Company Reports

At South32's upcoming 2026 Annual General Meeting on Oct. 15, shareholders will be asked to approve the sale of its bauxite, alumina, and aluminum assets (except Mozal Aluminum) to Alcoa via an ordinary resolution.

Strong silver and copper prices drove the 55% increase in South32's fiscal 2026 adjusted net profit after tax on a year ago to USD 1 billion or USD 23 cps. It declared a USD 5.4 cps fully franked final dividend for a 41% payout ratio in line with its minimum 40% target, more than double a year ago.

The copper price is broadly unchanged on last quarter, trading around USD 6 per pound, near historical highs. The iron ore price continues to trade in a narrow range and at around USD 100 per metric ton is also flat as Chinese imports remain strong despite falling steel production.

South32 sold its bauxite, alumina, and aluminum assets (except Mozal Aluminium) to Alcoa for up to USD 5.6 billion, including debt assumed and contingent consideration. Alcoa is entitled to the assets' cash flow from April 1, 2026, with the deal set to close in the second half of fiscal 2027.

South32 is a diversified midtier global mining company spun out from BHP in 2015. It has commodity diversification, and its operations are generally in the bottom half of their industry cost curves. However, they generally lack a maintainable competitive advantage given relatively high capital intensity, a lack of barriers to entry, and in some cases, relatively short reserve life.

Freeport-McMoRan's first-quarter adjusted NPAT rose 130%, to USD 830 million or USD 0.57 per share, as stronger copper and gold prices more than offset reduced sales volumes. But Grasberg is now likely to ramp up production more slowly than expected after September 2025's tragic mud rush incident.

South32 is a diversified midtier global mining company spun out from BHP in 2015. It has commodity diversification, and its operations are generally in the bottom half of their industry cost curves. However, they generally lack a maintainable competitive advantage given relatively high capital intensity, a lack of barriers to entry, and in some cases, relatively short reserve life.

South32's first-half fiscal 2026 adjusted NPAT rose 16% on a year ago, to USD 440 million or USD 9.7 cents per share, with higher base and precious metals prices the main driver. The USD 3.9 cps interim fully franked dividend—in line with its target minimum 40% payout ratio—is also up 15%.

South32 is a diversified midtier global mining company spun out from BHP in 2015. It has commodity diversification, and its operations are generally in the bottom half of their industry cost curves. However, they generally lack a maintainable competitive advantage given relatively high capital intensity, a lack of barriers to entry, and in some cases, relatively short reserve life.

Base metals prices have risen strongly since last quarter, with copper and aluminum driven by supply concerns and optimism over rising demand for use in decarbonization and electrification. Metallurgical coal and rare earths prices are also higher, but thermal coal and minerals sands are weaker.

South32 is a diversified midtier global mining company spun out from BHP in 2015. It has commodity diversification, and its operations are generally in the bottom half of their industry cost curves. However, they generally lack maintainable competitive advantage given relatively high capital intensity, a lack of barriers to entry, and in some cases, relatively short reserve life.

The iron ore price has shrugged off re-escalation of the trade war between the United States and China, though copper is down moderately in response. Both are up about 10% since the last quarterly update of our assumed commodity prices.

South32 is a diversified midtier global mining company spun out from BHP in 2015. It has commodity diversification, and its operations are generally in the bottom half of their industry cost curves. However, they generally lack maintainable competitive advantage given relatively high capital intensity, a lack of barriers to entry, and in some cases, relatively short reserve life.

South32's fiscal 2025 NPAT of USD 670 million or USD 14.7 cents per share is up 75% on the prior year. Higher prices more than offset lower Australian manganese earnings and increased unit cash costs. It declared a fully franked final dividend of USD 2.6 cps and will continue buying back shares.

South32 is a diversified midtier global mining company spun out from BHP in 2015. It has commodity diversification, and its operations are generally in the bottom half of their industry cost curves. However, they generally lack maintainable competitive advantage given relatively high capital intensity, a lack of barriers to entry, and in some cases, relatively short reserve life.

Shares of our iron ore, base metals, coal, and mineral sands miners have risen on last quarter after the shock of April 2, 2025 tariffs. With China driving demand for most commodities, investors appear to have concluded that tariffs wont materially weaken growth and commodity demand.

South32 is a diversified midtier global mining company spun out from BHP in 2015. It has commodity diversification, and its operations are generally in the bottom half of their industry cost curves. However, they generally lack maintainable competitive advantage given relatively high capital intensity, a lack of barriers to entry, and in some cases, relatively short reserve life.

Demand from China has been the main driver of rising commodity prices in the past two decades. More recently, gold is close to historical highs on safe-haven demand. However, driven by weak China steel end-user demand and slower global growth, most other commodity prices have fallen.

Gold is higher in the March quarter as worries over tariffs affecting economic growth see a flight to safety. Despite likely slower global growth, copper is up as investors try to get ahead of potential tariffs on US copper imports. Iron ore is flat, while metallurgical and thermal coal are down.

Higher US tariffs could lead to slower economic growth and recession, reducing near-term commodity demand. Shares of our nongold mining coverage are materially lower on last quarter, led by base metals and coal miners.