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S32, SOUTH32 LIMITED
blacksheep
post Posted: Sep 26 2018, 08:03 PM
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Alumina, South32, BHP among top picks for Macquarie

QUOTE
"South32 was the main benefactor from the changes to our commodity price forecasts due to its exposure to alumina spot sales," Macquarie said in its report.

"The stock continues to offer more upside to our base case using spot prices compared to BHP and Rio Tinto. South32's earnings rise significantly due to the upgrades to alumina more than offsetting weaker base metals and silver prices. Our FY19, FY20 and FY21 earnings rise 17 per cent, 29 per cent and 26 per cent."

https://www.afr.com/markets/equity-markets/...20180926-h15vyx

Stockhead article on Macquarie's commodity price forecasts contains a couple of charts and can be viewed here->https://stockhead.com.au/resources/which-way-will-the-key-commodities-go-in-the-next-two-years-in-one-chart/
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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington

Said 'Thanks' for this post: early birds  
 
blacksheep
post Posted: Sep 22 2018, 07:39 PM
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QUOTE
Colombia’s Constitutional Court has sided with Australia’s South32 (ASX, LON, JSE:S32), saving the company from paying $400 million in compensation for alleged damages to local communities caused by waste emissions from its Cerro Matoso nickel mine and smelter.

The final ruling, local paper La Razón reported, was based on independent medical examinations ordered by the court, which concluded there was not enough evidence to link community diseases to the product of the mine operation.

But the court upheld part of a previous ruling requiring the company to re-apply for its environmental licensing, after carrying a community consultation process.


read more - http://www.mining.com/colombian-court-hand...nt-pay-damages/





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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
early birds
post Posted: Aug 24 2018, 10:09 AM
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In Reply To: nipper's post @ Aug 23 2018, 10:01 AM

BHP spin off South32 has trimmed its final dividend after lifting net profit 8% to $US1.33 billion ($A1.81 billion) in the year to June.

South32 will pay a fully-franked final dividend of 6.2 US cents a share, down from 6.4 US cents a year ago. But shareholders have been promised a $US300 million capital return in the current financial year (probably wth the interim results next February).

However the total payout for the year will be higher with an interim dividend of 4.3 US cents paid for the half year ended 31 December 2017, and a special dividend of US 3.0 US cents a share, making 13.5 cents for the year.

Underlying earnings for the year to June 30 were up 16% to $US1.33 billion, while revenue was up 9% to $US7.55 billion.

Shareholders liked the news and chased the shares higher and they were up 5.6% at $3.45 South32’s CEO, Graham Kerr, said the company hit production records at its Australian manganese operation and at Mozal Aluminium.

"We achieved record production at Australia Manganese and Mozal Aluminium, delivered a 10 per cent increase in total manganese ore production and a 20 per cent increase in payable nickel production at Cerro Matoso. At the same time our fully integrated aluminium supply chain benefitted from tight markets by virtue of our predominantly index-linked 3.2 million tonne long alumina position.

He said the company was now operating a more simplified group, thanks to the 2017 decision to manage South Africa Energy Coal as a stand-alone business.

This move is expected to deliver a $US50 million cost saving from fiscal 2020 onwards.

“Looking ahead, we are well positioned. Group production is expected to rise by 5 per cent in the 2019 financial year, further productivity gains and functional cost savings are expected to mitigate industry wide inflationary pressure and we have added high quality development options to our portfolio,” he said.

The company said yesterday that the higher profit “was driven by stronger commodity prices, which were only partially offset by a 7% decrease in sales volumes and broader inflationary pressure, most notably in our aluminium supply chain.”

"Free cash flow from operations, including net distributions from equity accounted investments, of US$1.4B and an increase in our net cash balance to US$2.0B allowed us to acquire Arizona Mining and announce the acquisition of a 50% interest in the Eagle Downs metallurgical coal project with fully-funded cash offers amounting to US$1.4B.

