in a tough market. We therefore gave South32 a total score of 82 out of 100 and a BUY recommendation.

South32 announced production results for the first quarter ended September 2021. For the quarter, the company reported Alumina production of 1,278 kt against 1,315 kt a year ago. Aluminium production was 248 kt against 248 kt a year ago. Energy coal production was 313 kt against 508 kt a year ago. Metallurgical coal production was 1,575 kt against 1,863 kt a year ago. Manganese ore production was 1,565 kwmt against 1,461 kwmt a year ago. Payable nickel production was 9.6 kt against 10.0 kt a year ago. Payable silver production was 3,493 koz against 2,863 koz a year ago. Payable lead production was 31.9 kt against 26.4 kt a year ago. Payable zinc production was 15.4 kt against 12.4 kt a year ago.

Business Description

South32 operates as a diversified metals and mining company in Australia, Southern Africa, North America, and South America. The company operates through Worsley Alumina, Hillside Aluminium, Mozal Aluminium, Brazil Alumina, Illawarra Metallurgical Coal, Eagle Downs Metallurgical Coal, Australia Manganese, South Africa Managanese, Cerro Matoso, Cannington, Hermosa, and South Africa Energy Coal segments. It has a portfolio of assets producing alumina, aluminum, bauxite, energy and metallurgical coal, manganese ore and alloy, ferronickel, silver, lead, zinc, and other base metals. The company also exports its products. South32 has a strategic alliance agreement with AusQuest Limited for exploration opportunity in gold-copper targets at the Gunanya Project. The company was formerly known as BHP Coal Holdings Pty Limited and changed its name to South32. South32 was incorporated in 2000 and is headquartered in Perth, Australia.

Sector Overview

South32 is included in the Metals & Mining according to GICS (global industry classification standard). The Metals & Mining industry is included in the Materials sector. It includes the producers of aluminum, iron, steel, gold, other diversified metals and minerals, and their related products, as well as the mining and production the above materials. South32's industry and sector affiliation are expected to negatively affect their likelihood to overperform the market in the upcoming period, as other sectors appear more likely to benefit from the macroeconomic environment we see now.

Fundamental Highlights


Parameter Value Change Score
Assets 13,978.0 5.6% 73
Liabilities 4,340.0 1.2% 74
Price to Book 1.6 42.3% 74
Cash & Equivalents 2,119.0 31.4% 79
Equity 9,639.0 7.6% 80
EBITDA 2,533.0 72.8% 94
Total Revenues 7,081.0 26.9% 47
Parameter Value Change Score
Return on Equity 10.6 592.7% 95
Net Cashflow 736.0 147.0% 72
Capital Expenditure -521.0 5.3% 82
Asset Turnover 0.5 20.5% 75
Free Cashflow 0.3 86.9% 86

* All values are TTM

The below chart reflects South32's birds-eye view on its performance with respect to its peers, the company's fillings as reported or to a similar industry, market cap, and country of origin. While South32's peer average final assessment score stands on 72.0, South32's score is 82.

