South32 saw its outlook revised to ‘neutral’ by Goldman Sachs, with a short-term share price target set at $2.90. This target suggests an underlying growth potential of nearly 7 per cent. South32 is a diversified mining and metals company producing commodities, including aluminium, coal, manganese, nickel, silver, lead, and zinc from operations in Australia, Southern Africa and South America. The company aims to create value by optimising its existing operations and developing new projects.
On Monday, South32 shares experienced a slight dip of 0.6 per cent, settling at $3.10. This followed the announcement of a binding agreement to sell its Cerro Matoso mine. The sale is to a subsidiary of CoreX.
The decision to divest the Cerro Matoso mine came after a comprehensive review of structural shifts within the nickel market. The sale marks a strategic move for South32 as it continues to refine its portfolio and focus on core assets, aligning with its long-term growth strategy and capital management objectives.