Directors said the key factors that impacted financial performance included:

"A US$349 million increase in the contribution of our alumina refineries to Underlying EBITDA and a 10% increase in their combined Operating margin to 40% as we benefited from our long alumina position and our exposure to market prices for the vast majority of production. A 10% increase in total manganese ore production, including record production at Australia Manganese, as we continued to respond to strong demand and pricing; Record production at Mozal Aluminium, as the smelter continued to test its technical capacity;

A 20% increase in payable nickel production at Cerro Matoso as ore grades improved temporarily following the ramp up of La Esmeralda; A 40% decrease in Illawarra Metallurgical Coal production as the Appin colliery was suspended for much of H1 FY18 as we sought to re-establish minimum performance criteria, and Strong cost control as the majority of our upstream operations achieved Operating unit cost guidance, despite broader inflationary pressure.

"Our strong financial position allowed us to return US$946M to shareholders in respect of the period. This included payment of a US$221M fully franked interim dividend and declaration of a US$317M fully franked final dividend in accordance with our dividend policy, which seeks to return a minimum 40% of Underlying earnings in each six month period.

"A further US$408M was returned to shareholders as part of our ongoing capital management program, with US$254M allocated to our on-market share buy-back program and US$154M returned in the form of a special dividend. Our capital management program was increased by US$250M to US$1B during FY18 with the remaining US$380M balance expected to be returned to shareholders in FY19.
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good for the really longer term imho




Said 'Thanks' for this post: nipper  abner29  
 
early birds
post Posted: Aug 23 2018, 11:04 AM
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In Reply To: nipper's post @ Aug 23 2018, 10:01 AM

really good reaction nipper

still had my little stake for the really longer term. i like the management team and the assets they have!!



 
nipper
post Posted: Aug 23 2018, 10:01 AM
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In Reply To: nipper's post @ Aug 23 2018, 09:47 AM

QUOTE
strong commodity prices had a bigger impact than rising production costs.
- as good as it gets (for Tier 2)?



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Aug 23 2018, 09:47 AM
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QUOTE
South32 said its full-year net profit rose 8 per cent to $US1.332 billion ($1.81 billion) from $US1.231 billion in financial year 2017.

The Perth-based miner said it will raise production by 5 per cent over the next year after posting a $US1.32 billion underlying profit that was better than analysts had expected.

The result was 16 per cent higher than last year's profit, as strong commodity prices had a bigger impact than rising production costs.

Revenue climbed 9 per cent to $US7.549 billion in the year ended June 30 from $US6.95 billion a year earlier.

Shareholders will receive a fully franked final dividend of US6.2¢ per share on October 11. That takes total dividends for fiscal 2018 to US13.5¢. The full year payout was slightly below the US13.8¢ expected by analysts.




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: early birds  
 


blacksheep
post Posted: Jun 18 2018, 12:23 PM
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QUOTE
South32 has made a $US1.3 billion ($A1.75 billion) bid to take sole ownership of US-focused Arizona Mining.

The Australian business, which already owns 17 per cent of the zinc, lead and silver miner, says the directors of Arizona Mining will unanimously recommend shareholders accept the all-cash offer.

South32 chief executive, Graham Kerr called Arizona Mining's Hermosa Project in Santa Cruz County, Arizona, "one of the most exciting base metal projects in the industry".

https://thewest.com.au/business/mining/sout...g-ng-b88869454z
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--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
early birds
post Posted: Feb 16 2018, 10:08 AM
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South32 will take an axe to its structure (and of course chop costs) after revealing it will boost returns to shareholders by more than previously promised this year, news that curiously saw the shares fall in what was a positive day for the wider market.

The results look to have fallen short of market expectations, with shares down 5.4% to $3.5 (mostly in the afternoon session)on a day when the wider market bounced strongly higher.

But really the shares fell because silly investors and analysts panicked at the new of cost rises (which South32 has been warning of noew for 9 months), and ignored the cost cutting move to revamp its structure.