  •  S32
  •  Peers average
Name Market Cap Balance Sheet Income Statement Cash Flow Rating Final Assessment mc_sort Hidden
BHP Group Limited 208.5B 58 71 75
Hold
69
69 0 1
Fortescue Metals Group Limited 55.0B 65 67 75
Hold
68
68 1 1
Newcrest Mining Limited 19.4B 52 66 57
Underperform
56
56 2 1
Mineral Resources Limited 9.2B 55 63 61
Underperform
56
56 3 1
Lynas Rare Earths Limited 8.3B 70 69 70
Hold
71
71 4 1
Northern Star Resources Limited 8.2B 56 56 73
Underperform
55
55 5 1
IGO Limited 7.8B 50 78 72
Hold
71
71 6 1
BlueScope Steel Limited 7.3B 85 72 52
Hold
72
72 7 1
Pilbara Minerals Limited 6.9B 86 69 86
Buy
83
83 8 1
Allkem Limited 6.9B 57 61 82
Hold
65
65 9 1
OZ Minerals Limited 6.2B 74 66 78
Hold
74
74 10 1
Evolution Mining Limited 4.8B 82 64 50
Hold
64
64 11 1
Alumina Limited 4.4B 50 79 72
Hold
70
70 12 1
OZ Minerals Holdings Pty Ltd 4.0B 84 61 50
Hold
73
73 13 1
Iluka Resources Limited 3.9B 77 60 74
Hold
68
68 14 1
Andean Resources Ltd. 3.7B 86 97 41
Buy
84
84 15 1
Coronado Global Resources Inc. 2.9B 83 74 81
Strong Buy
87
87 16 1
Nickel Industries Limited 2.8B 54 60 70
Underperform
56
56 17 1
AVZ Minerals Limited 2.8B 95 68 58
Hold
75
75 18 1
Sims Limited 2.7B 68 69 82
Hold
74
74 19 1
Zimplats Holdings Limited 2.6B 77 68 64
Hold
71
71 20 1
Liontown Resources Limited 2.4B 81 84 62
Buy
84
84 21 1
Perseus Mining Limited 2.3B 81 65 83
Hold
77
77 22 1
Deterra Royalties Limited 2.3B 77 61 75
Hold
69
69 23 1
Sandfire Resources Limited 1.9B 82 69 76
Buy
79
79 24 1
Core Lithium Ltd 1.8B 83 70 69
Hold
76
76 25 1
Chalice Mining Limited 1.5B 54 81 55
Hold
67
67 26 1
Grange Resources Limited 1.5B 65 64 73
Hold
66
66 27 1
Capricorn Metals Ltd 1.3B 86 69 82
Buy
82
82 28 1
West African Resources Limited 1.3B 87 59 66
Hold
68
68 29 1
Silver Lake Resources Limited 1.2B 66 63 58
Hold
62
62 30 1
De Grey Mining Limited 1.2B 66 47 73
Underperform
53
53 31 1
Gold Road Resources Limited 1.2B 64 67 56
Hold
63
63 32 1
Lake Resources NL 1.2B 66 73 68
Hold
71
71 33 1
Sayona Mining Limited 1.2B 66 73 68
Hold
71
71 34 1
Regis Resources Limited 1.1B 53 53 69
Underperform
50
50 35 1
Piedmont Lithium Inc. 1.1B 88 77 60
Buy
84
84 36 1
5E Advanced Materials Inc. 927.2M 47 58 61
Underperform
51
51 37 1
ioneer Ltd 867.9M 85 69 51
Hold
70
70 38 1
Syrah Resources Limited 856.9M 49 50 69
Underperform
46
46 39 1
Equigold NL 854.0M 50 65 87
Hold
67
67 40 1
Ramelius Resources Limited 828.4M 56 68 62
Hold
60
60 41 1
Vulcan Energy Resources Limited 826.7M 67 78 71
Hold
77
77 42 1
Jervois Global Limited 813.1M 78 71 54
Hold
72
72 43 1
Mincor Resources NL 808.9M 62 77 57
Hold
67
67 44 1
Imdex Limited 796.9M 71 56 74
Hold
70
70 45 1
Bellevue Gold Limited 722.0M 84 69 54
Hold
70
70 46 1
St Barbara Limited 701.5M 53 70 56
Underperform
59
59 47 1
Emerald Resources NL 679.4M 60 68 84
Hold
70
70 48 1
Red 5 Limited 671.6M 47 75 59
Hold
61
61 49 1
Boart Longyear Group Ltd. 651.0M 60 74 68
Hold
69
69 50 1
Mount Gibson Iron Limited 629.5M 48 78 64
Hold
66
66 51 1
Westgold Resources Limited 575.3M 54 65 63
Underperform
58
58 52 1
OM Holdings Limited 563.6M 84 75 82
Buy
85
85 53 1
Australian Strategic Materials Ltd 540.9M 51 74 72
Hold
67
67 54 1
Neometals Ltd 531.9M 60 72 60
Hold
65
65 55 1
Adriatic Metals PLC 528.8M 66 73 68
Hold
71
71 56 1
Argosy Minerals Limited 467.8M 66 73 68
Hold
71
71 57 1
Perenti Global Limited 461.4M 60 78 67
Hold
72
72 58 1
Champion Iron Limited 441.1M 58 71 55
Hold
64
64 59 1
Panoramic Resources Limited 420.4M 58 71 67
Hold
66
66 60 1
Hastings Technology Metals Limited 404.8M 65 68 67
Hold
68
68 61 1
Alkane Resources Limited 402.0M 78 70 68
Hold
73
73 62 1
Centaurus Metals Limited 397.2M 66 73 68
Hold
71
71 63 1
Bowen Coking Coal Limited 385.5M 66 73 68
Hold
71
71 64 1
Jupiter Mines Limited 372.2M 66 81 50
Hold
64
64 65 1
Galan Lithium Limited 362.2M 66 73 68
Hold
71
71 66 1
Talga Group Ltd 359.9M 53 60 62
Underperform
53
53 67 1
BCI Minerals Limited 349.8M 71 68 60
Hold
66
66 68 1
Metals X Limited 344.8M 68 87 68
Buy
82
82 69 1
Pantoro Limited 330.8M 66 73 68
Hold
71
71 70 1
Aurelia Metals Limited 327.8M 65 58 60
Underperform
56
56 71 1
Macmahon Holdings Limited 283.7M 68 65 62
Hold
66
66 72 1
Lotus Resources Limited 277.3M 66 73 68
Hold
71
71 73 1
Firefinch Limited 236.2M 66 73 68
Hold
71
71 74 1
Andromeda Metals Limited 229.8M 66 73 68
Hold
71
71 75 1

