South32 has reported a strong December half, with underlying EBITDA reaching $US1.1 billion. This figure surpassed RBC Capital Markets’ estimates by 11 per cent and consensus estimates by 7 per cent, according to RBC analyst Kaan Peker. The company is a diversified global metals and mining company with a portfolio of high-quality operations and development projects around the world. South32 produces commodities including aluminium, metallurgical coal, copper, manganese, nickel, silver, and zinc.
Earnings reached $US435 million, with earnings per share at US9.7¢. These results were significantly bolstered by the performance of Sierra Gorda, Cannington, and Australian Manganese, all of which exceeded forecasts. The interim dividend was also a positive surprise, coming in at US3.9¢, which was higher than anticipated.
Looking ahead, capital expenditure guidance for the financial year remains unchanged. Development milestones at both the Hermosa and Sierra Gorda projects are progressing as planned, maintaining the company’s trajectory. Peker noted that strong pricing for copper, silver, and manganese was a key factor, underpinning operational leverage across the company’s key assets.
RBC Capital Markets is maintaining its Outperform rating for South32, with a price target of $4.50. This rating reflects confidence in the company’s ability to deliver results in the 2026 financial year, despite a minor variance in debt levels. The analyst’s report suggests a positive outlook for South32, driven by strong operational performance and favourable commodity prices.