It seems there is no pleasing the greedy among investors and analysts. Shareholders will be paid 7.3 cents a share in dividends, with 3 cents of that being a special dividend that will be 81% franked. That payment in effect more than doubled the interim payout to shareholders.

On top of this shareholders will get a bigger buyback over the rest of 2018.

South32 had been expected to return $US750 million to shareholders by October 10, this year, but said this morning that target would be raised to $US1 billion across higher dividends and share buybacks.

The company can afford that - it had net cash of $US1.4 billion at December 31, which was more than analysts had expected.

And yet the shares fell noticeably.

The revamp will see the company abandon its previous regional structure once the floatation of its South African coal assets is completed.

South32 said it would abolish the regional model in a bid to further streamline its workforce.

"Removing our regional structures will allow us to have more direct lines of communication, streamline our processes and further reduce duplication," the company said. The cost savings were left unmentioned.

The company posted a first-half statutory profit of $US543 million ($A685 million), down 12t% from the corresponding period last year when it had included a gain on non-trading derivative instruments.

Ignoring that, underlying earnings for the six months to December 31 were up 14% to $US544 million, as the miner benefited from stronger commodity prices.

Chief executive Graham Kerr said the company was well-positioned with cash on its books and volumes expected to increase marginally in the second-half.

“After a challenging start to the 2018 financial year, production for the majority of our operations is tracking on or ahead of schedule," he said yesterday.

South32 said higher realised prices for its commodities increased revenue by $US273 million, despite a significant reduction in coking coal and metal production at Illawarra Metallurgical Coal in NSW and Cannington operations in Queensland.

South32 has warned recently that cost pressures were rising in the resources sector, and the company confirmed that unit costs would be higher than previously expected at its Western Australian alumina, Northern Territory manganese, Illawarra coal, Cannington base metals, Colombian nickel and South African coal operations.

That’s why the shares fell - fear of the unknown rather than the expected surge in shareholder returns this year.
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got up little too late this morning missed opening low at 3.10ish . weirdsmiley.gif


Said 'Thanks' for this post: User  nipper  
 
blacksheep
post Posted: Jan 17 2018, 01:52 PM
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South32 ups FY manganese outlook
Peter Trute
Wednesday, 17 January 2018 11:17AM
QUOTE
Diversified miner South32 has boosted its expectations for South Africa manganese production and maintained full-year guidance for all other products after a solid first-half performance.

South32 chief executive Graham Kerr says strong demand and good performance for the company's South African manganese operations have prompted the company to raise its production forecast by eight per cent.

Meanwhile, total first-half manganese production, 2,830 kwmt, was up 16 per cent on the first half of 2016/17.

"A record quarter of performance and supportive market dynamics have allowed us to increase FY18 production guidance at South Africa Manganese by eight per cent, while production guidance for all other operations remains unchanged," Mr Kerr said.

The company repeated warnings that US dollar weakness and higher input commodity prices were impacting its costs, particularly for its smelting and refining operations.

Updated cost guidance will be given when the company reports its half-year results

The company's share of alumina production for the half was 2.54 million tonnes, down three per cent on the prior corresponding period, while aluminium production was one per cent higher at 495,000 tonnes.

Energy coal production fell 11 per cent in the half-year to 14 million tonnes, with production in South Africa down and domestic sales also lower.

Metalllurgical coal production was down 55 per cent on the prior half at 1.28 million tonnes, largely due to an extended outage at South32's Appin colliery in NSW and a longwall passing through a fault zone at the Dendrobium mine.

South32 shares were down seven cents, or 1.8 per cent, to $3.91 at 1115 AEDT in a lower Australian market..


https://thewest.com.au/business/mining/sout...ok-ng-s-1819993
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--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington

Said 'Thanks' for this post: early birds  
 
early birds
post Posted: Jan 9 2018, 10:32 AM
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In Reply To: early birds's post @ Dec 6 2017, 09:07 AM

3.69 atm
they said it is up om momentum,
but to me as commodity price goes , it can hit 4 mark .
i hold mine.



 
 


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