Technical Analysis

When trying to optimize the timing of an investment, it's critical to analyze whether the stock looks overbought or oversold, and in which direction the momentum is moving. South32's stock is now priced above its 5-day, but below its 50-day and 200-day moving average, while its MACD (moving average convergence divergence) indicates that the stock's price movement momentum is weakening. Historically, this is a positive setup in the near-term. Meanwhile, looking at the Stochastic Oscillator and RSI (relative strength index), South32's stock indicates that it's likely oversold. Overall, these technical indicators signal negative momentum. Therefore, this stock received a cumulative TA (technical analysis) score of 57.

Bearish 57
Close Price 4.19
52W Low 2.78
52W High 5.36
5D MA 4.07
50D MA 4.65
200D MA 4.22
MACD -0.2
RSI 1.42
STOCH 16.95

Balance Sheet Analysis

Overall, South32's critical balance sheet metrics appear to signal strong support and a high likelihood of positive growth going forward. South32 did a great job related to equity this period, which stood at 9639.0, representing a 7.6% change. Companies in the same sector and market capitalization will usually be affected by up to 5.9 percent by this parameter. These metrics are all the more impressive relative to their peers and should support an upswing in their stock price. Consequently, their equity movement received a grade of 80. Also, South32 reported a positive trendline in their cash and cash equivalents metrics. Specifically, they reported that cash and cash equivalents were 2119.0, representing 31.4% change from the last report. This performance is significantly more impressive than its peers and competitors. It suggests that their stock price has room to grow to reflect its actual intrinsic value. Therefore, its cash and cash equivalents movement earned a score of 79. On the other hand, Assets, jumped out as looking problematic. Mediocre performance in terms of assets could drop the bar on expectations for South32's future attractiveness, as they changed to 13978.0 in the latest filing. This works out to a 5.6% change from the last period. South32's unremarkable asset growth results, specifically compared to their industry peers' performance, should present negative pressure on South32's stock price. Its asset component, therefore, received a grade of 73. Their balance sheet received an overall score of 84.

Parameter Value Change Score
Assets 13,978.0 5.6% 73
Liabilities 4,340.0 1.2% 74
Price to Book 1.6 42.3% 74
Cash & Equivalents 2,119.0 31.4% 79
Equity 9,639.0 7.6% 80
* All values are TTM

The below chart describes South32's performance as reflected on its balance sheet with respect to its peers. While South32 received a balance sheet score of 84, the average of its peers stands on 71.0.

