13 FEBRUARY 2025
In the first half of the 2025 financial year South32 transformed its portfolio, delivered earnings growth and increased shareholder returns.
We achieved strong operating results across our portfolio in H1 FY25, including increasing aluminium production by 5 per cent and copper production by 16 per cent.
This enabled the Group to capitalise on improved commodity prices, with Underlying EBITDA increasing by 44 per cent to US$1 billion in H1 FY25.
"We delivered a strong start to FY25, off the back of our improved operating performance and transformed portfolio,” said Graham Kerr, South32 Chief Executive Officer.
Demonstrating our strong financial position, track record of returning excess capital to shareholders and positive outlook for the business, we announced a fully-franked interim ordinary dividend of US$154 million (US 3.4 cents per share) and the continuation of our capital management program, with US$171 million remaining to be returned to shareholders.
FY25 production guidance remains unchanged, except for Mozal Aluminium where we have updated production guidance as we continue to mitigate the impact of civil unrest in Mozambique.
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.
At GEMCO, we continued to implement our operational recovery plan following the impacts of Tropical Cyclone Megan, including work to construct a new wharf and the ongoing dewatering program which has enabled a phased restart of mining activities.
Subject to potential impacts from the wet season, we expect export sales to progressively increase over the June quarter.
Portfolio transformation
During the half, we also achieved further milestones in the transformation of our portfolio, highlighted by the completion of the sale of Illawarra Metallurgical Coal.
"The sale of Illawarra Metallurgical Coal has unlocked significant value and streamlined our portfolio to be focused on minerals and metals critical to the world's energy transition,” said Graham.
“The sale has also simplified our business, lowered our sustaining capital intensity and strengthened our balance sheet, enabling us to self-fund our growth in zinc and copper.”
Construction continued at our large-scale, long-life Taylor zinc-lead-silver deposit, where we have commenced shaft sinking. Taylor is the first phase of Hermosa’s regional scale opportunity, and we continue to explore the potential to unlock value from future growth options, including Clark and Peake.
Recent drilling at the Peake deposit has returned our best result to date of further high-grade copper intercepts, including 137 metres at 1.79 per cent copper equivalent.
We are also investing to expand our portfolio of growth options in copper. During the period, we acquired a 19.9 per cent interest in American Eagle Gold Corp., which holds an option to acquire 100 per cent interest in the NAK copper exploration prospect in Canada and entered into a strategic alliance with Noronex Limited to explore copper in the Kalahari copper belt in Namibia.