South32 Limited (ASX:S32) Exceeds FY25 Production Guidance and Returns US$350M to Shareholders
Operational Achievements
South32 Limited reported a strong quarter, achieving 102% of its FY25 production guidance. Group sales volumes increased by 21%, supporting a working capital unwind of approximately US$225 million in H2 FY25. Aluminium production rose by 6%, while Sierra Gorda’s copper equivalent production grew by 20%, exceeding guidance by 4%. Manganese production exceeded FY25 production guidance by 9%.
Strategic Divestments and Investments
The company continued to streamline its portfolio, completing the sale of Illawarra Metallurgical Coal and entering a binding agreement to divest Cerro Matoso. Additionally, South32 invested US$517 million in the Hermosa project, achieving key milestones at the Taylor zinc-lead-silver project, including the main shaft sink and construction activities for the process plant.
Shareholder Returns
South32 returned US$350 million to shareholders in FY25 through fully-franked ordinary dividends and an on-market share buy-back. The capital management program is 94% complete, with US$144 million remaining to be returned before its extension or expiry on 12 September 2025.
Executive Comments
Chief Executive Officer, Graham Kerr, stated, “We delivered another strong quarter of operating performance, exceeding the Group’s FY25 production guidance, driven by annual production growth of 20% in copper and 6% in aluminium.”
Mr Kerr continued, “With operating momentum, an upgraded portfolio, and a strong balance sheet, we are well positioned to deliver growth and returns.”
Motley Fool contributor Lauren Surplice has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.