  •  S32
  •  Peers average
Name Market Cap Liabilities Movement Asset Change Equity/Intangibles Adjustments Cash & Equivalents Book Value Momentum Balance Sheet mc_sort Hidden
BHP Group Limited 208.5B 74 92 47 52 76 58 0 1
Fortescue Metals Group Limited 55.0B 83 66 68 55 69 65 1 1
Newcrest Mining Limited 19.4B 85 72 46 46 73 52 2 1
Mineral Resources Limited 9.2B 83 73 52 42 90 55 3 1
Lynas Rare Earths Limited 8.3B 74 59 77 62 68 70 4 1
Northern Star Resources Limited 8.2B 87 70 56 48 65 56 5 1
IGO Limited 7.8B 43 37 80 42 63 50 6 1
BlueScope Steel Limited 7.3B 64 75 87 90 68 85 7 1
Pilbara Minerals Limited 6.9B 87 59 81 87 56 86 8 1
Allkem Limited 6.9B 53 64 44 65 89 57 9 1
OZ Minerals Limited 6.2B 87 72 72 69 72 74 10 1
Evolution Mining Limited 4.8B 47 57 76 96 54 82 11 1
Alumina Limited 4.4B 51 69 50 46 84 50 12 1
OZ Minerals Holdings Pty Ltd 4.0B 81 62 51 97 87 84 13 1
Iluka Resources Limited 3.9B 76 66 87 69 53 77 14 1
Andean Resources Ltd. 3.7B 70 37 60 97 92 86 15 1
Coronado Global Resources Inc. 2.9B 44 56 87 85 71 83 16 1
Nickel Industries Limited 2.8B 41 44 72 50 70 54 17 1
AVZ Minerals Limited 2.8B 99 56 82 98 66 95 18 1
Sims Limited 2.7B 85 72 83 49 57 68 19 1
Zimplats Holdings Limited 2.6B 80 69 68 76 73 77 20 1
Liontown Resources Limited 2.4B 43 55 82 97 37 81 21 1
Perseus Mining Limited 2.3B 81 70 73 82 66 81 22 1
Deterra Royalties Limited 2.3B 99 79 61 75 68 77 23 1
Sandfire Resources Limited 1.9B 41 64 87 87 73 82 24 1
Core Lithium Ltd 1.8B 37 55 82 94 66 83 25 1
Chalice Mining Limited 1.5B 98 78 39 46 89 54 26 1
Grange Resources Limited 1.5B 54 70 51 71 92 65 27 1
Capricorn Metals Ltd 1.3B 69 59 81 91 65 86 28 1
West African Resources Limited 1.3B 92 56 81 92 42 87 29 1
Silver Lake Resources Limited 1.2B 69 62 62 71 57 66 30 1
De Grey Mining Limited 1.2B 44 49 79 69 48 66 31 1
Gold Road Resources Limited 1.2B 83 72 56 65 60 64 32 1
Lake Resources NL 1.2B 78 74 55 64 78 66 33 1
Sayona Mining Limited 1.2B 78 74 55 64 78 66 34 1
Regis Resources Limited 1.1B 77 74 51 48 63 53 35 1
Piedmont Lithium Inc. 1.1B 97 54 82 97 39 88 36 1
5E Advanced Materials Inc. 927.2M 44 83 54 45 37 47 37 1
ioneer Ltd 867.9M 98 56 80 86 52 85 38 1
Syrah Resources Limited 856.9M 63 75 38 46 94 49 39 1
Equigold NL 854.0M 57 46 86 50 45 50 40 1
Ramelius Resources Limited 828.4M 67 41 78 48 49 56 41 1
Vulcan Energy Resources Limited 826.7M 39 53 80 74 41 67 42 1
Jervois Global Limited 813.1M 71 71 44 94 95 78 43 1
Mincor Resources NL 808.9M 83 78 43 62 56 62 44 1
Imdex Limited 796.9M 59 69 83 61 75 71 45 1
Bellevue Gold Limited 722.0M 96 56 81 87 42 84 46 1
St Barbara Limited 701.5M 80 69 51 49 61 53 47 1
Emerald Resources NL 679.4M 51 58 80 51 57 60 48 1
Red 5 Limited 671.6M 49 45 39 55 96 47 49 1
Boart Longyear Group Ltd. 651.0M 85 79 39 60 87 60 50 1
Mount Gibson Iron Limited 629.5M 94 76 39 41 74 48 51 1
Westgold Resources Limited 575.3M 77 65 55 47 73 54 52 1
OM Holdings Limited 563.6M 84 69 84 81 50 84 53 1
Australian Strategic Materials Ltd 540.9M 44 69 55 46 84 51 54 1
Neometals Ltd 531.9M 97 77 46 50 97 60 55 1
Adriatic Metals PLC 528.8M 78 74 55 64 78 66 56 1
Argosy Minerals Limited 467.8M 78 74 55 64 78 66 57 1
Perenti Global Limited 461.4M 68 71 51 61 74 60 58 1
Champion Iron Limited 441.1M 66 49 73 47 67 58 59 1
Panoramic Resources Limited 420.4M 78 75 43 58 85 58 60 1
Hastings Technology Metals Limited 404.8M 75 72 56 67 67 65 61 1
Alkane Resources Limited 402.0M 45 56 83 88 40 78 62 1
Centaurus Metals Limited 397.2M 78 74 55 64 78 66 63 1
Bowen Coking Coal Limited 385.5M 78 74 55 64 78 66 64 1
Jupiter Mines Limited 372.2M 63 93 46 52 80 66 65 1
Galan Lithium Limited 362.2M 78 74 55 64 78 66 66 1
Talga Group Ltd 359.9M 90 78 38 45 95 53 67 1
BCI Minerals Limited 349.8M 86 73 58 67 82 71 68 1
Metals X Limited 344.8M 90 77 50 67 80 68 69 1
Pantoro Limited 330.8M 78 74 55 64 78 66 70 1
Aurelia Metals Limited 327.8M 85 69 59 60 72 65 71 1
Macmahon Holdings Limited 283.7M 47 61 72 78 44 68 72 1
Lotus Resources Limited 277.3M 78 74 55 64 78 66 73 1
Firefinch Limited 236.2M 78 74 55 64 78 66 74 1
Andromeda Metals Limited 229.8M 78 74 55 64 78 66 75 1

