South32 Share Price Outlook Following Latest Miner Results

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  • South32 published FY22 earnings this week.
  • It revealed a massive profit and dividend surge.
  • The management revealed some optimistic remarks about the miner’s stance.

The South32 Ltd stock price maintained a steady surge over the past few weeks. The shares have gained over 15% within the previous month and increased by approximately 25% since July 19, 2022. Meanwhile, the firm announced its financial year 2022 results early this week, unveiling multiple fascinating stats.

Let’s check those figures while remembering that the share market fluctuates quickly. The market and investors are always forward-looking. That means South32’s future expectations might be more influential on its valuation.

FY22 Earnings Summary

South32 announced its 12-month financial results on June 30, 2022. Revenue increased by 69% to $9.27B, whereas underlying earnings gained 432% to $2.6B. Underlying EBITDA soared 156% to $4.76B. The statutory NPAT revived from FY21’s $195M loss to FY22’s $2.67 billion.

Its ordinary dividend increased by 363% to $22.7, whereas the special one surged 50% to three cents per share. South32 attributed its financial results to steady operations and the latest portfolio improvements, which allowed it to leverage the massive commodity price tailwind.

The ASX mining stock highlighted amplified Worsley Alumina production, whereas Mozal Aluminium and Hillside Aluminium still test max technical capacity.

IT exceeded production guidance at Cannington as it transformed into new mine configurations, introducing high-grade material. Moreover, it attains a 22% uptick in nickel production at Cerro Matoso.

The Future

Sout32 enjoys substantial progress in transforming its business portfolio. The objective is to magnify its exposure to metals essential for the low-carbon print future.

It introduced cooper to its profile via a 45% interest acquisition in Sierra Gorda while doubling low-carbon aluminum capacity with more shareholding within the hydro-driven Mozal Aluminium smelter. Moreover, it restarted its 100% renewable-operated Brazil aluminum shelter.

Meanwhile, South32 expects a 14% group copper manufacturing in the financial year 2023. It anticipates other productions to mimic FY22 numbers. Considering costs, it confirmed moves to continue pursuing cost efficiencies after successfully delivering over $50 million in yearly savings in the group.

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