In This Article:
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Underlying EBITDA: Increased by 44% to USD 1 billion.
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Underlying Earnings: Increased to USD 375 million.
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Cash Flow from Operations: Improved by USD 361 million.
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Net Debt: Reduced by USD 715 million to USD 47 million.
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Interim Ordinary Dividend: USD 154 million at USD 0.034 per share.
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Capital Management Program: USD 171 million remaining to be returned to shareholders.
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Aluminum Production: Increased by 5%.
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Copper Equivalent Production: Increased by 21% at Sierra Gorda.
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Illawarra Metallurgical Coal Sale: Sold for up to USD 1.65 billion.
Release Date: February 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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South32 Ltd (SHTLF) reported a 44% increase in underlying EBITDA to USD 1 billion, showcasing strong financial performance.
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The company achieved a 21% increase in copper equivalent production at Sierra Gorda, indicating improved operational efficiency.
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South32 Ltd (SHTLF) reduced net debt by USD 715 million to USD 47 million, emphasizing its focus on maintaining a strong balance sheet.
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The company announced a fully franked interim ordinary dividend of USD 154 million, reflecting its commitment to shareholder returns.
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Environmental approvals for the Worsley Mine Development Project were received, ensuring sustained production until at least FY '36.
Negative Points
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A tragic incident at Cerro Matoso resulted in the loss of a colleague, highlighting ongoing safety challenges.
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Production guidance for Mozal Aluminium was updated due to civil unrest in Mozambique, indicating operational disruptions.
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The company faces potential impacts from the wet season on GEMCO's phased restart of mining activities.
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South32 Ltd (SHTLF) increased its cost guidance for Worsley by USD 5 per tonne due to revised conditions, impacting profitability.
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The company has a limited exposure to the US market, with only 9% of group revenue coming from the region, which could limit growth opportunities.
Q & A Highlights
Q: Can you remind us of your exposure to the US market and provide insights on the global aluminum market following proposed US tariffs? A: Graham Kerr, CEO: Approximately 9% of our group revenue comes from the US, with 5% from our ferronickel book and 16% from aluminum. The US tariffs could impact trade flows, but without significant changes in domestic production, the effect on our business may be limited. The US imports about 80% of its aluminum demand from Canada, and tariffs might lead to higher premiums in the US market.