Income Statement Analysis

Overall, South32's critical income statement metrics appear to strongly support positive growth going forward. Return factors metrics and ratios were exceptional in this report. South32 reported a return on equity (ROE) ratio of 10.6, representing a change of 592.7% from the last report. Its return factor metrics are even more remarkable when compared to their peers. Therefore, its return factors component earned a score of 95. Also, South32's management was effective in improving its EBIDTA, which now sits at 2533.0 and represents a 72.8% change from the last reporting period. Companies in the same industry and market capitalization are typically affected by this parameter by up to 20.0%. Its EBITDA metrics highlight an impressive overall financial performance, which is expected to continue moving forward. Therefore, its EBITDA component earned a score of 94. That said, one metric, Revenue Efficiency, stood out as particularly concerning. South32 reported discouraging numbers for its revenue efficiency. As of the current filing, they were reported as 7081.0 and represented 26.9% change from the previous period. This metric might have a 24.0 percent impact on companies in the same industry and with the same market capitalization. Their revenue efficiency does not make a compelling case for upward pressure on the company's stock price. As a result, their revenue efficiency earned a score of 47. Therefore, their income statement earned a grade of 72.

Parameter Value Change Score
EBITDA 2,533.0 72.8% 94
Total Revenues 7,081.0 26.9% 47
Return on Equity 10.6 592.7% 95
* All values are TTM

The below chart describes South32's performance as reflected on its income statement with respect to its peers. While South32 received a income statement score of 72 , the average of its peers stands on 72.0.

