While South32 is enduring an operational rough patch, there were some highlights to come from the company’s 2023–24 financial year (FY24).
Numbers were down across the board for South32, with a loss after tax of $US205 million in FY24 and 57 per cent drop in its final dividend to $US0.035.
The company’s revenue from operations was $US5.48 billion, with an underlying EBITDA of $US1.8 billion.
South32 declared a $US554 million impairment for its Worsley alumina operation, which has felt the pinch of stronger environmental regulations from the WA Government, with downgraded production at the mine.
A $US264 million impairment was also declared for South32’s Cerro Matoso nickel operation in light of the current nickel price environment.
The company enjoyed impairment reversals for the Illawarra Metallurgical Coal (-$US197 million) operation and the Eagle Downs metallurgical coal project (-$US17 million) following the sale of those assets.
Production was either unchanged or down across South32’s operations, but the company saw a 10 per cent zinc production uptick from the Cannington operation in Queensland.
A production record was also achieved at South32’s South Africa Manganese operation, with a three per cent increase leading to 2.2 million tonnes produced in FY24.
South32 chief executive officer Graham Kerr highlighted the company’s FY24 achievements.
“Reflecting our strengthened financial position and disciplined approach to capital allocation, the board has resolved to pay a $US140 million fully-franked ordinary dividend in respect of H2 FY24,” Kerr said.
“The board has also expanded our capital management program by $US200 million, to be returned via an on-market share buy-back, following the sale of Illawarra Metallurgical Coal.”
“During the year, we further transformed our portfolio, with the approval to develop our Taylor zinc-lead-silver deposit at our Hermosa project in Arizona and the sale of Illawarra Metallurgical Coal which is expected to complete later today.
“The sale of Illawarra Metallurgical Coal simplifies our portfolio, strengthens our balance sheet and unlocks capital to invest in our development projects and growth options in base metals.”
Kerr said South32 is focused on growing copper production at its Sierra Gorda copper mine in Chile, and investing in the development of the Taylor deposit in Arizona.
As of close on Thursday, South32’s share price of $3.10 per share is down eight per cent year-to-date.
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