Strong Financial Performance and …

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This article first appeared on GuruFocus.

  • Underlying EBITDA: Increased by 7% to USD1.9 billion.

  • Underlying Earnings: Increased to USD666 million.

  • Operating Free Cash Flow: Increased by USD272 million.

  • Net Cash Position: Improved by USD885 million to USD123 million.

  • Dividend: Announced a fully franked ordinary dividend of USD117 million or USD3.06 per share.

  • Capital Management Program: USD144 million remaining to be returned to shareholders.

  • Production Growth: 20% increase in copper and 6% increase in aluminum production.

  • Investment: USD517 million invested to grow future base metals production at Hermosa.

  • Shareholder Returns: USD350 million returned to shareholders.

Release Date: August 28, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

  • South32 Ltd (SHTLF) achieved a 20% increase in copper production and a 6% increase in aluminum production, supporting the global energy transition.

  • The company reported a 7% increase in underlying EBITDA to USD 1.9 billion and underlying earnings rose to USD 666 million.

  • Operating free cash flow increased by USD 272 million, and the net cash position improved by USD 885 million to USD 123 million.

  • A fully franked ordinary dividend of USD 117 million was announced, reflecting strong financial performance.

  • South32 Ltd (SHTLF) is focused on maintaining positive operating momentum into FY26, with plans to increase production and reduce costs in various operations.

  • The tragic loss of a colleague at Cerro Matoso highlights ongoing safety challenges despite improvements in safety performance.

  • Uncertainty in electricity supply has led to the cessation of pot relining at Mozal Aluminum, with potential care and maintenance in March 2026.

  • Challenges at Cannington include managing complex underground conditions and the need for cost savings and mine life extension.

  • The Sierra Gorda project faces delays due to the need for joint venture partner approval and technical challenges with thickeners.

  • The Mozal power contract negotiations are at an impasse, with issues around both price and quantity of electricity supply.

Q: Can you discuss the pathway to first metal production from the fourth grinding line at Sierra Gorda and the decision to derate ore production at Cannington? A: Graham Kerr, CEO, explained that the fourth grinding line at Sierra Gorda requires shareholder approval and aims to increase throughput to 58 million tonnes per annum. The project is expected to take three years post-approval, with feasibility and FID expected by the end of the year. Regarding Cannington, the decision to derate ore production is due to complex underground conditions, but there is potential to process lower-grade stockpile material and explore open pit options.

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