  •  S32
  •  Peers average
Name Market Cap Revenue Momentum Earning Movement Return Factors Momentum Income Statement mc_sort Hidden
BHP Group Limited 208.5B 64 79 79 71 0 1
Fortescue Metals Group Limited 55.0B 58 78 75 67 1 1
Newcrest Mining Limited 19.4B 95 45 48 66 2 1
Mineral Resources Limited 9.2B 94 42 44 63 3 1
Lynas Rare Earths Limited 8.3B 50 91 83 69 4 1
Northern Star Resources Limited 8.2B 48 66 68 56 5 1
IGO Limited 7.8B 98 72 48 78 6 1
BlueScope Steel Limited 7.3B 86 71 66 72 7 1
Pilbara Minerals Limited 6.9B 38 96 96 69 8 1
Allkem Limited 6.9B 46 75 74 61 9 1
OZ Minerals Limited 6.2B 48 82 82 66 10 1
Evolution Mining Limited 4.8B 94 46 43 64 11 1
Alumina Limited 4.4B 87 73 76 79 12 1
OZ Minerals Holdings Pty Ltd 4.0B 39 88 45 61 13 1
Iluka Resources Limited 3.9B 50 62 89 60 14 1
Andean Resources Ltd. 3.7B 37 89 91 97 15 1
Coronado Global Resources Inc. 2.9B 39 98 97 74 16 1
Nickel Industries Limited 2.8B 66 61 55 60 17 1
AVZ Minerals Limited 2.8B 87 63 41 68 18 1
Sims Limited 2.7B 45 90 92 69 19 1
Zimplats Holdings Limited 2.6B 94 50 52 68 20 1
Liontown Resources Limited 2.4B 87 78 91 84 21 1
Perseus Mining Limited 2.3B 42 88 83 65 22 1
Deterra Royalties Limited 2.3B 45 83 66 61 23 1
Sandfire Resources Limited 1.9B 64 73 74 69 24 1
Core Lithium Ltd 1.8B 87 47 81 70 25 1
Chalice Mining Limited 1.5B 99 65 76 81 26 1
Grange Resources Limited 1.5B 74 61 61 64 27 1
Capricorn Metals Ltd 1.3B 37 98 97 69 28 1
West African Resources Limited 1.3B 43 84 63 59 29 1
Silver Lake Resources Limited 1.2B 95 42 41 63 30 1
De Grey Mining Limited 1.2B 44 45 76 47 31 1
Gold Road Resources Limited 1.2B 94 48 49 67 32 1
Lake Resources NL 1.2B 87 62 66 73 33 1
Sayona Mining Limited 1.2B 87 62 66 73 34 1
Regis Resources Limited 1.1B 65 50 45 53 35 1
Piedmont Lithium Inc. 1.1B 87 63 68 77 36 1
5E Advanced Materials Inc. 927.2M 74 37 56 58 37 1
ioneer Ltd 867.9M 87 55 60 69 38 1
Syrah Resources Limited 856.9M 38 67 62 50 39 1
Equigold NL 854.0M 79 44 91 65 40 1
Ramelius Resources Limited 828.4M 94 51 48 68 41 1
Vulcan Energy Resources Limited 826.7M 87 67 84 78 42 1
Jervois Global Limited 813.1M 37 94 93 71 43 1
Mincor Resources NL 808.9M 98 57 59 77 44 1
Imdex Limited 796.9M 77 60 56 56 45 1
Bellevue Gold Limited 722.0M 87 44 83 69 46 1
St Barbara Limited 701.5M 93 56 53 70 47 1
Emerald Resources NL 679.4M 37 96 94 68 48 1
Red 5 Limited 671.6M 95 58 66 75 49 1
Boart Longyear Group Ltd. 651.0M 93 58 67 74 50 1
Mount Gibson Iron Limited 629.5M 99 62 66 78 51 1
Westgold Resources Limited 575.3M 84 58 43 65 52 1
OM Holdings Limited 563.6M 50 96 97 75 53 1
Australian Strategic Materials Ltd 540.9M 91 62 66 74 54 1
Neometals Ltd 531.9M 87 66 56 72 55 1
Adriatic Metals PLC 528.8M 87 62 66 73 56 1
Argosy Minerals Limited 467.8M 87 62 66 73 57 1
Perenti Global Limited 461.4M 73 81 87 78 58 1
Champion Iron Limited 441.1M 95 50 45 71 59 1
Panoramic Resources Limited 420.4M 95 50 62 71 60 1
Hastings Technology Metals Limited 404.8M 90 51 53 68 61 1
Alkane Resources Limited 402.0M 68 74 74 70 62 1
Centaurus Metals Limited 397.2M 87 62 66 73 63 1
Bowen Coking Coal Limited 385.5M 87 62 66 73 64 1
Jupiter Mines Limited 372.2M 96 46 50 81 65 1
Galan Lithium Limited 362.2M 87 62 66 73 66 1
Talga Group Ltd 359.9M 87 40 47 60 67 1
BCI Minerals Limited 349.8M 94 47 56 68 68 1
Metals X Limited 344.8M 94 84 79 87 69 1
Pantoro Limited 330.8M 87 62 66 73 70 1
Aurelia Metals Limited 327.8M 68 58 49 58 71 1
Macmahon Holdings Limited 283.7M 88 51 48 65 72 1
Lotus Resources Limited 277.3M 87 62 66 73 73 1
Firefinch Limited 236.2M 87 62 66 73 74 1
Andromeda Metals Limited 229.8M 87 62 66 73 75 1

Cash Flow Analysis

Two metrics jump up as the most significant positive drivers of the cash flow's strength in South32's recent report: Free Cash flow and Capex. South32's published free cash flow numbers were substantial and reflected management's focus on a healthy change strategy. South32 recorded free cash flow of 0.3, which represents a 86.9% change from the previous report. This parameter coud affect companies in the same industry and market capitalization by up to 4.3%. The company's free cash flow metrics are especially strong compared to its peers. Management seems to balance cash flow management, asset growth, and resource allocations in general. Consequently, their free cash flow movement received a grade of 86. Also, South32's management did a great job this period managing its capital expenditure (CapEx). In terms of the raw numbers, CapEx was reported as -521.0, which represents a 5.3% change from the last period. This remarkable CapEx growth is expected to reinforce upward momentum for its's stock price going forward. Therefore, its CapEx movement component earned a score of 82. On the other hand, Net Cash Flow, jumped out as looking rather underwhelming. South32's produced underwhelming cash flow numbers in this filing. Net cash flow was reported as 736.0, which is a 147.0% change from the last report. South32's net cash flow metrics are especially disappointing relative to their peers. Its net cash flow, therefore, received a grade of 72. Therefore, we scored their cash flow a 78.

Parameter Value Change Score
Net Cashflow 736.0 147.0% 72
Capital Expenditure -521.0 5.3% 82
Asset Turnover 0.5 20.5% 75
Free Cashflow 0.3 86.9% 86
* All values are TTM

The below chart describes South32's performance as reflected on its cash flow with respect to its peers. While South32 received a cash flow score of 78, the average of its peers stands on 68.0.

  •  S32
  •  Peers average
Name Market Cap Cashflow Momentum Free Cashflow Growth Capital Expenditure Growth Assets Factors Momentum Cash Flow mc_sort Hidden
BHP Group Limited 208.5B 70 77 80 71 75 0 1
Fortescue Metals Group Limited 55.0B 74 78 69 74 75 1 1
Newcrest Mining Limited 19.4B 58 48 63 55 57 2 1
Mineral Resources Limited 9.2B 58 69 54 63 61 3 1
Lynas Rare Earths Limited 8.3B 78 63 76 58 70 4 1
Northern Star Resources Limited 8.2B 70 58 54 91 73 5 1
IGO Limited 7.8B 80 73 66 57 72 6 1
BlueScope Steel Limited 7.3B 48 47 56 70 52 7 1
Pilbara Minerals Limited 6.9B 87 97 76 78 86 8 1
Allkem Limited 6.9B 75 77 70 84 82 9 1
OZ Minerals Limited 6.2B 69 97 66 73 78 10 1
Evolution Mining Limited 4.8B 54 49 61 39 50 11 1
Alumina Limited 4.4B 68 74 76 70 72 12 1
OZ Minerals Holdings Pty Ltd 4.0B 49 86 84 39 50 13 1
Iluka Resources Limited 3.9B 75 84 52 74 74 14 1
Andean Resources Ltd. 3.7B 40 55 56 37 41 15 1
Coronado Global Resources Inc. 2.9B 77 86 53 93 81 16 1
Nickel Industries Limited 2.8B 75 63 76 61 70 17 1
AVZ Minerals Limited 2.8B 60 69 76 37 58 18 1
Sims Limited 2.7B 83 98 56 82 82 19 1
Zimplats Holdings Limited 2.6B 75 77 63 44 64 20 1
Liontown Resources Limited 2.4B 59 69 76 51 62 21 1
Perseus Mining Limited 2.3B 69 94 90 83 83 22 1
Deterra Royalties Limited 2.3B 77 88 96 51 75 23 1
Sandfire Resources Limited 1.9B 73 85 63 71 76 24 1
Core Lithium Ltd 1.8B 61 69 76 72 69 25 1
Chalice Mining Limited 1.5B 53 62 84 38 55 26 1
Grange Resources Limited 1.5B 75 79 76 62 73 27 1
Capricorn Metals Ltd 1.3B 81 83 81 79 82 28 1
West African Resources Limited 1.3B 73 84 42 58 66 29 1
Silver Lake Resources Limited 1.2B 63 53 64 47 58 30 1
De Grey Mining Limited 1.2B 80 69 76 61 73 31 1
Gold Road Resources Limited 1.2B 57 57 54 50 56 32 1
Lake Resources NL 1.2B 68 69 76 60 68 33 1
Sayona Mining Limited 1.2B 68 69 76 60 68 34 1
Regis Resources Limited 1.1B 65 76 68 69 69 35 1
Piedmont Lithium Inc. 1.1B 59 62 69 54 60 36 1
5E Advanced Materials Inc. 927.2M 55 48 71 71 61 37 1
ioneer Ltd 867.9M 47 57 54 51 51 38 1
Syrah Resources Limited 856.9M 59 58 43 98 69 39 1
Equigold NL 854.0M 91 69 72 84 87 40 1
Ramelius Resources Limited 828.4M 59 56 81 58 62 41 1
Vulcan Energy Resources Limited 826.7M 67 69 76 69 71 42 1
Jervois Global Limited 813.1M 43 51 38 82 54 43 1
Mincor Resources NL 808.9M 63 63 72 45 57 44 1
Imdex Limited 796.9M 71 72 79 73 74 45 1
Bellevue Gold Limited 722.0M 51 64 56 51 54 46 1
St Barbara Limited 701.5M 54 46 71 55 56 47 1
Emerald Resources NL 679.4M 84 81 80 81 84 48 1
Red 5 Limited 671.6M 68 49 48 59 59 49 1
Boart Longyear Group Ltd. 651.0M 62 74 81 63 68 50 1
Mount Gibson Iron Limited 629.5M 68 69 59 56 64 51 1
Westgold Resources Limited 575.3M 59 69 71 59 63 52 1
OM Holdings Limited 563.6M 75 90 90 75 82 53 1
Australian Strategic Materials Ltd 540.9M 72 69 76 69 72 54 1
Neometals Ltd 531.9M 62 54 71 52 60 55 1
Adriatic Metals PLC 528.8M 68 69 76 60 68 56 1
Argosy Minerals Limited 467.8M 68 69 76 60 68 57 1
Perenti Global Limited 461.4M 61 69 54 78 67 58 1
Champion Iron Limited 441.1M 56 69 51 49 55 59 1
Panoramic Resources Limited 420.4M 69 69 79 54 67 60 1
Hastings Technology Metals Limited 404.8M 65 68 74 57 67 61 1
Alkane Resources Limited 402.0M 69 58 68 71 68 62 1
Centaurus Metals Limited 397.2M 68 69 76 60 68 63 1
Bowen Coking Coal Limited 385.5M 68 69 76 60 68 64 1
Jupiter Mines Limited 372.2M 51 51 84 44 50 65 1
Galan Lithium Limited 362.2M 68 69 76 60 68 66 1
Talga Group Ltd 359.9M 53 48 76 70 62 67 1
BCI Minerals Limited 349.8M 62 54 76 49 60 68 1
Metals X Limited 344.8M 70 81 72 55 68 69 1
Pantoro Limited 330.8M 68 69 76 60 68 70 1
Aurelia Metals Limited 327.8M 72 58 54 49 60 71 1
Macmahon Holdings Limited 283.7M 72 53 46 57 62 72 1
Lotus Resources Limited 277.3M 68 69 76 60 68 73 1
Firefinch Limited 236.2M 68 69 76 60 68 74 1
Andromeda Metals Limited 229.8M 68 69 76 60 68 75 1

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